Contract Logistics Market is expected to reach US$ 525.29 Billion by 2031

Surging Demand in the e-Commerce Sector Fuels Contract Logistics Market

According to our latest study, “Contract Logistics Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Type, Service Type, Industry Vertical, and Geography," the market was valued at US$ 327.09 billion in 2024 and is expected to reach US$ 525.29 billion by 2031; it is estimated to record a CAGR of 7.2% during 2025–2031. The report includes growth prospects owing to current contract logistics market trends and their foreseeable impact during the forecast period.

E-commerce platforms often deal with high order volumes and diverse product ranges, requiring flexible and scalable logistics solutions. Contract logistics providers offer these capabilities, enabling businesses to meet customer expectations without investing heavily in infrastructure. Their ability to streamline operations, optimize routes, and reduce delivery times makes them increasingly valuable partners in the e-commerce ecosystem. According to the International Trade Administration (ITA), Global B2B e-commerce sales have been consistently increasing each year over the past decade, with the worldwide B2B e-commerce market expected to reach a value of US$36 trillion by 2026. The largest contributors to this sales volume are sectors such as advanced manufacturing, energy, healthcare, and professional business services.

Contract Logistics Market Analysis — by Geography

Source: The Insight Partners Analysis

Additionally, the rise of same-day and next-day delivery expectations has created more pressure on retailers to improve supply chain performance. Contract logistics companies are leveraging automation, advanced tracking technologies, and data analytics to enhance operational efficiency and meet these demands. This has increased collaboration between online retailers and logistics firms, further driving market growth. In 2023, in the EU, 75% of internet users aged 16–74 bought goods or services online. The share of e-shoppers increased from 53% in 2010 to 75% in 2023, an increase of 22?percentage points?(pp).

Global e-commerce giants, as well as smaller sellers, are now relying on third-party logistics providers to manage warehousing and distribution. This shift allows businesses to focus on core functions like product development and marketing, while ensuring smooth and timely deliveries. In summary, the booming e-commerce sector is reshaping the logistics landscape. As online retail expands, the need for sophisticated, reliable, and responsive contract logistics solutions will remain a key driver of market growth. 

Deutsche Post AG, FedEx Corp, GXO Logistics Inc., United Parcel Service Inc., Nippon Express Co Ltd., GEODIS SA, Ryder System Inc., CMA CGM SA, DSV AS, and Kuehne + Nagel International AG are among the key players profiled in the contract logistics market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the contract logistics market forecast by type, service type, and industry vertical. Based on type, the global contract logistics market is segmented into outsourcing and insourcing. Outsourcing in contract logistics refers to companies delegating their supply chain and logistics operations—such as warehousing, transportation, inventory management, and order fulfillment—to third-party logistics (3PL) providers. This model allows businesses to focus on core competencies while leveraging specialized logistics expertise, advanced technologies, and scalable infrastructure. For instance, in 2024, Unilever outsourced parts of its European distribution network to a major logistics provider to enhance service efficiency and reduce emissions. Similarly, Walmart has expanded its use of outsourced fulfillment centers to handle e-commerce growth and last-mile delivery pressures. Outsourcing is also prevalent in industries such as automotive, where Just-In-Time delivery is critical. Several fashion and retail brands are outsourcing to meet fast-changing consumer demands, particularly in omnichannel environments. Recent shifts toward regional supply chains and sustainability goals have further accelerated the reliance on 3PLs, positioning outsourcing as a strategic tool for competitive and resilient logistics operations. This segment held the largest contract logistics market share in 2024.

The scope of the contract logistics market report focuses on North America (the US, Canada, and Mexico), Europe (Poland, Russia, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). Asia Pacific dominated the market in 2024, followed by Europe and North America.

The contract logistics market in Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of Asia Pacific. In terms of revenue, China held the largest contract logistics market share in Asia Pacific. China’s contract logistics sector is rapidly expanding, driven by its booming e-commerce market, increasing consumer demand, and growing manufacturing output. As businesses seek efficient supply chain solutions, contract logistics providers offer integrated services such as warehousing, transportation, and inventory management. Government investments in infrastructure and technology, such as smart logistics and automation, further enhance the sector’s capabilities. For example, in December 2024, the Ministry of Transport reported a fixed-asset investment of ~3.8 trillion yuan (US$520,600 million) in transportation infrastructure, including railways, highways, and airports, to improve connectivity and drive economic growth. Regional development efforts, such as Shanxi province’s May 2025 action plan for market infrastructure, emphasize building efficient networks to support high-quality growth. The rise of cross-border trade and the Belt and Road Initiative also boosts Demand for advanced logistics services.

Europe’s contract logistics market is a mature yet dynamically evolving sector, driven by digitalization, globalization, and changing consumer demands. The region is home to several key logistics hubs—such as Germany, the Netherlands, Belgium, and France—that serve as strategic gateways for trade across the continent. Europe’s strong manufacturing base, especially in automotive, pharmaceuticals, and consumer goods, has created consistent Demand for contract logistics services, including warehousing, transportation, and value-added services. European governments, under NATO and EU coordination, approved €75?billion (US$81,750 million) infrastructure investments aimed at upgrading ports, rail, and road links for military mobility, which also serves to enhance civilian logistics capabilities across key corridors in Poland, the Baltic, and the Black Sea region. Third-party logistics (3PL) providers increasingly adopt automation, AI, and IoT to enhance operational efficiency and reduce costs. Moreover, e-commerce growth has significantly altered the landscape, compelling providers to offer flexible, scalable, and last-mile delivery solutions. Sustainability is another critical focus; companies are pressured to reduce carbon emissions and adopt greener supply chain practices. In June 2023, GXO Logistics partnered with Sainsbury to handle fresh/frozen warehousing in the UK and signed a project with Zalando on a new fully automated fulfilment centre near Paris. GXO also unveiled a multi?year expansion program in Germany, scaling its footprint and automation capabilities.

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