Warehousing Services Market Intelligence

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  • Supplier Watchlist for 3 suppliers*
  • Supplier Shortlisting Tool*

With this purchase you will be subscribed for a 12-month PRO membership to the upcoming all new Beroe LiVE (launching in Q3, 2020)

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*These features will be unlocked on the new Beroe LiVE when it launches (Q3, 2020)

Report Coverage

  • Global Warehousing Services Industry Trends
  • Supplier Trends and Insights
  • Mergers and Acquisitions
  • Global Supplier List and Service Capabilities

Market Size

Global Market Size

$245 Bn

CAGR

7 Percent

Market Size NA

$77 Bn

Table of contents

  1. Warehousing Services Executive Summary
  2. Global Warehousing Industry Outlook
  3. Warehousing Industry Supply Market Outlook
  4. COVID 19 – Update and Impact

 

  1. Market Analysis
  2. Global Market Maturity
  3. Global Industry Trends
  4. Global Drivers and Constraints
  5. Regional Market Analysis
  6. Opportunities and Challenges
  7. Porter’s for Developed Regions
  8. Porter’s for Emerging Regions

 

  1. Supplier Performance Assessment
  2. Warehouse Suppliers:Trends and Insights
  3. Mergers and Acquisitions

 

  1. Cost and Pricing Analysis
  2. Pricing Models: Comparative Analysis
  3. Pricing Models: Benefits
  4. Cost Structure: North America, LATAM, Europe, and APAC
  5. Innovation Framework
  6. Sustainability Initiatives

 

  1. Procurement Best Practices
  2. Sourcing Models
  3. Sourcing Models: Pros and Cons
  4. Case Studies
  5. Contracts Overview
  6. Service Level Agreements
  7. Key Performance Indicators
  8. Purchasing Process: RFP/RFI Questionnaire

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Global Warehousing Services Industry Outlook

  • The global warehousing market was expected to be valued at approx. $245 Billion in 2020, and it is forecasted to grow at a CAGR of 7 percent between 2020 and 2024, to reach around $326 Billion by the end of 2024.
  • Regions, such as Europe, North America, and some parts of APAC, including Australia and Singapore, have high market maturity, due to tight supply conditions and higher technology adoption.
  • Parts of APAC, such as India and China, are expected to be the future growth driving markets for the warehousing industry, owing to the forecasted increase in manufacturing facilities, high number of top container ports, and the expected robust growth in the e-commerce sector, which will grow from $97 billion in 2020 to $143 billion in 2024.
  • There are three levels of market maturity in the industry and this report categorizes the entire warehouse market into – High Market Maturity, Medium Market, and Low Market Maturity countries.

Brexit - Impact on Warehousing

Rise in warehouse operating cost

Impact Area: Warehouses operating in the UK

  • Post the exit from the EU, the UK is expected to see a rise in wage rates. The rise in wage rates was a major social plank during the referendum.
  • A mandatory wage rise will impact labor costs, which account for close to 40-60 percent of the total warehouse costs.
  • Any rise in wage rates would directly impact the warehouse costs, which could, in turn, lead to a rise in prices.

Action Item:

  • Clients need to look at price absorption clauses to shield them from any potential rise in prices.

 

Impact on Distribution Centers

Impact Area: Distribution centers in the UK and Europe

  • The UK has comparatively high rental rates coupled with a less strategic location in Europe. Hence its location attractiveness for centralized European Distribution Centers (EDC) will reduce in the near future.
  • Companies that currently have Centralized European Distribution Centers (EDC) in European Union will have a minimal impact due to the BREXIT as most of them are located across countries like Germany, France and Benelux.

Global Warehousing Services Market Maturity

  • Europe and North America show higher service provider maturity due to high technology adoption levels and a wider range of services offered. Emerging countries, such as Brazil, India, China, and Japan, show low to medium maturity due to lower 3PL penetration rates and lower adoption of warehouse technology.

 

Global Warehousing Services Industry Trends

  • Adoption of technology in warehouse management functions, such as AGV, pick to light, and voice-directed picking, is emerging, as most warehouse occupiers are accommodating their distribution centers (DC) towards faster response times and space-saving, efficient systems with minimal labor requirements.
  • Increasing service levels, such as same-day delivery and e-commerce, are leading retailers to invest more in warehouse space.
  • Adoption and shift towards a centralized distribution model result in an increased demand scenario for modern Class A warehouses across the globe.
  • Currently, warehouse service providers are offering value-added services, such as labeling, packaging, and palletizing, to enhance and complement service offerings.

Warehousing Services Drivers and Constraints

Drivers 

Economy:

  • Global manufacturing production rose almost 2.4 percent in 2016; it picked up pace and grew in the remaining months, leading to more demand for warehousing facilities in the subsequent years.
  • The GDP grew by approximately 3.5 percent in 2016 and 3.8 percent in 2017, thus, creating a positive economic environment, leading to an increase in demand for warehouses in the subsequent years.

Growing Retail and E-commerce Industry:

  • The growth of e-commerce has led to an increase in demand for warehouse space from 3PLs across the globe and will grow at a faster pace in emerging economies, such as India and China.
  • The expansion of retail chains and their dynamic growth is expected to push the demand for warehouses in the upcoming years.
  • Disposable income, growing at 2.3 percent among the general public, has been creating demand for consumer goods along with increased imports and exports. The growth of retail and FMCG goods has been the main driver for the industrial warehouse industry.

Constraints

  • Across emerging regions, the availability of Class A warehouses is limited to only a few countries, such as India and China. Hence, it hinders the adoption of higher technology levels as well as best-in-class KPIs.
  • The unavailability of skilled labor in regions such as North America and Europe, along with less expertise in the warehousing field, keeps wages relatively high, which impacts overall operating costs.

Cost and Pricing Analysis

The Cost and Pricing Analysis of the different pricing models and the advantages and disadvantages of each are explained in the report. The difference in cost and pricing across geographies are described. The developed and developing regions in the warehousing industry supply market are studied individually.

Procurement Best Practices

The report details the procurement practices, sourcing models, and the types of contracts and agreements that are used in the warehousing industry. The pros and cons of the different sourcing models are also detailed. The key performance indicators of the global warehousing industry are described.

Why You Should Buy This Report

The report consists of the analysis of the global warehousing market size, global warehousing market price trends, demand-supply analysis, and trade dynamics of global and regional markets.  The report also details all the historical trends in the global warehousing market price and the reasons for the same. The different geographic regions and their inner dynamics such as price trends, logistics services, market dynamics as well as market maturity are given.

The major countries that offer large scale global transport and warehousing facilities and their share are also studied. If there is anything unique to differentiate one region from the other in the global logistics & warehousing services market, they are detailed.  The global warehousing market report gives Porter’s five forces analysis of the major warehousing markets.

The cost analysis section of the report studies the global warehousing market price from the global as well as regional perspective. The report lists out global warehousing market industry suppliers, drivers, and constraints, global warehousing market price analysis, and gives the SWOT analysis of major suppliers. It also gives information about aspects of the market such as Warehousing Services, Logistics, and Transportation, Storage services, Fulfilment center, Distribution Centre, Deport Storage, bonded storage, Public Storage, third party storage facility, Leased storage, Rented storage, Automated warehouse, WMS, VAS, ASRS, and AGV. It gives the global warehousing market size analysis, cost structure breakdown and lists the best sourcing and contract models in the global warehousing market.

The global warehousing market is seeing innovations that aim at reducing costs while also making the industry more sustainable. These innovations are described in the global warehousing market report.

Warehousing Services Market Frequently Asked Questions

  1. What makes India and China the key growth driving markets in the warehousing industry?
  2. Certain parts of the APAC region like India and China are considered to be the future growth driving markets for the warehousing industry due to forecasted increase in the manufacturing facilities, a high number of top container ports, and due to robust growth in the e-commerce sector.
  1. What are the three levels of maturity in which the countries are categorized w.r.t the warehousing industry?
  2. According to Beroe’s report, the entire warehouse market is categorized into 3 levels namely – High Market Maturity, Medium Market, and Low Market Maturity countries. The bifurcation stands as: High Market Maturity countries – includes the U.S., the U.K., France, Germany, Belgium, Singapore, and Australia Medium Market Maturity Countries – includes India, China, Brazil, Poland, South Africa, and Dubai Low Market Maturity Countries – includes New Zealand, Argentina, and Chile
  1. What is the average contract duration and payment period prevalent in the warehousing market?
  2. The minimal contract duration is of one year, the average being three years, and the maximum contract duration in the industry is for five years. Again, the usual payment period is of 30 – 45 days.
  1. Who are the top global service providers in the warehousing industry?
  2. As per Beroe, the top global service providers are: C.H. Robinson CEVA Logistics DHL Supply Chain DB Schenker Logistics Kuehne + Nagel UPS Supply Chain XPO Logistics
  1. What are the two major cost components prevalent in the warehousing industry?
  2. The two major cost components include the following: Labor cost (30 – 35 percent) Warehouse rental (25 – 30 percent)
  1. What are the four main KPIs that influence a majority of warehouse services?
  2. The four main KPIs that influence a majority of warehouse services include: On-time shipments Total order cycle time Perfect-order completion index Dock-to-stock cycle time
  1. What are the different pricing models of the warehousing industry?
  2. According to Beroe's report, there are three pricing models within the warehousing industry: cost-plus margin, transactional pricing and activity-based costing.
  1. What are the key driving factors for warehousing services?
  2. The rise in economy, improvement in GDP, growth in e-commerce, retail industry, and FMCG goods are some of the known factors that drive a majority of warehousing services.
  1. Which are the three main sourcing models in the global warehousing market?
  2. As per Beroe’s report, the three sourcing models are: Lease and operate Built-to-suit Outsource to 3PL
  1. Which countries hold the largest and the smallest warehousing market size across the globe?
  2. The largest warehousing market size is captured by the APAC region with a valuation of $1,249 Bn, followed by Europe ($346 Bn), North America ($170 Bn), and the smallest market size is with Latin America having a valuation of $47 Bn.
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