Global E Commerce Fulfillment Services Market Study Combine With Challenges And Opportunities Up To 2029

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The global e-commerce fulfillment services market was valued at US$84.72 billion in 2021 and is estimated to grow at a compound annual growth rate (CAGR) of 8.4% between 2022 and 2029. The upsurge of e-commerce and the resulting rise in the number of online buyers, specifically in emerging economies, drive the demand for e-commerce fulfillment services.

Fulfillment service centers help e-commerce vendors outsource logistical services such as warehousing, bundling, shipping, and other value-added services such as delivery speed and return management.

AgileIntel’s global e-commerce fulfillment services market study is a 157 pages report containing in-depth analysis on historical and forecasted spending patterns in the sector. The study offers granular value data from a global, regional, data type, industry, and end-user perspective.

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The base year is 2021 for the study with historical data between 2018 and 2021. The data forecast has been provided for the ...
... years between 2022 and 2029.

Insights by Service Type:

The e-commerce fulfillment services market is classified into warehousing and storage services, shipping services, bundling services, and others based on the service type.

The shipping segment held the largest revenue share of over 40% in 2021. The boom in the e-commerce industry has resulted in many e-commerce companies outsourcing shipping services to third-party fulfillment service providers, thereby driving the shipping fulfillment services market. Moreover, the increase in disposable incomes, the growing inclination among consumers towards international brands, and the high internet penetration rate, coupled with the rise in the number of social media users, are expected to boost the demand for shipping fulfillment services during the forecast period.

Furthermore, the warehouse and storage segment held a considerable revenue share in 2021 and is expected to continue doing so during the forecast period. The deployment of automated mobile robots (AMR) and augmented reality (AR) technology in warehouses helps in improving operational efficiency. E-commerce companies worldwide outsource these services to reduce the delivery time, consequently contributing to the segment growth. For instance, in January 2020, Ship fusion, a U.S.-based fulfillment service provider, opened a new 3,81,000 sq. ft. fulfillment center in Chicago, which includes a temperature-controlled warehouse and is equipped with an efficient conveyer and automated racking system.

Insights on Product Type:

The e-commerce fulfillment services market is classified into automotive, beauty and personal care, books and stationery, consumer electronics, healthcare, clothing and footwear, home and kitchen application, sports and leisure, and others based on product type.

The clothing and footwear segment dominated the e-commerce fulfillment services market accounting for a 27% revenue share in 2021. This segment's high growth can be attributed to the growing interest among consumers towards buying clothing and footwear through online channels. This trend witnessed an upsurge during the COVID-19 pandemic, where people were forced to stay indoors due to the government lockdown policies. Additionally, the home and kitchen segment is also anticipated to grow considerably during the forecast period due to the rising incidence of work-from-home situations worldwide owing to the ongoing pandemic.

Furthermore, consumer electronics is projected to be the fastest-growing segment during the forecast period. The growth can be attributed to the rising demand for consumer electronics such as mobile phones, tablets, televisions, etc. often need special care while packaging. Additionally, The COVID-19 pandemic has resulted in huge demand for electronics products, such as headsets, routers, laptops, etc. These consumer electronics being extremely fragile, require appropriate packaging to prevent moisture and reduce the risk of damage. The e-commerce fulfillment centers manage the specific packaging requirements and offer bundling and assembly services for electronic products' accessories such as controllers, extra cables, headphones, and speakers that the consumer may wish to order together as a complete set.

Impact of COVID-19

The e-commerce fulfillment services market has been adversely affected due to the COVID-19 pandemic. The government-imposed lockdowns and closure of international borders to curtail the spread of the virus has caused severe disruptions in the supply chain and logistical operations and labor shortages, resulting in the stagnation of manufacturing activities in several countries globally. The uncertainty in the movement of goods amid lockdowns has caused a decline in the demand for international fulfillment services for e-commerce activities worldwide.

However, relaxations and resumption of logistics and transportation services for essential products are expected to revive the e-commerce fulfillment services market. Additionally, despite the opening of shops and retail stores across the globe towards the end of 2021, consumers prefer the e-commerce channel to buy essential or non-essential products. This trend is expected to drive the demand for fulfillment services to meet the growing demand for shipping, warehousing, and other services during the forecast period.

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