Analysis of Market Size and Share in Warehousing and Storage Services
The global warehousing and warehouse leasing market is segmented by type (general warehousing and storage, cold storage warehousing, agricultural produce warehousing and storage), ownership (private warehouses, public warehouses, and bonded warehouses), end-user industry (manufacturing, consumer goods, food and beverage, retail, and healthcare), and geography. The market size and forecasts for all the above-mentioned segmented markets are provided in terms of value (million US dollars).
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Warehousing Market Analysis
The warehousing services market is expected to grow from 691.74 billion in 2023 to 691.74 billion in 2023 to 963.74 billion in 2028, with a compound annual growth rate of 6.86% during the forecast period (2023-2028). Growth in the industrial sector, increasing demand for manufactured goods, processed and frozen foods, and the expansion of the e-commerce industry are key factors driving the demand for warehousing services. Warehousing services provide storage for the property of other companies or organizations, including parts, equipment, vehicles, products, and perishable goods. The growing demand for an omnichannel model is expected to drive market development. While the trend towards online purchasing by consumers is increasing, offline stores still hold significant market share, particularly in the realm of large items like furniture, expanding the warehouse and storage market. As supply chains are reconfigured to meet demand faster than ever before, warehouses are increasingly integrated with logistics, as logistics services play a crucial role in this process. Additionally, with the further expansion of globalization trends, a significant portion of industries operating globally frequently transport inventory from abroad to warehouses, driving the demand for warehousing and storage services through the transfer of finished goods along the supply chain. The significant growth in demand and requirements for storing new product types has greatly impacted the complexity for warehousing service providers, who are now beginning to seek innovative technologies to help reduce complexity and provide them with tools for better facility management. Warehouse Management Systems is one such solution that provides visibility over a company's entire inventory and supports supply chain fulfillment operations from distribution centers to store shelves.
Furthermore, warehousing service providers are dedicated to optimizing their picking, handling, and sorting processes to further shorten delivery times while ensuring delivery quality. This trend is driving the development of new warehouse construction and management technologies. Additionally, to compete with global players, many vendors are adopting emerging technologies such as GPS, RFID, VoIP devices, digital voice, and imaging technologies for warehouse operations. However, one of the significant challenges facing warehouse/storage service providers is the higher investment required for establishing warehouses and adopting advanced technologies. Moreover, the lack of awareness of common global standards by small and medium enterprises also poses a challenge to market growth. COVID-19 has resulted in many warehouses being busier than ever before, primarily supplying food, medicines, and essential household items. Companies like Amazon, Aldi, Asda, and Lidl have stated the need to increase capacity and hire additional warehouse labor. While demand has decreased in certain industries, particularly in the industrial and manufacturing sectors, especially in the initial stages, the market is expected to gradually recover in the coming years.
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Warehousing Market Trends
Significant growth expected in the cold storage warehousing and storage sector
Cold storage warehousing and storage facilities cater to products that require refrigerated and controlled room storage. It also refers to places where perishable products are stored or preserved at low temperatures. Most cold storage or refrigerated warehouses are designed with features that can keep items in optimal conditions. Institutions in the cold storage warehousing and storage industry offer services such as temperature modulation, quick freezing, and controlled atmosphere storage. There is a positive market growth trend in cold storage warehousing and storage, mainly in the pharmaceutical and food and beverage sectors. The Care Quality Commission recommends that insulin, liquid antibiotics, injectables, eye drops, and certain ointments must be stored between 2°C and 8°C to maintain the effectiveness of the medication. According to data from the U.S. Census Bureau, 117.45 million Americans used eye drops and washes in 2021. This number is expected to increase to 118.49 million by 2023. The increasing demand for liquid medications, especially post-pandemic, is expected to impact the demand for liquid medicines positively. Cold storage is an essential part of Supply Chain Management (SCM) when transporting and storing temperature-sensitive products. Bilateral free trade agreements also create new opportunities, such as the North American Free Trade Agreement (NAFTA), which allows U.S. suppliers to increase the trade of perishable goods with minimal import duties. Such trade agreements are favorable for market growth. With the growing demand for cold storage warehouses, suppliers in the market are continually expanding their footprint. For example, according to data from the International Association of Refrigerated Warehouses (IARW), Lineage Logistics is the largest cold storage warehousing and logistics provider in North America, with 42,526,060 cubic meters of temperature-controlled space.
Source: https://www.mordorintelligence.com/zh-CN/industry-reports/warehousing-and-storage-services-market
