Business consolidators for the express logistics

Abstract

The logistics market has been growing globally in the recent year due to the ever-increasing globalization and increased investments by companies in developing countries in search of cheaper manufacturing options. As expected, it is the Southeast Asian market which has shown tremendous growth in this sector over the past few years. The logistics market was worth USD 8.1$ Trillion in the year 2015, and this is expected to grow to USD 15.5$ Trillion by the year 2024 in the backdrop of 7.5% year-on-year growth over this period. In India, the logistics industry has seen tremendous growth over the past few years and has increased from USD 130 Billion in 2013 to USD 160 Billion in 2018 with a 7.8% CAGR over this period. Currently, it comprises of 13-17% of India’s GDP whereas it is only 6-9% in developed countries. This growth is primarily due to the increased emphasis of the government in manufacturing via the ‘Make in India’ imitative. However, the logistics market is still largely unorganized, and there are numerous local and national logistic firms. For example, transporters who have five trucks in the fleet occupy more than 67% of the total available fleet size of road transport. The logistics market uses road transport for most of its transportation and supports last mile connectivity as a link between the air and rail transport for the final delivery of goods.