Logistics Market Outlook 2035: Global Industry to Reach USD 13.1 Trillion by 2035 Amid E-Commerce Boom and Infrastructure Modernization

The global logistics market (https://www.transparencymarketresearch.com/logistics-market.html), valued at USD 9.3 trillion in 2024, is projected to grow steadily and reach USD 13.1 trillion by 2035, expanding at a CAGR of 3.1% from 2025 to 2035. This sustained growth is driven by a surge in e-commerce activities, rising parcel logistics demand, and infrastructure modernization initiatives that enhance multimodal connectivity, automation, and customs efficiency across global transport and fulfillment networks.

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Analysts' Viewpoint

The logistics industry is entering an era of strategic transformation rather than mere volume expansion. As global supply chains face rising decarbonization pressures and digital disruption, the sector is witnessing an integration of technology-led models, multimodal networks, and resilient infrastructure investments.

Incumbent operators like DHL, UPS, and FedEx are broadening their end-to-end service portfolios, emphasizing value-added warehousing and supply chain visibility solutions, while digital-first entrants are challenging traditional pricing and speed structures.

However, regional infrastructure disparities remain a key concern. Well-developed corridors-particularly in Asia and Western Europe-continue to attract third-party logistics (3PL) and contract logistics investments, while underserved markets in Africa, Latin America, and parts of Southeast Asia are emerging as hotspots for project logistics and finished vehicle logistics (FVL).

Operational risks such as port congestion, equipment shortages, and geopolitical disruptions continue to exert pricing pressure, especially in time-sensitive sectors such as cold chain and hazardous materials logistics. In the coming decade, the ability to digitally reconfigure logistics assets will determine competitive advantage-balancing resilience, sustainability, service quality, and cost efficiency.

Market Introduction

The logistics industry forms the backbone of global trade, encompassing transportation, warehousing, freight forwarding, customs brokerage, and last-mile delivery. Its central role lies in converting spatial and temporal gaps between production and consumption into a seamless, cost-effective flow of goods and services.

Key structural factors influencing the market include:

Trade and port flows determining global routing and container demand.
Infrastructure investment at national and regional levels (roads, railways, inland terminals).

Digitalization for improved tracking, asset utilization, and reduced idle times.
Shifting consumption patterns driven by e-commerce and small-parcel shipments.

As consumption moves toward personalized, fast, and flexible delivery models, logistics providers are scaling automation, urban warehousing, and last-mile connectivity to meet rising expectations.

Market Drivers

Expansion of E-Commerce and Parcel-Based Logistics

The explosion of e-commerce is the defining growth driver for the logistics sector. Consumers increasingly prefer small, frequent, and fast deliveries, compelling logistics providers to redesign their networks around dense urban fulfillment and micro-distribution hubs.

Every parcel transaction now involves multiple handling points-necessitating investments in automated sortation systems, real-time parcel tracking, and reverse logistics.

A prominent example includes DHL's expansion into Saudi Arabia's parcel market through investment in AJEX Logistics, and similar capacity additions by regional players across the Middle East and Asia. These initiatives reflect a broader industry shift toward parcel infrastructure scalability in response to cross-border e-commerce growth.

Furthermore, the rise of temperature-controlled packaging, returns management, and customized delivery solutions has increased demand for third-party logistics providers (3PLs) offering tech-enabled, value-added services.

Regulatory Reforms and Infrastructure Upgrades

Modern infrastructure development and regulatory reforms are reshaping global logistics networks. Governments are expanding port capacities, inland container depots, and dedicated freight corridors to enhance multimodal efficiency.

For instance, regional governments are pursuing state-level logistics strategies that integrate port development with inland connectivity and private logistics investments, creating cohesive multimodal ecosystems.

At the international level, UNCTAD's Maritime Review 2024 underscored chokepoint vulnerabilities and port congestion as major factors increasing freight costs. In response, governments are prioritizing digital customs modernization, paperless trade, and data harmonization, enabling carriers to optimize routes for speed and cost efficiency.

These reforms-combined with digitized customs and synchronized documentation systems-are significantly improving the flow of goods across borders, thereby accelerating logistics industry expansion.

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Segment Outlook

By Freight and Storage

The ground freight segment dominated the market in 2024, accounting for 65.1% of total logistics revenue. Its continued leadership stems from its door-to-door connectivity, route flexibility, and cost-effectiveness over short to medium distances.

Ground freight remains essential for middle-mile and last-mile delivery, especially amid maritime disruptions and port congestion. Consequently, logistics providers are investing heavily in road fleet expansion, fuel-efficient vehicles, and digital route optimization tools to enhance reliability and throughput.

Regional Outlook

Asia Pacific: The Leading Logistics Powerhouse

The Asia Pacific region accounted for 36.1% of global revenue in 2024, emerging as the largest logistics market worldwide. The region's dominance is underpinned by:

Extensive manufacturing ecosystems across China, India, Japan, and Southeast Asia.
Rapid urbanization and intra-regional trade integration.
Large-scale public-private infrastructure investments in ports, expressways, and inland freight terminals.
These developments have enhanced throughput capacity, reduced lead times, and positioned Asia Pacific as a hub for regional distribution and nearshoring.

Moreover, customs modernization, real-time tracking, and digital freight platforms are becoming standard practices in key Asian economies, driving efficiency and attracting international investment.

Future growth in the region will hinge on minimizing maritime chokepoint risks and expanding intermodal connectivity to support containerized trade growth through 2035.

Competitive Landscape

The global logistics industry is moderately consolidated, with leading players such as:

Deutsche Post AG (DHL Group)
Kuehne + Nagel Management AG
DSV Road, Inc. (DSV A/S Group)
Schenker AG
FedEx Corporation
United Parcel Service of America, Inc. (UPS)
Maersk Logistics and Services UK Ltd.
C.H. Robinson Worldwide, Inc.
NIPPON EXPRESS HOLDINGS, INC.
CMA CGM Group
GEODIS SA
Expeditors International of Washington, Inc.
XPO, Inc.
Ryder System, Inc.

These companies are focusing on strategic acquisitions, regional expansion, and digital logistics platforms to increase market penetration and optimize operational efficiency.

Notably, DHL eCommerce's investment in AJEX Logistics (2025) and UniUni's launch of UniUni Small Business in Canada (2025) reflect the industry's movement toward localized, flexible delivery models powered by real-time visibility and automation.

Conclusion

The global logistics market is transitioning toward a digitally synchronized, customer-centric ecosystem where automation, sustainability, and connectivity define competitive advantage. With demand propelled by e-commerce acceleration, infrastructure development, and cross-border trade optimization, the sector is expected to sustain its upward trajectory, achieving a total value of USD 13.1 trillion by 2035.

Industry leaders are focusing on AI-driven optimization, decarbonization, and multimodal integration to secure their position in this evolving landscape, ensuring that logistics remains the lifeline of the global economy in the decades ahead.

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