Availability of Infrastructure Facilities, Technologically Advanced Warehouses, Tracking and Tracing of Freight Movement and Low Transportation Cost were the key factors driving growth of Germany Logistics Market.
Germany is one of the most significant logistics markets worldwide and it is a popular location among German and international industrial and logistics businesses owing to its central location in Europe. Germany ranked 1st globally, according to the 2016 logistics performance index owing to its excellent infrastructure and its high technological standards. The logistics industry plays a vital role in Germany’s economy and it is currently being driven by trends such as the elimination of trade barriers, the shift of economic activity towards Eastern Europe and the rapidly growing e-commerce market. Growing customer expectations for same-day and same hour delivery have witnessed an increased trend of CEP service providers (courier, express and parcel) to build smaller logistics centers of up to 10,000 SQM in different cities. New asset types like downtown warehouses and distribution centers are therefore becoming an attractive investment, providing an alternative to traditional big box stores.
Germany’s central position in the EU makes it an ideal location for logistics hubs and distribution centers in Europe. The logistics industry of Germany serves over 82 million Germans, 150 million consumers in its 9 neighboring countries, and nearly 500 million EU residents as it is the direct link to western and eastern European markets. Along with world’s largest intra-logistics exporter with EUR 13 billion, Germany is the world’s 3rd largest exporter and importer of goods. Such huge movement of goods within and outside the country has aided the freight forwarding, warehousing, 3PL, express delivery and cold chain logistics of the country. The retail e-commerce sale in Germany has increased from EUR 27.6 billion during 2012 to around EUR 65.0 billion during 2017. It is further projected to grow at a CAGR around 10% which will further aid the overall market of logistics of the country.
The report titled “Germany Logistics Market by Service Mix (Freight Forwarding Market, Warehousing Market and Value Added Services), by Third Party Logistics, by Cold Chain Logistics, By Express Delivery Logistics and by Industries (Oil & Gas, Engineering Equipment, Food & Beverages, Metals, Automotive and Others) – Outlook to 2022” by Ken Research suggested that increasing logistics parks in Germany coupled with growing FDI in the country will majorly contribute to the overall revenue growth of Germany logistics market in next 5 years till 2022.
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Ankur Gupta, Head Marketing