Retail Logistics Market to Record Sales of USD 780 Billion by 2032 - Persistence Market Research

Retail logistics has evolved into a cornerstone of modern commerce, playing a pivotal role in shaping customer experience, streamlining supply chains, and creating competitive differentiation. With the explosive growth of e-commerce, rapid urbanization, and rising consumer expectations for instant gratification, the demand for agile, efficient, and technology-enabled logistics solutions is reaching unprecedented heights. As of 2025, the global retail logistics market size stands at US$ 348 billion and is expected to more than double, reaching US$ 780 billion by 2032, expanding at a CAGR of 12.2%.

This growth is primarily attributed to the expanding digital retail ecosystem, the adoption of automation in logistics infrastructure, and a growing emphasis on sustainable supply chains. Among the various segments, conventional retail logistics is expected to dominate, holding about 62% share in 2025. Geographically, Asia Pacific leads the market with a projected share of 32% due to rapid e-commerce penetration, smartphone usage, and large-scale infrastructure initiatives.

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response): https://www.persistencemarketresearch.com/samples/35193

Key Highlights from the Report:

➤ The global retail logistics market is projected to grow at a CAGR of 12.2% from 2025 to 2032.

➤ Conventional retail logistics is expected to dominate the market with a 62% share in 2025.

➤ Road transport remains the primary mode, projected to hold a 55% share in 2025.

➤ Asia Pacific is poised to dominate due to robust infrastructure and e-commerce expansion.

➤ Strategic partnerships and facility expansions are key strategies among leading players.

➤ Sustainability-focused innovations such as EV fleets and carbon-neutral warehouses are gaining momentum.

Market Segmentation

By Type

The market is primarily divided into conventional and e-commerce retail logistics. Conventional logistics, which supports hypermarkets, supermarkets, and grocery chains, is expected to retain its lead due to rising demand for perishable and ready-to-eat items. For instance, Reliance Retail has significantly scaled its cold chain logistics to meet fresh food demands.

E-commerce retail logistics, however, is the fastest-growing segment. Its rapid ascent is driven by consumer expectations for next-day or same-day delivery, increased personalization in delivery, and reliance on smart automation. Players are investing in micro-fulfillment centers and AI-powered inventory systems to enhance efficiency and customer satisfaction.

By Mode of Transport

Road transport dominates the market and is expected to account for 55% of the total share by 2025. Its flexibility, cost-effectiveness, and ability to handle short-distance urban and rural deliveries make it indispensable for last-mile connectivity. Walmart, for example, relies on its fleet of trucks to replenish urban outlets daily.

Meanwhile, air and rail transport cater to long-haul and high-value goods, although these modes require significant infrastructure and bulk volume. Road transport benefits from government-supported infrastructure projects, such as the U.S. Infrastructure Law, which have reduced transit times and enhanced regional connectivity.

Regional Insights

Asia Pacific

Asia Pacific is forecast to lead the global market, capturing a 32% share by 2025. Countries such as China, India, and Indonesia are seeing rapid digital transformation, driven by smartphone usage and expanding middle-class income. Logistics services are adapting through hyperlocal models, drone delivery pilots, and flexible warehousing strategies. Initiatives like India's Gati Shakti and China's Belt and Road Initiative are accelerating logistics efficiency.

North America

North America remains a significant contributor to market growth, supported by top-tier logistics infrastructure, high internet penetration, and strategic technological investments. Logistics giants like FedEx and C.H. Robinson are leveraging AI and machine learning to optimize delivery networks. Additionally, consolidation through acquisitions is reshaping the competitive landscape, as seen in DHL's acquisition of Inmar Supply Chain Solutions.

Market Dynamics

Market Drivers

One of the major drivers fueling market expansion is the adoption of automation technologies across the logistics value chain. Automated storage and retrieval systems (ASRS), autonomous mobile robots (AMRs), and AI-powered decision-making tools are reducing fulfillment time and human error while enhancing operational scalability. For example, Walmart's adoption of automated micro-fulfillment centers has reduced grocery order fulfillment time by over 70%.

Market Restraints

Despite significant advancements, last-mile delivery continues to pose challenges. It constitutes more than 50% of overall logistics costs due to traffic congestion, failed delivery attempts, and the increasing demand for ultra-fast delivery options. Moreover, the willingness of consumers to pay for express services remains low, putting pressure on retail margins and operational efficiency.

Market Opportunities

The rising demand for sustainable logistics offers a key opportunity. Retailers and logistics providers are increasingly integrating electric vehicles, green warehousing, and smart route planning to reduce carbon footprints. Government incentives such as the NEVI program and the Inflation Reduction Act further encourage the shift to sustainable models, offering both environmental and financial benefits for early adopters.

Frequently Asked Questions

➤ How Big is the Retail Logistics Market in 2025?
➤ What is the Projected Growth Rate of the Retail Logistics Market?
➤ Who are the Key Players in the Global Retail Logistics Market?
➤ What is the Market Forecast for Retail Logistics Through 2032?
➤ Which Region is Estimated to Dominate the Retail Logistics Industry through the Forecast Period?

Company Insights

✦ FedEx Corporation
✦ DHL International GmbH
✦ United Parcel Service (UPS)
✦ C.H. Robinson Worldwide, Inc.
✦ XPO Logistics
✦ Nippon Express
✦ A.P. Moller-Maersk
✦ APL Logistics Ltd
✦ DSV

Conclusion

The retail logistics market is entering a phase of rapid transformation, underpinned by technology adoption, e-commerce proliferation, and the pressing need for sustainability. With Asia Pacific emerging as a leader, and conventional logistics continuing to dominate, the future of the industry hinges on how well players adapt to consumer demands and operational challenges. By aligning with global sustainability goals, embracing digital innovation, and streamlining last-mile delivery networks, retail logistics firms are poised to unlock immense value over the next decade.

Contact Us:

Persistence Market Research
G04 Golden Mile House, Clayponds Lane
Brentford, London, TW8 0GU UK
USA Phone: +1 646-878-6329
UK Phone: +44 203-837-5656
Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

This release was published on openPR.