Logistics Market

Logistics Market Size and Share:

The global logistics market size was valued at USD 5.65 Trillion in 2024. Looking forward, the industry is projected to reach USD 8.07 Trillion by 2033, exhibiting a CAGR of 4.02% during 2025-2033. In 2024, Asia Pacific emerged as the leading region in the industry, accounting for over 48.7% of the market share. The growth of the market is mainly due to the rise of online shopping, the need for quicker delivery services, wider use of technologies like the Internet of Things (IoT), a stronger push for eco-friendly transport options, growing global trade, and improvements in roads, ports, and warehouses that support smoother logistics operations.

The growth in global trade is positively impacting the logistics market expansion. It is raising the need for better-connected logistics systems that can handle international deliveries seamlessly. As a result, several countries, particularly Asia and Latin America, are investing heavily in improved roads, ports, and airports to facilitate increasing transport demands. Also, there's a greater push towards environmental-friendly practices, with businesses beginning to employ electrically powered delivery trucks, renewable power, and sustainable packaging to mitigate pollution. Further, positive government regulations, favorable trade policies, and growing public-private partnerships are also supporting the expansion of the logistics sector geographically.

The United States emerges as a major market for logistics due to improvements in transport infrastructure. Ongoing improvement of ports, roads, and rail connections is making it simpler and swift to move commodities across the nation. In addition, increasing requirement for on-demand shipping and changing customers' preferences to receive quick deliveries are forcing logistics providers to invest in state-of-the-art technologies like intelligent delivery systems and automated warehouses. Moreover, the strong growth within industries like healthcare, e-commerce, and retail is leading to a high need for reliable and effective supply chain solutions within the region.

Logistics Market Trends:

Expansion of the E-commerce Sector

The development of the e-commerce industry is one of the key drivers augmenting the logistics market share. Since increasing numbers of customers are requesting quicker and more agile delivery, logistics companies are growing their networks and improving last-mile delivery infrastructure. For example, as stated by IEF, In India, e-commerce order volume grew by 26.2% in fiscal year 2023, with robust growth in tier-1 cities. This trend is driving logistics firms to embrace real-time tracing, robotic sorting, and intelligent inventory management to accommodate increasing demands.

To counter the volatile nature of online buying trends, logistics providers are creating more responsive and flexible supply chain networks. Businesses are making investments in digital technologies that enhance speed, visibility, and precision in order fulfillment. The rise of digital payments, particularly mobile wallets, which are projected to account for more than half of all e-commerce transactions by 2024, is also assisting in streamlining logistics operations and minimizing delays in the order-to-delivery process.

Rapid Technological Advancements

Technology is an important enabler of advanced logistics operations, especially for online business players. The adoption of the Internet of Things (IoT), RFID tags, and sensors is giving firms instant visibility into the location and status of products, thereby increasing visibility and supply chain control. All these tools reduce delays and loss and improve dependability in delivery, all of which are vital to high-speed online selling.

Another significant logistics market trend is the emergence of QuickCommerce or ultra-fast one-hour delivery. In the United States, such players as Instacart and Gopuff are heavily investing in this strategy, with revenues expected to reach USD 30.8 Billion in 2024. While this is happening, increasingly, logistics providers are migrating to cloud-based platforms with improved speed, scalability, and security, yet again making them highly appropriate for the increasing requirements in the marketplace.

Rising Globalization of Trade 

Globalization is transforming the logistics sector, particularly for businesses that export goods across borders. As trade increases, logistics companies need to deal with intricate customs regulations, trade policies, and global shipping laws. To facilitate this, most governments are implementing policies that facilitate easier global trade. For instance, the UK government collaborated with Amazon Marketplace, through which international buyers can discover several products from small UK enterprises and artisans as well as classic British brands.

Also, a growing requirement for more sophisticated logistics solutions that can address international requirements effectively is emerging, given increasing cross-border sales. At the same time, global challenges of volatility in fuel prices, trade wars, and currency fluctuations are pushing companies to develop more responsive and agile supply chains. All this is propelling digital transformation in the logistics space, rendering secure and responsive international shipping a priority.

Growing Concerns over Environmental Sustainability

Emerging environmental concerns and tough pollution controls are pressuring logistics providers to get more environmentally friendly. As transportation was the cause of 7.7 gigatons of CO2 in 2021 alone, which marked an 8% boost over the pandemic years, increasing pressure is building up to lower carbon emissions. Therefore, more and more logistics firms are opting to invest in electric vehicles (EVs), clean transport mechanisms, and alternate fuels to mitigate the environmental footprint.

Green logistics is also becoming a competitive advantage, especially in high-delivery-volume e-commerce markets. Companies now focus on green packaging and smarter shipping. DHL, for instance, introduced GoGreen Plus to offset emissions on shipments. These environmental initiatives not only help achieve green goals but also respond to rising customer expectations for sustainable and responsible logistics.

Increasing Consumer Demand for Faster Delivery

Rising consumer expectations for speedy delivery are driving major changes in the logistics sector. Companies are building micro-fulfillment centers, such as small warehouses located closer to urban areas, to meet consumer requirements. It helps reduce delivery times and improve service speed. Logistics firms are also partnering with local retailers and using advanced route optimization software to make deliveries more efficient and timelier.

In addition to this, QuickCommerce, a fast-growing e-commerce model offering delivery within an hour, is gaining traction in global markets. To support this trend, companies are exploring new delivery methods, such as aerial drones and underground delivery systems that can avoid traffic delays. These innovations are reshaping last-mile delivery logistics trends, making it faster, smarter, and better suited for consumer expectations.

Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global logistics market, along with forecast at the global, regional, and country 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 need for cost-effective and flexible logistics services is fostering the rapid growth of the 3PL (Third-Party Logistics) segment. Most companies are opting to outsource logistics requirements so they can concentrate on their core business. Third-party logistics services offer experience in aspects such as warehousing, transport, and stock management. Due to the increased expansion of e-commerce, firms require streamlined and efficient delivery processes to fulfill customer demands, thus fueling the need for 3PL services higher.

Besides that, ongoing technological improvements are also enhancing 3PL services. Solutions such as cloud systems, real-time monitoring, and automation enable providers to manage processes more efficiently and deliver quicker. With businesses venturing into international markets, they require solid logistics support from one country to another. Third-party logistics companies are fulfilling this requirement by providing more intelligent, technology-enabled services that facilitate easier international shipping and supply chain activities.

Analysis by Transportation Mode:

• Roadways
• Seaways
• Railways 
• Airways

The roadways segment leads the market with 59.2% of the logistics market share due to its flexibility, low cost, and wide network across regions. It facilitates the transportation of products across short and far distances, with door-to-door delivery, which is vital in ensuring timely and effective distribution. The need for last-mile delivery services, particularly from e-commerce firms, continues to drive road transport growth even further.

Technological advancements in fleet management, including GPS tracking, route planning software, and other intelligent fleet management systems, assist in reducing delivery times and costs. Governments and private investors are also investing in improved roads and highways. With the increasing demand for quick and smooth deliveries, road transport is likely to continue as a dominant segment in the logistics sector.

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 is driven by the requirements for a more effective 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 rise of just-in-time inventory and lean manufacturing, there's growing pressure to avoid delays and keep operations running smoothly. This is increasing the need for well-organized logistics support.

Many factories are utilizing the internet of things (IoT) and automation, 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 need 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, with a significant percentage of 48.7%. Sustained industrial growth, urbanization, and a rapidly expanding e-commerce industry are increasing the need for logistics services in the Asia Pacific. The region is known to be home to nine of the busiest container ports in the world, and its surface freight transport moves more than 40% of the total global volume, highlighting its pivotal role in world supply chains. In addition, regional freight demand will nearly triple by 2050 due to increasing manufacturing, retail, and online shopping. Regional governments are also encouraging environmentally friendly logistics practices with different policies, which are leading to the uptake of sustainable options such as electric vehicles, green energy, and streamlined supply chains. Major logistics firms are making investments in the region, contributing further to logistics market growth. Hence, Asia Pacific will be the dominant player in the world's logistics market.

Logistics Market Regional Takeaways:

Logistics Industry Analysis in the United States

In 2024, the United States accounted for over 82.60% of the logistics market in North America, propelled by strong infrastructure and technological advancements. The sector is growing as businesses incorporate automation and artificial intelligence (AI) to streamline supply chain operations. These technologies are assisting in error reduction, speeding up processes, and enhancing cost-effectiveness in logistics processes. Technological advances are also changing last-mile delivery, which is an important aspect of the supply chain. The application of autonomous delivery vehicles and drones is assisting companies in making faster deliveries and reducing operational costs.

In addition to this, rapid urbanization is playing a significant role in reshaping logistics needs across the region. According to the Central Intelligence Agency (CIA), 83.3% of the U.S. population was urbanized in 2023, which continues to shape demand for smart logistics networks and city-based distribution planning. Furthermore, the region's broad transportation system of road, railway, and aviation routes, as well as further investments in its infrastructure, further puts the region solidly in front of the logistics market.

The rising popularity of online shopping is another major factor creating a positive logistics market outlook. Data from the United States Department of Agriculture (USDA) shows that in 2022, about 19.3% of frequent grocery shoppers purchased items online within 30 days. Responding to this need, e-commerce giants like Amazon and Walmart are investing in more responsive logistics operations. According to industry report, Amazon’s North American segment alone recorded a 13% year-over-year growth in 2022, reaching a consolidated value of USD 315.9 Billion.

Logistics Industry Analysis in Europe

The logistics market in Europe continues to benefit from efforts to improve cross-border connectivity. Among the most significant developments is the Trans-European Transport Network (TEN-T), which allows for the free flow of goods across the continent. Europe's robust trade alliances and geographical location also enhance the need for efficient and integrated transport networks. The growth of e-commerce and greater cross-border trade are fueling the demand for quicker, more affordable logistics services.

The use of online platforms and Internet of Things (IoT) solutions is gaining popularity in logistics operations throughout Europe. The technologies are assisting firms in tracking deliveries in real-time, fleet efficiency monitoring, and supply chain management. The integration of smart technologies, coupled with regulatory support and customer pressure, continues to sustain the market's consistent growth. Automation and robotics are incorporated into dispatch and storage systems for increased speed, accuracy, and labor productivity.

Sustainability is an emerging concern in the European logistics market. Firms are concentrating on minimizing waste, employing alternative fuels, and optimizing package use to achieve environmental objectives. The green logistics drive goes together with Europe's overall aim to reduce carbon emissions in general across industries. Furthermore, stringent European Union control regarding carbon emissions results in a higher number of freight transport operations with electric and hybrid trucks. In 2022, as per the European Commission (EU), emissions decreased by 1.3% or 42 Million Tons of CO2.

Logistics Industry Analysis in Asia Pacific

The logistics market in the Asia-Pacific region is growing quickly, driven largely by the expanding e-commerce sector. As more consumers shift to online shopping, companies are focusing on strengthening last-mile delivery to meet rising demand. According to the India Brand Equity Foundation (IBEF), the e-commerce gross merchandise value (GMV) in India reached USD 60 Billion in the fiscal year 2023, marking a 22% increase from USD 49 Billion in fiscal year 2022. This growth reflects the region’s increasing reliance on digital commerce and the need for fast, reliable logistics support.

Governments across Asia-Pacific are making substantial investments to support logistics development. These include the construction of smart ports, modernized rail systems, and upgraded transport corridors to address growing supply chain requirements. Improved infrastructure is helping reduce delivery times, support international trade, and accommodate the logistics needs of high-growth industries. These projects are essential in enhancing regional connectivity and improving the overall efficiency of freight movement.

The region is also advancing in technology use across logistics operations. Blockchain technology is being adopted to improve transparency and security within supply chains, ensuring more reliable tracking and reducing fraud risks. At the same time, innovations in cold chain logistics are supporting sectors such as pharmaceuticals, where temperature-controlled transport is critical. According to IBEF, India’s pharmaceutical industry recorded a compound annual growth rate (CAGR) of 6–8% between fiscal year 2018 and fiscal year 2023, with exports rising by 8% and the domestic market growing by 6%. These trends highlight the increasing requirements for specialized logistics services in Asia-Pacific.

Logistics Industry Analysis in Latin America

The logistics market in Latin America is undergoing major changes due to increased investments in infrastructure. Governments across Latin America are prioritizing the improvement of roadways, railroads, and ports so that trade can happen faster and more reliably. These upgrades are particularly crucial for high-volume industries like farming and mining that are heavily dependent on efficient logistics networks. Increased connectivity is reducing delays, costs, and access to domestic and foreign markets.

The growth of e-commerce is also at the forefront of determining logistics trends in the region. With more frequent online purchases, logistics companies are using new technologies to provide services to remote and rural locations. Drone deliveries and mobile applications are being researched as methods to enhance last-mile delivery. E-commerce is rapidly expanding in Brazil. According to the International Trade Administration (ITA), Brazil recorded an e-commerce growth rate of around 14.3%, reflecting its strong market position in the region.

An expanding manufacturing base and growth in regional trade are also driving logistic market demand in Latin America. Investments in port modernization and transport network expansion are enhancing overall efficiency. Regional cooperation and trade agreements are streamlining cross-border logistics, allowing businesses to transport goods across borders easily. Moreover, growing consumer spending and supply chain technology adoption are propelling better market performance throughout the region.

Logistics Industry Analysis in the Middle East and Africa

Middle East and African logistics firms are investing heavily in cutting-edge technologies to make their operations more robust. Robotics and artificial intelligence (AI) are integrated into supply chain functions to enhance efficiency, accuracy, and responsiveness. The technologies are aiding in streamlining logistics operations, making them more agile and responsive to meet increased demands, particularly from the booming e-commerce market in the region.

The area is experiencing rapid expansion in cross-border trade, which is driving major infrastructure investments. Intelligent ports and logistics centers are being developed to facilitate the quick movement of cargo and prevent congestion. Countries such as the United Arab Emirates and Saudi Arabia are spearheading the efforts by constructing world-class logistics parks and positioning themselves as global logistics hubs. As per industry reports, the UAE logistics and freight market is projected to be worth USD 27 Billion by 2029, indicating the magnitude of investments being made.

Sustainable growth of the Middle East and African logistics market is being fueled by quick urbanization, increased trade volumes, and enhanced infrastructure. The geographical location of the region, with major ports within the UAE and Egypt, positions it as a critical transportation hub for global trade routes. Government efforts to improve transportation infrastructure and create free trade zones are also supporting market growth, enabling the region to cope with growing need and enhance competitiveness in international logistics.

Logistics Market Key Challenges:

The logistics industry is constantly confronted with problems such as expensive fuel, broken supply chains, driver shortages, and inefficient last-mile delivery. A lack of proper infrastructure in emerging economies and unforeseen disruptions such as geopolitical tensions or harsh weather further worsen the challenges. Also, poor coordination between stakeholders tends to lead to delayed shipments and higher operating costs.

However, to address these issues, businesses are increasingly spending money on digital logistics platforms that provide real-time monitoring, route planning, and data-driven decision-making. The integration of IoT sensors, AI-powered predictive analytics, and automated warehouses can optimize operations, delay reduction, and increase transparency. In addition, coordination among logistics service providers, technology players, and policymakers is crucial to creating more resilient and responsive supply chains.

Top Logistics Companies:

The market is highly competitive, with market players taking several endeavors to dominate 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. Besides this, warehousing is another important core function, and logistics firms rely on inventory management that can be automated and checked in real time to ensure smooth work.

Significant investments 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 top companies 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.
• March 5, 2025: UPS, a global logistics company, announced an agreement with Dubai South to establish a new facility within its Logistics District. This strategic initiative aims to bolster UPS's expansion efforts in the Middle East and Africa region. The facility is expected to enhance trade connectivity by leveraging Dubai South's multimodal transport infrastructure.
• March 11, 2025: DPD UK declared that foreign delivery services would now be available at all UK Post Office locations. Through this program, consumers may send packages overseas using DPD from 3,600 participating Post Office locations, increasing ease and opening up international shipping options. The collaboration facilitates international logistics by using a reliable national network to serve both individual and small business clients.

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. It further enables stakeholders to identify the key country-level markets within each region.
• 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.