On-Demand Warehousing Market By Service Type (Storage and Warehousing, Fulfillment and Distribution, Inventory Management, Transportation and Logistics, Packaging and Labeling); By Warehouse Type (Dry Storage, Cold Storage (Refrigerated and Frozen), Climate-Controlled Storage); By Duration (Short-Term Warehousing (Less than 1 Month), Medium-Term Warehousing (1-6 Months), Long-Term Warehousing (6+ Months)); By Industry (E-commerce and Retail, Consumer Goods, Food and Beverage, Pharmaceuticals and Healthcare, Electronics and Technology, Automotive); By Geography, Segment revenue estimation, Forecast, 2024–2032.

The on-demand warehousing market was worth USD 115.12 billion in 2023 and will be worth USD 306.04 billion by 2030, growing at a CAGR of 13% during the forecast period.

 

The On-Demand Warehousing market has been stimulated by the exponential growth in e-Business which has been increasing at over 20% annually in the past few years. The demand for variable storage capacities becomes paramount for retailers and manufacturers, especially during frenzy buying events such as Black Friday or the holiday season. On-demand warehousing offers businesses flexible space in terms of leasing, where the rental spaces can be accessed and acquired quickly without a long-term warehouse holding. New trends are a collaboration with SaaS solutions for working with inventory and renting storage space for products on the cloud. For example, retail companies use on-demand warehousing to extend their logistics reach and deliver orders quicker in peak seasons without the overhead of permanent inventories. This flexibility and efficiency are other growth attributes as the supply chain elaborates and changes in the market.

 

The On-Demand Warehousing market has more opportunities because of the changes in consumer behavior and the availability of internet facilities, and global online sales are expected to hit $6 trillion by 2024. Small and medium-sized enterprises have a great advantage in on-demand warehousing since business needs vary constantly, and having a warehouse on constant lease may be expensive. This flexibility reduces high overhead costs while guaranteeing the firm’s ability to meet heightened customer demand at certain times. The trend that has emerged in recent years is the use of online marketplaces that enable firms to access excess warehouse space for optimal supply chain management. For instance, fashion firms and electronics, among other industries, implement on-demand warehousing for returns, peak seasons, and excess stocks. This migration of global logistics toward more fluid and innovation-based arrangements results in a reputably high on-demand warehousing market growth potential.

 

Market Segmentation

By Service Type:

• Storage and Warehousing

• Fulfillment and Distribution

• Inventory Management

• Transportation and Logistics

• Packaging and Labeling

 

By Warehouse Type:

• Dry Storage

• Cold Storage (Refrigerated and Frozen)

• Climate-Controlled Storage

 

By Duration:

• Short-Term Warehousing (Less than 1 Month)

• Medium-Term Warehousing (1-6 Months)

• Long-Term Warehousing (6+ Months)

 

By Industry:

• E-commerce and Retail

• Consumer Goods

• Food and Beverage

• Pharmaceuticals and Healthcare

• Electronics and Technology

• Automotive

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment Analysis of On-Demand Warehousing Market

By Service Type:

Leading Segment: Storage & Warehousing

Storage & warehousing services dominate the on-demand warehousing market because of the rising need for flexible, cost-effective storage solutions. This segment's dominance is driven by the increasing demand for such solutions. Companies looking to reduce overhead costs related to fixed warehousing & enhance supply chain efficiency are turning to on-demand storage solutions. Major players like Amazon & Walmart are utilizing third-party warehousing services to expand their inventory without committing to long-term leases, significantly contributing to the sector's growth.

Fastest-Growing Segment: Fulfillment and Distribution

Fulfillment and distribution services are the fastest-growing segment in the on-demand warehousing market. With the rise of e-commerce, the demand for quick order fulfillment, packaging & distribution has surged, particularly in industries like fashion, electronics, and consumer goods. The push for quicker shipping times & more efficient logistics has driven this growth, with leading logistics providers like XPO Logistics & ShipBob taking advantage of the demand for on-demand fulfillment services.

 

By Warehouse Type:

Leading Segment: Dry Storage

Dry storage holds the largest market share in the on-demand warehousing sector due to its versatility & widespread use in a variety of industries. This type of storage is suitable for products that do not require specific temperature control, such as electronics, consumer goods, and non-perishable items. Dry storage warehouses are the most commonly used, as they can cater to a wide range of industries with minimal additional requirements. Major warehouse providers, like Prologis, operate vast networks of dry storage facilities to meet the increasing demand for goods storage.

Fastest-Growing Segment: Cold Storage (Refrigerated & Frozen)

Cold storage is the fastest-growing warehouse type, driven by the increasing demand for temperature-sensitive goods, particularly in the food and beverage, pharmaceuticals & healthcare industries. The rise in online grocery shopping & the expansion of the pharmaceutical industry, including the distribution of vaccines and medications, has spurred growth in cold storage facilities. Companies like Lineage Logistics & Americold are leading the charge by expanding their cold storage networks to meet the surge in demand, making this the fastest-growing segment.

 

By Duration:

Leading Segment: Medium-Term Warehousing (1-6 Months)

Medium-term warehousing (1-6 months) is the leading duration segment in the on-demand warehousing market. This duration typically meets the needs of businesses that experience seasonal fluctuations in inventory or require short-term solutions during peak demand periods. Retailers, wholesalers & e-commerce companies tend to rely on this duration for inventory storage during holiday seasons or promotional periods. For instance, during Black Friday or other peak sales events, medium-term warehousing services are widely used by brands to manage their stock.

Fastest-Growing Segment: Short-Term Warehousing (Less than 1 Month)

Short-term warehousing (less than 1 month) is the fastest-growing segment, fueled by the rapid increase in e-commerce sales, especially for items with quick turnover, such as fashion & electronics. Businesses looking to streamline their supply chains are opting for short-term warehousing solutions to meet immediate storage needs without long-term commitments. Companies like Stord & Flowspace are catering to these demands by providing flexible, on-demand storage that allows for quick scaling as business needs evolve.

 

By Industry:

Leading Segment: E-commerce & Retail

E-commerce & retail dominate the on-demand warehousing market as the leading end-user industry. The boom in online shopping has created a pressing need for flexible warehousing solutions that can handle the fluctuations in product demand. On-demand warehousing services provide e-commerce businesses with the flexibility to scale their inventory storage according to seasonal demands without the financial burden of owning or leasing permanent warehousing. Leading companies like Amazon, Shopify & Alibaba are relying heavily on these services to support their logistics and supply chain operations.

Fastest-Growing Segment: Pharmaceuticals and Healthcare

The pharmaceuticals and healthcare industry is the fastest-growing end-user segment for on-demand warehousing services. The ongoing demand for efficient storage & distribution of temperature-sensitive medical products, including vaccines, medicines & medical devices, is a major driver for growth in this sector. Warehouses that offer specialized storage for pharmaceutical products, such as cold storage or climate-controlled environments, are increasingly in demand. The growth of global healthcare needs and the rapid distribution of vaccines in recent years has played a significant role in accelerating this trend.

 

By Region:

Leading Region: North America

North America holds the largest market share in the on-demand warehousing market. The region’s robust e-commerce sector, coupled with its advanced logistics & warehousing infrastructure, makes it the leading region. The presence of major players like Amazon, Walmart & UPS has propelled the demand for on-demand warehousing services. The United States, in particular, has seen significant investment in warehousing & distribution facilities due to the high demand for quick & efficient delivery services, especially in urban areas.

Fastest-Growing Region: Asia Pacific

Asia Pacific is the fastest-growing region in the on-demand warehousing market. The expansion of e-commerce in countries like China & India, coupled with the increasing industrialization in Southeast Asia, has contributed to the rapid growth of the warehousing sector in this region. The rise of logistics and distribution centers in key markets such as China, Japan & South Korea is driving demand for flexible warehousing solutions. The increasing middle-class population, along with the growing demand for both consumer goods and pharmaceutical products, further fuels the growth in Asia Pacific.

 

 

Key Players

• Flexe

• Flowspace

• Ware2Go

• Stord

• Deliverr

• ShipHero

• Cubework

• Darkstore

• ShipBob

• Amazon FBA

 

On-Demand Warehousing Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 115.12 billion
Revenue Forecast in 2030	USD 306.04 billion
Overall Growth Rate	CAGR of 13%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Service Type, By Warehouse Type, By Duration, By Industry, By Region
By Service Type	Storage and Warehousing, Fulfillment and Distribution, Inventory Management, Transportation and Logistics, Packaging and Labeling
By Warehouse Type	Dry Storage, Cold Storage (Refrigerated and Frozen), Climate-Controlled Storage
By Duration	Short-Term Warehousing (Less than 1 Month), Medium-Term Warehousing (1-6 Months), Long-Term Warehousing (6+ Months)
By Industry	E-commerce and Retail, Consumer Goods, Food and Beverage, Pharmaceuticals and Healthcare, Electronics and Technology, Automotive
By Region	North America, Europe, Asia Pacific, LAMEA
Country Scope	US, Mexico, Canada, Germany, UK, France, China, Japan, India, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.