In 2021, global warehouse space demand experienced a decline, attributed to reduced manufacturing orders and conservative consumer spending post-COVID-19. However, 2023 witnessed record-high absorption fueled by e-commerce expansion in Asian countries.
London, UK, March 25, 2024 - Makreo Research, a leading provider of market intelligence and analysis, has released its latest report, Global Warehousing & Cold Storage Market (2020-2030). This comprehensive study offers invaluable insights into the dynamic landscape of worldwide warehouse and cold chain industries, catering to stakeholders and industry professionals seeking a deeper understanding of market trends and opportunities.
Global Demand Trends
In 2021, global warehouse space demand experienced a decline, attributed to reduced manufacturing orders and conservative consumer spending post-COVID-19. However, 2023 witnessed record-high absorption fueled by e-commerce expansion in Asian countries.
Prime Warehousing Property Costs
Total prime warehousing property costs surged by 10.1% in the 12 months leading up to June 2023 across 52 global markets. London emerged as the most expensive market, with costs reaching USD 35 per sq ft. Hong Kong and Tokyo followed closely, driven by intense competition amid land constraints.
Cold Storage Warehousing Market
The cold storage warehousing market grew by 7.17% in 2022, fueled by increased demand for pharmaceuticals, chemicals, and FMCG products post-pandemic. In 2023, generalized warehouses dominated the market, offering storage for a diverse range of products.
Performance of North America Warehousing Market
• North America's warehousing market, led by the United States and Canada, is poised for substantial expansion, with 2023 revenues reaching USD 131.49 Billion, reflecting a growth rate of 1.29%.
• In the US, the average cost of warehouse space per square foot was USD 7.96 in 2022, with pallet storage fees dominating at 86.15%. Additionally, the US boasts the world's largest refrigerated warehousing capacity, totaling 156 million cubic meters in 2020.
Performance of European Warehousing Market
• Germany Warehousing Market leads in both generalized and specialized warehousing in Europe, with consistent revenue growth, peaking at USD 11.60 billion in 2020. By 2023, the generalized warehousing market revenue in Germany reached USD 11.25 billion.
• Lantmannen in Sweden operates across diverse sectors like agriculture, machinery, food, and energy, expanding into other European markets to meet the rising demand for sustainable agricultural and food products in emerging economies.
Rentals in the Asia-Pacific Warehousing Sector
• Rent for logistics warehouses in the Asia-Pacific region is set to rise by 3%-5% this year, driven by strong demand fueled by global trade recovery.
• Tight vacancies are expected to persist due to active pre-commitments and robust demand, despite challenges like the Omicron variant, indicating resilient long-term market fundamentals.
Japan, China, and India Leading Logistics Markets in Asia
• China leads in warehousing and storage demand in Asia, with many global manufacturing companies operating their production facilities in the country. While Japan and South Korea are significant players, recent years have seen a decline in Japan's manufacturing output, leading companies to consider shifting to developing countries like Indonesia, the Philippines, and India to reduce manufacturing costs.
Middle East Warehousing Market Performance
• In the Middle East, disruptions in the global supply chain in 2020 led to increased demand for warehousing, particularly in the UAE and Saudi Arabia, with shortages persisting through 2023 due to continued growth in trade volume.
• Africa faces significant logistical challenges, with high costs of moving goods impacting retail prices. Investment in warehousing infrastructure is essential to support trade ambitions and enhance global connectivity, as highlighted by active industrial parks in 47 African countries.
Key Factors Contributing to the Global Warehousing Market
COVID-19 Boosts Online Shopping and Warehousing
• The online shopping industry grows by 43.5% during the pandemic.
• Global market estimated at USD 2.87 trillion.
• Asia, particularly India, drives nearly half of the growth.
• The warehousing sector experiences record absorption of space.
Vietnam's Logistics Industry Surge
• Vietnam sees impressive growth in logistics driven by manufacturing and e-commerce.
• Retail and e-commerce revenue doubles from USD 8 billion to USD 16.4 billion by 2022.
• Further growth is anticipated in the coming years.
Investment Dynamics in the Warehouse Sector
• Factors influencing investment trends retail, e-commerce, manufacturing, and 3PL services.
• Europe witnesses a 50% decline in logistics investment, while Asia-Pacific sees a 14% decrease.
Australia's Warehousing Market Transformation
• Melbourne's West secures 850,000 square meters, affirming its position as Australia's most active market.
• Sydney faces constraints with a minimal vacancy rate of 0.3%.
Warehousing Costs Across Countries
• India offers the lowest costs at USD 3-4 per square foot.
• Vietnam boasts the cheapest location with low labor and energy costs.
• UAE offers competitive costs with higher property and electricity expenses but lower diesel costs.
Growth Outlook
The global warehousing market is set for rapid expansion, with emerging economies such as India, Vietnam, Sweden, Poland, Bahrain, Qatar, and Canada attracting significant investments. In Malaysia, growing e-commerce and manufacturing sectors are boosting warehouse demand, while Singapore faces high rental rates. China leads warehousing demand in Asia, with India showing dynamic market trends and high absorption rates. China, Japan, and South Korea maintain their key roles in the region, while India displays resilience and robust demand for logistics supply.
Scope of the Study
Makreo Research's report, 'Global Warehousing and Cold Storage Market Size and Forecast (2020-2030),' analyzes key players like XPO, Americold, Lineage Logistics, Kuehne Nagel, and CJ Logistics America. It offers competitive insights, financial profiles, and growth drivers, highlighting e-commerce expansion, technology, and logistics shifts for stakeholders seeking investment opportunities.
Period of Study
• 2018 - 2022 Past and Present Scenario
• 2023 Base year of study
• 2024 - 2030 Future Outlook of the industry
Geographies Covered
• Asia Pacific (India, China, Japan, Australia, Philippines)
• North America (United States, Canada)
• Europe (Germany, UK, Poland, France, Spain, Sweden)
• Middle East (UAE, Qatar)
Companies Covered
• Kenco Logistics Services LLC
• XPO
• Americold Logistics
• Kuehne Nagel AG
• CJ Logistics America
• Lineage Logistics
• Tippmann Group
• RAK Logistics
• United States Cold Storage Inc.
• NewCold Holdings
To access the full report and delve into the comprehensive study, Click Here
Global Warehousing and Cold Storage Market Size and Forecast (2020-2030)
About Makreo Research and Consulting
Makreo Research and Consulting is a Market research and consulting firm working closely with business conglomerates worldwide to help them in many aspects of driving their business growth and assist in making wise decisions with the help of our qualitative & quantitative market insights.Makreo Research and Consulting is specialised in infusing life to the business to rise with highest octave with the available resources. Geography is not our limitation; we have extended network of channel partners in many parts of the world that is extending with every new study. Our vast scope of services assists clients in planning future growth strategies, not only in the specified industry, but also in the areas where strategic planning is needed for the consistent success.
