Research
Report
Trend Analysis, Challenges and Opportunities
Report 1. Logistics
contains 2. Shipping and Port
research on 4 3. Aviation
4. Rail
sectors
Logistics
Introduction
Logistics is widely known as the process of coordinating and
moving resources, such as equipment, food, liquids, inventory,
materials, and people, from one location to the storage of the
desired destination.
Asia Pacific logistics market was valued USD 3,480.71 Billion in
2022 and exhibiting a CAGR of 11.9% over the forecast period.
Europe logistics market was valued USD 1,748.34 Billion in
2022 and exhibiting a CAGR of 10.2% during the forecast
period.
Oil & gas segment was valued USD 600.09 billion in 2022 and
witnessing a CAGR of 12.0% from 2023-2030.
Healthcare segment valued at USD 899.54 billion in 2022 and
poised to grow at a CAGR of 13.1% from 2023-2030.
Roadways segment was valued at USD 3,168.25 Bn in 2022
and is expected to reach at a CAGR of 9.7% from 2023 to
2030.
Airways segment is expected to exhibit at a CAGR of 11.7%
over the forecast period.
Trend Analysis
The rise in global logistics market is driven by the
substantial growth in the e-commerce industry. This can
be ascribed to the considerable rise in the sales of goods
via online retail channels, which is further enhanced by
the convenience offered by these platforms at a better
price.
The global logistics market size was accounted for USD
7.98 trillion in 2022 and it is expected to be worth
around USD 18.23 trillion by 2030 with a
noteworthy CAGR of 10.7% from 2023 to 2030. North
America logistics market was valued at USD 1,971.87
billion in 2022
Increasing focus on sustainable development has led to an
accelerating demand for green logistics that offer
sustainable transport solutions.
Constant technological advancements, the integration of
biometrics, increasing international trade agreements,
Bluetooth, driverless vehicle, GPS, and drone delivery are
few factors for such high growth in logistics market.
Increasing transportation costs
While the Russia-Ukraine conflict has triggered the recent volatility in fuel prices, transportation costs
have increased over the last few years.
Europe suffers from a short supply of heavy goods vehicle drivers, with a shortage of around 400,000
throughout their land. Similarly, road transportation rates have increased by 23% in the US amidst rising
freight spending and increased input costs for logistics players.
Inconsistencies in tracking
Using spreadsheets and multiple software for the same activity decreases workforce productivity and
reduces efficiency.
Challenges Delivery delays
The spiralling effect of the pandemic caused factories to shut down and led to a series of labour-shortage-
related issues. In addition, they have siloed and fragmented legacy processes that negatively impact the
delivery times.
Limited visibility of shipments
Modern-day consumers expect visibility of their orders. However, a lack of visibility throughout your
supply chain can cause issues that can seriously hamper your goods' flow. Unnecessary delays become
the norm without end-to-end transparency, as do warehouse operational inefficiencies.
Opportunities
Procurement Production Distribution Disposal logistics
logistics logistics logistics
Shipping and Port
Introduction
The Ports & Shipping industry in India is growing rapidly and
contributing to economic progress. The ports sector in India is
being driven by high growth in external trade. Read here to know
the significance of the Indian Ports and Shipping sector for
economic progress.
Increased government spending on port infrastructure is
anticipated to assist the market for port infrastructure
Governments are anticipated to increase their port infrastructure
investments to assure secure and productive economic activity,
which will help the port infrastructure market internationally.
In an open and globalized economy, transportation infrastructure is
crucial to the nation's economy. serving as significant
transportation nodes that facilitate the transit of goods the
delivery of freight (including components, parts, and finished
consumer goods) to enterprises in nearby towns and on
international markets
Trend Analysis
• The global port infrastructure market size was estimated at
USD 151 billion in 2022 and is expected to hit around USD
249.49 billion by 2032, poised to grow at a compound annual
growth rate (CAGR) of 5.2% from 2023 to 2032.
• Infrastructure and facilities used to provide transportation-
related port services are referred to as port infrastructure. By
adapting near shore extensions and offshore ports, and by
building adaptable and robust solutions for future ship and
vessel types, and hinterland logistics, port infrastructures will
support and become more integrated with port operations,
waterborne logistics, and hinterland logistics.
• By port type, the seaport segment accounted for 74% market
share in 2022.By application, the cargo segment has exhibited
an 82% revenue share in 2022.By construction type, the
equipment segment made up 51% market share in 2022.Asia-
Pacific dominated the market with a revenue share of around
47% in 2022.
Challenges
Port Infrastructure Global Trade Production Capacity
As ships get bigger and global trade by sea
Increasing global trade also causes many other issues
increases, infrastructure must be changed by expansion Due to infrastructure constraints and increasing global
for ports. With a lack of transparency between vessels
and construction. This puts stress and pressure trade, production capacity is an issue. With this global
and ports, they are often unprepared when a vessel
on port hinterlands. Ports also face depth and trade increase ports could be augmenting their
arrives at the dock. Normally vessels do not arrive
size problems; therefore, many must perform production capacity, but due to their old infrastructure,
according to the ETA predicted by the captain, and
construction operations to deepen and widen port lack of resources, and lack of technologies, this proves
many ports do not have access to real-time ETA
waters, which puts stress on the marine to be a constraint.
prediction systems for better organization practices.
environment and surrounding public.
Finances Safety and Security
Without technology ports cannot adequately plan Ports face security and safety issues. The
resources, they can for instance spend more money on
crews that end up working overtime only because they
jobs of the port employees can be
are waiting for a vessel to arrive. Related to port dangerous. They involve operating large
infrastructure problems, a port infrastructure unable to equipment, being around heavy
accommodate larger vessels and higher cargo volumes machinery, and many operate in the same
will also be costly since they will lose business. Due to
inefficiency, the operating costs increase while areas such as sulfuric plants which could
productivity decreases. potentially leak toxic gases.
Opportunities
Various Government are providing a special tax incentive for investments
through a tax holiday to enterprises that engage in developing, operating
or maintaining ports, inland waterways and inland ports.
Foreign capital inflow has been permitted by various government through
100 percent FDI under the automatic route for the construction and
maintenance of ports and harbours.
Various Government have introduced policies to encourage growth in the
port sector, certain policy reforms needed to accelerate the development
of Global port sector.
Aviation
Introduction
The aviation sector encompasses almost all aspects of
air travel and the activities that help to facilitate it.
This means it includes the entire airline industry,
aircraft manufacturing, research companies, military
aviation, and much more.
Trend Analysis
• In 2020, there was a decline in commercial
aircraft deliveries due to the COVID-19 pandemic.
However, aircraft deliveries improved in 2021, and
the major commercial aircraft OEMs, like Airbus and
Boeing, increased their aircraft production and
delivery rates. With the lifting of travel restrictions,
air passenger traffic is improving.
• With the e-commerce operations increasing
rapidly since COVID-19, the air cargo market has
increased, and thus the orders for freighter aircraft
have increased in 2022
• According to Boeing's Commercial Market
Outlook 2022, China's commercial air fleet is
expected to grow from 3900 to 9600 by 2041
(1) Fuel Cost & Efficiency
The availability and costs of aviation fuel remain one of the major economic factors affecting the airline
industry for decades. Spike in jet fuel prices has a direct influence on the financial portfolio of airline
firms. In 2021, the expenditure on airline fuel increased by almost 30% due to the easing of travel
restrictions and the initial recovery in global passenger demand.
Challenges (2) Aftermath of the COVID-19 pandemic
The pandemic was among the greatest challenges the aviation companies ever faced, with its impacts
continuing even after travel restrictions are lifted in many parts of the world. According to the IATA
report, the pandemic erased essentially 20 years of gains in passenger traffic in one sudden blow.
(3) Russia-Ukraine conflict
The conflict between Russia and Ukraine has brought along the imposition of various sanctions and the
creation of a few no-fly zones, which has created challenges for the aviation sector. The impact of the
conflict is especially felt by specific trading partners and across key markets.
(4) Airline Infrastructure
Airport infrastructure such as runways, hotels, terminals, concourses, shopping centers, and lounges are
needed to consistently be upgraded to cope with the rise in the number of air passengers
(5) Global Congestion
Air congestion and passenger traffic are a few other challenges faced by the aviation market, which
seem to have no quick solution, at least in the immediate future. Airports nowadays are often crowded,
and flight delays have turned out to become a regular thing. Most flights these days seem full, and
terminals are always congested, with the rise in the number of air passengers constituting a major
factor.
(6) Climate Change
Climate change and environmental issues certainly remain among the key challenges faced by the airline
industry. Since commercial aviation is responsible for a significant percentage of carbon emissions, the
industry is under significant pressure to take measures to reduce the environmental impact of air travel.
.
Opportunities
Aviation’s green
Pent-up travel demand
transition
The steady march of
Design innovation
digitalisation
Railway
Introduction
Rail is among the most energy efficient modes of transport
for freight and passengers - while the rail sector carries 8%
of the world’s passengers and 7% of global freight
transport, it represents only 2% of total transport energy
demand.
Global demand for transport is growing fast. Given present
trends, passenger and freight activity will more than
double by 2050. Such growth is a token of social and
economic progress, but it carries with it greater energy
demand and increased CO2 emissions and atmospheric
pollutants. A greater reliance on rail has the potential to
cut that growth. In a world becoming ever more urbanised,
rail travel is well matched to urban needs. High-speed rail
can serve as an alternative to short-distance air travel, and
conventional and freight rail can complement other
transport modes to provide efficient mobility.
The future of rail will be determined by how it responds to
both rising transport demand and rising pressure from
competing transport modes.
Trend Analysis
• Conventional rail covers medium- to long-
distance journeys with a maximum speed
under 250 kph and suburban train
journeys.
• Most conventional rail networks today are
located in North America, Europe, China,
Russia, India, and Japan. These regions
make up about 90% of global passenger
movements on conventional rail. However
conventional rail has shown little change
across these regions over the past
decades.
Challenges
1. Maintenance & reliability: as more and more passengers use railways, and 24/7 services
become increasingly popular, delays and malfunctions on these networks may also
increase. Reliable cable protection, as mentioned above, serves to reduce the risk of any
damage to cables, and the consequent damages associated.
2. Innovation & new products: as demand for the railways increases, so too does the demand
for new technologies and innovative solutions; maximising efficiency and security, whilst
ensuring trains not only run on time, but they run with grace and speed. Our Research &
Development team are dedicated to innovation; regularly reviewing and updating the
applications we’re able to offer, as demands change.
3. Associated costs: keeping costs down, particularly for the end user, is important for any
industry and, although we have no control over many costs associated with the rail industry
- such as the rising price of fuel - what we do have control over is keeping any unforeseen
damages and malfunctions which may occur due to damaged or broken cables to a
minimum, which will in turn lower these costs.
4. Durability: as demand for freight and passenger trains increases, so too does the physical
demand on the railway lines themselves; increasing the need for durable cable protection
that can withstand the physical strains of repeated use. All our products are tested beyond
industry standard to ensure that, however high the demand, our applications protect those
cables time and time again.
5. Withstanding extreme conditions: with the possibilities, capacities, and capabilities of the
world’s railways so often challenged, so too are the environments these railways can
endure; the Gotthard Base Tunnel being a perfect example of this. Extreme and
interchangeable conditions call for versatile protection that can easily withstand a
multitude of extreme temperatures.
Opportunity Global demand for transport is growing fast. On present
trends, passenger and freight activity will more than
double by 2050.
Such growth is a token of social and economic progress.
But it carries with it growth in energy demand and in
emissions of CO2 and atmospheric pollutants. Greater
reliance on rail can cut that growth.
The world is becoming ever more urbanised and rail
travel is well matched to urban needs. High-speed rail
can serve as an alternative to short-distance air travel.
Conclusion
Logistics is essential to business operations
because it enables businesses to provide goods
and services effectively, affordably, and to a high
Countries with good port infrastructure will
standard. Logistics may assist businesses in
attract foreign investment and enable local
increasing revenue, customer satisfaction, and
companies to produce and ship to international
general performance by streamlining
markets more efficiently.
transportation routes, enhancing inventory
management, lowering lead times, and offering
a competitive advantage.
Aviation is an integral part of transportation
systems around the world and its contribution
to the entire global economy is evident. The
COVID-19 pandemic affected the aviation Global railways sector analysis shows the rail
market in many ways, but the aviation industry track length. With India leading at 39%,
has started to improve during 2022 and is followed by China at 27%, Japan at 11% and the
gradually returning to its pre-COVID-19 level. European Union at 9%
India and China, are experiencing a massive
surge in their respective civil aviation markets
due to an increased demand for air travel
• Logistics Market Size to be Worth Around USD 18.23
Reference or Trillion By 2030 (precedenceresearch.com)
Bibliography • The Central Challenges For Logistics In 2023 - And How
To Solve Them With The Right Tools | HCLTech
• Ports and Shipping Industry in India – ClearIAS
• 9 Challenges that Push Ports to Become Smart and
Digital (sinay.ai)
• Aviation Industry: All You Need to Know About the
Aviation Sector (revfine.com)
• Top 8 Challenges for the Aviation Industry in 2023 and
beyond (gminsights.com)
• The Future of Rail – Analysis – IEA
• 5 challenges facing railway today - Blog (My world of
installation) | ABB
