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Research

Report
Trend Analysis, Challenges and Opportunities
Report
1. Logistics
contains 2. Shipping and Port
research on 3. Aviation
4 sectors 4. Rail
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.
Challenges
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.

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
As ships get bigger and global trade by sea increases, infrastructure must be changed by expansion and construction. This puts stress and pressure on port hinterlands. Ports also face depth and
size problems; therefore, many must perform construction operations to deepen and widen port waters, which puts stress on the marine environment and surrounding public.

Global Trade
Increasing global trade also causes many other issues for ports. With a lack of transparency between vessels and ports, they are often unprepared when a vessel arrives at the dock. Normally vessels do
not arrive according to the ETA predicted by the captain, and many ports do not have access to real-time ETA prediction systems for better organization practices.

Production Capacity
Due to infrastructure constraints and increasing global trade, production capacity is an issue. With this global trade increase ports could be augmenting their production capacity, but due to their old
infrastructure, lack of resources, and lack of technologies, this proves to be a constraint.

Finances
Without technology ports cannot adequately plan resources, they can for instance spend more money on crews that end up working overtime only because they are waiting for a vessel to arrive.
Related to port infrastructure problems, a port infrastructure unable to accommodate larger vessels and higher cargo volumes will also be costly since they will lose business. Due to inefficiency, the
operating costs increase while productivity decreases.

Safety and Security


Ports face security and safety issues. The jobs of the port employees can be dangerous. They involve operating large equipment, being around heavy machinery, and many operate in the same areas
such as sulfuric plants which could 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
Challenges
(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.

(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%, followed
has started to improve during 2022 and is 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 Trill
Reference or ion By 2030 (precedenceresearch.com)

Bibliography • The Central Challenges For Logistics In 2023 - And How T


o Solve Them With The Right Tools | HCLTech
• Ports and Shipping Industry in India – ClearIAS
• 9 Challenges that Push Ports to Become Smart and Digit
al (sinay.ai)
• Aviation Industry: All You Need to Know About the Aviati
on Sector (revfine.com)
• Top 8 Challenges for the Aviation Industry in 2023 and b
eyond (gminsights.com)
• The Future of Rail – Analysis – IEA
• 5 challenges facing railway today - Blog (My world of inst
allation) | ABB

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