Transportation & Logistics - Cyprus

Cyprus

The logistics costs of Transportation & Logistics market is expected to amount to US$4.75bn in 2029, potentially depicting how much the Transportation & Logistics market can grow.
Logistics costs is expected to show an annual growth rate (CAGR 2024-2029) of 2.69%, resulting in a projected growth of US$4.75bn by 2029.
The container port traffic in Cyprus is projected to amount to 0.32m TEU in 2024.

Definition

The Transportation and Logistics market encompasses the range of services and operations involved in the movement, management, and distribution of goods and information from one location to another. This market focuses on diverse services that facilitate the efficient transportation and logistical handling of cargo and mail for commercial purposes. It excludes services primarily intended for passenger transport, non-commercial personal shipping, and in-house logistics managed internally by companies.

Structure

The Transportation and Logistics market is structured into the following sub-markets:

Third-Party Logistics (3PL): This sub-market includes services provided by third-party logistics companies that manage and handle logistics operations on behalf of other companies. These services encompass warehousing, inventory management, order fulfillment, and distribution. It excludes first-party, second-party, fourth-party, and fifth-party logistics providers, as well as in-house logistics and non-logistics related services.
Postal Services: This sub-market covers mail and package delivery services, including domestic and international mail, parcel delivery, postal sorting and handling, and retail counter services. It excludes freight forwarding services, courier services beyond mail and parcels, e-commerce fulfillment, and passenger transport services.
Freight Forwarding: This sub-market focuses on the coordination and management of cargo transportation across various modes of transport. It includes:

Road Transport: Transportation of goods by road vehicles such as trucks and lorries.
Rail Transport: Transportation of goods by trains.
Pipeline Transport: Transportation of goods, including liquids and gases, through pipelines.
Global Waterborne Freight: Sea-based transportation of cargo, including container shipping.
Domestic Waterborne Freight: Transportation of goods via rivers, canals, and lakes.
Air Transport: Air freight services for the transportation of goods by aircraft.

Additional Information

The market includes the production, operation, and management of transportation and logistics services within a specific region. Notable key players in the Transportation and Logistics market include global logistics providers like DHL, FedEx, and UPS, as well as specialized freight forwarders and postal operators. These companies are pivotal in shaping the industry through their extensive networks, technological advancements, and comprehensive service offerings. Regional players and niche operators also contribute significantly to the market, offering tailored solutions to meet diverse transportation and logistics needs.

Market

Region

Region comparison

Currency

Analyst Opinion

The Transportation & Logistics market is a pivotal element of the global supply chain, encompassing a diverse range of services designed to facilitate the efficient movement of goods and materials across various channels. This market plays a critical role in ensuring that products reach their destinations promptly and cost-effectively, supporting both domestic and international trade.

In recent years, the market has experienced significant transformations driven by several key factors. The exponential growth of e-commerce has dramatically increased demand for parcel delivery services, pushing logistics providers to enhance their delivery networks and technology solutions. Companies are investing in advanced logistics technologies such as real-time tracking systems, automated sorting facilities, and digital platforms to improve efficiency and provide greater transparency in the supply chain.

The integration of digital solutions is reshaping how transportation and logistics services are delivered. The adoption of IoT, AI, and data analytics allows for more precise management of logistics operations, better route optimization, and improved supply chain visibility. These technologies enable logistics providers to offer more reliable and flexible solutions, which are crucial for meeting the demands of modern consumers and businesses alike.

Sustainability is also becoming a central focus within the market. As environmental concerns and regulatory requirements increase, there is a growing emphasis on reducing the carbon footprint of transportation and logistics operations. Companies are exploring greener alternatives, such as electric vehicles, renewable energy sources, and sustainable packaging materials, to align with global sustainability goals and improve their environmental impact.

The market is characterized by its adaptability and the need to address various challenges, including fluctuating demand, global trade uncertainties, and evolving consumer expectations. Logistics providers are responding by diversifying their service offerings, enhancing their infrastructure, and forming strategic partnerships to better manage these complexities and provide comprehensive solutions that cater to a wide range of needs.

Overall, the Transportation & Logistics market is dynamic and rapidly evolving, driven by technological advancements, changing market demands, and a heightened focus on sustainability. By embracing innovation and adapting to new trends, the sector is well-positioned to support global trade, enhance supply chain efficiency, and meet the growing expectations of businesses and consumers around the world.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on the activities of the Transportation & Logistics market.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use resources from the Statista platform as well as annual financial reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting transportation activity due to the non-linear growth of this market

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.