Logistics Market Size, Share, Growth and Forecast | 2025-2034

Logistics Market Size

The global logistics market reached a value of approximately USD 11.26 trillion in 2024. Logistics is the backbone of global trade and commerce, encompassing the transportation, storage, and distribution of goods. Its vast scale reflects the growing demand for efficient movement of products across borders and supply chains. The rapid development of e-commerce, cross-border trade, urbanisation, and industrialisation has significantly contributed to the sector's size. Moreover, the continued expansion of retail, manufacturing, and global sourcing activities has created a strong demand for robust, tech-enabled logistics networks that offer speed, flexibility, and visibility.

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Logistics Market Growth

The logistics market is projected to witness a compound annual growth rate (CAGR) of 6.30% between 2025 and 2034, reaching nearly USD 20.74 trillion by the end of the forecast period. Several key factors are fuelling this growth:

E-commerce Expansion: With the global surge in online shopping, companies like Amazon and Alibaba are setting new standards in logistics efficiency, reshaping last-mile delivery, and creating massive fulfilment networks.

Technological Advancements: Technologies like AI, blockchain, and IoT are transforming supply chain management. Real-time tracking, predictive analytics, autonomous vehicles, and robotics are improving speed, accuracy, and cost-efficiency.

Globalisation: International trade continues to grow, with increased movement of goods between regions. Logistics players are expanding global routes and partnerships to serve the needs of interconnected economies.

Sustainability Initiatives: Companies such as DHL are leading the way in reducing carbon emissions by investing in electric vehicles, green warehousing, and fuel-efficient transport methods.

Infrastructure Development: Government investments in ports, roads, railways, and airports are enhancing logistics capabilities in both developed and emerging markets, further supporting market growth.

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Logistics Market Segments

Breakup by Model Type

1 PL (First-Party Logistics): Involves companies managing their own logistics using internal resources. While common among small businesses, this model offers less scalability.

2 PL (Second-Party Logistics): These are asset-based carriers like trucking and shipping companies hired to move goods. They provide essential transportation services but limited integration.

3 PL (Third-Party Logistics): The most widely adopted model today, 3PL providers offer integrated services such as warehousing, inventory management, and transportation. They enable companies to outsource logistics for greater flexibility.

Others: Includes 4PL and 5PL models where logistics firms manage the entire supply chain, including IT systems and data integration.

Breakup by Transportation Mode

Roadways: The most dominant mode, especially for last-mile and regional deliveries. Road transport offers flexibility and coverage across urban and rural areas.

Seaways: Used primarily for international shipping of large-volume goods. Seaports and maritime networks are crucial for global trade logistics.

Railways: Suitable for bulk cargo and long-distance domestic transport. Railways are cost-effective and environmentally friendly.

Airways: Preferred for high-value, time-sensitive shipments such as pharmaceuticals and electronics. Although expensive, air freight offers unmatched speed.

Breakup by End User

Manufacturing: A major logistics consumer, manufacturing relies on the timely delivery of raw materials and distribution of finished products to global markets.

Consumer Goods and Retail: E-commerce and omnichannel retailing have led to rising demand for fulfilment, warehousing, and reverse logistics services.

Food and Beverages: This sector requires cold chain logistics and strict compliance to preserve perishables across the supply chain.

IT Hardware and Telecom: High-value items and fast market cycles drive the need for secure, time-bound logistics solutions.

Healthcare: Sensitive to delays, the healthcare sector depends on temperature-controlled logistics, especially for vaccines and medical devices.

Chemicals: Requires specialised logistics for hazardous and volatile substances, with emphasis on safety and regulatory compliance.

Construction: Transporting heavy equipment and materials to sites requires durable and scheduled logistics solutions.

Automotive: Involves just-in-time delivery models, where efficiency and speed are vital to supply chain continuity.

Oil and Gas: Complex logistics operations are needed to move heavy machinery, rigs, and petroleum products.

Others: Includes aerospace, defence, textiles, and electronics industries, all requiring tailored logistics support.

Breakup by Region

North America

United States of America: A leading logistics market with advanced infrastructure and innovation in automation, warehouse robotics, and delivery systems.

Canada: Strong trade relations and cross-border logistics with the US, supported by investments in transportation infrastructure.

Europe

United Kingdom: E-commerce growth and investment in green logistics are transforming the UK logistics landscape.

Germany: Europe's logistics hub, known for its road and rail connectivity, tech adoption, and strong industrial base.

France and Italy: These countries are investing in smart logistics solutions to support retail and export-driven sectors.

Others: Europe is focusing on multimodal logistics, energy-efficient vehicles, and sustainable warehousing.

Asia Pacific

China: The largest e-commerce and manufacturing hub, China's logistics sector benefits from massive infrastructure, government support, and tech innovation.

Japan: Japan's logistics industry is known for efficiency, automation, and smart warehousing systems.

India: Logistics is growing rapidly due to digitalisation, GST implementation, and government schemes such as Bharatmala.

ASEAN: Countries like Vietnam, Indonesia, and Thailand are becoming new manufacturing and logistics hotspots.

Australia: Logistics growth is supported by retail, agriculture, and mining industries.

Others: Asia Pacific as a whole is poised for exponential growth due to increasing trade, digital commerce, and foreign investments.

Latin America

Brazil: The logistics sector is expanding due to rising urbanisation, e-commerce, and efforts to modernise transportation systems.

Argentina and Mexico: Both countries are experiencing a boom in third-party logistics, cross-border trade, and warehouse automation.

Others: Broader improvements in infrastructure are enabling smoother logistics operations across the region.

Middle East and Africa

Saudi Arabia and United Arab Emirates: These nations are logistics hubs in the region, investing heavily in ports, free zones, and smart logistics parks.

Nigeria and South Africa: Growth is driven by industrial expansion, urbanisation, and increasing trade.

Others: The region holds long-term growth potential as supply chain networks improve and digital platforms expand.

Logistics Market Forecast

The logistics market is forecasted to grow at a CAGR of 6.30% from 2025 to 2034, reaching an estimated USD 20.74 trillion by 2034. This promising growth outlook is driven by increasing demand for seamless, integrated, and technology-backed logistics solutions across industries and geographies. Continued infrastructure development, digital transformation, and global trade expansion will play key roles in shaping the logistics ecosystem of the future. Companies focusing on real-time tracking, data analytics, last-mile optimisation, and sustainability are set to lead the way in the evolving market landscape.

Logistics Market Key Players

FedEx Corporation
United Parcel Service, Inc.
Schenker AG
C.H. Robinson Worldwide Inc.
Deutsche Post AG
Evri Limited
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
TSI Group Inc.
Others

These global leaders are shaping the future of logistics through innovative technologies, strategic partnerships, and expanded service portfolios. Their focus on speed, scalability, and sustainability continues to meet the evolving demands of global supply chains.

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