Logistics Market

Logistics Market Size and Share:

The global logistics market size was valued at USD 5.7 Trillion in 2024. Looking forward, IMARC Group estimates the market to reach USD 8.1 Trillion by 2033, exhibiting a CAGR of 4.02% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 48.7% in 2024. This can be attributed to rapid expansion of the e-commerce sector, growing technological advancement, such as rising consumer demand for faster delivery systems and the Internet of Things (IoT), increased emphasis on environmental sustainability, and continued globalization of trade.

The global logistics market is driven by the expansion of e-commerce. Consumers' expectations of getting their products delivered as quickly as possible are driving companies to adopt more efficient logistics solutions, such as last-mile delivery services and advanced tracking technologies. Technological developments, such as automation artificial intelligence, and IoT, are transforming how logistics operations work by better efficiency, lower costs, and real-time tracking and monitoring. Globalization also is a significant factor to be considered since it would increase the demand for complex logistics networks in handling the flow of goods across borders. Infrastructure development, especially in evolving markets, is also promoting the market by modernized ports, highways, and airports to ease transportation. Furthermore, increased interest in sustainability and environmentally friendly logistics is forcing companies to embrace green technologies such as electric vehicles and renewable energy sources to reduce carbon footprints. Government regulations, trade policies, and strategic partnerships also help the market grow well.

The United States has emerged as a key region for logistics market due to growth in the e-commerce market which, in turn, is a huge increase in the requirement for fast, efficient, and reliable supply chain solutions. The increased use of advanced technologies like automation, artificial intelligence, and IoT enhances the effectiveness of operations and capabilities to provide real-time tracking. Developments in infrastructure through upgrading works of the ports, roads, and railway lines also augment transportation efficiency, contributing toward the growth of this market. The increasing focus on sustainability also plays an important role, as companies are opting for greener logistics practices and eco-friendly technologies to reduce carbon emissions. Along with that, the upsurge in on-demand delivery services and shifting expectations of consumers are further fueling market growth.

Logistics Market Trends:

Expansion of the E-commerce Sector

The increasing expansion of the e-commerce sector, which is resulting in increased demand for more diversified and faster shipping options, is acting as a thrust to the business growth of the logistics industry. The Indian e-commerce sector has displayed strong resilience and diversification in FY23, registering a notable 26.2% increase in order volumes, as reported by IBEF. Growth is majorly backed by the growth of 31.1% from tier-1 cities where businesses have renewed their work-from-office policy due to disruption by the pandemic. In consonance, market growth is spurred by this rapid shift toward e-commerce forcing logistics companies to enhance the distribution network, adopting state-of-the-art technology in tracking and managing goods on time. Furthermore, logistics companies are looking to develop supply chains that are more responsive and flexible as they respond to the unpredictable demands of e-commerce. Therefore, it is anticipated that by 2024, digital wallets will cover more than half of the entire e-commerce payment volume.

Rapid Technological Advancements

The ongoing technological advancements, such as the integration of the Internet of Things (IoT) for the improvement of supply chain visibility and control, are acting as prominent logistics industry trends. In addition to this, the increasing use of sensors and RFID tags in facilitating real-time data on the location and condition of the goods is creating a positive outlook for the overall market. Other than that, there's a QuickCommerce that's based on the e-commerce model that specializes in ultra-fast deliveries in an hour now being promoted in other countries across the world. In the USA, major players such as Gopuff and Instacart are investing significantly in this trend, and revenues are expected to reach USD 30.8 Billion in 2024. In addition to this, the increasing adoption of cloud-based solutions by enterprises due to its various benefits like speed, cost-effectiveness, control, scalability, and security is also driving the logistics market growth. 

Rising Globalization of Trade 

The increasing levels of globalization of trade among companies are forcing logistics providers to deal with a very complex web of customs regulations and trade agreements, which is turning out to be another major growth-enhancing factor for the market. As part of this, government authorities across the world are introducing positive policies that will help the growth of international trade. For example, the UK government partnered with Amazon Marketplace, where international customers can find thousands of products from small UK businesses and artisans along with iconic British brands. In addition to this, the growing demand for sophisticated solutions and expertise in international logistics management is also contributing to market growth. In addition, the volatility in international markets, such as fuel price fluctuations, trade wars, and currency exchange rates, is increasing the demand for flexible and resilient supply chain solutions that can adapt to changing global scenarios.

Growing Concerns over Environmental Sustainability

The growing environmental issues and strict rules on decreasing carbon emissions are compelling logistics companies to be environmentally friendly. This is also providing them with significant prospects of growth in the entire market. According to a report, transport accounted for 7.7 Gt of CO2 in 2021 and was up 8% since pandemic measures were lifted. Therefore, various logistic companies are investing in alternative fuels and electric vehicles (EVs) to reduce greenhouse gas emissions, which is contributing to the growth of the market. In addition to this, companies are also researching innovative packaging solutions that are sustainable and cost-effective. For example, in logistics, DHL has recently released GoGreen Plus, its dedicated solution to help clients minimize the carbon emissions linked to their shipments.

Increasing Consumer Demand for Faster Delivery

With increasing consumer demand for more rapid delivery systems, further market growth is catalyzed. Logistics companies are testing micro-fulfillment centers, smaller versions of warehouses located closer to the consumer, and would drastically reduce delivery times. In addition, associations and partnerships between logistics service providers and local retailers, together with advanced software for optimized route optimization, are contributing positively to the market's growth. QuickCommerce, a super-fast e-commerce model that delivers within an hour, is also on the rise globally. In addition, rapid innovations such as the adoption of aerial drones or underground delivery networks to bypass traffic congestion are fueling market growth.

Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global logistics market, along with forecasts at the global and regional levels from 2025-2033. The market has been categorized based on model type, transportation mode, and end use.

Analysis by Model Type:

• 2 PL
• 3 PL
• 4 PL

The 3PL (Third-Party Logistics) model holds the largest segment in the logistics market with a share of 56.3%. The demand for cost-effective and flexible logistics solutions primarily fuels this growth. With this move, companies tend to outsource their logistics functions to the 3PL providers, keeping their core business activities as the prime concern while enjoying specialized expertise in warehousing, transportation, and inventory management. E-commerce is growing significantly and is also pushing demand to grow 3PL service offerings as the business environment today demands supply chains streamlined for efficient fulfillment to achieve customers' expectations. With more technology developments in areas like cloud computing, real-time tracking, and automation systems, the capacity to handle these activities effectively becomes available to 3PL service providers. Businesses continue expanding to global markets and thereby push for logistics solutions in an intercontinental platform.

Analysis by Transportation Mode:

• Roadways
• Seaways
• Railways 
• Airways

The roadways segment leads the market with 59.2% of the logistics market share. The supremacy of road transportation is largely driven by its flexibility, cost-effectiveness, and widespread infrastructure across regions. Roadways enable the transportation of goods over both short and long distances, offering door-to-door delivery, which is crucial for timely and efficient distribution. The demand for last-mile delivery services, especially from e-commerce companies, further fuels the growth of road transport. Advances in fleet management technology, such as GPS tracking and route optimization software, enhance the efficiency of road transport, reducing operational costs and delivery times. The focus on improving road infrastructure and the increasing demand for fast-delivery services will continue to propel the development of this segment.

Analysis by End Use:

• Manufacturing 
• Consumer Goods
• Retail
• Food and Beverages
• IT Hardware
• Healthcare
• Chemicals
• Construction
• Automotive
• Telecom
• Oil and Gas
• Others 

The manufacturing market accounts for 16.8% of the logistics market share. It's driven by the requirements for a more efficient and reliable supply chain to meet schedules of production. Manufacturers often rely on the logistics provider to source raw materials, manage inventory and get finished products to the right distributors. With the increased implementation of just-in-time inventory management and lean manufacturing principles, there is an urgent demand for optimized logistics services that help reduce production stoppages and improve efficiency at operations. Moreover, more and more manufacturing facilities nowadays integrate IoT and automation within them, which is placing demands for more complex kinds of logistics services such as real-time tracking and prediction analytics. The continued expansion of global supply chains, along with the growing complexity of production processes, ensures that the demand for logistics services in manufacturing will remain strong in the coming years.

Regional Analysis:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa

In 2024, Asia Pacific commands the highest market share, at 48.7%. The underlying drivers in this region, including industrialization rapid urbanization, and its rapidly developing e-commerce, have exponentially increased demand for logistics services. This region is renowned for housing nine of the world’s busiest container ports, and its surface freight transport handles over 40% of the total global amount, underlining its centrality to world supply chains. Freight transport demand in Asia Pacific is also expected to triple by 2050, reflecting the continued growth of manufacturing, retail, and online businesses. Large logistics companies are investing in the region, further increasing market growth. Regional governments are also supporting eco-friendly logistics practices through various policies, which are driving the adoption of sustainable solutions like electric vehicles, renewable energy, and optimized supply chains. Asia Pacific will be the leading player in the global logistics market. This is due to the industrial growth, strategic infrastructure investments, and a commitment to sustainability are all being taken there.

The logistics market in North America is led by infrastructure advanced to a high level of technological developments and robust e-commerce sector. The area possesses a wide transportation network- roads, railways, and airways that support supply chain systems. Moreover, growth in the demand for faster and more reliable delivery services with greater concern for sustainability and automation also contributes to the improvement of the market. Additionally, policies of the government supporting infrastructure development and green logistics also contribute to growth in the sector.

Europe has growth in logistics due to its strategic location and good trade partnerships, high demand for smooth transportation services. It leads to promoting green logistics solutions that work best due to the commitment to cut emissions of carbon in Europe's region. In addition to this, Europe's surging e-commerce market and trading across borders increase demand and boost faster and more economic logistics services. Implementation of smart logistics technologies-including IoT and automation follow the fueling trend into market growth.

Latin America logistics market is driven by the expanding manufacturing sector in the region, increasing trade, and rising e-commerce activities. Efforts to modernize infrastructure are improving logistics efficiency through expansions of ports and improved road networks. Favorable trade agreements and regional integration are promoting cross-border commerce, hence boosting logistics demand. A rise in consumer spending and investment in supply chain technologies further supports the region's market growth.

Middle East and Africa are spurred on by rapid urbanization, increases in trade flows, and developments in infrastructure. Strategically located within the region with ports in the UAE and Egypt, it's become a prime logistics hub for the world's trade. Advanced technologies like AI and automation are evolving logistics operations through growing demand for e-commerce. Government initiatives to enhance transport networks and create free trade zones also contribute to the region’s market growth.

Key Regional Takeaways:
 

United States Logistics Market Analysis

In 2024, the United States accounts for over 82.60% of the logistics market in North America. The market is growing as companies are adopting automation and artificial intelligence to enhance their supply chain efficiency. In addition, last-mile delivery has been transformed with the latest technologies including autonomous delivery vehicles and drones that have significantly increased efficiency while lowering costs. The increase in the use of EVs for transport is further fueling sustainability initiatives. Furthermore, urbanization trends are also influencing logistics infrastructure development, with e-commerce demand prompting the construction of new distribution centers. According to the Central Intelligence Agency (CIA), in 2023, 83.3% of the total population across the United States are urbanized. Additionally, a survey published by the United States Department of Agriculture (USDA) indicates that in 2022, around 19.3% of frequent shoppers of groceries in the US shopped online at any point in the last 30 days. In response, the growing e-commerce chains such as Amazon and Walmart are creating an increasing urge for faster and more responsive logistics operations. According to reports, in 2022 North American segment of Amazon witnessed a growth of 13 years over year at a consolidated level of USD 315.9 Billion.

Europe Logistics Market Analysis

The market in Europe has been looking at improving its cross-border connectivity, of which TEN-T has been a notable development to allow the easy flow of goods across this continent. Additionally, strict European Union regulation in terms of carbon emissions leads to an increased use of freight transport with electric and hybrid vehicles. In 2022, according to the European Commission (EU), emissions were reduced by 1.3% or 42 Million Tons of CO2. Moreover, digital platforms and the Internet of Things (IoT) are increasingly being used to track shipments in real-time as well as monitor fleet performance. Moreover, the omnichannel retailing trend that is on the rise compels logistics providers to innovate their warehousing and distribution strategies through the integration of automated systems and robotics for improved efficiency. Besides this, sustainable logistics practices are also gaining ground in the region as companies look to minimize waste, optimize packaging, and make use of alternative fuels for transportation.

Asia Pacific Logistics Market Analysis

Logistics Within Asia Pacific, the logistical market is rapidly expanding further as e-commerce grows higher and companies strive to improve delivery services at the last mile. According to the India Brand Equity Foundation, IBEF, e-commerce GMV in FY23 reached USD 60 Billion, indicating year-over-year growth of 22% from USD 49 Billion in FY22. In addition, there is significant investment in Asia Pacific by governments in building more infrastructure, including smart ports and rail systems, due to the increasing logistics needs. Additionally, the region increasingly applies blockchain technology to achieve high transparency and security levels for its supply chains and innovations of the cold chain in logistics. The Indian pharmaceutical industry, according to the India Brand Equity Foundation (IBEF), grew between FY18 and FY23 with a CAGR of 6-8%, while exports account for an 8% growth and the domestic market for a 6% growth. 

Latin America Logistics Market Analysis

The Latin America logistics market is witnessing a major overhaul due to increased investment in infrastructure projects, including roadways, railways, and port modernization. Governments are also emphasizing connectivity improvement for faster trade flows, particularly for the key sectors like agriculture and mining. E-commerce growth is also pushing logistics providers to improve delivery services, especially in rural and remote areas, through mobile apps and drones. E-commerce and market size According to ITA, Brazil-also in Latin America the economic growth rate holds a dominant market growth rate of e-commerce at about 14.3%.

Middle East and Africa Logistics Market Analysis

Logistics organizations within the Middle East and Africa are going a mile into investing in future cutting technologies such as Artificial intelligence- AI and robot use on their operations stream and boosting supply chain management. The region is witnessing an increase in cross-border trade, and this has led to the investment of infrastructure in smart ports and logistics hubs to ensure quicker transportation and avoid bottlenecks. In addition, the United Arab Emirates and Saudi Arabia are investing in building world-class logistics parks and establishing themselves as major global logistics hubs. Invest Dubai states that the value of the UAE freight and logistics market will be USD 27 Billion by 2029.

Competitive Landscape:

Market players in the logistics market undertake several endeavors to make their service providers more efficient and competitive in the market. Most of the activities include transportation management, where companies create the most efficient routes using GPS tracking and route plan software to reduce costs. The companies also ensure effective deliveries on time. Finally, warehousing is another important core function, and logistics firms rely on efficient inventory management that can be automated and checked in real time to ensure smooth work. Other investments of many players are made in last-mile delivery solutions to satisfy the increasing consumer demand for rapid, flexible, and affordable services. Moreover, several logistics providers are embracing sustainability initiatives, such as using green transportation options and environmentally friendly packaging, to lower the environmental impact. Partnerships and collaborations with e-commerce businesses are becoming more common, especially as logistics players strive to streamline supply chains and enhance customer experience, particularly amidst the growing trend of online shopping.

The report provides a comprehensive analysis of the competitive landscape in the logistics market with detailed profiles of all major companies, including:

• J.B. Hunt Transport Services
• C.H. Robinson Worldwide, Inc.
• Ceva Holdings LLC
• FedEx Corp.
• United Parcel Service, Inc.
• Expeditors International of Washington Inc.
• XPO Logistics Inc.
• Kenco Group
• Deutsche Post DHL Group
• Americold Logistics, LLC
• DSV Air & Sea Inc.

Latest News and Developments:

• August 2024: To support D2C brands, new-age logistics provider Delhivery has introduced dark stores. The micro-warehousing facilities will be shared, this means companies can share the same for efficient delivery within a rapid two-to-four-hour window.
• Oct. 2024: Industrial & Logistics Parks by the TVS group has assured an investment of ₹ 200 crore (USD 24 Million) in making a world-class logistics hub in Pithampur, Madhya Pradesh, spread over 20 acres acquired from the Madhya Pradesh Industrial Development Corporation. 25 km from Indore, the new logistics hub will be located in high demand for premium warehousing solutions in the region.
• December 2024: Sumadhura Group has launched a high-tech warehousing facility for Zepto, India's leading quick commerce company, and NX Logistics India, global logistics leader, at Bengaluru's largest Grade-A+ warehousing hub - Sumadhura Logistics Park. This strategic development creates one of Zepto's most advanced logistics centers, engineered to enhance its supply chain efficiency and support its fast-growing operations in the region.
• December 2024: Amazon has used its experience in logistics to provide seamless solutions to businesses all over India. These services include transparent pricing and easy integration and are both B2B and B2C for companies of all sizes.

Logistics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the logistics market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global logistics market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the logistics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.