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(I-AutoNewsWire.com, August 25, 2020 ) Since logistics and supply chain form the key for seamless functioning of any industry vertical, disruption due to COVID-19 has brought business operations across several industries to a standstill. Logistics and transportation companies have faced severe losses across sectors such as automotive and industrial machinery & equipment. On the other hand, the market players have been under immense pressure due to the higher emphasis of national governments on the continued supply of essential commodities and healthcare products. Thus, FMCG and healthcare sectors are expected to provide the much-needed push to logistics and supply chain companies, especially through the pandemic.
Post-COVID-19, the global logistics & supply chain industry market size is projected to grow at a Y-O-Y growth of 17.6% from 2020 to 2021, to reach USD 3,215 billion in 2021 from USD 2,734 billion in 2020. The projection for 2021 is estimated to be down by over 10-15% as compared to pre-COVID-19 estimation.
The major drivers of this market are increasing the supply of essential commodities, creation of supply chain stabilization task force to fight COVID-19, and growing demand and distribution of personal protective equipment.
Some of the key players in the logistics and supply chain industry market are DHL (Germany), UPS (US), FedEx (US), Kuehne+Nagel (Switzerland), CEVA Logistics (Switzerland), DB Schenker (Germany), SNCF (France), XPO Logistics (US), Kenco Group (US), and Hitachi Transport System (Japan).
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FMCG and healthcare industries to remain the largest in the logistics market.
Countries have exempted the manufacturing services regarding medical machinery and their supplies. The manufacturing of ventilators has increased as the number of COVID-19 positive cases continues to grow. For example, on April 14, 2020, Royal Philips planned to increase its hospital ventilator production to 4,000 units/week by Q3 2020 and introduced its new Philips Respironics E30 ventilator with immediate production of 15,000 units/week. Furthermore, the production and distribution of masks, gloves, medicines like HCQ has increased. The supply of essentials and the manufacturing of medical equipment is expected to drive the pharmaceutical and healthcare industry, and this will further boost the growth for the logistics and supply chain industry.
FMCG is one of the industries facing significant logistics challenges. Countries having a huge consumer base are facing major challenges when it comes to ensuring the continued supply of essential commodities. With limited availability of fast-moving consumer goods, consumers are experiencing a change in their lifestyle as they are receiving fewer products because of COVID-19 impact on the logistics and supply chain industry. However, FMCG companies are continuously tracking the current situation and are coming up with new strategies to contain the pandemic. The agriculture sector has been exempted from the restrictions laid by the countries. This has ensured sufficient supplies of food and other daily needs products. E-groceries continue to meet the increasing demand for daily supplies by the consumers. Amid the COVID-19 pandemic, Walmart Grocery application hit all-time high downloads in the US.
Roadways are the largest segment for the logistics market
Roadways and railways are relatively less affected by the COVID-19’s impact on the logistics sector when compared with airways and waterways. Due to heavy restrictions on international transport, roadways and railways have emerged highly important to maintain the optimum supply chain, especially for essential commodities. Being the preferred mode of transportation for essential goods, road transport is heavily relied upon for the continued supply of food, medicine, and other essential products.
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The Asia Pacific to have the largest logistics market size during the forecast period
The Asia Pacific is expected to have the largest market sizing as the region has taken stringent measures to contain the virus. China has started to recover from the COVID-19 pandemic faster than any other country. Only some provinces of the entire country are in lockdown after the second wave of COVID-19. The World Health Organization has also appreciated India’s control over the spread of the pandemic. This has allowed the logistics and supply chain companies to meet consumer demands during the pandemic situation. The supply of vital products in Singapore, South Korea, and Japan has also regained normalcy. Thus, the Asia Pacific region is expected to show positive signs in the near future as the supply chain industry recovers gradually.
Key Questions Addressed by the Report:
1. What is the impact of COVID-19 on the logistics and supply chain industry?
2. What would be the impact of COVID-19 on the logistics industry by 2021?
3. What are the business opportunities for global logistics companies?
4. Which players of the logistics and supply chain ecosystem would get impacted? (Positive/Negative)
5. Who are the major competitors in the logistics market, and what are their growth strategies?
COVID-19 Impact on Logistics & Supply Chain Industry Market
Mr. Aashish Mehra