Logistics Market Analysis

Global Logistics Market Overview

Logistics Market size was valued at USD 1,69,80,586.7 million in 2023. The logistics industry is projected to grow from USD 1,79,78,234.5 million in 2024 to USD 3,11,52,539.5 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.0% during the forecast period (2024 - 2032). The growing e-commerce industry and the rising need for logistical operations in collaboration are the key market drivers enhancing market growth.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Logistics Market Trends

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  Growing e-commerce industry and rise in trade-related agreements to boost the market growth

  
  

The buying and selling of items over the Internet are referred to as e-commerce. Third-party service providers cover shipping goods to customers. The e-commerce sector also uses logistics services to manage and oversee the supply chains of e-commerce businesses, allowing these businesses to concentrate on marketing and other company operations. Thus, the adoption of these services is increasing significantly, boosting the expansion of the market due to the various advantages that logistics offers the e-commerce business. For instance, the most recent study from the UN's trade and development body (UNCTAD), released on April 2020, estimates that e-commerce sales reached $25.6 trillion in 2018, equivalent to 30% of GDP.  B2B e-commerce was valued at $21 trillion in 2018, accounting for 83% of all e-commerce, while B2C e-commerce was at $4.4 trillion. Cross-border sales and the rapid expansion of customers are attributed to the growth. A report claims that more than 1.4 billion people made online purchases in 2018, with the United States, China, and Japan dominating consumer e-commerce sales.

Additionally, the expansion of the economy and changing market conditions are the major factors for globalization. Various trade-related activities are increasing as a result of increased globalization. Moreover, the rise of the overseas market is significantly fueled by this development. Logistics services are becoming increasingly important to provide customers with a broader selection of high-quality products delivered on time, who are also price-sensitive. Thus, the market's growth is fueled by an increase in the trading activity carried on by globalization. For instance, in December 2020, India and the UK announced their intention to complete their free trade agreement (FTA) by the end of 2021, such as pharmaceuticals, fintech, chemicals, defense manufacturing, petroleum, and food products. Therefore, the expansion of trade-related agreements has enhanced the market CAGR in recent years.

Automation has also been gaining traction in the industry. The inception of logistics 4.0 is one of the key trends offering lucrative opportunities in the industry. For instance, in July 2020, Movile Group, a mobile commerce platform company, invested in a Colombia-based last-mile delivery startup Mensajeros Urbanos. It aims to expand its operations in 10 major cities in Colombia and Mexico. It is expected to open 50 urban warehouses within ten cities to reduce delivery time windows further and provide items for same-day delivery. Thus, the continuous effort of companies to offer efficient last-mile deliveries is another factor driving the growth of the logistics market analysis.

May 2024, Walmart has used artificial intelligence for years to create a more efficient supply chain by reducing emissions and ensuring that it has more of what its customers want available, where they want them at the right time. This award-winning logistics technology called Route Optimization, an AI-powered technology, is being made available to other businesses as Software as a Service (SaaS) through Walmart Commerce Technologies. It provides businesses with small package delivery service companies access to a Software-driven transportation system that allows them to optimize driving routes, pack trailers appropriately, and minimize miles traveled. Walmart saved 30 million unnecessary miles and eliminated 94 million pounds of CO2 through the optimization of routes bypassing 110,000 inefficient paths using this custom technology. For building and deploying this technology at scale, Walmart won the prestigious Franz Edelman Award in 2023.

Logistics Market Segment Insights

Logistics Transportation Type Insights

The logistics market segmentation, based on transportation type, includes airways, waterways, railways, and roadways. The roadways segment held the majority share in 2021, contributing around ~52% of the logistics market revenue. The roadways segment has expanded due to rising demand for roadway vehicles to transport retail products over large distances, particularly in domestic regions. Retail businesses should use trucks and cargo with large carrying capabilities when choosing road transportation.

Austrian logistics company Cargo-Partner disclosed that Nippon Express Co., Ltd. will acquire it for a price not exceeding $150 million by May 2023. Nippon Express’s acquisition strengthens its ability to offer various logistical solutions between Asia and Europe, thanks to Cargo-Partner purchase.

Logistics Type Insights

The logistics market segmentation, based on logistics type, includes first-party, second-party, and third-party. The third-party logistics segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Third-party logistics provides outsourced services to manage multiple supply chain operations. Greater flexibility is made possible by third-party logistics' ability to lower overall distribution and warehousing costs. Hence, offering outsourced services to handle various supply chain functions positively impacts market growth.

Logistics End User Insights

The logistics market data has been segmented by end-user into industrial and manufacturing, retail, healthcare, and oil & gas. The industrial and manufacturing segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period  2022-2030 as logistics improve productivity and efficiency while reducing costs and increasing customer satisfaction. The increase in demand for industrial manufacturing services is responsible for the segment's growth during the anticipated period. Over the next ten years, the healthcare segment is anticipated to experience the fastest CAGR. The growing importance of fast-track assistance in the healthcare industry can be credited with the segment's rise throughout the projection period.

Figure 2:  Market of Logistics by End-User, 2021 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Logistics Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. North America accounted for USD 4,33,251.42 million in 2021 and is expected to exhibit a significant CAGR growth during the study period. The presence of a highly developed infrastructure in terms of rail and road connectivity can be attributed to the region's growth. With a highly integrated supply chain network connecting producers and consumers via various transportation modes, including air and express delivery services, freight rail, maritime transport, and truck transport, the United States is one of the region's key markets for logistics.

Further, the major countries studied in the market report of logistics reports are The U.S., Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  Global LOGISTICS MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe logistics market accounts for the second-largest market share. The market's expansion is fueled by rising e-commerce trends and a region becoming increasingly dependent on it. Moreover, the European nations are investing in research and development for the logistics sector. Furthermore, the availability of labor and potential infrastructure across the region provides European nations with a lucrative opportunity to expand this sector. Further, the Germany logistics market held the largest market share, and the UK logistics market was the fastest-growing market in the European region.

The Asia-Pacific Logistics Market is expected to grow at the fastest CAGR from 2022 to 2030. The expansion of trade routes and the relocation of industrial production to Asian nations are attributed to this. For instance, the volume of container trade within Asia, which was 41.5 million TEUs in 2021, exceeded that of all other trade lanes ly. Moreover, China logistics market held the largest market share, and the India logistics market was the fastest-growing market in the Asia-Pacific region.

For instance, the India logistics market is experiencing the industry’s highest growth rate as the logistics sector accounts for around USD 160 billion and has over 22 million employees. Moreover, India is known for its infrastructure boom and recent emphasis on development initiatives. Furthermore, the nation is undergoing a digital transformation, which is anticipated to change the outlook for the Indian market. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

Logistics Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the market grow even more. Market participants are also taking various strategic initiatives to grow their footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the logistics industry report must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturers adopt in the logistics industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. The logistics industry growth has provided transportation with some of the most significant benefits in recent years. The logistics market major player such as MOLLER – MAERSK, H. Robinson Worldwide Inc., DSV (DSV Panalpina), FEDEX, and others are working on expanding the market demand by investing in research and development activities.

Robinson Worldwide Inc. is a service provider that offers businesses logistics and freight transportation solutions. It provides logistical solutions and multimodal transportation through a network of regional offices throughout the Middle East, North America, Europe, Asia, and other continents. Among these services offered by H. Robinson Worldwide are supply chain analysis and consulting, freight consolidation, administration of the core carrier program, and information reporting. The buying, selling, and marketing of fresh produce constitute most of the sourcing services industry. In January 2020, Prime Distribution Services was acquired by H. Robinson for $225 million. With 2.6 million square feet of warehouse, the acquisition offers the corporation services in retail consolidation, including distribution, fulfillment, and inventory management.

Also, United Parcel Service Inc. is an American multinational shipping & receiving, and supply chain management company founded in 1907. The American Messenger Company, which first specialized in telegraphs, evolved into UPS, one of the biggest shipping couriers ly and a Fortune 500 company. Today, UPS is most recognized for its ground shipping services and the UPS Store, a retail network that helps with UPS packages and provides tools to small businesses. This company transfers packages to the US Postal Service for last-mile delivery. In November 2022, United Parcel Service Inc. acquired the Bomi Group, a European company specializing in temperature-controlled transport and warehousing.

DSV signed an agreement with America-based firms Global Diversity Logistics and Sand M Moving Systems West about purchasing them by March, 2023.These acquisitions are aligned with DSV’s new Phoenix-Mesa Gateway Airport operation, thereby enhancing their cross-border services into Latin America while bolstering their stake within the semiconductor industry as well.

Nippon Express Co., Ltd. launched a new logistics service specifically for the pharmaceutical industry in June, 2022.The ability to maintain and transport pharmaceutical products at extremely low temperatures is very important in the research and development and formulation process.

Key Companies in the logistics market include

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  MOLLER – MAERSK

  
  


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  Robinson Worldwide Inc.

  
  


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  DSV (DSV Panalpina)

  
  


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  FEDEX

  
  


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  GEODIS

  
  


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  Kuehne+Nagel

  
  


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  Nippon Express

  
  


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  United Parcel Service Inc. (UPS), among others

  
  

Logistics Industry Developments

In July 2020, Movile Group invested in a Colombian based Mensajeros Urbanos which is last mile delivery startup. The objective is to grow the operations of the firm to cover 10 major cities of Colombia and Mexico. To accomplish this, it plans to open 50 urban warehouses across its areas of operation, reducing delivery time windows further and providing some products for same-day deliveries.

In Janurary 2021, Kuehne+Nagel entered into an agreement with Moderna, a biotech firm that focuses on mRNA therapeutics and vaccines, to distribute and store Moderna’s COVID-19 vaccine as of Janurary 2021.Kuehne+Nagel will facilitate worldwide circulation of Moderna’s doses by means of its European-based international supply chain which encompasses Europe, Asia, Middle East Africa amongst others selected US markets.

In April 2024 Stellantis is working on reducing inventory and adjusting its production plans before launching new products on the STLA platform later in the year and throughout mid-cycle refreshes. The automaker’s first-quarter financial results were released today, showing that it consolidated shipments on its way down to just over one million units, reflecting these moves in production activity plus stock control adjustments aiming towards upcoming product waves between now and the end of the year; these figures declined by about ten percent since last year when strong shipment volumes had been ordered during periods where there existed critical constraints upon raw material supply chains. At March-end, Stellantis' total new vehicle inventory was at 1.4m units while global sales for battery electric vehicles (BEVs) rose by 8%, but low-emission EVs were up by just over 13% compared with Q1/23

In February 2024, AllMasters’ newest solution is designed specifically to address challenges faced by freight forwarders in this sector—a digital freight consolidation platform specializing particularly in Less Than Container Load (LCL) exports. Unveiled on February 23, 2024, the platform has a patented “Dynamic Distribution Model” aimed at revolutionizing the logistics industry by giving freight forwarders access to shipments and booking them at far below market prices with an immediate tracking solution.

Logistics Market Segmentation

Logistics Transportation Type Outlook

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  Airways

  
  


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  Waterways

  
  


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  Railways

  
  


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  Roadways

  
  

Logistics Type Outlook

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  First Party

  
  


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  Second Party

  
  


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  Third Party

  
  

Logistics End User Outlook

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  Industrial and Manufacturing

  
  


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  Retail

  
  


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  Healthcare

  
  


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  Oil & Gas

  
  

Logistics Regional Outlook

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  North America

  
  
  
  
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    US

    
    
  
  
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    Canada

    
    
  
  
  
  


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  Europe

  
  
  
  
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    Germany

    
    
  
  
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    France

    
    
  
  
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    UK

    
    
  
  
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    Italy

    
    
  
  
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    Spain

    
    
  
  
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    Rest of Europe

    
    
  
  
  
  


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  Asia-Pacific

  
  
  
  
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    China

    
    
  
  
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    Japan

    
    
  
  
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    India

    
    
  
  
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    Australia

    
    
  
  
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    South Korea

    
    
  
  
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    Australia

    
    
  
  
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    Rest of Asia-Pacific

    
    
  
  
  
  


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  Rest of the World

  
  
  
  
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    Middle East

    
    
  
  
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    Africa

    
    
  
  
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    Latin America