LONDON--(EON: Enhanced Online News)--The global warehousing services market is expected to grow consistently at a CAGR of close to 6% during the forecast period, according to Technavio’s category spend intelligence researchers.
“Many innovations in the industry such as automated and semi-automated systems help track, retrieve, and store goods. This reduces labor costs, increases production output, and reduces warehousing space. The advancements in these technologies have resulted in increased productivity and organizational growth.”
This report covers the market outlook and growth prospects of the global warehousing services market for 2016-2020. The report also labels UPS Supply Chain Solutions, FedEx Corp., Kuehne & Nagel Logistics, Exel (DHL Supply Chain), and DB Schenker as the top global suppliers in the market.
The global warehousing market is mainly driven by the increased demand for storage services from the retail, pharmaceutical, automotive, and food and beverage sectors. The spend on the general warehousing segment accounted for a major portion of the overall warehousing spend in 2015. The growth in e-commerce activities across the globe is a major factor that is driving the growth of this segment.
Angad Singh, a category specialist at Technavio, says, “Many innovations in the industry such as automated and semi-automated systems help track, retrieve, and store goods. This reduces labor costs, increases production output, and reduces warehousing space. The advancements in these technologies have resulted in increased productivity and organizational growth.”
The report segments the global warehousing market into the following key regions:
Americas: key players account for 30-40% of market share
The storage and warehousing market in the US is expected to grow at a CAGR of close to 7% during the period 2015–2019. The key players operating in this region are UPS, FedEx, Ryder, Exel, and Kuehne & Nagel Logistics, Inc. They accounted for around 30%–40% of the overall market share in the region. The suppliers in the region are acquiring smaller 3PL providers to increase their market share and expand their geographical presence.
EMEA: Eurozone crisis impedes market growth
In 2015, the revenue for warehousing services in Europe was estimated to be approximately USD 158 billion. Revenues are not growing at significant rate as the demand for warehousing services is decreasing. This can be attributed to the Eurozone crisis, which led to an increase in offshoring and manufacturing activities to emerging countries.
On an average, the overall rental rates for warehouses in this region have dropped by approximately 30%–50% due to the availability of vacant space. The key players operating in this region are Kuehne & Nagel Logistics, Inc., Exel, UPS, CEVA and XPO logistics. These companies hold around 20%–25% of the overall market share in the region.
APAC: fastest growing market with a CAGR of approximately 11%
The revenue from warehousing services in APAC is expected to grow at a CAGR of close to 11% during the forecast period, due to growth in demand from key emerging countries such as China and India. DHL, Nippon Express, Kuehne & Nagel Logistics, Inc., UPS, and CEVA logistics are the leading warehouse service providers in APAC. In APAC, the presence of global warehousing firms is in the form of strategic partnerships with regional service providers.
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