Gartner’s “Magic Quadrant” shows a crowded logistics elite with no visionaries

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A stabilized and cemented group of market leaders who rarely open the door to new players in their group – this is what the logistics sector looks like according to the Gartner consulting company. Gartner’s “Magic Quadrant” nonetheless indicates that niche, regional players in Asia are like crouching tigers waiting to enter the global elite.

Gartner’s “Magic Quadrant” is a prestigious list of the main players in various markets. The four fields are as follows: market leaders, challengers, visionaries, and niche players.

When it comes to companies from the third-party logistics sector, the following have been classified as market leaders: DHL, XPO Logistics , DB Schenker, Geodis, UPS Supply Chain Solutions, Kuehne + Nagel and CEVA Logistics.

Among the “challengers” waiting to join this group of leaders are Expeditors, DSV, as well as the Kuwaiti Agility group (which DSV recently purchased via its subsidiary company Global Integrated Logistics ), Bollore Logistics and Maersk.

The example of CEVA Logistics proves that the boundaries between groups are not rigid and that a “challenger” is able to join the group of leaders. Last year, the company was still among the contenders.

Interestingly, this year’s classification has not identified any company as a visionary. In 2020, the only company that was classified in this way by Gartner was Ballore Logistics – today it is placed among the “challengers”.

When it comes to niche companies, Gartner’s quadrant features Yusen Logistics, Kintetsu World Express, Kerry Logistics Network, Rhenus Group and Hitachi Transport System.

Analyzing the Gartner chart, it can be seen that Japanese company Yusen Logistics is very close to transitioning to the group of “challengers” (such a jump was made by Maersk this year). The niche players in this space are predominantly Asian companies (three Japanese firms alongside Kerry Logistics from Hong Kong).

As mentioned earlier, Yusen Logistics is on track to enter the immediate hinterland of the logistics elite, and Kerry Logistics can also take a quick passage towards the elite thanks to its marriage with SF Holding, Alibaba’s main courier service provider.

It is also worth emphasizing that, as in sport, some get promoted while others are relegated. Japanese company Kintetsu, one of last year’s challengers, is once again ranked among the niche players this time around.

Photo credit: DHL