United Kingdom Contract Logistics Market Size, Share and Growth Analysis Report: Forecast Trends and Outlook (2026-2035)

Key Takeaways

Contract logistics refers to the outsourcing of resource management tasks, such as transportation and warehousing, by one company to a third-party company. It covers a much broader scope than warehousing and distribution, including designing and planning supply chains, managing inventory, and providing certain aspects of customer service. By outsourcing these tasks, logistics companies can focus more on their core business, potentially save money, and enhance the efficiency of supply chain operations.

Driven by the increasing complexity of supply chains and the growing need for specialised logistics services, such as temperature-controlled storage systems and digital freight forwarding, the demand for contract logistics in United Kingdom is expected to increase. Moreover, the market is anticipated to experience sustained growth, propelled by factors, such as growth of e-commerce sector in the country and their pursuit of cost-effective methods of delivering orders using last-mile delivery solutions and flexible logistics solutions.

Key Trends and Developments

Advancements in logistics technology, growing focus on sustainability initiatives, and rise in omni-channel retailing are boosting the United Kingdom contract logistics market development

United Kingdom Contract Logistics Market Trends

The United Kingdom contract logistics market is experiencing a significant trend towards the integration of advanced technologies, such as autonomous mobile robots (AMRs), to enhance accuracy in inventory management. Amazon has recently introduced a fully autonomous warehouse robot called Proteus, which can move large carts around its facilities and interact safely with human employees. The company has also announced other robotic systems, such as Cardinal, a robotic arm that can lift and move packages weighing up to fifty pounds.

Furthermore, the United Kingdom contract logistics market growth is driven by the shift towards sustainable practices, such as 3PL solutions to enhance sustainability through consolidated shipments. Companies such as CEVA Logistics and C.H. Robinson have recently obtained certifications and ratings for their sustainability efforts, and they are actively working with partners to achieve their sustainability goals.

Market Segmentation

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Roadways segment is expected to hold significant market share as it is the most reliable mode of transporting goods

As per United Kingdom contract logistics market analysis, contract logistics services via roadways dominates the market share as it provides flexible and reliable transportation solutions for both inbound and outbound logistics or e-commerce operations.

On the other hand, air cargo services also contribute significantly to the market share, especially for large distance deliveries, time-sensitive and high-value goods, where speed and efficiency in transportation are key considerations.

E-commerce sector is growing rapidly due to rapid growth in online shopping

The United Kingdom's contract logistics market share has experienced significant growth, driven by the expansion of the e-commerce sector, along with the increasing consumer propensity to shop online. Also, in the UK’s e-commerce sector, contract logistics plays a crucial role in tracking goods efficiently. Advanced tracking technologies, such as RFID and GPS, are commonly integrated into logistics process, which enables real-time monitoring of shipments. This is positively impacting the United Kingdom contract logistics market outlook as logistics is playing a vital role in supporting warehousing, transportation, shipping, tracking, and online delivery.

Additionally, the market has seen a surge in demand for temperature-controlled storage systems due to the growth of the pharmaceutical and healthcare industries, where the contract logistics companies help in the urgent delivery of medicines, organs for transplants, and medical equipment. Moreover, the contract logistics market in United Kingdom  is expected to continue growing, with the logistics industry constantly adapting to high-tech technologies and innovations, such as the potential of drone deliveries in the United Kingdom.

Competitive Landscape

The market players are introducing advanced automation technologies to stay ahead in the competition, further increasing their partnerships and acquisitions to strengthen their image.

Other key players in the United Kingdom contract logistics market analysis include Jump Up Logistics Ltd., JJX Logistics, CEVA Logistics SA, Pack & Send UK Limited, Parcel Monkey Ltd., and Royal Mail Group Ltd., among others.