The major drivers for the on-demand logistics market are the increasing efficiency of product transportation by trucks, convenience, cost-effectiveness and real-time tracking advantages offered by this model, and expanding e-commerce sector. From $9.1 billion in 2019, the market revenue is expected to massively rise to $75.0 billion by 2030, at a 21.1% CAGR during the forecast period (2020–2030). On-demand logistics refers to the communication between end users and shippers via online platforms, which also provide additional features, such as global positioning system (GPS)-based vehicle tracking, time scheduling, and order booking.
Based on vehicle type, the market is bifurcated into medium/heavy commercial vehicle (M/HCV) and light commercial vehicle (LCV). Of these, LCVs led the on-demand logistics market in 2019, as a large number of service providers use these vehicles for last-mile delivery, in cases that do not involve the transportation of heavy goods. During the forecast period, the M/HCV bifurcation would grow faster, as shipping firms are purchasing them to transport heavy stuff for large businesses, which are looking at high-volume goods transportation to reduce their costs.
The market is also growing on account of the increasing efficiency of trucks, which are the preferred mode for high-volume terrestrial product transportation. In conventional logistics, after delivering the goods, trucks often return empty, which leads to wastage of fuel and extra operational costs for Service providers. Additionally, a broker liaisons between the shipper and customer, for which the charges can be as high as 18% of the shipment cost. As on-demand logistics helps deal with all such challenges, companies are rapidly embracing this concept.
Geographically, North America held the largest revenue share in the on-demand logistics market in 2019, as trucks conduct almost 70% of all product transportation in the U.S. Additionally, the region faces a considerable shortage of drivers, which becomes a problem when the orders suddenly increase. This is leading to the shift in companies’ preference to a more-efficient goods transportation model, thereby driving the market. During the forecast period, the highest CAGR would be experienced by Asia-Pacific (APAC), owing to the rising e-commerce sales and consumer awareness regarding the concept.
Make Enquiry Before Buying the Report@ https://www.psmarketresearch.com/send-enquiry?enquiry-url=on-demand-logistics-market
Hence, as the e-commerce sector prospers and people become aware about a better shipping method, on-demand logistics is forecast to witness widespread adoption in the coming years.
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| On-Demand Logistics Market |
The market is also growing on account of the increasing efficiency of trucks, which are the preferred mode for high-volume terrestrial product transportation. In conventional logistics, after delivering the goods, trucks often return empty, which leads to wastage of fuel and extra operational costs for Service providers. Additionally, a broker liaisons between the shipper and customer, for which the charges can be as high as 18% of the shipment cost. As on-demand logistics helps deal with all such challenges, companies are rapidly embracing this concept.
Geographically, North America held the largest revenue share in the on-demand logistics market in 2019, as trucks conduct almost 70% of all product transportation in the U.S. Additionally, the region faces a considerable shortage of drivers, which becomes a problem when the orders suddenly increase. This is leading to the shift in companies’ preference to a more-efficient goods transportation model, thereby driving the market. During the forecast period, the highest CAGR would be experienced by Asia-Pacific (APAC), owing to the rising e-commerce sales and consumer awareness regarding the concept.
Make Enquiry Before Buying the Report@ https://www.psmarketresearch.com/send-enquiry?enquiry-url=on-demand-logistics-market
Hence, as the e-commerce sector prospers and people become aware about a better shipping method, on-demand logistics is forecast to witness widespread adoption in the coming years.
