On-demand logistics solutions are being increasingly used by e-commerce companies, owing to the changing shopping pattern of customers and increasing consumer preference for fast shipping and competitive pricing. As traditional logistics alternatives are unable to meet the rising expectations of customers, e-commerce firms are deploying on-demand logistics services to manage inconsistent shipping needs and meet the sudden need for bulk supply. Thus, the flourishing e-commerce sector will create a huge requirement for on-demand logistics services in the forthcoming years.
Moreover, the mounting investments being made in the logistics industry, especially in the upcoming start-ups offering logistics services and services, will help the on-demand logistics market to accelerate at 21.1% CAGR during the forecast period (2020–2030). The market revenue stood at $9.1 billion in 2019 and it is projected to reach $75.0 billion by 2030. For instance, in July 2018, GoGoVan, a Hong Kong-based company, announced that it had raised $250 million in the initial phase of its new round of funding.
Whereas, the Asia-Pacific (APAC) on-demand logistics market is expected to exhibit the fastest growth throughout the forecast period, due to the existence of a vast consumer base in countries such as India and China, owing to their vast population. Moreover, the flourishing e-commerce sector and mounting disposable income of people in the region will also contribute to the market growth in the upcoming years. Besides, the rising technological advancements and escalating consumer awareness about the use of convenient logistics options will also drive the regional market growth in the foreseeable future.
Therefore, the booming e-commerce industry and surging investments being made in the logistics industry will amplify the need for on-demand logistics solutions in the foreseeable future.