Stockholm, Sweden, February 1, 2024 – 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.
Logistics Hubs in Sweden
Stockholm: Business and Distribution Hub Stockholm, Sweden’s capital, serves as a crucial logistics and warehousing hub due to its status as a business and cultural center. With a population of 2 million, it hosts the headquarters of major associations and multinational corporations, making it strategically important for domestic and international logistics.
Gothenburg: Maritime and Industrial Hub Gothenburg, Sweden’s second-largest city, stands out as the nation’s primary maritime gateway and industrial hub. Located on the southwest coast, it boasts the largest port in Scandinavia and plays a central role in the logistics network, facilitating the movement of goods nationally and internationally.
Sweden Warehousing Market Size and Forecast (2018-2028) â€“ Focus on Warehouse Market by Type, by Industries and Major Cities
About Makreo Research and Consulting
Makreo Research and Consulting is a Market research and consulting firm working closely with business conglomerates worldwide to help them in many aspects of driving their business growth and assist in making wise decisions with the help of our qualitative & quantitative market insights.Makreo Research and Consulting is specialised in infusing life to the business to rise with highest octave with the available resources.