Urban Logistics Market By Type (Express Logistics, LTL Logistics, Hazardous Chemical Logistics) , By Application (Electric Logistics Vehicle, Fuel Cell Logistic Vehicle) : Global Opportunity Analysis and Industry Forecast, 2024-2033
Urban Logistics Market
The urban logistics market was valued at $25.7 billion in 2023 and is projected to reach $77.9 billion by 2033, growing at a CAGR of 12% from 2024 to 2033.
Urban logistics is defined as the optimization of the distribution of services and goods in urban areas. The optimization process involves efficient planning, implementation, and regulation to reduce urban congestion & lower the environmental impact. Efficient urban logistics is critical for the economic situation of the urban areas and high quality of life of the residents. Various modes of transportation are utilized to accomplish urban logistics, including electric vehicles, cargo scooters, and public transportation such as trains & buses.
With exponentially growing population and expanding urbanization, the popularity of e-commerce is increasing due to its convenience. This is boosting the growth of the urban logistics market. In addition, surge in smart city initiatives is increasing the demand for urban logistics due to their smart transportation systems. The assimilation of ingenious technologies such as telematics, the Internet of Things, and automation is propelling the demand for urban logistics owing to their predictive maintenance and route optimization capabilities. In recent times, the trend of collaborations and public-private partnerships is acquiring traction in the urban logistics market. These partnerships aid in reducing traffic and congestion by the consolidation of deliveries, resulting in low number of vehicles on roads.
However, lack of infrastructure such as parking areas, road spaces, and loading areas pose significant challenges for the expansion of the urban logistics market. In addition, compliance with the diverse regulations such as local standards, zoning laws, and environmental regulations is an intricate and time-consuming task, which hampers the growth of the market. Contrarily, the consistently growing population across the globe is poised to open several new avenues for the market development. According to Logistics Insider—a newsletter for logistics professionals—India is projected to become the most populated country by 2030, with urban population accounting for approximately 675 million individuals. Moreover, the e-commerce sector is anticipated to quadruple by 2027 in India. These surging numbers are predicted to create lucrative opportunities for the urban logistics market.
Segment ReviewThe urban logistics market is segmented into type, application, and region. On the basis of type, the market is divided into express logistics, LTL logistics, and hazardous chemical logistics. Depending on application, it is bifurcated electric logistics vehicle and fuel cell logistic vehicle. Region wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.
Key FindingsOn the basis of type, the express logistics segment is expected to dominate throughout the forecast period.
Depending on application, the electric logistics vehicle segment is projected to be the highest shareholder during the forecast period.
Region wise, North America is anticipated to be the highest revenue generator by 2033.
Competition AnalysisThe leading players operating in the global urban logistics market include Amazon, ALIBABA GROUP HOLDING LIMITED, DHL, FedEx, JD.com, Inc., A.P. Moller - Maersk, SF Express, Uber Freight, UNITED PARCEL SERVICE OF AMERICA, INC., and XPO, Inc. These major players have adopted various key development strategies such as business expansion, new product launches, and partnerships, to strengthen their foothold in the competitive market.
Key Market SegmentsBy TypeExpress Logistics
LTL Logistics
Hazardous Chemical Logistics
By ApplicationElectric Logistics Vehicle
Fuel Cell Logistic Vehicle
By RegionNorth America
U.S.
Canada
Mexico
Europe
UK
Germany
France
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Australia
Rest of Asia-Pacific
Latin America
Brazil
Argentina
Rest of LAMEA
Middle East and Africa
Saudi Arabia
UAE
Israel
Africa
Rest of Middle East and Africa
Key Market Players
Amazon
ALIBABA GROUP HOLDING LIMITED
DHL
FedEx
JD.com, Inc.
A.P. Moller - Maersk
SF Express
Uber Freight
UNITED PARCEL SERVICE OF AMERICA, INC.
XPO, Inc.