Logistic Services Market Drivers and Forecasts by 2031

The logistic services market size is projected to reach US$ 1,900.62 billion by 2031 from US$ 1257.69 billion in 2023. The market is expected to register a CAGR of 5.3% in 2023–2031. The growing demand for outsourcing logistics service operations with improved supply chain processes to reduce operational costs has created massive demand for the logistics services market growth. Also, the rising adoption of third-party logistics and fourth-party logistics providers has boosted the demand for the logistics service market globally. Currently, the leading logistics providers include freight forwarders, freight management companies, logistic consulting companies, inventory and storage management service providers, supply chain consultancy, and others.

Also, the rising adoption of advanced technology-based telematic solutions by logistics companies is driving market growth. The logistic services offer several operations such as real-time tracking, parcel tracking and monitoring, and warehouse planning is expected to drive the logistic services market growth. The global logistics services market is highly fragmented owing to the surge in the rapid advancement of the e-commerce industry at a rapid pace.

Logistic Services Market Analysis

Logistics services include first and second-party logistics providers, third-party logistics (3PL), Fourth Party Logistics, and Fifth Party Logistics. Logistic services are an essential part of supply chain management. Fourth-party logistics services deliver products to the end-customers and grow profit margins. Logistics services include all the elements of the supply chain, from the delivery of goods from the factories to the end consumers. They consist of the transportation of goods from manufacturer to warehouse, warehouse to distributors, customer order fulfillment, and delivery to the end users. 3PL facilitates all the logistics services as part of order fulfillment. Logistics services include transport from the factory to the fulfillment warehouses, warehousing order fulfilments, outbound shipping, and order delivery from and to the customers.

Logistic Services Market Overview

Logistics service transportation includes airways, railways, waterways, and roadways transportation. Among these, roadways transportation has the largest share in 2023, and this is owing to the increasing rapid adoption of the e-commerce industry at the global level. Also, waterways transportation involves the movement of goods and passengers through rivers, lakes, canals, and coastal waters. Water transport is cost-effective for the transportation of large volumes of goods for a long distance, and it has a high column carrying capacity compared to roadways and airways. Rapid industrialization growth in globalization with the surge in import and export activities across the globe are major driving factors for the logistic services market growth during the forecast period.  Such factors are driving the logistic services market growth during the forecast period.

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Logistic Services Market: Strategic Insights

Logistic Services Market Drivers and Opportunities

Rapid Growth in E-commerce Industry Drives the Logistics Services Market Growth

The e-commerce sector mostly depends on logistics services to manage the goods deliveries to the end customers. The increased demand for online shopping across the globe, along with the surge in internet penetration across the globe, is a major driving factor for the logistics services market growth during the forecast period. The e-commerce industry sales in the US reached around US$ 1.119 trillion in 2023, increased by 7.6% compared to US$ 1.03 trillion in 2022. Meanwhile, retail e-commerce sales reached US$ 5.088 trillion in 2023, increased by 3.8% compared with US$ 4.904 trillion in 2022.  This rapid growth in the e-commerce industry, owing to the growing number of e-commerce consumers across the globe, drives the logistics services market growth during the forecast period. With the continuous expansion of the e-commerce sector, the demand for last-mile delivery logistic services also increased. The major sectors that drive the logistic services market growth include retail, pharmaceuticals, food & beverages. Moreover, fast-moving consumer goods sector products are also majorly contributing to the growth of the logistic services market growth during the forecast period.

Rising digitization and increased adoption of automation

The logistics sector is responsible for the management of the supply chain in the manufacturing sector. It involves the transportation of goods, services, and related products. The logistics industry is experiencing a significant demand with rapid digitization and adoption of automation. Logistic services providers are increasingly adopting technologies such as artificial intelligence, the internet of Things (IoT), Machine learning, and robotics to streamline logistic operations an improve transportation efficiency.  This includes warehouse automation, robotics implementation, predictive analysis, autonomous vehicles, and others.

Logistic Services Market Report Segmentation Analysis

Key segments that contributed to the derivation of the logistic services market analysis are type, platform, application, and end-user.

• Based on the mode of transportation, the global logistics services market is divided into roadways, waterways, rail, and airways.
• Based on logistics providers, the market is divided into First- & Second-Party Logistics, Third-Party Logistics, Fourth-Party Logistics, and Fifth-Party Logistics.
• Based on end-users, the global logistics services market is divided into government & public utilities, healthcare, industrial manufacturing, retail & consumer goods, aerospace & defense, and others.

Logistic Services Market Share Analysis by Geography

The geographic scope of the logistic services market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North American logistics services market is expected to have the largest share and is growing at a rapid pace during the forecast period. Primarily logistics services industry is growing at a rapid pace owing to the increased growth of the e-commerce industry. Countries such as the US and Canada have a significant presence of major logistics service providers, including UPS, FedEx, DHL, and C.H. Robinson. The region gained substantial demand owing to a high degree of trade activities facilitated by the United States-Mexico-Canada Agreement (USMCA). Moreover, the region also has the presence of several advanced technologies, such as artificial intelligence, big data, cloud computing, and the Internet of Things.

Logistic Services Market Regional Insights

The regional trends and factors influencing the Logistic Services Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Logistic Services Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Logistic Services Market Report Scope

Logistic Services Market Players Density: Understanding Its Impact on Business Dynamics

The Logistic Services Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Logistic Services Market News and Recent Developments

The logistic services market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Logistic Services market and strategies:

• On January 2023, Amazon.com Inc. launched Amazon Air, an air cargo fleet service in India. This service was launched to meet the growing e-commerce sector demand. The e-commerce company partnered with Quikjet India’s Bengaluru-City-based airline cargo service provider firm with an aim to speed up its parcel delivery. (Source: DJI, Press Release/Company Website/Newsletter)
• In March 2023, A.P. Moller-Merks, the logistics company, launched an air freight service between Billund, Denmark, and Hangzhou, China. The new logistic service was launched to respond to growing customer demand. (Source: Flyability, Press Release/Company Website/Newsletter)

Logistic Services Market Report Coverage and Deliverables

The “Logistic Services Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles with SWOT analysis