Global e-commerce logistics market to grow 7.9% in 2023


The 2022 global e-commerce logistics market shrank by 5% in 2022 but is expected to moderate and grow by 7.9% in 2023, according to market research consultancy Ti Insight. 

In its latest report  ̶  Global E-commerce Logistics 2023  ̶  Ti’s data reveals that the e-commerce logistics market shrank in 2022 due to slowing demand, as well as the effects of the war in Ukraine, inflation, disrupted global supply chains and depressed consumer spending.

However, this should not detract from the fact e-commerce remains firmly entrenched in buying behaviours, and the market remains larger than pre-pandemic. The report from Ti – the leading provider of market research to the global logistics industry – shows that the market is expected to grow by 7.9% in 2023 as e-commerce continues on its long-term growth trajectory.

Paul Chapman, Ti’s Senior Editor, said “The e-commerce logistics market experienced a significant spike in growth during Covid lockdown. These figures should therefore be viewed as a rebalancing of demand, as opposed to anything negative. Indeed, the e-commerce logistics market is ahead of where it was in 2019 by some measure.

eCommerce sales, the main driver of demand, remains higher than pre-covid levels, as pandemic buying behaviours continue to influence consumer spending choices and eCommerce volumes subsequently grow from a higher base than pre-pandemic, despite a slowing global market and conflict in Europe.”

The Global E-commerce Logistics Report –  written by industry researchers, analysts and associates  ̶  is one of several reports published each year by the Ti team, utilising data from its GSCI knowledge portal, a data powerhouse with over 1m pieces of data and analysis.

The report takes an in-depth look at the core trends influencing the market, such as e-commerce retail sales, M&A and consolidation, PUDO network growth and the growth of e-commerce logistics start-ups.

Report highlights:

  • Total e-commerce logistics market shrunk by 5% in 2022
  • Growth in the global e-commerce logistics market is expected to moderate and grow by 7.9% in 2023 according to Ti’s latest data. Although y-o-y growth is expected to exhibit a slower pace than the extraordinary highs of 2020 and 2021 (2020: 28%, 2021: 19.9%) in the face of a softer macroeconomic outlook, the market is expected to recover its 2022 losses, reaching a value of €451,239.3m.
  • North America’s e-commerce logistics market has surpassed Asia Pacific, and is now the largest, with a value of €162,458.8m.
  • Parcel shops and lockers have grown significantly in recent years. It is estimated that there are more than 1.8m pudo locations globally of which 1.2m are parcel shops. Pudo networks continue to be expanded and new networks are being rolled out in most countries. A high percentage of the global population are now within a short distance of one or more pudo locations.
  • Growth and consolidation has run rampant in the eFulfilment market since the pandemic’s beginning as traditional 3PL providers have sought to acquire e-commerce logistics capabilities to provide either direct-to-consumer fulfilment or omnichannel solutions for clients.
  • Funding for select e-commerce logistics start-ups slowed in 2022 amid a pronounced economic downturn and several macroeconomic headwinds.
  • Automation is rapidly becoming a key success factor in e-commerce logistics by enabling increasingly quick fulfilment and distribution.

Also Read

Simpler rules of origin needed to boost free trade in Africa, study shows

How Technology is Changing the Future of Logistics

 

theafricalogistics

Recent Posts

eThekwini Municipality plans feasibility study for tram-light rail system

The eThekwini Municipality in South Africa is set to embark on a comprehensive study to…

2 days ago

Fastest countries for citizenship by investment: A guide to swift citizenship options

The concept of citizenship by investment (CBI) has become increasingly popular as individuals look for…

2 days ago

Malta unveiled: Exploring the charm and culture of Its iconic cities

Tucked in the heart of the Mediterranean Sea, Malta is a jewel that dazzles with…

3 days ago

Discover the hidden gems of Saint Kitts and Nevis

Saint Kitts and Nevis are tropical jewels in the Caribbean that captivate travelers with their…

3 days ago

Equatorial Guinea unveils newly constructed Bata International Airport

SsangYong Engineering & Construction (E'C), a subsidiary of the Global Sae-A Group and a prominent…

3 days ago

Optimizing cost and speed: Choosing the right air forwarding partner

In today's fast-paced global market, businesses are continually seeking ways to optimize their supply chains…

3 days ago