Global Logistics Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2025-2034)

Logistics Market Growth

The growth of logistics market is driven by the substantial growth in the e-commerce industry. This can be ascribed to the considerable rise in the sales of goods via online retail channels, which is further enhanced by the convenience offered by these platforms at a better price. The market is further aided by the efficient functioning of online deliveries using logistics.

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The United Nations' Paris Agreement has set ambitious goals for the reduction of global greenhouse gas emissions. To limit global warming to 1.5°C, greenhouse gas emissions must peak before 2025 at the latest and decline 43% by 2030. As a result, governments and businesses are being urged to adopt zero-emission targets and sustainable business models. Over 75 countries have pledged to achieve net-zero emissions by 2050, and many logistics companies are aligning their strategy to meet these targets, according to a 2023 World Economic Forum report. 

Furthermore, a growing number of e-commerce platforms provide simple return and refund policies, leading to a rise in the need for reverse logistics procedures that offer adaptable features like tracking capabilities. In addition, the need for green logistics—which provide sustainable transportation options—has increased as the emphasis on sustainable development has grown, aiding the logistics demand growth.

Governments all throughout the world are starting to impose emission limits, carbon taxes, and incentives for the adoption of environmentally friendly technologies. The Carbon Border Adjustment Mechanism (CBAM), which levies a carbon tax on imported commodities based on their carbon intensity, was put into place by the European Union in 2023. Other factors that are predicted to positively influence the logistics market revenue include constant technological advancements, the integration of biometrics, increasing international trade agreements, Bluetooth, driverless vehicle, GPS, and drone delivery.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Developments

Logistics Market Trends

Other key factors aiding the global market for logistics include the demand for enhanced infrastructure to support economic growth, the development of infrastructure leading to increased efficiency in transport, and the creation of commercial and entrepreneurship opportunities.

Additionally, investments in roads, railways, aviation, shipping, and inland waterways play a crucial role in boosting the demand of logistics market. Initiatives such as the establishment of the Infrastructure Finance Secretariat to encourage private investment in infrastructure, the opening of national highway projects, and collaborations between governments for infrastructure development further contribute to the growth of the market on a global scale.

New developments in Internet of Things (IoT) technology have improved the energy efficiency of warehousing even more. Advanced monitoring systems, AI-driven automation, and smart sensors maximize energy efficiency and cut waste. Amazon recently declared its goal to switch to 100% renewable energy by 2025 for all its fulfillment sites. The corporation stated that they had reached an 85% renewable energy utilization across all its global operations as of 2023.

In 2018, IBM and Maersk have collaborated to develop TradeLens, a blockchain platform that provides end-to-end visibility into the shipping process. The platform tracks over 10 million shipping events per week and provides real-time data on container locations, shipment statuses, and customs clearances. In 2023, TradeLens was adopted by over 150 companies in the logistics industry, reducing the time it takes to process documents by 40% and improving supply chain transparency.

Logistics Market Restraints

Despite the promising growth and advancements in the global logistics market, several challenges continue to hinder its expansion. In many developing countries, poor infrastructure—such as inadequate roads, railways, and ports—remains a major barrier to efficient logistics operations. In countries across Africa and parts of Asia, logistics companies face significant delays due to poor road networks and underdeveloped port facilities, which result in higher operational costs, and negatively impact the logistics market dynamics and trends. Logistics companies are heavily dependent on fuel, and fluctuations in oil prices can dramatically affect profitability. In 2022, global fuel prices surged due to the Russia-Ukraine conflict and post-pandemic recovery, causing significant increases in transportation costs. According to the International Energy Agency (IEA), fuel prices in 2022 were 30% higher than in previous years, impacting the overall cost structure of logistics companies.

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Logistics Industry Segmentation

Logistics Market Share

Market Analysis by Model Type

The market is segmented into three primary models: 1PL (first party logistics), 2PL (second party logistics), and 3PL (third party logistics). 1PL refers to companies that manage their own logistics operations without outsourcing. This model is common among large manufacturers and retailers, such as Coca-Cola, which operates its own fleet and distribution centers to control the supply chain effectively. By handling logistics internally, these companies can streamline operations and reduce costs. 2PL involves transportation service providers that do not handle warehousing or inventory management. Companies like FedEx and UPS exemplify this model by offering freight and shipping services for goods. They focus on the transportation aspect, allowing businesses to rely on specialised carriers for efficient delivery without managing the entire supply chain. 3PL providers have the highest share in logistics market offer comprehensive logistics solutions, including transportation, warehousing, and inventory management. For example, DHL Supply Chain and XPO Logistics provide end-to-end supply chain services, allowing businesses to outsource their logistics functions. This model is increasingly popular as companies seek to enhance efficiency and focus on core business activities.

Market Analysis by Transportation Mode

Roadways, with their extensive reach and cost-effective nature, hold a significant market share. FedEx and UPS rely heavily on road transportation for their last-mile delivery services, ensuring efficient and timely delivery of packages to customers' doorsteps. The flexibility and accessibility of roadways make them a preferred choice for transporting goods.

Seaways, characterised by their ability to transport large volumes of goods over long distances, are experiencing notable growth in the logistics market. The expansion of trade routes, such as the Panama Canal, has facilitated faster and more cost-effective transportation of goods between continents. 

Meanwhile, while air transportation is costlier than other modes, its ability to reduce transit times significantly makes it indispensable for industries requiring expedited logistics services. DHL Express and FedEx Express leverage air transportation to deliver time-sensitive, high-value, and urgent shipments worldwide within tight deadlines.

Market Analysis by End User

In the food and beverages sector, efficient and timely transportation is crucial due to the perishable nature of goods. Temperature-controlled transportation and adherence to food safety regulations are essential in this sector to preserve product integrity throughout the supply chain.

In the IT hardware and telecom sector, logistics services must cater to delicate and high-value equipment like computers, servers, and networking devices. UPS, FedEx, and DB Schenker offer tailored solutions for the transportation and distribution of IT hardware and telecom products, incorporating advanced tracking systems and secure packaging to prevent damage.

As per logistics market analysis, the healthcare industry also relies heavily on efficient logistics for the transportation of pharmaceuticals, medical devices, and equipment. Companies such as UPS Healthcare, DHL Life Sciences, and Kuehne + Nagel specialise in healthcare logistics, providing services like cold chain management and regulatory compliance to ensure the safe and timely delivery of critical medical supplies.

In the chemicals sector, logistics providers like CMA CGM, CEVA Logistics, and DHL Chemicals offer expertise in handling hazardous materials, ensuring compliance with international regulations and safety standards. Effective risk management strategies, including proper labeling, packaging, and handling protocols, are essential to mitigate potential hazards and ensure the safe transportation of chemicals.

Logistics Market Regional Analysis

North America Logistics Market Trends

North America dominates the logistics market share as it boasts a robust economy, extensive manufacturing activities, and a thriving e-commerce sector. The United States, a key player in the region, benefits from well-developed transportation infrastructure, including advanced road networks, efficient rail systems, and modern air and maritime ports. This infrastructure supports the seamless movement of goods and services, contributing to the region's dominance. North American companies are leaders in integrating automation and AI into logistics. UPS, FedEx, and Amazon have invested heavily in AI and automation to optimize supply chains. UPS's ORION system helps optimize delivery routes, saving 10 million gallons of fuel annually. In 2023, FedEx announced plans to convert its entire fleet to electric by 2040, supported by a $2 billion investment in electrification and renewable energy.

Asia Pacific Logistics Market Dynamics

However, the Asia-Pacific region emerges as a rapidly growing market in the global logistics landscape. China, with its vast manufacturing base and booming e-commerce industry, stands out as a key player in the logistics market in Asia Pacific. The region's focus on enhancing transportation infrastructure, such as high-speed rail networks and modern port facilities, further propels its logistics sector forward. Markets like Japan, India, and Southeast Asian countries are also witnessing increased trade activities, creating a surge in demand for logistics services. Companies like Alibaba’s Cainiao are pioneering logistics automation with AI and robotics, reducing delivery times and improving efficiency. In 2023, Cainiao handled 75% of packages within 24 hours, showcasing the efficiency of the region's logistics systems.

Europe Logistics Market Opportunities

The strict laws and growing consumer demand for sustainability have made Europe a global leader in green logistics and support the logistics market value. By pushing logistics firms to embrace green practices, the European Union's Green Deal seeks to achieve climate neutrality by 2050. In 2023, DHL increased the number of electric delivery cars in its fleet, in line with its commitment to reduce carbon emissions to zero by the year 2050. In 2023, the region will once again demonstrate its commitment to sustainability and lowering emissions from international logistics operations with the adoption of the EU's Carbon Border Adjustment Mechanism (CBAM).

Latin America Logistics Market Driving Factors

In Latin America, e-commerce is growing at an exponential rate, especially in Brazil and Mexico. Brazil's e-commerce sales hit $45 billion in 2022, up 26% from the year before, thus increasing the logistics industry revenue. Demand for effective logistics solutions is rising because of this expansion, particularly for last-mile deliveries. With the conclusion of trade accords like the United States-Mexico-Canada Agreement (USMCA), Latin America is becoming more involved in international trade. Because of the streamlined cross-border transit and lower tariffs, this has helped the logistics industry.

Middle East and Africa Logistics Market Insights

The Middle East, particularly the United Arab Emirates (UAE), serves as a key logistics hub connecting Europe, Asia, and Africa. With 19.3 million containers handled in 2022, the Port of Jebel Ali, one of the biggest ports in the world, is essential to global logistics. The significant investments made by the UAE in air and rail infrastructure, including the Etihad Rail project, are also helping the country's logistics industry. The creation of free trade zones (FTZs), such as Dubai's Jebel Ali Free Zone (JAFZA), which provides tax advantages and expedited customs procedures, is progressively helping the area. These zones are drawing in global corporations and fostering the expansion of the logistics industry.

Competitive Landscape

Other key players in the global logistics market include Evri Limited, Schenker AG, C.H. Robinson Worldwide Inc., Nippon Express Co., Ltd., Kintetsu World Express Inc., TSI Group Inc., XPO, Inc., United Parcel Service, Inc., A.P. Møller – Mærsk A/S, Expeditors International of Washington Inc., GXO Logistics, Inc., and DSV A/S, among others. 

Market Overview of Innovative Logistics Startups

Flexport

Founded in 2013, this US-based startup offers cloud-based platforms for international trade to enterprises. It specializes in digital freight forwarding and supply chain management. The business optimizes cross-border cargo flow by utilizing AI, data analytics, and real-time tracking. Flexport completed a $935 million Series E fundraising round in 2022, valuing the business at $8 billion. With an emphasis on fusing technology with conventional shipping methods, the firm keeps growing its global footprint.

Nuro 

Nuro is a US-based autonomous delivery vehicle startup that was founded in 2016 with the goal of transforming last-mile logistics. The company's autonomous cars are made to deliver packages and groceries throughout town. Because Nuro's autonomous cars are designed with goods rather than passengers in mind, they are perfect for last-mile deliveries in cities. The business has established alliances with well-known merchants like Domino's Pizza and Kroger. Nuro's valuation increased to $8.6 billion in 2022 when it raised USD 600 million in a Series D investment. In several US states, it has also been given regulatory clearance to drive autonomous cars on public highways.

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Logistics Market Report Snapshots

Logistics Market Size

Logistics Market Share

Logistics Market Growth

Logistics Market Trends

Logistics Market Regional Analysis

Logistics Companies