Contract Logistics Market by Services (Aftermarket Logistics, Distribution, Transportation), Type (Insourcing, Outsourcing), Mode of Transportation, End-Use - Global Forecast 2024-2030

Contract Logistics Market by Services (Aftermarket Logistics, Distribution, Transportation), Type (Insourcing, Outsourcing), Mode of Transportation, End-Use - Global Forecast 2024-2030

The Contract Logistics Market size was estimated at USD 94.87 billion in 2023 and expected to reach USD 105.05 billion in 2024, at a CAGR 11.16% to reach USD 199.03 billion by 2030.

Contract Logistics refers to comprehensive outsourcing services provided to businesses by third-party companies to manage logistics operations. These services encompass multiple aspects of the logistics and supply chain process, including transportation, warehousing, distribution, inventory management, and packaging. Contract logistics aims to optimize these operations for businesses, allowing them to focus on their core competencies while improving efficiency, reducing costs, and enhancing customer satisfaction. A contract between the business and the service provider outlines the terms, scope, and responsibilities, ensuring the logistics operations are conducted according to the business's specific requirements and standards. As businesses expand their operations, the need to manage logistics and supply chains increases, creating a demand for specialized contract logistics services. In addition, the increasing popularity of online shopping has heightened the need for efficient logistics services, including last-mile delivery, inventory management, and reverse logistics. However, leveraging data analytics to gain insights into supply chain operations can help optimize routes, predict demand, and reduce costs. Innovations in logistics technology, such as automation, artificial intelligence (AI), and Internet of Things (IoT), are making contract logistics services more efficient and cost-effective.

Regional Insights

The Americas, particularly the United States, represents a vast market for contract logistics. Rising e-commerce sales, technological advancements in logistics, and increasingly complex consumer demands have spurred innovation in this region. In the United States, the supply chain's emphasis on speed and transparency influences customer purchasing behavior. Canada, while smaller in market size, mirrors these trends and emphasizes sustainable logistics solutions due to growing environmental concerns among consumers. On the other hand, EU countries in the EMEA region are at the forefront of adopting green logistics, driven by stringent regulatory standards and a high consumer demand for sustainable products and services. The integration of renewable energy sources in logistics centers and the push for electric vehicle fleets are examples of the region's commitment to sustainability. With its strategic geographic positioning, the Middle East acts as a vital link in global logistics, particularly in air and sea freight. The area is witnessing significant investments in logistics hubs and free zones to enhance its role in international trade and e-commerce. Moreover, in the Asia Pacific region, the market for contract logistics is observing significant growth, driven by the expanding trade activities and the increasing focus on efficient supply chain management across various industries. This growth is further bolstered by e-commerce, technological advancements, and the push for cost reduction in logistics operations by businesses keen on enhancing their competitiveness.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Contract Logistics Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers

Increase in international trade agreements and economic integration
Rising popularity of online shopping and the need for efficient logistics services

Market Restraints

Concerns related to geopolitical conflicts, tensions and natural disasters

Market Opportunities

Increasing adoption of blockchain technology in contract logistics
Integration of advanced technologies and robotics in the logistics processes

Market Challenges

Varying international regulations regarding logistics and trade

Market Segmentation Analysis

Services: Exponential growth of aftermarket logistics in automotive industry to meet high-level customer satisfaction and loyalty
End-Use: Increasing adoption of contract logistics in varied industry to ensure timely and efficient delivery

Market Disruption Analysis

Porter’s Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Contract Logistics Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Contract Logistics Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

GEODIS Revolutionizes Parcel Shipping for the e-Commerce Sector

GEODIS, a global logistics provider, unveiled an innovative multi-carrier parcel shipping solution for the burgeoning e-commerce market. This advanced innovation promises to slash costs, enhance delivery reliability, and streamline parcel shipping processes for its customers in the Americas. By facilitating direct connections with carriers, GEODIS eliminates the need for manual input of rates and surcharges, optimizing e-commerce fulfillment operations.

Introducing Noatum Logistics Middle East a New AD Ports Group’s Logistics Division

AD Ports Group unveiled Noatum Logistics Middle East, replacing the esteemed MICCO Logistics to bolster its logistics capabilities in the Middle East. Since acquiring MICCO in 2020, a company renowned for its four-decade-long service in Abu Dhabi and the GCC regions, especially in supporting over 80% of the area's oil, gas, and petrochemical projects with an impressive fleet exceeding 400 vehicles, this strategic rebranding underlines a strengthened commitment to offering premier logistics solutions. This transition honors MICCO's legacy and marks the expansion of Noatum, showcasing AD Ports Group's dedication to enhancing the logistics landscape in the region.

Strategic Alliance between Kuehne+Nagel and Tamer Logistics Boosts Saudi Arabian Contract Logistics

Kuehne+Nagel has forged an exclusive partnership with Tamer Logistics in response to the rising demand for comprehensive solutions in Saudi Arabia. This partnership aims to enhance contract logistics services within the Kingdom, complementing Kuehne+Nagel's freight forwarding operations. This strategic move signifies a significant step towards addressing the logistics needs of the Saudi Arabian market by leveraging the expertise and infrastructure of both companies.

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Contract Logistics Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Contract Logistics Market, highlighting leading vendors and their innovative profiles. These include A.P. Moller - Maersk, Agility Public Warehousing Company K.S.C.P., C.H. Robinson Worldwide, Inc., CEVA Logistics SA by CMA CGM Group, CJ Logistics Corporation, Deutsche Post AG, DHL Supply Chain, DP World Limited, DSV A/S, Expeditors International of Washington, Inc., FedEx Corporation, GEODIS by SNCF, Hellmann Worldwide Logistics SE & Co. KG, Kühne + Nagel International AG, LOGISTEED, Ltd, Neovia Logistics Services, LLC, Nippon Express Holdings Inc., Penske Truck Leasing Co., L.P., Ryder System, Inc., SANKYU INC., Schenker AG, Schneider National, Toll Group by JAPAN POST HOLDINGS Co., Ltd., United Parcel Service of America, Inc., XPO, Inc., and Yusen Logistics Group.

Market Segmentation & Coverage

This research report categorizes the Contract Logistics Market to forecast the revenues and analyze trends in each of the following sub-markets:

Services
Aftermarket Logistics
Distribution
Transportation
Warehousing
Type
Insourcing
Outsourcing
Mode of Transportation
Air Freight
Land Transport
Sea Freight
End-Use
Aerospace
Automotive
Industrial
Pharmaceutical & Healthcare
Retail & eCommerce
Region
Americas
Argentina
Brazil
Canada
Mexico
United States
California
Florida
Illinois
New York
Ohio
Pennsylvania
Texas
Asia-Pacific
Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
Europe, Middle East & Africa
Denmark
Egypt
Finland
France
Germany
Israel
Italy
Netherlands
Nigeria
Norway
Poland
Qatar
Russia
Saudi Arabia
South Africa
Spain
Sweden
Switzerland
Turkey
United Arab Emirates
United Kingdom

Please Note: PDF & Excel + Online Access - 1 Year