Contract Logistics Market Size By Service, By Mode, By Type, By End Use, Analysis, Share, Growth Forecast, 2025 - 2034

Contract Logistics Market Size

The global contract logistics market size was valued at USD 321.1 billion in 2024 and is projected to grow at a CAGR of 7.4% between 2025 and 2034. The rapid growth of e-commerce propels the contract logistics industry, significantly increasing the demand for efficient and scalable logistics solutions.
 

E-commerce companies require fast, cost-effective warehousing, order fulfillment, and last-mile delivery services to meet rising customer expectations for quick and reliable shipments. In March 2022, the International Monetary Fund (IMF) issued a report on the increased consumer expenditure online. It indicated that the proportion of total online spending surged from 10.3% in 2019 to 14.9% during the height of the pandemic.
 

As online shopping expands, so does the complexity of managing large volumes of orders, returns, and inventory across multiple channels. Contract logistics providers offer the expertise and infrastructure needed to address these challenges, including automated warehouses and integrated transportation networks. The need for agility in handling demand fluctuations further accelerates the adoption of outsourced logistics services, driving industry growth.
 

Moreover, the increasing adoption of eco-friendly transportation options is driving market demand, as companies prioritize sustainability and environmental responsibility. Facing mounting pressure from governments, consumers, and investors to reduce carbon footprints, logistics providers are investing in electric vehicles (EVs), hybrid trucks, and alternative fuels such as compressed natural gas (CNG) and hydrogen.
 

These green transportation solutions not only help companies comply with stringent environmental regulations but also offer long-term cost savings through lower fuel consumption and reduced emissions. As consumers increasingly favor businesses with sustainable practices, logistics companies that incorporate green transportation gain a competitive advantage, boosting the demand for environmentally conscious contract logistics services.
 

Contract Logistics Market Trends

Contract logistics are witnessing significant technological advancements in supply chain management. These innovations enable logistics providers to enhance efficiency, reduce costs, and improve customer satisfaction. By integrating technologies such as IoT (Internet of Things), AI (Artificial Intelligence), and automation, logistics providers can achieve real-time tracking, predictive analytics, and optimized routing, thereby improving visibility and decision-making.
 

Warehouse management systems (WMS) and robotics further streamline operations by automating inventory management, order picking, and packaging processes. Additionally, the rise of cloud-based platforms facilitates seamless data sharing and collaboration among supply chain partners, promoting greater flexibility and scalability. As businesses strive to remain competitive, they increasingly adopt advanced logistics technologies to manage complex, high-volume operations more effectively, thus boosting the global demand for contract logistics services.
 

For instance, in January 2024, DB Schenker highlighted its innovative approach to contract logistics, effectively blending technology and talent to meet the evolving demands of the industry. The company's new warehouse in Rudna, Czech Republic, exemplifies this strategy by integrating advanced automation and robotics into its operations. The facility features over 100 autonomous mobile robots (AMRs) that assist more than 650 employees.
 

These robots are designed to handle heavy and repetitive tasks, allowing human operators to focus on more complex activities. The AMRs can carry loads of up to 500 kg and have a battery life of three hours, recharging quickly when needed. DB Schenker's commitment to blending technology with human talent is reshaping the logistics landscape.
 

Stringent government regulations on transportation present significant challenges in the contract logistics market by increasing operational complexities and costs. Regulations concerning transportation safety, environmental standards, and driver working hours limit the flexibility of logistics providers. Compliance necessitates investments in specialized vehicles, advanced technologies, and refined processes, thereby raising capital expenditures.
 

Additionally, varying regulations by country or region complicate cross-border logistics. These legal requirements can cause delays and higher costs in supply chain operations, particularly in regions with evolving or complex regulatory frameworks. The need for continuous monitoring and adaptation to changing regulations further strains logistics providers, impacting their ability to deliver cost-effective and timely services.
 

Contract Logistics Market Analysis

Based on service, the market is segmented into transportation, warehousing, distribution, and others. In 2024, the transportation segment accounted for over 40% of the market share and is expected to exceed USD 255 billion by 2034. Transportation services dominate the contract logistics industry, underscoring their critical role in efficiently moving goods across supply chains. These services, which include road, rail, air, and sea freight, are essential for timely deliveries and effective inventory management.
 

The rise of e-commerce has heightened the demand for swift and reliable last-mile delivery, driving the need for outsourced transportation solutions. Additionally, globalization has prompted businesses to expand, increasing cross-border trade and necessitating specialized logistics providers to manage complex transportation needs. By leveraging technology, contract logistics firms can optimize routes, reduce costs, and enhance visibility. This technological edge makes transportation a key service for companies aiming to streamline their operations. Consequently, transportation remains the backbone of contract logistics, solidifying its leading market share.
 

Based on type, the contract logistics market is divided into insourcing and outsourcing. The outsourcing segment held around 72% of the market share in 2024, due to its ability to provide significant cost savings, operational efficiency, and flexibility. By outsourcing logistics functions such as warehousing, transportation, and inventory management, businesses can concentrate on their core competencies without managing complex supply chain operations.
 

Additionally, outsourcing allows companies to scale their logistics capabilities in response to fluctuating demand, particularly in industries like e-commerce and retail. Leveraging the expertise of third-party providers enhances service quality, reduces lead times, and optimizes the end-to-end supply chain. In today's competitive landscape, this strategic shift is especially appealing, enabling companies to streamline operations, reduce capital expenditures, and maintain a strong distribution network.
 

Asia Pacific contract logistics market accounted for 30% of the revenue share in 2024 and is expected to exceed USD 130 billion by 2034. China leads the market in the Asia Pacific region and is expected to exceed USD 80 billion by 2034, driven by its extensive manufacturing base, thriving e-commerce sector, and robust logistics infrastructure.
 

Government initiatives, such as the Belt and Road Initiative, aim to modernize supply chain networks, increasing the demand for efficient contract logistics services. The surge in online retail, particularly during major shopping events like Singles' Day, further necessitates agile logistics solutions. Additionally, investments in automation, AI, and smart warehousing technologies enhance logistics efficiency in China, enabling faster delivery times and cost-effective operations, thereby maintaining its market leadership.
 

The North America contract logistics market is driven by strong demand from industries such as e-commerce, automotive, retail, and healthcare. The U.S. and Canada, as key players, benefit from advanced infrastructure, technology adoption, and a growing focus on supply chain optimization. Increasing reliance on third-party logistics providers for inventory management, transportation, and last-mile delivery boosts the market. Additionally, the rise of automation, AI, and digital platforms in logistics operations enhances efficiency, making outsourcing an attractive option. The growing trend toward e-commerce and consumer expectations for fast delivery further fuels industry growth.
 

The contract logistics market in Europe thrives due to its advanced infrastructure, strong manufacturing base, and increasing demand from sectors such as automotive, retail, and e-commerce. Germany, the UK, and France lead the market, supported by robust supply chain networks and advanced logistics technologies. Additionally, the rise of digitalization, automation, and sustainability initiatives drives market demand. The e-commerce boom, in particular, has heightened the need for efficient logistics services, including last-mile delivery and inventory management, fueling the expansion of contract logistics across Europe.
 

In the MEA (Middle East and Africa) region, expanding infrastructure, particularly in the UAE and Saudi Arabia, drives the contract logistics industry. This growth is fueled by oil revenues and industrial diversification. In Latin America, Brazil and Mexico lead the market due to their growing e-commerce and retail sectors. Both regions increasingly adopt technology-driven logistics solutions to optimize supply chains, improve efficiency, and meet rising consumer demand.
 

Contract Logistics Market Share

DHL Supply Chain, United Parcel Service (UPS), and DB Schenker collectively held a substantial market share of over 9% in the contract logistics industry in 2024. DHL Supply Chain leverages AI, robotics, and IoT to digitalize its logistics operations, enhancing efficiency. The company prioritizes sustainable warehousing with green solutions and renewable energy. By utilizing data analytics, DHL provides customized supply chain solutions and predictive maintenance, optimizing costs. Additionally, it continues to expand its global network, particularly in high-growth regions like Asia-Pacific, to strengthen its market leadership.
 

UPS enhances its contract logistics offerings through advanced automation, smart warehouses, and data-driven decision-making. The company prioritizes sustainability by incorporating electric vehicles and renewable energy into its logistics network. UPS also invests in technology platforms for seamless integration and visibility, helping clients streamline their supply chains. Strategic partnerships and facility expansions further solidify its presence in key markets.
 

DB Schenker focuses on digital transformation with AI-driven logistics and warehouse automation to optimize efficiency. The company emphasizes sustainability by integrating carbon-neutral solutions, such as electric fleets and eco-friendly packaging. Expanding its global footprint, particularly in the e-commerce and healthcare sectors, DB Schenker also invests in omnichannel logistics to cater to the rising demand for flexible, end-to-end supply chain solutions.
 

Contract Logistics Market Companies

Major players operating in the contract logistics industry are:

• A.P. Moller – Maersk
• C.H. Robinson Worldwide
• DB Schenker
• DHL Supply Chain
• DSV
• Expeditors
• Kuehne+Nagel
• Ryder System
• United Parcel Service (UPS)
• XPO
   

Logistics Industry News

• In November 2024, AVA Global Logistics secured a significant contract for the shipment of steel coils to Europe and the Mediterranean region. This landmark deal underscores the company's growing influence in the logistics sector, particularly in handling heavy and bulk shipments. The contract involves transporting large quantities of steel coils, which are critical for various industries, including construction and manufacturing.
   
• In September 2024, CEVA Logistics celebrated its Second Annual Contract Logistics Innovation Week, an event that brought together over 30,000 participants across 220 locations globally. This initiative aimed to foster collaboration and showcase advancements in logistics through a series of virtual webinars, summits, and expos. The event saw participation from thousands of CEVA employees, suppliers, and customers in regions including the UK, Singapore, Brazil, and Malaysia. This broad engagement facilitated a rich exchange of ideas and innovations.
   

The contract logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and from 2021 to 2034, for the following segments:

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Market, By Service

• Transportation
• Warehousing
• Distribution
• Others

Market, By Mode

• Railways
• Airways
• Roadways
• Waterways

Market, By Type

• Insourcing
• Outsourcing

Market, By End Use

• Retail
• E-commerce
• Healthcare
• Automotive
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa