North America Logistics Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

North America Logistics Market Insights

• As per industry reports, the storage and logistics sector are projected to grow at a rate of 0.8% annually till 2032, resulting in nearly 570,000 jobs within the decade.
• A 14% year-on-year growth in sales via e-commerce has boosted logistics demand growth in North America, mainly in last-mile delivery and warehousing.
• In 2023, the government of US allocated 39% of federal funds to highways, 28% to railways, 22% to air travel, and 9% to water transportation for improving transportation infrastructure.
• In 2022, US imports and exports surged to USD 4.54 trillion and USD 3.23 trillion, which also created a need for efficient logistics in the country.

North America Logistics Market Analysis

The logistics market is a vital component of the North America's economy and is projected to grow significantly in the coming years. The US e-commerce sales accounted for 15.4% of total sales in 2023, and 14.7% of total sales in 2022. This increase in e-commerce sales indicates a higher demand for efficient and reliable logistics services, including transportation, warehousing, and inventory management. Growth of the North America logistics market is further driven by factors such as the increasing demand for foreign goods, the development of a highly integrated supply chain network, and advancements in logistics technology.

The logistics market share in North America is also influenced by trends such as increasing digitisation and automation, and the rising demand for waterways transportation. Significant investments in transportation infrastructure, including road, rail, and port facilities, are also being made to support the growing logistics demands. For instance, the U.S. government allocated over USD 653 million for port improvement projects in late 2023, aimed at enhancing the flow of goods.

North America Logistics Market Trends

Growing E-Commerce Sector in NA

As per industry reports, the e-commerce sector in North America has grown significantly, with online sales accounting for 22.0% of total retail sales in 2023, up from 21.2% in 2022. This growth in e-commerce sales is expected to drive the North America logistics market, as reliable logistics services are essential for the timely delivery of goods. The rise in e-commerce is not only reshaping logistics operations but also promoting the adoption of sustainable practices as companies focus on reducing their carbon footprints. Also, the number of online shoppers in the U.S. is projected to increase to 270.11 million in 2024 and reach 285 million by 2025, further intensifying the need for robust logistics infrastructure. This growing consumer base is also expected to drive innovation in areas such as automated fulfillment centers, drone deliveries, and AI-powered route planning, all of which are critical to maintaining the efficiency and speed required in modern logistics.

Rising Adoption of Green Practices by Logistic Companies

Another key trend in the North America logistics market is the focus on sustainability. Sustainability is becoming an increasingly important consideration for logistics providers, with many retailers and other heavy users of logistics systems making strong environmental, social, and governance (ESG) commitments for the coming years. The logistics industry is moving towards more sustainable practices, such as reducing waste, using renewable energy sources, and implementing green transportation solutions. Additionally, the U.S. has set ambitious goals, aiming for 30% of the nationwide sales of zero-emission trucks by 2030, resulting in a peak of 100% by 2040. This shift is enabling logistics firms to invest in electric vehicles, green warehouses, and other sustainable practices to meet the evolving regulatory and consumer demands. Furthermore, advanced technologies such as electric fleets, eco-friendly packaging, and renewable energy-powered logistics hubs are expected to play a crucial role in shaping the future of North America logistics market.

Industry News

September 2024

Amazon is expanding its average pay for contracted delivery drivers to approximately USD 22 an hour, up from USD 20.50. This change is part of a USD 2.1 billion investment in enhancing its delivery service partner program in the United States and Canada. This wage boost is expected to attract and retain skilled drivers for its extensive delivery network.

August 2022

Lineage Logistics acquired VersaCold Logistics Services, a leading cold chain provider in Canada. This acquisition expanded Lineage’s network of 24 temperature-controlled facilities across nine provinces of Canada, further increasing efficiency and innovation in the food supply chain.

Opportunities in North America Logistics Market

One of the most significant areas of growth is automotive logistics, particularly due to the increasing number of manufacturing plants and the integration of smart technologies in autonomous vehicles. For instance, the U.S. has over 1,000 automotive manufacturing plants, with Michigan alone hosting more than 950 plants for vehicle and parts manufacturing. Moreover, digital logistics solutions are gaining traction as companies are now adopting cloud-based technologies and automation to enhance efficiency and reduce operational costs. This shift is expected to create significant North America logistics market opportunities.

The logistics sector in the region is also expected to grow due to the increasing demand for imports and exports, particularly from emerging markets. The U.S. Census Bureau reported that North American trade with emerging markets increased by 5.7% in 2022, with export values reaching USD 1.8 trillion. Moreover, as the world’s second-largest trading nation, the U.S. engages in over USD 7 trillion in trade annually, with a significant portion reliant on effective logistics systems to manage the flow of goods. In July 2024, U.S. imports reached USD 345.4 billion, indicating the importance of logistics in handling large volumes of goods from various countries, including major suppliers such as China and Mexico.

North America Logistics Market Restraints

Some significant challenges that prevail in the market are the ageing transportation networks and insufficient investment in infrastructure, which has led to inefficiencies in the movement of goods. For instance, many roads, bridges, and ports are in dire need of upgrades, which can delay deliveries and increase operational costs. Additionally, there is a shortage of skilled labour, exacerbated by rising labour costs and high turnover rates, which impacts the ability of logistics companies to meet growing logistics demand in North America effectively.

Inflationary pressures further complicate the landscape, as fluctuating fuel prices, influenced by global events such as the Russia-Ukraine conflict, have resulted in unpredictable transportation costs for logistics firms. Regulatory complexities are also a barrier as companies need to navigate different laws and regulations across states and countries, which often slows down operations and increase administrative costs.

North America Logistics Market Dynamics

Various companies opt for distinct logistics services to cater to their business and consumer needs, influencing market dynamics. Companies that manage their logistics operations in-house include Amazon, which has its own logistics and transportation network, including warehouses, delivery trucks, and drones. Companies that partner with a single logistics service provider include Walmart, which has partnered with various logistics companies, including FedEx, to manage its logistics operations. Companies that outsource their logistics operations to a third-party logistics service provider include Nike, which has outsourced its logistics operations to DHL, a global logistics company, to manage its supply chain and distribution network.

North America Logistics Industry Segmentation

“North America 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 Country

• United States of America
• Canada

North America Logistics Market Share

By Model Type Insights

The 1PL model in North America logistics market requires companies to manage their logistics operations internally without outsourcing to external providers. The segment’s share is steady as it allows firms to maintain direct control over their supply chain. However, using this model may require significant investments in infrastructure and personnel. Large retailers like Walmart and Target are examples of first-party logistic firms.

Meanwhile, the use of external transportation providers to move goods from one location to another is a requirement for 2PL models. Second party logistic providers offer services such as trucking, rail, or ocean freight. However, they have limited geographic coverage. FedEx and UPS are examples of 2PLs, offering parcel delivery services across North America.

As per the North America logistics market analysis, 3PL is the most common logistics model in the region. In a 3PL arrangement, companies outsource all their logistics operations to a specialised provider. Third-party logistic companies often have extensive networks and expertise in managing complex supply chains. Examples of 3PL include DHL, Kuehne + Nagel, and C.H. Robinson Worldwide.

By Transportation Mode Insights

The roadway segment is the largest in North America as shipping of goods via roads allows for door-to-door delivery and easy access to remote areas. The extensive road network facilitates efficient movement between major cities and industrial hubs, making it a preferred choice for short to medium-distance transportation. Moreover, the rise of e-commerce has significantly increased the demand for last-mile delivery services, further boosting the roadway logistics segment. As per industry reports, in 2022, trucks moved USD 996.4 billion worth of goods from and to Mexico and Canada and the value increased by 5.1% in 2023.

Seaway transportation, although it contributes less to North America logistics market revenue as compared to roadways, is essential for transporting bulk goods and large shipments. The seaway segment is expected to grow due to increasing globalisation, investments in port infrastructure, and the rising volume of international trade. Air transport, while accounting for a smaller share of the logistics market, is critical for time-sensitive deliveries and high-value goods.

Rail transportation also accounts for a significant portion of the North America logistics market, particularly for heavy and bulk goods. The advantages of rail transport include lower costs for long-distance shipping and the ability to move large quantities of goods efficiently. Also, the North American rail network is well-developed, providing a robust pavement for rail freight logistics. According to TransBorder Freight Annual Report 2023, freight worth USD 209.2 billion was moved through railways in 2022.

By End-User Insights

The healthcare industry relies significantly on logistics companies due to the increasing demand for efficient pharmaceutical distribution, which involves the transportation of medications from manufacturers to healthcare providers. Moreover, the development of cold-chain logistics and adherence of regulations by logistic firms, mainly for temperature-sensitive products like vaccines and biologics has increased market value.

Moreover, the North America logistics industry revenue is heavily influenced by the surge in e-commerce, retail, or consumer goods sector. As per industry reports, 20.1% of all retail purchases in the US will be done online in 2024, an increase from 19.4% in 2023. Due to this, e-commerce sales are anticipated to reach nearly USD 1.26 trillion in 2024. As online shopping rates increase in future, the consumer demand for fast and reliable delivery or logistics will also grow.

The automotive logistics market in the country also plays a significant role. This segment encompasses the logistics of transporting vehicles and components. The rising number of manufacturing plants, increasing vehicle population in US, and the rising sales of autonomous vehicles are key drivers of growth in this sector.

North America Logistics Market Country Insights

United States of America Logistics Market Growth

The logistics industry in North America, which is led by the US, is undergoing substantial changes and growth due to rising levels of freight traffic, as well as an increase in cross-border trade and the ongoing trend for near-shoring – especially into Mexico. Additionally, many companies are investing in technology to improve the efficiency of logistics. For example, GXO Logistics has been piloting humanoid robots that are designed and built to automate specific logistics tasks, which can increase the overall North America logistics market value.

Moreover, a recent survey predicted that 67% of shippers anticipate managing significantly more freight in 2024 than in 2023. It also predicted that 26% of respondents plan to adopt air cargo services by 2024, up from 23%. The survey also forecast rail services to increase from 17% in 2023 to 20% the following year, given the new transnational status of Canadian Pacific and Kansas City Southern, showcasing positive logistics demand forecast in North America.

However, anticipation of widespread labour strikes at East Coast ports in October 2024 may disrupt logistics operations and the Houthi aggression in the Red Sea has also caused shipping delays that have forced vessels to re-route around the Cape of Good Hope, increasing delivery time and costs.

Canada Logistics Market Drivers

The North America logistics market, including Canada, is estimated to grow, due to the increase in demand for efficient supply chain offers and solutions, rapid technological developments, and dynamic e-commerce development. Moreover, in October 2023, Arrive Logistics, the top freight brokerage for NA customers, announced the opening of a Toronto office. The goal of the expansion is to boost Canadian customer services and increase the company’s North America-wide presence.

Additionally, Canadian National Railway has been investing in its infrastructure to strengthen its foothold in the North America, mainly in cross-border freight services. In Q2 2024, the company reported a 7% revenue increase compared to the same period of 2023, totaling USD 4.3 billion. CNs current rail network is crucial for auto supply chains and covers the main markets of Canada, the USA, and Mexico. However, in September 2044, Canadian government introduced strict security requirements for air cargo from countries in Europe and CIS, which has created challenges for shippers.

Innovative Logistics Startups in North America

Several startups in the North America logistics market are using technologies such as drones and AI to optimise routes and costs. They are providing on-demand warehousing and fulfillment services through digital platforms and networks of warehouses, while freight brokerage startups are using machine learning and big data to connect shippers with carriers more efficiently.

ShipBob, founded in 2014 and located in Illinois, United States, is a tech-enabled third-party logistics (3PL) provider that focuses on e-commerce fulfillment. The company achieved unicorn status in June 2021 after raising USD 200 million in Series E funding, bringing its total funding to USD 330.5 million. ShipBob provides a comprehensive range of services, including warehousing, inventory management, order fulfillment, and shipping.

Zipline, established in 2014 and located in California, United States, provides drone delivery services, particularly in healthcare logistics. The company has raised more than USD 821 million in funding, with a significant USD 330 million round in 2023. Zipline also operates a fleet of autonomous drones that deliver medical supplies to remote areas.

Competitive Landscape

The market players are heavily focused on optimising supply chain operations through the adoption of automation, artificial intelligence (AI), and data analytics, which help reduce costs and enhance efficiency. They are also capitalising on the increasing demand for logistics services driven by factors such as the growth of e-commerce, just-in-time manufacturing, and changing consumer expectations for faster delivery times and transparent tracking systems.

Key Industry Players

FedEx Corporation, founded in 1971 and headquartered in Memphis, Tennessee, is a global leader in transportation, e-commerce, and business services. With an annual revenue of approximately USD 88 billion, FedEx offers express transportation, freight services, and logistics solutions in over 220 countries.

United Parcel Service, Inc. (UPS), established in 1907 and based in Georgia, United States, is another major player influencing North America logistics market dynamics and trends. UPS provides package delivery and supply chain management services across more than 200 countries. It generates over USD 100 billion in annual revenue. The company is also recognised for its extensive ground and air delivery networks.

Schenker AG, founded in 1872 and headquartered in Essen, Germany, is a leading logistics provider that operates globally. As part of the Deutsche Bahn Group, the company offers integrated logistics solutions, including land, air, and ocean freight, as well as contract logistics and supply chain management services. 

C.H. Robinson Worldwide Inc. was founded in 1905 and is headquartered in Minnesota, United States. It is one of the largest logistics platforms in the world. The company offers various services, such as freight transportation, logistics, and supply chain solutions. 

Other North America logistics market players include Deutsche Post AG, DSV A/S, CMA CGM Group (CEVA Logistics SA), Kuehne + Nagel International AG, Nippon Express Co., Ltd., XPO, Inc., Expeditors International of Washington, Inc., Kintetsu World Express Inc., GXO Logistics, Inc., A.P. Møller – Mærsk A/S, and TSI Group Inc., among others.

Recent Developments

September 2024

Ollie’s Bargain Outlet invested more than USD 75 million in a new distribution center in Illinois, United States. The outlet is projected to save 1.2 million trucking miles per year for the company and will serve around 150 stores. The location of the facility offers suitable access to highways, improving logistics operations. Moreover, it will create over 200 jobs.

September 2024

The state of Nevada has approved a USD 376,000 grant to improve training on logistics at the College of Southern Nevada. This funding aims to develop specialised training to meet demands of North America logistics market, to strengthen Nevada’s logistics capabilities, and address workforce shortages in the logistics sector.