Part
01
of six
Part
01
Customs Industry, Global Market Size
The global market size of the customs industry is expected to grow at a CAGR of 8.5% from $3.965 trillion in 2017, reaching $5.493 trillion in 2021. In 2019, the market size of the customs industry is $4.667 trillion.
CUSTOMS INDUSTRY: OVERVIEW
- The World Customs Organization (WCO) represents 183 customs administrations around the globe that collectively process approximately 98% of world trade. As the global center of customs expertise, the WCO is the voice of the international customs industry.
- Customs organizations are categorized into five main types:
- The key players in the customs industry include: "Echo Global Logistics, Sunteck TTS, Coyote Logistics, Schneider, Landstar System, BNSF Logistics, J.B. Hunt Integrated Capacity Solutions, C.H. Robinson Worldwide, JDC International, HOC Global Solutions, Total Quality Logistics, Hub Group, Worldwide Express, United Parcel Service of America, XPO Logistics Inc., FedEx, Wen-Parker Logistics, GlobalTranz Enterprises, and DHL International."
- The customs brokerage market is on track for steady growth of 8.5% per annum.
- According to a report from the World Customs Journal, the collection of tax revenue from customs by region is as follows:
CUSTOMS INDUSTRY: MARKET SIZE
- We were able to calculate the global market size of the customs industry in 2017-2021. Our calculations can be found below in our research strategy.
- The global market size of the customs industry was $3.965 trillion in 2017.
- In 2018, the global market size of the customs industry was $4.302 trillion.
- The 2019 global market size of the customs industry is $4.667 trillion.
- In 2020, the global market size of the customs industry is expected to reach $5.063 trillion.
- The global market size of the customs industry is expected to reach $5.493 trillion in 2021.
RESEARCH STRATEGY:
We started our research by looking for resources which directly and credibly provided the market size of the customs industry globally. In attempting to locate this answer, we conducted exhaustive research through industry-related portals and databases. In pursuit of this strategy, we checked websites like WCO and the World Customs Journal. We also checked research firms, market report databases, and financial publications. We then checked consulting websites and financial databases, in addition to media sites that focus on business topics. Unfortunately, we were unable to find the market size of the customs industry globally.
However, from the WCO's annual report for 2018-2019, we learned that the WCO represents
183 customs
administrations around
the globe that collectively
process approximately
98% of world trade. Based on our findings regarding the collection of tax revenue from customs by region, detailed in the customs industry overview above, we used the following calculations to determine the market size for the global customs industry.
CALCULATIONS
Therefore, customs accounts
for nearly 32.24% of the overall taxes collected globally.
Next, we tried to find the value of all taxes collected globally. We found that tax revenue is represented as a percentage of GDP (Gross World Product).
Thus, the tax revenue = 15.206% x 80,886,000,000,000 = 12,299,525,160,000 or $12.299 trillion in 2017
Customs = 32.24% of tax revenue = 32.24% x 12,299,525,160,000 = 3,965,366,911,584 or $3.965 trillion in 2017
Considering that we know that customs brokerage represents about one-third of the overall global customs administrations (31.7%) and is growing at a CAGR of 8.5%, we assumed that the customs industry is growing at the same CAGR. We then calculated the customs industry market size for 2018 and 2019 using a reverse CAGR calculator. Additionally, we calculated the projected market size for 2020 and 2021.
2018 market size:
Starting value: 3,965,000,000,000
Number of periods: 1 (2018-2017)
This yielded a value of 4,302,000,000,000. The 2018 global market size of the customs industry is $4.302 trillion.
2019 market size:
Starting value: 4,302,000,000,000
Number of periods: 1 (2019-2018)
This yielded a value of 4,667,000,000,000. The 2019 global market size of the customs industry is $4.667 trillion.
2020 market size:
Starting value: 4,667,000,000,000
Number of periods: 1 (2020-2019)
This yielded a value of 5,063,000,000,000. The 2020 global market size of the customs industry is $5.063 trillion.
2021 market size:
Starting value: 5,063,000,000,000
Number of periods: 1 (2021-2020)
This yielded a value of 5,493,000,000,000. The 2021 global market size of the customs industry is $5.493 trillion.