Global Warehousing Industry to be Valued at $326 Billion by 2024
The global warehouse market is expected to grow further in 2021, as the demand for such services is slowly and steadily rising.
The global warehousing market was valued at approx. $245 Billion in 2020, and it is forecasted to grow at a CAGR of 7 percent between 2020 and 2024 to touch the $326 billion mark by the end of 2024. There is high warehouse market maturity in regions like Europe, North America, and some parts of APAC like Australia and Singapore because of advanced technology appropriation and steady supply climate.
Moreover, regions like India and China are predicted to be the future growth-oriented markets in the warehousing industry due to the surge in manufacturing facilities, container ports, and the growth of the e-commerce industry. In India, the e-commerce industry is expected to reach from $97 billion in 2020 to $143 billion in 2024.
Talking about the market and industry trends for warehousing, Europe and North America are considered superior warehousing suppliers due to their well-equipped technology framework and umpteen arrays of services that they offer to their users. On the other hand, growing countries like Brazil, India, China, and Japan witness medium maturity because of 3PL warehouses and poor enactment of technology.
The most prominent warehouse management functions include AGV, AGV, pick to light and voice coordinated picking, which is rising as most stockroom occupiers are obliging their conveyance places (DC) towards quicker reaction times and space-saving. To enhance service offerings, the warehouse service providers are also offering value-added solutions, including packaging, labeling, and palletizing.
COVID-19 has impacted the warehouse market. Warehouse market has been impacted in Brazil due to increasing cases. In the Asia-Pacific region, the problem of labor shortage has arisen due to lockdown norms and mobility restrictions. Europe has witnessed a notable rise in the demand for warehouses storing indispensable items and cold storage facilities. Indeed, the U.S. and Canada have got affected due to COVID-19 but, due to their robust framework and crisis management policy, the effect will only be temporary.
India, China, Bangladesh, and some regions in Asia are facing partial lockdown and night curfew that have a negative impact on the warehouse market. Whereas, UAE is facing limited restrictions. Few Middle-East countries are under lockdown. The same goes for New Zealand and Australia, where operations have gotten renewed since the COVID-19. Due to the outcomes of exchange and duty boundaries between the U.S., and China, worldwide manufacturing production rose by 3.6 percent a year ago somewhat lower than the earlier year. With the growth of the e-commerce industry, the demand for warehouse space has beheld a boost especially in developing countries like India.
According to warehouse market analysis of regional outlook, warehouse market size stands at $77 billion with an anticipated growth rate of 7-8 percent annually during 2020-2023 period. Latam's market size holds at $12 billion with a growth rate of around 6-7 percent annually. On the other hand, Europe's market size is $47 billion, with an annual growth of 2-4 percent. MEA stands at $12 billion at the rate of 6–7 percent annually. APAC’s market is valued at $97 billion with the highest growth rate of 9–10 percent annually.
The key warehousing intelligence market trends include drop shipping that will increase substantially in the coming years that can enhance profit margin. Now time to delivery is considered the main unique selling proposition (USP) rather than prices.
- The tight labor market in the U.S. and Europe has become the dominant provocation for a warehouse operations manager and it directly affects warehouse market price at large.
- CEVA Logistics in North Asia is not facing any problems or restrictions in its operation. Hence, disruptions can get minimized to a great extent.
- There has been a surge in demand for grocery items and other essential goods in various parts of the world due to COVID-19. It has led to the rise in warehousing services. The warehousing companies are trying to keep pace with such high demand.
- To cater to the growing demand for warehousing services effectively, the logistics industry has embraced the outlook online platform for taking orders.
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