Makreo Research forecasts a 3% CAGR in the Sweden Warehousing and Cold Chain Market over the next five years. The comprehensive study delves into the industry’s pivotal role in logistics, encompassing retail, manufacturing, and e-commerce.
The warehousing market in Sweden, is experiencing a surge due to consistent quarterly introductions of contemporary logistics space. Despite the influx, there is a shortage of modern logistics facilities, especially with the booming e-commerce sector.
Makreo Research notes that Logistics Prime Yield hit a historical low of 3.45% in Q4 2021, indicating a robust market with further decreases expected in Q1 2023. The demand for warehouses is strong, driven by the growing popularity of e-commerce in Stockholm, which is set to grow by 13% annually. In 2018, Sweden completed around 565,000 square meters of modern logistics facilities, with large deals exceeding 100,000 square feet driven by sectors like 3PL, engineering, and electronics, accounting for 70% of overall demand.
Driving Forces in Sweden’s Warehousing Landscape
In Sweden’s dynamic logistics market, 70% of demand for warehousing space stems from transactions exceeding 100,000 square feet. Sectors like 3PL, engineering, and electronics consistently lead in shaping the warehousing landscape, showcasing the robust nature of large-scale deals.
The thriving e-commerce and retail sectors in Sweden are key drivers behind the escalating demand for warehousing space. The rapid expansion of these industries underscores the vital role well equipped and strategically located warehouses play in ensuring efficient logistics, making them essential components in Sweden’s economic development.
Continued demand for advanced warehouses and logistics solutions:
The surge in e-commerce is fueling a growing need for specialized warehouse solutions. The integration of automated robotic storage, narrow aisle racking, and efficient space utilization at new sites is doubling capacity compared to traditional warehouses. This advancement caters to the dynamic demands of the e-commerce sector, ensuring a competitive edge in the logistics landscape.
Key Challenges in Sweden Warehousing and Cold Chain Market
1. Labor Shortages: Difficulty in recruiting and retaining skilled labor, affecting efficiency.
2. Rising Energy Costs: Substantial energy requirements leading to increased operational expenses.
3. Regulatory Compliance: Stricter standards demand additional investments in technology and training.
4. Infrastructure Constraints: Inadequate transport infrastructure causing delays in goods transportation.
5. Technological Adoption: Implementation of advanced technologies is expensive but crucial.
6. Cost Pressures: High operational costs for maintaining temperature-controlled environments.oast, it boasts the largest port in Scandinavia and plays a central role in the logistics network, facilitating the movement of goods nationally and internationally.
Research Study:
Sweden Warehousing Market Size and Forecast (2018-2028) – Focus on Warehouse Market by Type, by Industries and Major Cities
https://www.makreo.com/report/sweden-warehousing-market-s…
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