UK Freight and Logistics Market Research Report

UK Freight and Logistics Market Overview:

The UK freight and logistics market size reached USD 130.74 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 173.41 Billion by 2032, exhibiting a growth rate (CAGR) of 2.80% during 2024-2032. The market is propelled by rapid urbanization, increasing trade expansion, rising consumer expectations for speed, increasing investments in infrastructure by the government, labor shortages, and fuel price variability.

UK Freight and Logistics Market Trends:

The rise of e-commerce

E-commerce has fundamentally changed the UK freight and logistics market. The parcel volume increased exponentially on account of the growing demand for quicker delivery services, and consumers. According to Gitnux, UK holds the third position in the global e-commerce market and witnessed a market growth of 46.6% in the year 2020.  This exponential growth has propelled major key players to improve last-mile delivery services, invest in automated warehouse software, and adopt the latest technologies, such as route optimization software. Consumer expectation change is another crucial factor. Same-day or next-day delivery have become the norm for most online retailers, which leads to logistics companies reforming their supply chain strategies. Real-time tracking and delivery time transparency are no longer luxuries rather a necessity. This increasing pressure from consumers thus resulted in the adoption of AI and the Internet of Things (IoT) for optimizing operational efficiency.

Significant Technological Advancements

Another factor driving the UK freight and logistics market is the rapid technological development and digitalization. Latest technologies such as artificial intelligence (AI), blockchain, robotics, and the Internet of Things (IoT) are revolutionizing products in terms of movement, storage, and distribution. These innovations bring both operational performance and better consumer experience, with scope for increasing degrees of transparency and traceability across the supply chain. One of the most transformational technologies impacting the logistics industry is AI. For instance, predictive analytics can enable a logistics company to enhance the anticipation of demand ahead of time reducing the risk of stockouts or overstocking and improving the flow of goods through the supply chain.

Sustainability and Environmental Considerations

Sustainability has become a critical driver in the UK freight and logistics market, with consumers, businesses, and governments increasingly prioritizing environmental concerns. The UK has committed to reaching net-zero carbon emissions by 2050, which places significant pressure on logistics companies to reduce their environmental impact. The freight sector is a significant contributor to greenhouse gas emissions, and there is mounting pressure to adopt greener practices. In response, companies are investing in electric vehicles (EVs), alternative fuels, and eco-friendly packaging. Major retailers such as Amazon have announced plans to transition to EV fleets, while logistics firms are piloting hydrogen-powered trucks and using biofuels. Additionally, the push toward urban logistics, which aims to reduce congestion and pollution in city centers, has led to the rise of micro-hubs and cargo bikes for last-mile deliveries. The shift to sustainability also involves optimizing supply chain efficiency to reduce energy consumption and emissions. This has led to the increased use of data analytics and AI for better route planning, fleet management, and warehouse automation. While the transition to sustainable logistics presents significant capital investment challenges, it also offers long-term cost savings and a competitive edge as consumers and clients increasingly favor environmentally responsible brands.

UK Freight and Logistics Market News:

• October 2023: Kuehne + Nagel has introduced its Book & Claim in-setting solution for electric vehicles to enhance its decarbonization offerings. Creating Book & Claim in-setting solutions for road freight was a key focus for Kuehne + Nagel. Clients of Kuehne + Nagel's road transport services now have the option to offset the carbon emissions of electric trucks if their goods cannot be transported using these vehicles.

UK Freight and Logistics Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2024-2032. Our report has categorized the market based on logistics function, and end use industry.         

Logistics Function Insights:

• Courier, Express and Parcel
  • By Destination Type
    • Domestic
    • International
• Freight Forwarding
  • By Mode of Transport
    • Air
    • Sea and Inland Waterways
    • Others
• Freight Transport
  • By Mode of Transport
    • Air
    • Pipelines
    • Rail
    • Road
    • Sea and Inland Waterways
• Warehousing and Storage
  • By Temperature Control
    • Non-Temperature Controlled
    • Temperature Controlled
• Others
   

The report has provided a detailed breakup and analysis of the market based on the logistics function. This includes courier, express and parcel [by destination type (domestic and international)], freight forwarding [by mode of transport (air, sea and inland waterways, and others)], freight transport [by mode of transport (air, pipelines, rail, road, and sea and inland waterways)], warehousing and storage [by temperature control (non-temperature controlled and temperature controlled)], and others.

End Use Industry Insights:

• Agriculture, Fishing and Forestry
• Construction
• Manufacturing
• Oil and Gas, Mining and Quarrying
• Wholesale and Retail Trade
• Others
   

A detailed breakup and analysis of the market based on the end use industry have also been provided in the report. This includes agriculture, fishing and forestry, construction, manufacturing, oil and gas, mining and quarrying, wholesale and retail trade, and others.

Regional Insights:

• London
• South East
• North West
• East of England
• South West
• Scotland
• West Midlands
• Yorkshire and The Humber
• East Midlands
• Others
   

The report has also provided a comprehensive analysis of all the major regional markets, which include London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

UK Freight and Logistics Market Report Coverage:

Key Questions Answered in This Report:

• How has the UK freight and logistics market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the UK freight and logistics market?
• What is the breakup of the UK freight and logistics market on the basis of logistics function?
• What is the breakup of the UK freight and logistics market on the basis of end use industry?
• What are the various stages in the value chain of the UK freight and logistics market? 
• What are the key driving factors and challenges in the UK freight and logistics?
• What is the structure of the UK freight and logistics market and who are the key players?
• What is the degree of competition in the UK freight and logistics market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the UK freight and logistics market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the UK freight and logistics market.
• Porter's five forces analysis assist 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 UK freight and 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.