Warehousing and Storage Services Market Growing Geriatric Boost Growth 2030

 

image

The global warehousing and storage services market was valued at USD 314.6 billion in 2020, and it is expected to reach USD 599.3 billion by 2027, registering a CAGR of 7.3% during the period (2021-2027). Warehousing and storage services provide storage for companies or organizations’ property, including parts, equipment, products, and perishable goods. The proper storage and inventory tracking ensure that delivery times are met, and asset management costs are reduced. Various industries, especially pharmaceutical, manufacturing, and agriculture, are driving the market’s growth, especially through the booming e-commerce and retail sector. Further, the increasing demand for an omnichannel retailing model is expected to drive the market.

The growing agricultural industry is creating a significant demand for improved cold storage and warehousing facilities to reduce the damage caused to perishable food products, such as fruits and vegetables. Also, the surge in the pharmaceutical industry, due to the impending pandemic and the consequent increase in freight flow of medicines and medical equipment like Personal Protective Equipment (PPE), has led to incremental market growth.

Moreover, governments of various countries have been taking initiatives to develop state-of-the-art warehouses embedded with the latest features, such as web map service (WMS) capabilities for expiration date tracking, barcode scanning, cycle counting, and improved inventory management. Future yield compression is likely as investors and corporates alike will seek to capitalize on opportunities in an increasingly competitive market. In many cases, cold storage facilities are situated at the initial source of food production, which are not locations that would appeal to institutional investors but would be vital to the corporate occupier or retailer in connecting their supply chain.

Get PDF for more Professional and Technical insights: https://www.marketstatsville.com/request-sample/warehousing-and-storage-services-market

COVID-19 Impact on the Global Warehousing and Storage Services

The COVID-19 pandemic has forced shippers to reconsideration their supplier networks, stage inventory to balance against demand fluctuations, and lean on internal or 3PL-provided freight visibility solutions. So far, the impact has resulted in generally higher volumes for 3PL companies and increased hours to manage at most of their warehouses. The pandemic has resulted in many warehouses running busier than ever, mainly catering to pharmaceuticals, essential household goods, and food products.

Further, the demand for slow inbound container flows is growing. Some retailers and manufacturers fail to pick up containers because warehouses are full or closed due to not being deemed essential service providers responding to COVID-19. To address such issues, container lines offer shippers options to reduce demurrage fees by allowing them to store containers at their properties. Micro-warehouses and rental warehouses/industrial parks were introduced to help manufacturers overcome delivery and warehousing challenges. The COVID-19 pandemic has driven the demand for warehousing facilities to reduce delivery time and transportation costs. In India, in April 2020, over 3 million square feet of new warehousing contracts were reported to have been signed across six locations by manufacturing and e-commerce clients.

Global Warehousing and Storage Services Market Dynamics

Drivers: Rising Popularity of Omni-Channel

The omnichannel supply chain has risen significantly, with major online brands delving into retail stores. The power of business dynamics and transformative pace are overwhelming for some. The customer is implicitly demanding intelligent retail solutions. Unique customer categories use a mix of retail channels to shop and choose products according to their convenience and lifestyle. Consequently, businesses have realized that profitability is driven by improving customer choices and the overall shopping experience.

The operative word for the medium and large brands will be “omnichannel retail,” They will try to champion B2C and B2B e-commerce for growth. Over time, the impact of inventory holding costs has decreased due to the interoperability of various channels. The availability of newer technology for visibility has allowed retailers to fulfill customers from the nearest fulfillment center. This has decreased shipping costs and improved customer satisfaction, which leads to repeat purchases.

Restraints: High Maintenance Cost

In any workplace, maintenance and upkeep throughout the site are crucial to keeping operations flowing successfully. Even more so, in a fast-paced supply chain system where one fault or issue could cause a huge knock-on effect to operations.

Cold storage facilities and temperature control are expensive and can lead to huge losses if not done correctly. The two biggest energy consumers in a warehouse are lighting and temperature control (in the form of heating, cooling, or refrigeration). Hence, reducing the costs of these two major contributors is the quickest way to make energy savings. Labor and rentals form other major expenses.

You Can Purchase Complete Report: https://www.marketstatsville.com/buy-now/warehousing-and-storage-services-market?opt=2950

Scope of the Report

The study categorizes the warehousing and storage services market based on type, ownership, and end-users at the regional and global levels.

By Type Outlook (Revenue, USD Million, 2017-2027)

  • General Warehousing and Storage
  • Refrigerated Warehousing and Storage
  • Farm Product Warehousing and Storage

By Ownership Outlook (Revenue, USD Million, 2017-2027)

  • Private Warehouses
  • Public Warehouses
  • Bonded Warehouses

By End-Users Outlook (Revenue, USD Million, 2017-2027)

  • Manufacturing
  • Consumer Goods
  • Food and Beverage
  • Retail
  • Healthcare
  • Other End-user Industries

By Region Outlook (Revenue, USD Million, 2017-2027)

  • North America (US, Canada, Mexico)
  • South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
  • Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
  • Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
  • The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)

The general warehousing and storage segment is projected to account for the largest market share by type

Based on type, the global warehousing and storage services market is divided into refrigerated warehousing and storage, farm product warehousing and storage, and general warehousing and storage. In 2020, the general warehousing and storage segment accounted for the largest market share of 55.0% in the global warehousing and storage services market. General warehousing is expected to grow with the increasing demand for E-commerce across the globe. Products categories, like apparel and accessories, fashion, consumer electronics, home and garden, and sports goods, are major categories.

Demand for general warehousing as an impact of COVID-19 has seen rapid growth in the H2 half of 2020. This demand has been majorly driven by household demand from urban locations globally. The resumption of industrial production following the gradual lifting of lockdown restrictions helped to ease the supply chain disruption and logistical challenges seen in H1. Occupier demand across all regions saw a general softening in Q2, reflecting conditions on property viewings and a wait-and-see approach from some occupiers.

Asia Pacific accounts for the highest CAGR during the forecast period

Access full Report Description, TOC, Table of Figure, Chart, etc: https://www.marketstatsville.com/table-of-content/warehousing-and-storage-services-market

Based on the regions, the global warehousing and storage services market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Globally, Asia Pacific is estimated to hold the highest CAGR of 9.0% in the global warehousing and storage services market during the forecast period. The region includes the countries such as China, India, Japan, South Korea, Australia, Southeast Asia, and the Rest of Asia-Pacific. The region’s growth is primarily due to strong economic growth in the domestic emerging countries such as China, Indonesia, Malaysia, and India.

After the Asia Pacific, Middle East & Africa is the fastest-growing region with a CAGR of 7.8% during the forecast period. The Saudi Arabian warehousing market is expected to drive the demand for more warehouses in the near future on account of the rising production in the country. The country is moving away from oil dependency through its Vision 2030, bringing about the 4th Industrial Revolution in the nation. This is also in line with the country’s National Industrial Development and Logistics Program, also aiming at improving the state of the industrial sector in the country. Saudi Arabia is largely dependent on food imports that demand improvement in cold chain transportation and storage. Currently, Saudi Arabia accounts for approximately 35% of the cold chain logistics business in the GCC region.

Request For Report Description: https://www.marketstatsville.com/warehousing-and-storage-services-market

Key Market Players

The warehousing and storage services market is mildly concentrated in nature with few numbers of global players operating in the market such as DHL International GmbH, XPO Logistics Inc., Ryder System Inc., NFI Industries Inc., AmeriCold Logistics LLC, FedEx Corp, Lineage Logistics Holding LLC, NF Global Logistics Ltd, APM Terminals BV, DSV Panalpina AS, Kane Is Able Inc., and MSC – Mediterranean Shipping Agency AG among others.