Contract Logistics Market Size & Growth Report to 2030

The global contract logistics market size was accounted at around USD 325 billion in 2024 and anticipated to register a robust CAGR of around 7.5% during the forecast period from 2025 to 2030. The market is experiencing steady growth, driven by the increasing trend among businesses to outsource their supply chain operations to specialized third-party providers. Companies are focusing on core competencies and leveraging logistics partners to enhance operational efficiency, reduce costs, and improve customer service. Contract logistics providers offer a broad range of services, including warehousing, transportation, distribution, and inventory management, tailored to meet specific industry needs. The rise of e-commerce, globalization of supply chains, and advances in digital technologies like automation and real-time tracking are also significantly contributing to market expansion.

Regionally, Europe and Asia-Pacific dominate the contract logistics market, with strong infrastructure, high demand for value-added services, and growing industrial sectors. North America remains a mature market, characterized by technological adoption and the presence of major logistics firms. Emerging economies in Latin America and Africa are witnessing gradual growth due to improving logistics infrastructure and rising international trade. Additionally, the healthcare, retail, and automotive industries are some of the key sectors fueling demand for contract logistics services, as they require timely and secure handling of goods.

Market Snapshot:

Market Drivers:

The global contract logistics market is experiencing significant growth, driven by several key factors. One major driver is the rapid expansion of the e-commerce sector, which has increased demand for efficient and flexible supply chain solutions. Contract logistics providers are responding by offering services such as real-time tracking, automated warehousing, and last-mile delivery to meet the expectations of online consumers. Additionally, the integration of advanced technologies like artificial intelligence (AI) and the Internet of Things (IoT) is enhancing operational efficiency. AI, for example, is being used for demand forecasting, route optimization, and inventory management, leading to cost savings and improved service quality. ​

Another significant factor contributing to market growth is the increasing focus on sustainability within the logistics industry. Companies are adopting green logistics practices, such as using electric vehicles for distribution and implementing energy-efficient warehouse operations, to reduce their environmental impact. For instance, in May 2023, Merck Lifescience partnered with LP Logiscience to introduce electric vehicles for product distribution in Mumbai, reflecting a commitment to environmentally responsible logistics solutions. Furthermore, infrastructure developments, like India’s Western Dedicated Freight Corridor, are enhancing connectivity and efficiency in freight movement, thereby supporting the growth of contract logistics services in emerging markets.

Market Trends:

Technological Integration and Automation

One of the most transformative trends in the contract logistics market is the increasing adoption of advanced technologies such as Artificial Intelligence (AI), Internet of Things (IoT), blockchain, robotic automation, and cloud computing. These technologies are helping logistics providers streamline operations, improve service levels, and reduce operational costs. For example, AI is being used to enhance demand forecasting, route optimization, and decision-making in real-time. IoT devices are embedded in vehicles and warehouses to monitor goods in transit, temperature-sensitive items, and vehicle performance. This real-time visibility helps in minimizing delays and ensures better customer satisfaction.

Additionally, blockchain is improving data transparency and traceability across the supply chain, which is especially critical in industries like pharmaceuticals and food, where product integrity and traceability are vital. Robotics and warehouse automation are becoming standard practices in large distribution centers to speed up order fulfillment and reduce labor dependency. These technologies are not only improving accuracy but also increasing throughput and agility in logistics operations.

Sustainability and Green Logistics

Sustainability has become a core focus area in the logistics industry due to rising environmental concerns and stricter regulations. Contract logistics providers are increasingly adopting green logistics practices to minimize their environmental footprint. This includes transitioning from fossil-fuel-powered delivery vehicles to electric vehicles (EVs), adopting renewable energy sources for warehouse operations, using recyclable packaging, and implementing energy-efficient lighting and automation in storage facilities.

For instance, in 2023, Merck Lifescience partnered with LP Logiscience to deploy electric vehicles for product distribution in Mumbai—a clear example of the industry’s growing commitment to green initiatives. Besides environmental benefits, these sustainable practices also resonate with eco-conscious consumers and clients, giving logistics providers a competitive edge. Additionally, optimized routing and load planning using technology also contribute to reduced fuel consumption and carbon emissions.

Growth of E-commerce and Omnichannel Retailing

The explosion of e-commerce is fundamentally reshaping the logistics landscape. Consumers now expect faster deliveries, real-time tracking, easy returns, and personalized services—all of which place pressure on logistics providers to be more agile and responsive. Contract logistics companies are now supporting omnichannel retail strategies, which blend online and offline shopping experiences. This includes managing inventories across multiple platforms, fulfilling online orders from physical stores, and enabling seamless returns and exchanges.

To keep up with this trend, logistics providers are developing flexible warehousing solutions, such as on-demand storage and micro-fulfillment centers, located closer to customers to speed up last-mile delivery. The ability to integrate technology with order management systems, customer relationship platforms, and transport networks is crucial to delivering a unified shopping experience across channels. E-commerce giants and small retailers alike are relying on third-party logistics (3PL) partners to manage these complex logistics operations.

Nearshoring and Reshoring Strategies

Amid global disruptions such as the COVID-19 pandemic, geopolitical tensions, and trade barriers, businesses are reevaluating their global supply chain strategies. Many are shifting from a just-in-time (JIT) model to more resilient supply chains, which includes nearshoring (moving operations closer to key markets) and reshoring (bringing manufacturing back to the home country). This shift aims to mitigate risks associated with long-distance supply chains, such as shipping delays, customs issues, and overdependence on single-source suppliers.

Contract logistics providers are playing a vital role in this transformation by offering localized warehousing, transportation, and inventory services. By setting up regional distribution hubs and aligning with domestic suppliers, they help companies shorten lead times, lower transportation costs, and improve responsiveness. This trend is especially prominent in industries like electronics, automotive, and pharmaceuticals, where supply chain reliability is critical.

Market Opportunities:

The contract logistics market is poised for expansion, with new opportunities emerging through strategic acquisitions and partnerships among key players. A major example is Poland’s InPost acquiring UK parcel firm Yodel in April 2025, a move aimed at strengthening its last-mile delivery capabilities and expanding its reach in the UK market. This acquisition demonstrates how logistics firms are actively diversifying and scaling their operations to cater to growing demand from e-commerce and retail sectors. Similarly, DHL’s recent agreement to acquire U.S.-based pharma logistics provider CryoPDP underscores the growing need for specialized logistics in temperature-sensitive and healthcare-related supply chains. These moves signal how contract logistics providers are leveraging mergers and acquisitions to tap into high-growth verticals and build competitive advantage.

Additionally, innovation-driven opportunities are being unlocked through automation and digital transformation. For instance, DSV has cleared regulatory hurdles for its $16.2 billion acquisition of DB Schenker, one of the largest logistics deals in recent history. This deal not only enhances DSV’s global footprint but also highlights the growing demand for integrated logistics solutions that offer end-to-end visibility and control. As companies scale to meet customer expectations for speed and reliability, investments in AI-powered warehousing, smart inventory systems, and real-time tracking technologies are becoming central to future growth. These industry shifts are enabling contract logistics firms to evolve from traditional transport service providers to strategic supply chain partners.

Market Segment Insights:

By Service

The global contract logistics market is bifurcated into type, transportation mode, service, industry verticals, and geography. On the basis of service, the transportation segment dominated the market in 2024 with the largest revenue share of over 1/3 of the global market. This is primarily due to the increasing demand for efficient and cost-effective movement of goods across global supply chains. The transportation segment includes various modes such as road, rail, air, and sea, which are essential for businesses looking to expand their reach across multiple regions. With globalization and e-commerce continuing to grow, the demand for transportation services to move products to different parts of the world has surged. Companies are increasingly investing in advanced fleet management systems, route optimization technologies, and sustainable logistics solutions, such as electric and autonomous vehicles, to reduce transportation costs and improve efficiency.

Moreover, as customer expectations evolve, transportation plays a pivotal role in providing faster delivery times, which is especially important in the e-commerce sector. Companies are under pressure to deliver products in a shorter time frame, often with same-day or next-day delivery options. This trend has led to the expansion of last-mile delivery services, where transportation companies are focusing on urban delivery models to reduce transit times and costs. As a result, transportation remains the backbone of contract logistics, enabling the seamless flow of goods and services across supply chains, while also offering opportunities for innovation through technologies that improve operational efficiency and sustainability.

By Industry Verticals:

On the basis of industry verticals, the global contract logistics market is further segmented into retail & e-commerce, automotive, pharma & healthcare, industrial & manufacturing, aerospace & defense, high-tech & electronics, and others. The Retail & E-Commerce segment is the dominant sector in the global market, driven by the surge in online shopping and changing consumer behaviors. E-commerce companies are increasingly demanding fast, flexible, and efficient logistics solutions to ensure that goods reach consumers quickly and accurately. This shift towards digital retail has created a need for highly responsive logistics operations, including advanced warehouse management systems, automated fulfillment centers, and last-mile delivery solutions. As customers expect faster shipping, sometimes within a day, logistics providers are leveraging innovations like artificial intelligence (AI) for route optimization and robotics in warehouses to streamline operations, reduce costs, and meet these expectations.

Moreover, the growth of omnichannel retailing, where customers shop both online and in-store, has further amplified the demand for contract logistics services. Retailers need to manage a seamless flow of inventory between online and physical stores, ensuring product availability across multiple sales channels. This has led to an increased reliance on third-party logistics (3PL) providers who can efficiently manage both inbound and outbound logistics. As a result, Retail & E-Commerce remains the largest and most dynamic segment in the contract logistics market, with companies continuing to invest in innovative supply chain solutions to keep up with the fast-paced demand for speed and efficiency in the delivery process.

The contract logistics market research report presents the analysis of each segment from 2020 to 2030 considering 2024 as the base year for the research. The compounded annual growth rate (CAGR) for each respective segment is calculated for the forecast period from 2025 to 2030.

Historical & Forecast Period

• 2020-23 – Historical Year
• 2024 – Base Year
• 2025-2030 – Forecast Period

Market Segmentation:

By Type:

• Outsourcing
• Insourcing

By Transportation Mode:

• Roadways
• Railways
• Airways
• Waterways

By Service:

• Transportation
• Warehousing
• Distribution
• Aftermarket Logistics
• Others

By Industry Verticals:

• Retail & E-Commerce
• Automotive
• Pharma & Healthcare
• Industrial & Manufacturing
• Aerospace & Defense
• High-Tech & Electronics
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Regional Analysis:

Geographically, the Asia-Pacific region dominated the global contract logistics market in 2024 with the largest revenue share of over 1/3 market share, driven by the rapid growth of e-commerce, manufacturing, and industrial activities in countries like China, India, Japan, and South Korea. The region has become a global manufacturing hub, and as a result, there is an increasing need for efficient logistics solutions to support the movement of goods across expansive supply chains. Additionally, the rise of middle-class consumers in countries like India and China has further fueled demand for logistics services, as retailers and e-commerce companies expand their reach to meet growing consumer expectations. Infrastructure improvements, including the development of dedicated freight corridors, ports, and warehousing facilities, are also helping logistics providers better serve the region’s evolving needs.

Furthermore, Asia-Pacific’s dominance is supported by its increasing investments in technological advancements such as automation, artificial intelligence (AI), and robotics within the logistics industry. Countries in the region are at the forefront of adopting these technologies to improve operational efficiency and handle complex supply chains more effectively. The rise of digital platforms and the growing demand for faster and more cost-efficient delivery options are particularly contributing to this trend. With the booming e-commerce sector and manufacturing base, Asia-Pacific is expected to remain the leading region in the contract logistics market, accounting for a substantial share of the global logistics market value in the coming years.

Competitive Landscape:

Some of the leading market players operating in the global contract logistics market are DHL Supply Chain, Kuehne + Nagel International AG, DB Schenker (Deutsche Bahn AG), GXO Logistics, Inc., and United Parcel Service, Inc. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• DHL Supply Chain
• Kuehne + Nagel International AG
• DB Schenker (Deutsche Bahn AG)
• GXO Logistics, Inc.
• United Parcel Service, Inc.
• FedEx Logistics
• DSV A/S
• Nippon Express Co., Ltd.
• Ryder Supply Chain Solutions
• GEODIS SA

Key Questions Answered by Contract Logistics Market Report

• Global contract logistics market forecasts from 2025-2030
• Regional market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the regions as mentioned above
• Contract logistics submarket forecasts from 2025-2030 covering the market by type, transportation mode, service, industry verticals, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis about the market
• Analysis of the key factors driving and restraining the growth of the global, regional, and country-level contract logistics markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market