How Logistics Market is Positioned in Luxembourg?
Luxembourg logistics and warehousing market was evaluated at USD ~ million with the growth rate recorded at ~% in 2018. The market witnessed an increase from USD ~ million in 2013. The logistics and warehousing industry encompasses with several components such as freight forwarding, warehousing, and value added services in Luxembourg. In terms of revenue generation, the freight forwarding segment dominated the market with USD ~ million in 2018. Rise in number of Chinese enterprises in Luxembourg has increased the importance of country in China’s outbound trade, investment and M&A deals across Europe. Luxembourg has the largest pool of Chinese currency in the Eurozone which has helped to increase its liquidity globally. Luxembourg’s economy rests on sectors such as steel and financial services industry. The country has reduced its dependence on few sectors by adding more sectoral pillars such as information technology & cargo transportation. The Third Party Logistics (3PL) providers in Luxembourg have captured logistics market worth USD ~ billion which represents ~% of the overall market revenues. Companies such as Kuehne+Nagal, Panalpina & CH Robinson are the market leaders in 3PL logistics industry. There has been a rise in contract & outsource logistics. Luxembourg holds a strong potential to become a major hub in terms of transport cost, warehouse & handling and labour cost. As reported by World Integrated Trade Solution (WITS), Luxembourg’s import value was evaluated to be USD ~ billion in 2017; whereas the country’s export value was evaluated to be USD ~ billion in 2017. Major trade commodities include machinery, nuclear reactors, steel, electronics, vehicles, mineral fuels, plastics & others.
The freight forwarding segment dominated the Luxembourg Logistics Market with revenues totaling to USD ~ billion & revenue share worth ~% in the year 2018. Luxembourg’s strategic location on the European road & rail network opens a gateway for major flow corridors, thus making it an intercontinental logistics hub. Value added services segment generated revenue worth USD ~ billion in 2018 with revenue share worth ~% in the year 2018, owing to presence of highly skilled workforce & competitive warehousing prices in neighboring countries, the VAS revenue share is higher than warehousing segment. The warehousing segment generated ~% of the total revenues in Luxembourg logistics market totaling to USD ~ billion in the year 2018. This segment holds a minor share due to presence of competitive warehousing services in the neighboring countries such as France, Belgium & Germany.
Normal deliveries are pre-dominant in the freight forwarding market owing to the small size of the country as deliveries can be made within a day. In 2018, normal deliveries contributed ~% of the total revenues of the freight forwarding market which amounted to USD ~ billion.
As the time taken by normal deliveries is limited owing to the small size of the country, the express market accounts for a lower share in the Luxembourg freight forwarding market. In 2018, express deliveries contributed ~% of the total revenues of the freight forwarding market which amounted to USD ~ billion.
How Freight forwarding Market of Luxembourg is Performing?
In 2012-13, the Luxembourg government strategized to build its country as a gateway from/to/through Europe for cross dock hub, regional distribution & as a value added services centre. Road transport has dominated the freight forwarding segment as per the freight volumes recorded. Rail infrastructure has expanded over the years which have resulted in rise in freight volumes. Airport has developed specialized handling capacity, owing to which the air freight industry is witnessing a boom. Freight forwarding market in Luxembourg grew at CAGR ~% during the period 2013-2018.
The freight forwarding market has increased with the rising demand for logistics services from industries such as pharmaceuticals, healthcare, e-commerce & express market which has further increased the freight volumes. A dense network of motorways, which connects Luxembourg with neighboring countries, was one of the main drivers for growth of the freight forwarding industry. The freight forwarding market increased from USD ~ billion in 2013 to USD ~ billion in 2018. The development of railway infrastructure & continuous allocation of funds to infrastructure projects has augmented growth in the domestic and international freight forwarding market.
In terms of domestic and international freight forwarding segmentation, international freight forwarding has largely contributed in the revenues of the industry.
The freight forwarding market is forecasted to dominate the Luxembourg logistics market in future and grow at ~% in the coming 5 years. The freight forwarding market is forecasted at USD ~ billion in 2023. Rail freight volumes are poised to show substantial increase owing to capacity expansion & technology up gradation projects implemented by CFL multimodal. A total of USD ~ billion has been invested in building an effective mobility chain in Luxembourg to meet the growing demand for transportation services.
How is Warehousing Space and Industry Revenue Grown?
Luxembourg has developed two logistics parks – Eurohub Centre & Eurohub South that offer tailor made warehousing solutions with proximity to airport, multimodal terminals & ports. Many companies are building their warehouses around Luxembourg City to optimize value chain process as it offers proximity to Luxembourg Airport. Warehousing companies are transferring their business to 3PL service providers which provide wide array of services. The demand for warehousing comes from logistics firm, e-commerce industry and manufacturing firms. The demand for fast, safe storage and delivery of goods to the customer that has attributed to the growth of service standards. The warehousing in Luxembourg grew at a CAGR of ~% from 2013 to 2018, growing from USD ~ million in 2013 to USD ~ million 2018.
In 2014, E-commerce industry turnover amounted to USD ~ billion. Owing to increasing smart phone penetration, the e-commerce industry is poised to record a double digit growth in the coming 5 years which is going to create more demand for warehousing market in Luxembourg.
The Industrial and Retail sector is the largest contributor to the warehousing sector in terms of revenues in 2018 with ~% of share. The rise in industrial and manufacturing activities over the years has increased demand for warehousing services in the country.
The warehousing market in Luxembourg is expected to grow with a CAGR of ~% during 2018 to 2023 and reach USD ~ billion by 2023. Owing to the growth of pharmaceutical & e-commerce sector, Luxembourg is expected to become manufacturing & distributions centres for many international companies looking to tap the European markets.
Key Segments Covered:-
Luxembourg Logistics and Warehousing Market
By Services Mix (Freight Forwarding, Warehousing and Value added services)
Luxembourg Freight Forwarding Market Segmentation
By Freight Mode (Air Transport, Maritime Transport, Road and Rail) – Basis of Revenue and Volume
By International and Domestic Freight Forwarding – Mode Wise
By Flow Corridors (Europe, Asia Pacific, Americas and ROW)- Basis International Freight Revenue
By Normal and Express Delivery
By Integrated and 3PL
Luxembourg Warehousing Market
By End User (Consumer & Retail, Pharmaceuticals & Healthcare, Fruits, Vegetables, Dairy & Beverages, Automotive and Others)
By Business Model (Industrial/Retail Freight, Container Freight, Cold Storage and Others)
By Integrated and Contract Logistics
Luxembourg Value Added Services Market
Luxembourg Express Logistics Market
By Delivery (International and Domestic Express)
By Mode (Air Express and Road Express)
By End User (B2B and B2C & C2C)
Luxembourg Cold Chain Market
By Cold Storage and Cold Transport
By End User Industries (Pharmaceuticals & Healthcare, Fruits, Vegetables and Dairy Products, Meat and Seafood and Others)
E-Commerce Logistics Market
By E-commerce Merchants and 3PL Companies
By Same day and 2 Days or more
Courier, Express and Parcel (CEP) Market
Key Target Audience:-
Logistics and Warehousing Industry Associations
E-commerce and Online Retail Companies
Cold Storage and Transport Companies
Venture Capitalist Firms
Government and Other Regulatory Organizations
Time Period Captured in the Report:-
Historical Period – 2013-2018
Forecast Period – 2018-2023
Qatar Airways Cargo
Luxembourg Logistics Industry
Luxembourg Logistics Market Revenue
Air Cargo Volumes in Luxembourg
Air Freight Mail Volume Luxembourg
Luxembourg Logistics Industry Share
Number of Warehouses in Luxembourg
Warehousing Space in Luxembourg
Trucking Companies in Luxembourg
Rail Freight Corridor Flow Luxembourg
Luxembourg CFL Multimodal Revenue
DB Schenker Luxembourg Revenue Logistics
Air Freight Statistics Luxembourg
Logistics Parks in Luxembourg
Cobelfret Luxembourg Logistics Market
For more information on the research report, refer to below link:-
Ankur Gupta, Head Marketing & Communications