The major drivers of this market are increasing focus on the continued supply of essential commodities. Also creation of supply chain stabilization task force to fight COVID-19, and growing demand and distribution of personal protective equipment. The factors that restrain the market are labour shortage and a shortage of COVID-19 testing kits.
FMCG is expected to have the largest market sizing in the global logistics market during the forecast period
FMCG and healthcare are among the major industries facing prominent logistics challenges. Most consumers are experiencing the fear of limited availability of fast-moving consumer goods as well as healthcare goods such as disinfectants. Most countries are experiencing supply pressure due to panic buying by consumers amid COVID-19 impact. As a result, FMCG companies are continuously tracking the current situation and are coming up with new strategies to ensure continued supply.
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 by mode of transport.
Roadways are relatively less affected by the COVID-19’s impact on the logistics sector when compared with airways and waterways. Trucking is seen as a critical mode of transport amid the pandemic. However, the primary concern faced by the road transport segment is driver shortage and ensuring the health safety of the available drivers as well as their infrastructure. Road transport is relied upon heavily for the continued supply of food, medicine, and other essential products.
The Asia Pacific to have the largest market size during the forecast period
The Asia Pacific is expected to have the largest logistics market size. As the region has taken stringent and quite early measures to contain the virus outspread. 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. Asia Pacific region is expected to show positive signs in the near future as the supply chain industry recovers gradually.