Global Logistics Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

Logistics Market Insights

• In 2021, worldwide air freight logistics traffic reached 65.6 million metric tons, which increased to 68.4 billion metric tons in 2022. Leading air freight carriers include FedEx, UPS, and Qatar Airways.
• As per industry reports, the logistics moved by road in India accounted for USD 220 billion in 2021, with the majority focused on intercity roads, holding an 86% market share.
• In the European Union, international transport accounted for 25.4% of total road freight transport in 2022, showing a 1.0% increase from the previous year.
• In 2022, the average load for total transport in the EU stood at 14.4 tonnes, with national transport averaging 13.6 tonnes and international transport averaging 15.9 tonnes.
• In January 2024, Evri, the largest parcel service in the United Kingdom, and JD.com (Jingdong) established a partnership for the sale of European products through JD.com’s marketplace. This initiative was aimed at enhancing the growth of British and European businesses.

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Logistics Market Analysis

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.

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.

Logistics Market Trends

Adoption of automation and artificial intelligence

Automation and artificial intelligence are supporying the growth of logistics industry by streamlining operations, enhancing efficiency, reducing costs, and meeting the demands of an increasingly complex global supply chain. Companies like Amazon are utilising AI-powered robots in their warehouses, which not only improves operational efficiency but also enhances the overall customer experience through faster and more accurate delivery. By 2025, warehouse automation and robotics will increase productivity by 25% to 70% and reduce operating costs by 20% to 40%. A prime example of AI integration in logistics is UPS's ORION system, which optimizes delivery routes for its fleet. The system processes around 250 million address data points every day, optimizing routes and saving the company up to 10 million gallons of fuel annually. This not only cuts costs but also reduces emissions, aligning with sustainability goals. 60% of logistics companies plan to invest in automation and AI in 2024 to offset the labor shortage, improve operational efficiency, and meet growing e-commerce demands, according to a report from Gartner.

Focus on sustainability and green initiatives

Companies like UPS are investing in electric vehicles and renewable energy sources to reduce their carbon footprint. The adoption of sustainable logistics practices not only contributes to a greener environment but also enhances a company's reputation and competitive edge, thus impacting the logistics demand forecast. One of the most notable examples is Maersk, the world’s largest shipping company, which has committed to achieving net-zero carbon emissions by 2040. As part of this initiative, Maersk ordered 18 carbon-neutral methanol-powered ships in 2023, scheduled to enter service by 2025. This initiative alone is expected to reduce 1 million tonnes of CO2 emissions annually. Additionally, the company has committed to using sustainable biofuels and plans to further invest in renewable energy projects. Prologis, one of the world’s largest logistics real estate companies, has implemented several green initiatives. As of 2023, the company can now generate 500 megawatts (MW) of energy – a significant milestone that puts the company halfway to its one gigawatt (GW) of solar supported by storage by 2025 goal. In 2022, Prologis announced a goal to achieve net zero emissions across its operations and value chain by 2040. The company has set interim goals to track its progress, which include achieving one GW of solar by 2025, supported by energy storage.

Industry News

January 2024

UPS secured a major air cargo contract with the USPS. The expanded partnership will leverage UPS's extensive air network and logistics expertise to improve the speed and reliability of USPS's package delivery services across the United States.

March 2023

CEVA Logistics integrated GEFCO into its logistics division. GEFCO is a European leader in automotive logistics and will allow CEVA Logistics to strengthen its range of logistics services, especially in France and the rest of Europe.

Logistics Market Dynamics

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 of its fulfillment sites. The corporation stated that they had reached an 85% renewable energy utilization across all of 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.

Growth Drivers

Last-mile delivery innovations

Last-mile delivery, the final step of a product's journey to the customer, is undergoing significant innovations. Companies like DHL are testing drone delivery services to reach remote areas efficiently. These innovations ensure quicker, more convenient, and contactless deliveries, particularly in urban areas. Autonomous vehicles and drones are gradually entering the logistics market. As per logistics industry analysis, companies like Nuro and Waymo are pioneering autonomous delivery services, offering contactless delivery for goods. Nuro, for example, has been granted permission by the US Department of Transportation in 2022 to operate autonomous delivery vehicles, a breakthrough for the logistics market. Urban deliveries are changing as a result of AI-powered delivery bots, such as those employed by FedEx Roxo and Starship Technologies. These autonomously navigating robots can deliver things to customers' doorsteps around cities. The scalability of this technology was demonstrated in 2023 when Starship's delivery robots achieved a milestone of 5 million autonomous deliveries worldwide.

Opportunities in Logistics Market

Rise in data-driven decision making

Data analytics is revolutionising logistics management by enabling companies to optimise routes, predict demand, and enhance overall efficiency, thus increase the logistics market share. FedEx uses predictive analytics to forecast package volumes during peak seasons, allowing them to allocate resources effectively. Predictive analytics is used by Amazon, for example, to improve inventory control throughout its extensive worldwide network of fulfillment centers. Amazon uses machine learning algorithms to estimate product demand with great accuracy, allowing for the maintenance of ideal stock levels. With its Prime Now service, which guarantees delivery in less than two hours, Amazon has been able to lower warehouse costs and increase delivery times due to this technique. In the same way, FedEx has incorporated data analytics into its fleet management system to track driver behavior, fuel economy, and vehicle performance in real time.

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

The EMR’s report titled “Logistics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Model Type

• 1 PL
• 2 PL
• 3 PL
• Others 

Market Breakup by Transportation Mode

• Roadways
• Seaways
• Railways
• Airways

Market Breakup by End User

• Manufacturing
• Consumer Goods and Retail
• Food and Beverages
• IT Hardware and Telecom
• Healthcare
• Chemicals
• Construction
• Automotive
• Oil and Gas
• Others

Market Breakup by Region

• North America
• Europe 
• Asia Pacific 
• Latin America 
• Middle East and Africa

Logistics Market Share

By Transportation Mode Analysis

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.

By End User Analysis

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.

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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 as a result 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

The global logistics market is highly competitive, with leading companies continually innovating and adapting to maintain their competitive edge. These companies are leveraging technology, enhancing sustainability, expanding their global reach, and investing in automation and data-driven solutions.

Key Industry Players

CMA CGM Group (CEVA Logistics AG) was founded in 2005 and is based in Cournon-d'Auvergne, France. It offers comprehensive supply chain management, logistics, and freight forwarding services. CEVA is recognised for its expertise in optimising supply chains for businesses across various industries.

Deutsche Post AG was founded in 1995 and has its headquarters in Bonn, Germany. It is a prominent player in the postal services, logistics, and parcel delivery sectors. The company's extensive network and focus on technological advancements have positioned it as a leader in the global logistics industry. 

Kuehne + Nagel International AG was established in 1890 and is headquartered in Switzerland, United Kingdom. Specialising in logistics, supply chain management, and freight forwarding services, company is renowned for its commitment to sustainability and providing customer-specific tailored solutions.

FedEx Corporation, founded in 1973 and headquartered in the United States is a global leader in shipping, transportation, and e-commerce services, connects people and possibilities worldwide through its integrated business applications. Renowned for exceptional service, FedEx Express, the world's largest cargo airline, serves over 220 countries with time-definite air-ground services. 

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 revolutionizing 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 a number of US states, it has also been given regulatory clearance to drive autonomous cars on public highways.

Recent Developments

February 2024

FedEx has invested USD 350 million in a cutting-edge hub at Dubai World Central Airport in Dubai South, enhancing global logistics and connectivity. The structure complies with the Dubai Municipality Green Standards and has a solar power project as well as a building management system that promotes energy efficiency. FedEx is now using electric ground service vehicles and electric vehicle charging stations for employee and delivery vehicles.

February 2024

J.B. Hunt Transport Services Inc. announced a multi-year intermodal service agreement with Walmart. This partnership aims to increase the efficiency and reliability of Walmart's logistics operations by leveraging J.B. Hunt's expertise in intermodal transportation and supply chain management.

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Logistics Market Report Snapshots

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