Estimating the size of the national logistics market using multiple data sources

Purpose Typically the size of the logistics market is estimated through national accounting and market data. This data, however, neglects some of the in-house logistics services and most likely underestimates the true size of the logistics market. The purpose of this paper is to develop a systematic methodology for the estimation of logistics market size comprising the overall logistics expenditure through a combination of multiple data sources to also account for the in-house services.  Design/methodology/approach This research approaches the size of the logistics market by combining longitudinal industry and firm level turnover data, and survey data from Finland on logistics outsourcing and logistics costs and calculating the yearly logistics expenditure and market demand of logistics services. Descriptive statistics, weighted arithmetic means and analysis of variance are employed in the analysis Findings The research provides an improved and more rigorous methodology of estimating the size of the logistics market, including both the market based demand and in-house services. Research limitations/implications The empirical data used in illustrating the result is limited to a single country. The methodology should be further validated with data from other countries. The quality of the survey data could be improved by targeting multiple informants form a single firm.   Social implications For the policy makers, the research will provide improved estimate on the size of the logistics market on a national level. For the logistics service providers, the results provide additional information on the market potential of logistics services. Original/value The novelty of the research is in combining multiple data sources and expanding the estimate of the logistics market to include also services provided in house.