The global contract logistics market size was valued at USD 350.90 Billion in 2024. The industry is expected to grow at a CAGR of 7.50% during the forecast period of 2025-2034 to reach a valuation of USD 723.22 Billion by 2034.
The global contract logistics market is a vital component of the modern supply chain, providing outsourced logistics services that include warehousing, transportation, distribution, and value-added activities. It enables businesses to focus on core competencies while leveraging specialized expertise to improve efficiency and reduce costs. Leading international logistics firm Kuehne+Nagel built its third transport operation center (TOC) for Asia Pacific in India in March 2023. The center was established to offer a centralized method for managing distribution throughout India. Through a tactical planning approach, the TOC provides a thorough understanding of the supply chain network to optimize operations, boost productivity, and eventually lower costs.
The significance of contract logistics market is underscored by the rise of e-commerce, globalisation, and the increasing complexity of supply chains, which demand flexible and scalable logistics solutions. In 2024, global e-commerce sales surpassed USD 6.5 trillion, increasing demand for flexible logistics solutions that can handle high order volumes and complex fulfillment requirements. China, the largest exporter in the world, dominates the e-commerce business, and reached USD 3 trillion in 2023.
Key drivers fueling the contract logistics market growth include rapid urbanization, technological advancements, and rising consumer expectations for faster and transparent deliveries. As per data by the United Nations, 68% of the world population is projected to live in urban areas by 2050. Asia, despite its relatively lower level of urbanization, is home to 54% of the world’s urban population, followed by Europe and Africa with 13% each, increasing pressure on supply chains to deliver goods efficiently within congested cities. This shift has prompted logistics companies to invest heavily in automation technologies like robotic picking systems and automated guided vehicles (AGVs), reducing processing times and errors.
Base Year
Historical Period
Forecast Period
Compound Annual Growth Rate
7.5%
Value in USD Billion
2025-2034
Contract Logistics Market Outlook
*this image is indicative*
| Global Contract Logistics Market Report Summary |
Description |
Value |
|
Base Year |
USD Billion |
2024 |
|
Historical Period |
USD Billion |
2018-2024 |
|
Forecast Period |
USD Billion |
2025-2034 |
|
Market Size 2024 |
USD Billion |
350.90 |
|
Market Size 2034 |
USD Billion |
723.22 |
|
CAGR 2018-2024 |
Percentage |
XX% |
|
CAGR 2025-2034 |
Percentage |
7.50% |
|
CAGR 2025-2034- Market by Region |
Asia Pacific |
9.0% |
|
CAGR 2025-2034 - Market by Country |
China |
11.3% |
|
CAGR 2025-2034 - Market by Country |
India |
10.4% |
|
CAGR 2025-2034 - Market by Service |
Transportation |
8.4% |
|
CAGR 2025-2034 - Market by Industry Vertical |
E-Commerce |
8.5% |
The demand of the contract logistics market is rapidly evolving with the adoption of advanced technologies such as AI, IoT, robotics, and blockchain. Automation in warehouses, through robotic picking and automated guided vehicles (AGVs), reduces errors and boosts throughput. These innovations enable real-time tracking, predictive analytics, and enhanced decision-making, driving faster deliveries and cost savings, which appeal to clients facing growing e-commerce demands and complex global supply chains. In August 2024, Ryder System, Inc., along with Terminal Industries, announced the successful completion of their first pilot program. This program uses Terminal’s computer-vision technology to automatically track and analyze trucks and trailers entering and exiting a warehouse yard. Since January, the pilot at Ryder’s e-commerce fulfillment center in City of Industry, California, has processed over 10,000 truck detections, achieving 99% accuracy in capturing license plates and Department of Transportation (DOT) numbers.
The booming e-commerce sector continues to fuel demand for contract logistics services globally. Companies like Ryder and Bolloré Logistics have expanded their warehousing and last-mile delivery capacities to meet growing online retail needs. Omnichannel strategies require seamless integration of inventory across physical stores and distribution centers, making contract logistics providers essential partners in managing returns, rapid order processing, and personalized customer experiences. For example, Amazon’s continued investment in fulfillment centers globally in 2024 improved its delivery speed and handling of reverse logistics.
Government initiatives worldwide are enhancing logistics infrastructure, indirectly benefiting contract logistics providers, and supporting the growth of the contract logistics market. For example, India’s National Logistics Policy, launched in 2022, targets to reduce logistics costs to 8% of GDP by 2030 and improving multimodal transport connectivity, boosting contract logistics demand. The European Union’s €300 billion NextGenerationEU fund allocates significant resources for green and digital infrastructure upgrades. These policies improve transport efficiency and reduce bottlenecks, enabling contract logistics firms to offer reliable, cost-effective services while supporting sustainability goals, thus encouraging greater outsourcing of logistics functions.
Sustainability is a rising priority in contract logistics market, driven by regulatory pressures and corporate ESG commitments. Companies are investing in electric fleets, energy-efficient warehouses, and carbon-neutral packaging. DHL announced plans in 2024 to achieve zero emissions by 2050, deploying electric delivery vehicles and solar-powered facilities. The adoption of green logistics reduces environmental impact and attracts customers seeking partners with responsible supply chain practices. This trend is also accelerating innovations in route optimization, load consolidation, and sustainable sourcing, all contributing to market expansion through value-added eco-friendly services.
Sector-specific contract logistics solutions are gaining traction in contract logistics industry as industries require customised handling and compliance expertise. The automotive sector, for example, demands highly precise Just-In-Time (JIT) inventory management to minimize production downtime and inventory costs. In 2024, major manufacturers in Germany and Japan reported increased reliance on contract logistics providers to manage intricate global supply chains, especially amid ongoing semiconductor shortages and fluctuating raw material availability. This has driven investments in specialised warehousing, real-time tracking, and quality control tailored to automotive components.
The Expert Market Research’s report titled “Global Contract Logistics Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:
Breakup by Type
Key Insight: Insourcing is growing as companies seek greater control over their supply chains, ensuring quality and flexibility. It enables faster decision-making and customization, especially for sensitive or complex logistics operations. Firms with sufficient resources prefer insourcing to closely align logistics with core business strategies and maintain direct oversight. Automotive manufacturers in Europe have increased in-house warehousing and distribution to align logistics closely with production schedules.
Breakup by Service
Key Insight: Transportation remains the largest segment in contract logistics market, driven by rising global trade and demand for efficient, cost-effective movement of goods. The growth of e-commerce and just-in-time supply chains fuels the need for reliable road, rail, air, and sea freight services, making transportation a cornerstone of contract logistics solutions. The global trade merchandise volume grew 2.6% in 2024 and is further expected to grow 3.3% in 2025, driving demand for efficient and flexible transportation services across road, rail, air, and sea. The e-commerce boom intensified the need for rapid and reliable delivery options, with parcel volumes increasing by over 20% in major markets like the U.S., Europe, and Asia.
Breakup by Industry Vertical
Key Insight: The automotive sector dominates contract logistics market due to complex supply chains and just-in-time production requirements. Efficient parts delivery, assembly support, and aftermarket services drive sustained demand for specialized logistics providers capable of ensuring timely, damage-free shipments that enhance manufacturing efficiency and reduce inventory costs globally. GXO added 50% more warehouse automation equipment overall in 2023. This involved tripling the number of active units of vision technology, a very effective technology that can be used with little financial outlay in a variety of verticals.
Breakup by Region
Key Insight: North America leads the contract logistics market, driven by advanced infrastructure, widespread e-commerce adoption, and strong industrial activity. Significant investments in warehouse automation were reported in 2025, with several firms deploying AI-driven sorting systems and autonomous vehicles to optimize operations. The Port of Los Angeles, one of the busiest in the region, handled 924,245 TEUs, the busiest January in the port's 117-year history and an 8% increase over the same period last year, demonstrating the high throughput and efficiency of North American supply chains.
Rising Outsourcing Trends Drive Growth in Contract Logistics Market
Outsourcing is expanding due to cost savings, scalability, and access to specialized expertise offered by contract logistics providers. Businesses increasingly rely on third-party logistics to handle complex supply chains, focus on core activities, and leverage advanced technologies without heavy upfront investments, making outsourcing a preferred strategy in a competitive market. Leading providers in the contract logistics market are increasing investments in automation and digital platforms, reflecting client demand for technology-enabled logistics. This trend is particularly evident in sectors like e-commerce and pharmaceuticals, where rapid delivery and precision are critical. As a result, outsourcing has become a strategic imperative to stay competitive and responsive in a complex global market.
Warehouse Expansion Accelerated by E-commerce Growth and Technological Advancements
As per the contract logistics market analysis, warehousing is rapidly expanding due to increased inventory storage needs from e-commerce growth and omnichannel retailing. Advanced technologies like automation, robotics, and real-time inventory tracking are enhancing warehouse efficiency, enabling faster order fulfillment and reducing operational costs, which attracts significant investment and market expansion. In April 2025, it was reported that Amazon is considering a USD 15 billion warehouse expansion plan for about 80 new logistics facilities in US cities and rural areas. Currently, it has more than 600 US fulfillment centers, delivery stations and same-day facilities.
Aftermarket logistics is growing swiftly as companies prioritize customer satisfaction through efficient spare parts management, repairs, and returns processing. The automotive, electronics, and industrial sectors increasingly outsource these services to specialized providers to improve service levels, reduce downtime, and optimise reverse logistics processes.
E-commerce Fuels Growth and Innovation in Contract Logistics Worldwide
E-commerce is rapidly expanding contract logistics with soaring online retail sales and consumer expectations for fast, flexible delivery. Providers are investing in scalable fulfillment centers, last-mile delivery solutions, and return management, fueling growth driven by evolving consumer habits and technological advancements in digital order processing. Countries like India and Brazil are witnessing a surge in micro-fulfillment centers close to dense population hubs, reducing delivery times to under 24 hours.
As per the contract logistics market report, pharma and healthcare logistics demand strict regulatory compliance, temperature-controlled storage, and secure distribution. The rise of personalized medicine and vaccine distribution needs, accelerated by the pandemic, have propelled investments in specialized contract logistics services ensuring product integrity and timely delivery in this critical sector.
Rapid Growth and Sustainability Drive Contract Logistics Markets in Asia Pacific and Europe
Asia Pacific is the fastest-growing contract logistics market due to rapid urbanization, expanding manufacturing hubs, and rising e-commerce penetration. Countries like China, India, and Southeast Asia are investing in modern warehouses and transport infrastructure, attracting global logistics providers to support regional supply chains and cross-border trade. India’s logistics sector also received a boost from the 2023 National Logistics Policy, aiming to cut costs and improve efficiency through digitisation and infrastructure enhancement. India rose 6 places to 38th in the World Bank's Logistics Performance Index (2023).
|
CAGR 2025-2034 - Market by |
Country |
| China |
11.3% |
| India |
10.4% |
| Japan |
9.9% |
| Canada |
9.5% |
| USA |
8.2% |
| Australia |
8.1% |
| UK |
XX% |
| Germany |
XX% |
| France |
XX% |
| Italy |
XX% |
| Saudi Arabia |
XX% |
| Brazil |
XX% |
| Mexico |
XX% |
Europe’s contract logistics market is growing swiftly, propelled by stringent environmental regulations and digital transformation initiatives. The European Green Deal promotes sustainable logistics practices, while advanced technology adoption and demand for omnichannel fulfillment accelerate market expansion across major economies like Germany, France, and the UK. The European Union’s Fit for 55 packages, introduced in 2023, sets legally binding targets to reduce greenhouse gas emissions by at least 55% by 2030, compelling logistics companies to adopt greener operations.
Key players in the contract logistics market are heavily investing in digital technologies such as AI, automation, and IoT to enhance supply chain visibility, operational efficiency, and accuracy. They are developing integrated platforms that offer real-time tracking, predictive analytics, and automated warehouse management. These innovations enable faster, more reliable deliveries and reduce operational costs, meeting the increasing demands of e-commerce and complex global supply chains. Additionally, major companies are focusing on sustainability by adopting green logistics practices. This includes deploying electric and alternative fuel vehicles, optimizing routes to reduce emissions, and implementing energy-efficient warehouse solutions. They are also expanding their global footprints through strategic partnerships and acquisitions to provide comprehensive, end-to-end logistics solutions across diverse industries and geographies.
Headquartered in Stockholm, Sweden, Nefab Group specializes in industrial packaging solutions and contract logistics services. The company offers customized packaging, supply chain optimization, and logistics support to sectors including automotive, electronics, and manufacturing. Nefab focuses on sustainable packaging innovations and efficient transport solutions, serving clients worldwide with a strong emphasis on reducing environmental impact.
DHL Supply Chain, part of Deutsche Post DHL Group and based in Bonn, Germany, is a global leader in contract logistics. It provides integrated warehousing, transportation, and value-added services across various industries such as automotive, healthcare, retail, and technology. DHL emphasizes innovation, sustainability, and digital transformation to optimize supply chains and enhance customer experience worldwide.
Based in Greenwich, Connecticut, USA, GXO Logistics is a leading contract logistics company specializing in warehousing, fulfillment, and transportation services. Spun off from XPO Logistics in 2021, GXO focuses on technology-driven solutions including automation and robotics to improve supply chain efficiency for sectors like e-commerce, retail, and industrial manufacturing globally.
Founded in Switzerland and headquartered in Schindellegi, Kuehne + Nagel is one of the world’s largest logistics providers. It offers contract logistics, sea and air freight forwarding, and integrated supply chain solutions. The company serves industries such as pharmaceuticals, automotive, and consumer goods, emphasizing digital innovation and sustainability in its global operations.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the contract logistics market are LOGISTEED Group, CEVA Logistics, GEODIS, Wagner Logistics, United Parcel Service of America, Inc., DB SCHENKER, NIPPON EXPRESS HOLDINGS, and Broekman Logistics, among others.
Download a free sample of the Global Contract Logistics Market Trends 2025 report to explore comprehensive insights, competitive analysis, and growth forecasts. Contact us for a personalized consultation to help you capitalize on emerging opportunities in the contract logistics sector. Stay ahead with Expert Market Research’s authoritative intelligence.
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2024, the market reached an approximate value of USD 350.90 Billion.
The market is projected to grow at a CAGR of 7.50% between 2025 and 2034.
Key strategies include technology integration, expanding service portfolios, strategic partnerships, geographic expansion, focusing on sustainability, enhancing supply chain visibility, and investing in automation to improve efficiency and customer satisfaction.
North America leads the contract logistics market, driven by advanced infrastructure, widespread e-commerce adoption, and strong industrial activity.
The major players in the market are Nefab Group, DHL Supply Chain, GXO Logistics, Inc., Kuehne + Nagel, LOGISTEED Group, CEVA Logistics, GEODIS, Wagner Logistics, United Parcel Service of America, Inc., DB SCHENKER, NIPPON EXPRESS HOLDINGS, and Broekman Logistics, among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2024 |
| Historical Period | 2018-2024 |
| Forecast Period | 2025-2034 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Type |
|
| Breakup by Service |
|
| Breakup by Industry Vertical |
|
| Breakup by Region |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
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