Global freight and logistics market is forecast to grow to $18.69 billion by 2026, with a compound annual growth rate (CAGR) of 4.4 per cent, according to the 2024 Global Transportation & Logistics Industry Report by Benchmark International. The logistics sector alone is projected to reach $6.55 trillion by 2027, growing at a CAGR of 4.7 per cent between 2022 and 2027.

Many companies now leverage strategic logistics management to reduce transport expenses, with the manufacturing sector leading in market share due to the efficiencies and cost reductions logistics provide.

The Asia-Pacific region holds the largest share of the freight and logistics market, while North America is expected to be the fastest-growing region through 2027. The market's growth is driven by supply-side and demand-side trends, including the proliferation of trade agreements and initiatives to boost international trade. Technological advancements, globalisation, and new legislation also contribute to the sector's expansion.

Recent technological advancements, such as automated material handling equipment, biometrics, robotics, and GPS, have enabled businesses to work more efficiently. The surge in e-commerce and online shopping further supports market growth. High-speed network connectivity has boosted e-commerce, increasing the demand for efficient logistics services, as per the report.

Companies are now integrating advanced technologies such as blockchain, augmented reality, artificial intelligence, and the Internet of Things into logistics monitoring systems. These technologies allow real-time information tracking and predictive management of warehouses, transportation, and deliveries. Innovations like GPS trackers, RFID sensors, and Bluetooth enable real-time package tracking, reducing transit times and improving efficiency.

The rise of the ‘last mile’ gig economy delivery significantly impacts logistics operations. Last-mile delivery, the final step in the shipping process, is the most expensive and time-consuming part, involving multiple stops and low drop sizes. Crowdsourcing technologies connect retailers and logistics partners with local, non-professional couriers, reducing costs and improving delivery times. Advances in robotics, drones, and self-driving vehicles are expected to further transform the sector.

Sustainability is also becoming a key focus, with manufacturers adopting green logistics solutions and ESG policies to reduce environmental impacts and improve their reputations. Sustainable logistics lead to better decision-making and optimisation in procurement, route planning, and reverse logistics.

The 2024 trucking acquisition market is anticipated to be active, with lower interest rates and improving market conditions driving acquisition appetite in the US and Canada. Federal funds for transit systems, airports, and passenger rail infrastructure will impact transportation companies. Fleet management improvements will remain a key trend in the maritime sector, with digital transformation providing new merger and acquisition opportunities. Autonomous technology is also expected to grow.

Fibre2Fashion News Desk (DP)