Certified Global Research Member
Key Questions Answered
- Global Market Outlook
- In-depth analysis of global and regional trends
- Analyze and identify the major players in the market, their market share, key developments, etc.
- To understand the capability of the major players based on products offered, financials, and strategies.
- Identify disrupting products, companies, and trends.
- To identify opportunities in the market.
- Analyze the key challenges in the market.
- Analyze the regional penetration of players, products, and services in the market.
- Comparison of major players’ financial performance.
- Evaluate strategies adopted by major players.
- Recommendations
Why Choose Market Research Future?
- Vigorous research methodologies for specific market.
- Knowledge partners across the globe
- Large network of partner consultants.
- Ever-increasing/ Escalating data base with quarterly monitoring of various markets
- Trusted by fortune 500 companies/startups/ universities/organizations
- Large database of 5000+ markets reports.
- Effective and prompt pre- and post-sales support.
Global Contract Logistics Market Overview
Contract Logistics Market Size was valued at USD 248.6 Billion in 2022. The Contract Logistics industry is projected to grow from USD 268.99 Billion in 2023 to USD 505.30 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.20% during the forecast period (2023 - 2032). A rise in trade activity, a surge in contracts relating to trade, and technological developments in the transportation industry are the key market drivers accelerating market expansion.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Contract Logistics Market Trends
-
Rise in artificial intelligence adoption is driving the market growth
Market CAGR for contract logistics is being driven by the rise in artificial intelligence adoption. The whole procedure from production to distribution at the point of sale is referred to as contract logistics. It is a more comprehensive plan of action that incorporates supply chain management procedures with traditional logistics. The businesses that work in the contract logistics sector undertake tasks like managing the supply chain, warehousing, shipping, and distributing products, processing orders and collecting payments, keeping track of inventories, and even performing some types of customer support. This is the practice of assigning work related to resource management to outside service providers.
Additionally, Artificial intelligence will be incorporated into logistics processes like route optimization, smart transportation, forecasting of demand, and budget planning, which is projected to result in cost savings and boost contract logistics sales. By delivering insights through pattern identification and behavioral coaching, Al is expected to have a substantial impact on transportation and logistical operations, according to industry experts. In the transportation and logistical sector, the predicted incremental value of Al is anticipated to be larger than in other sectors. The government's increasing efforts to diversify the economy have sparked the growth of infrastructure, digitization, and industrialization, which are anticipated to have a substantial impact on the demand for contract logistics and e-commerce.
The fast growth of the manufacturing sector, the emphasis on core competences, and the need for supply chains that are both cost-effective and technologically integrated are all contributing factors to the expansion of the contract logistics sector. Technology continues to revolutionize supply chain and logistics systems, and the market's growth is expected to pick up speed as more industries use loT and cutting-edge technologies. The increase of the contract logistics market share has been facilitated by the widespread use of logistics management software, which has enhanced operations, methods, delivery, and procedures. A significant increase in demand for contract logistics services is likely to follow. New participants have been drawn in by the rise in foreign direct investments, the quick development of e-commerce, and the focus on risk management in supply chains.
For instance, over 27 million Canadians used e-commerce in 2021, making up 72.5% of the country's total population. Retail e-commerce sales in Canada are rising steadily in real terms and as a share of overall retail thanks to a rise in online shoppers. Thus, result in driving the Contract Logistics market revenue.
Contract Logistics Market Segment Insights
Contract Logistics Service Insights
The Contract Logistics market segmentation, based on Service includes Transportation, Warehousing, Distribution, and Aftermarket Logistics. The distribution segment dominated the market. Distribution management is an important task since it allows for cost reductions along the entire supply chain. All contract logistics services are benefited, including vendor compliance monitoring, network analysis, warehousing, and mode network optimization. In the contract logistics sector, distribution management thus provides a higher value-added service.
Contract Logistics Type Insights
The Contract Logistics market segmentation, based on Type, includes Insourcing, and Outsourcing. The outsourcing category generated the most income. Because outsourcing is a low-cost method for increasing a company's foreign footprint and profitability, it is predicted to dominate the industry. Internal hosting of events is less expensive than paying workers and renting storage.
Contract Logistics Industry Vertical Insights
The Contract Logistics market segmentation, based on Industry Vertical includes Aerospace, Automotive, Industrial, High-tech, Pharma and healthcare, Retail, E-Commerce and Others. The retail, and e-commerce segment dominated the market. While the retail sector is expected to grow as a result of growing development, e-commerce is still in its infancy and is expected to grow dramatically over the coming years.
Contract Logistics Mode of Transportation Insights
The Contract Logistics market segmentation, based on Mode of Transportation, includes Railways, Airways, Roadways, and Waterways. The roadways category generated the most income. more than two-fifths of the market's contribution. The segment for air travel is anticipated to experience the highest CAGR, at 11.26%, throughout the course of the forecast period.
Figure1: Contract Logistics Market, by Mode of Transportation, 2022&2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Contract Logistics Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Contract Logistics market area will dominate this market. This development can be ascribed to the country's robust economy and booming e-commerce sector, which are fueling demand for effective and dependable contract transportation services, particularly for same-day and next-day deliveries.
Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.
Figure2: CONTRACT LOGISTICS MARKET SHARE BY REGION 2022 (USD Billion)Â 
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Contract Logistics market represents the second-largest market share due to the nation’s suitable destination for contract logistics services due to its strong infrastructure and highly qualified workforce. Further, the German Contract Logistics market held a dominant market share, and the UK Contract Logistics market was the European region's fastest-growing market.
The Asia-Pacific Contract Logistics Market is anticipated to see the fastest CAGR between 2023 and 2032. The region's contract logistics providers should see new business prospects as cross-border commerce demand rises. Moreover, China’s Contract Logistics market held a dominant market share, and the Indian Contract Logistics market was the Asia-Pacific region's fastest-growing market.
Contract Logistics Key Market Players & Competitive Insights
Leading market players are putting a lot of money on R&D to broaden their product offerings, which will aid in the further growth of the contract logistics market. Additionally, market participants are engaging in a range of strategic initiatives to increase their worldwide reach, with important market developments such as the introduction of new products, contracts, mergers and acquisitions, increased investments, and cooperation with other businesses. To grow and endure in an increasingly competitive and challenging market environment, Contract Logistics industry must provide reasonably priced goods.
One of the main business strategies employed by manufacturers is to produce locally to reduce operational expenses in the Contract Logistics industry to develop market sector and provide benefits to customers. In recent years, the Contract Logistics industry has provided some of the economy's most substantial benefits. Major players in the Contract Logistics market, including United Parcel Service of America, Inc., Ryder System, Inc., CJ Logistics Corporation, DB Schenker, Deutsche Post AG, XPO Logistics Inc., Penske, Kuehne Nagel, LOGISTEED, Ltd., YUSEN LOGISTICS CO., LTD., and others, invest in operations for research and development in an effort to improve market demand.
United Parcel Service (UPS, abbreviated as ups) is a worldwide shipping, receiving, and the management of supply chains firm. Formerly called the American Messenger corporation, which specialized in telegraphs, UPS has developed into a Fortune 500 corporation and one of the biggest transportation carriers in the world. Today, UPS is mainly recognized for its ground delivery services and the UPS Store, a chain of shops that supports UPS shipments and offers equipment for small businesses. Through UPS Mail Innovation and UPS SurePost, two services that transfer packages to the United States Postal Service for final-mile delivery, UPS provides overnight or two-day air shipping and delivers to post office boxes. In January 2020, As a step toward a cleaner, more advanced fleet, UPS declared it was investing in UK startup Arrival and purchasing 10,000 Generation 2 electric cars.
Ryder is a brand name for Ryder System, Inc., an American logistics and transportation business. It is well recognized for its fleet of rental vehicles for businesses. Fleet supervisors, supply chain oversight, and transportation management are Ryder's areas of expertise. Additionally, it provides last-mile delivery services, full-service leasing, lease and upkeep, used car sales, transportation administration, professional drivers, and e-commerce fulfillment. In addition to the UK and North America, Ryder operates. The Ryder corporate offices are in Miami-Dade, Florida. In January 2020, To provide electric car charging to Ryder's clients, In-Charge Energy, Inc. and ABB, a provider of industrial technology and automation solutions, entered into a cooperation with Ryder.
Key Companies in the Contract Logistics market include
-
United Parcel Service of America, Inc.
-
Ryder System, Inc.
-
-
DB Schenker
-
Deutsche Post AG
-
XPO Logistics Inc.
-
Penske
-
-
LOGISTEED, Ltd.
-
YUSEN LOGISTICS CO., LTD.
-
CEVA LOGISTICS
-
DSV
-
Agility
-
Hellmann Worldwide Logistics
-
Neovia Logistics Services, LLC.
-
GEODIS
-
A.P. Moller - Maersk
Contract Logistics Industry Developments
September 2023:Â UPS paid an unknown sum to purchase MNX, a time-sensitive, healthcare logistics company with headquarters in Long Beach, California.
January 2022: Penske and Röhlig Logistics worked together. The joint venture included 55,000 sqm of extra warehouse, transportation management activities, and e-commerce logistics, with intentions to speed further growth throughout Europe.
September 2020: The e-commerce behemoth Mercado Libre purchased a small share in the Brazilian logistics company Kangu. Small businesses can now pick up and withdraw items they have ordered online, helping to advance e-commerce.August 2023: DHL Supply Chain announced a partnership with Locus Robotics, a leader in autonomous mobile robots (AMRs), to automate warehouse operations in North America. This deal signifies the growing importance of automation in boosting efficiency and productivity. September 2023: CEVA Logistics, a major 3PL provider, launched a new carbon-neutral ocean freight service, catering to environmentally conscious businesses. This move reflects the increasing demand for sustainable logistics solutions.
Contract Logistics Market Segmentation
Contract Logistics Service Outlook
-
Transportation
-
Warehousing
-
Distribution
-
Aftermarket Logistics
Contract Logistics Type Outlook
-
Insourcing
-
Outsourcing
Contract Logistics Industry Vertical Outlook
-
Aerospace
-
Automotive
-
Industrial
-
High-tech
-
Pharma and healthcare
-
Retail
-
E-Commerce
-
Others
Contract Logistics Mode of Transportation Outlook
-
Railways
-
Airways
-
Roadways
-
Waterways
Contract Logistics Regional Outlook
-
North America
-
US
-
Canada
-
Mexico
-
-
Europe
-
Germany
-
UK
-
France
-
Italy
-
Rest of Europe
-
-
Asia-Pacific
-
China
-
India
-
Japan
-
South Korea
-
Australia
-
Rest of Asia-Pacific
-
-
Middle East & Africa
-
Saudi Arabia
-
Qatar
-
UAE
-
Rest of Middle East & Africa
-
-
South America
-
Brazil
-
Argentina
-
Rest of South America
-
Leading companies partner with us for data-driven Insights
Kindly complete the form below to receive a free sample of this Report
Tailored for You
- Dedicated Research on any specifics segment or region.
- Focused Research on specific players in the market.
- Custom Report based only on your requirements.
- Flexibility to add or subtract any chapter in the study.
- Historic data from 2014 and forecasts outlook till 2040.
- Flexibility of providing data/insights in formats (PDF, PPT, Excel).
- Provide cross segmentation in applicable scenario/markets.
