Monkeypox (Mpox) Market Assessment, By Treatment Type [Vaccine, Therapeutic], By Route of Administration [Oral, Injectable], By Distribution Channel [Hospital Pharmacies, Retail Pharmacies, Online Pharmacies, Others], By Region, Opportunities and Forecast

Monkeypox (Mpox) Market Assessment, By Treatment Type [Vaccine, Therapeutic], By Route of Administration [Oral, Injectable], By Distribution Channel [Hospital Pharmacies, Retail Pharmacies, Online Pharmacies, Others], By Region, Opportunities and Forecast, 2017-2031F

Global contract logistics market is projected to witness a CAGR of 7.50% during the forecast period 2024-2031, growing from USD 275.63 billion in 2023 to USD 491.58 billion in 2031. The market is fueled by e-commerce, which has increased demand for efficient supply chain solutions to manage inventory, finalize orders, and take returns as quickly as possible. Outsourcing becomes a strategic advantage when companies focus on quick delivery and seamless services that align with customer demands. Furthermore, technological advancements, such as real-time tracking, data analytics, and automation, and contract logistics, have become more efficient and appealing to businesses that want to operate at the peak of their value. Finally, globalization has come into play as companies must adapt to the increasing complexity of supply chains across borders with varying regulations and requirements. To meet such challenges, contract logistics providers have the competency and required infrastructure to process those challenges. In addition, sustainability trends compel firms to implement greener practices in their supply chain, and logistics providers take this up by providing the world with eco-friendly solutions. With all these market drivers, e-commerce growth, technological innovation, globalization, and environmental concerns will push companies operating within different domains into using third-party logistics to ensure a competitive edge amid a complex and fast-changing global market.

In February 2024, GXO Logistics launched a pilot program with Dexterity, integrating AI-enhanced robotics in its warehouse operations for a leading beauty brand. These robots use AI to autonomously depalletize, label, and repalletize packages, improving efficiency, safety, and adaptability. GXO aims to make warehouse operations more productive and responsive by freeing employees to focus on higher-value tasks. This advanced automation demonstrates the potential for AI-driven robotics in contract logistics, supporting growth by enhancing operational speed, flexibility, and scalability across various industries.

AI Revolution to Fuel the Contract Logistics Market Growth

Artificial intelligence significantly contributes to the growth of logistics contracts in the market by increasing efficiency, accuracy, and decision-making. Systems with AI help optimize the supply chain processes through forecasting analytics, which predicts demand and helps manage reserves more effectively. Machine learning algorithms enable logistics providers to identify patterns and adapt in real-time to changes in demand, weather, and traffic conditions to reduce delays and improve delivery times. Additionally, AI-based automation in warehouses, such as autonomous robots and intelligent sorting systems, can speed up operations and minimize human error. AI's ability to analyze a wide range of data from multiple sources also helps optimize routes, reducing fuel consumption and operating costs. Additionally, AI improves transparency and communication across the supply chain, improving customer satisfaction. As a result, AI optimizes businesses, enables prompt satisfaction of market needs, changes contract logistics companies, and enhances more competitive adaptability in the prompt development industry.

In November 2023, CEVA Group Plc acquired a 96% stake in Stellar Value Chain, enhancing its contract logistics and fulfillment services across 60+ locations in India. This move supports CEVA's domestic consumption, manufacturing, and warehousing expansion. By integrating Stellar’s capabilities, CEVA optimizes supply chains, improves efficiency, and enhances e-commerce, automotive, food, and retail sector services. This acquisition strengthens CEVA’s presence in a growing market, driving scalability, innovation, and sustainable logistics solutions, thereby boosting its competitive edge in the contract logistics market.

Rapid Growth in the E-commerce Sector to Propel Market Growth

E-commerce is driving significant growth in the contract logistics market with demand for efficient supply chain solutions to cater to the complex logistics needs in the new environment. Online shopping creates the need for fast, flexible, and reliable services for the delivery of products, as consumers expect quick and accurate order fulfillment. Contract logistics providers are assisting an e-commerce company to streamline its operations through warehouse control, inventory management, packaging, and distribution using the latest automation technologies, including real-time tracking and data analytics. This way, an e-commerce business can focus on its core activities while logistics is streamlined and cost-effective. Moreover, as e-commerce has spread beyond borders, cross-border deliveries are being made by contract logistics companies, helping companies to come to terms with international regulations and enabling them to enter international markets. Generally, e-commerce has significantly increased the need for contract logistics services; hence, companies opt to outsource the entire operation as it provides customized solutions toward catering to the new demands of customers.

In October 2024, DHL International GmbH is expanding its presence in UAE by taking over seven facilities from DHL Global Forwarding, including 600 logistics specialists. This move addresses the growing demand for end-to-end supply chain solutions, enhancing DHL's service capabilities in warehousing, fulfillment, and aftermarket services. By streamlining operations and leveraging its existing logistics infrastructure, DHL is positioned to offer comprehensive services, improve efficiency, and meet customer demands, strengthening its competitive edge in the contract logistics market.

Outsourcing Segment to Dominate Contract Logistics Market Share

Outsourcing is a strong trend in the contract logistics market, where companies increasingly require specialized third-party providers to manage their supply chain needs. It enables businesses to decrease costs, gain access to the most advanced logistics technology, and scale operations effectively without investing heavily in their own logistics infrastructure. Logistics service providers deal with contract warehousing, transportation, inventory management, and order fulfillment, which frees the core competencies of the firm to go about this, and at the same time, ensure smooth operations of the logistics function. E-commerce and international trade have spurred increased demand for this aspect since companies necessitate dynamic and flexible logistics to help them match the consumer's demand in very short turnaround times. In addition, outsourcing is an easy way to respond to market conditions because companies can outsource complexity in cross-border logistics, compliance, and regulatory standards to experienced providers. As a result, outsourcing has emerged as one of the primary growth drivers for the contract logistics sector.

In June 2024, Nefab AB expanded its operations in Viña del Mar, Chile, with a USD 1 million investment in a new facility, creating up to 80 jobs. The plant operates with 80% renewable energy and provides warehousing and sustainable packaging solutions for the mining, manufacturing, energy, and telecommunications sectors. The expansion will support Nefab's growth in contract logistics by increasing efficiencies in meeting local market needs and promoting sustainability in supply chain operations.

Asia-Pacific to Dominate Contract Logistics Market Share

Asia-Pacific is expected to dominate the contract logistics market share due to its growing e-commerce sector, booming manufacturing industry, and expanding consumer base. Countries such as China, Japan, and India are driving this growth, supported by significant infrastructure investments and technological advancements in logistics. E-commerce giants and multinational companies are increasing demand for efficient and flexible supply chains to meet the high expectations of consumers in the region, prompting contract logistics providers to expand their warehousing, transportation, and custodial services inventory. Furthermore, government support for trade facilitation and free trade agreements in Asia provides cross-border logistics opportunities. The region's efficient labor markets and innovations in automation and digitalization enable companies to optimize logistics processes, reduce costs, and extend delivery times, making Asia an attractive location for contract logistics and setting itself apart as a leading player in the global market.

In May 2024, C.H. Robinson launched advanced contract logistics services in Australia and New Zealand, offering tailored solutions to improve warehousing and supply chain capabilities. With approximately two million square meters of warehousing space, an advanced warehouse management system, and value-added services, the launch enhances operational efficiency and cost-effectiveness. This expansion supports e-commerce, manufacturing, inventory management, and distribution sectors, driving growth and scalability in the contract logistics market through automation, real-time data, and improved supply chain visibility.

Future Market Scenario (2024 – 2031F)

Increased adoption of AI, IoT, and blockchain technologies will enhance efficiency, transparency, and real-time tracking in logistics operations.

Growing emphasis on eco-friendly practices will drive the adoption of green logistics solutions, including electric vehicles and renewable energy sources.

Continued growth in online shopping will boost demand for last-mile delivery, reverse logistics, and advanced warehousing solutions.

Expansion into emerging markets, particularly in Asia-Pacific and Africa, will create new opportunities for contract logistics providers to cater to evolving consumer needs.

Key Players Landscape and Outlook

Contract logistics companies embrace technology, expand their service offerings, and prioritize sustainability. They are increasingly adopting automation, artificial intelligence, and data analytics to streamline operations such as inventory management, order fulfillment, and tracking systems. These technologies can reduce errors, increase efficiency, show actual visibility, and help companies meet their customers’ expectations compared to faster and more accurate services. Companies respond to environmental issues and regulatory pressure by investing in energy savings warehouses and environmentally friendly packaging and transport options to reduce carbon traces. With technological and environmental efforts, many logistics companies are broadening their service range to offer comprehensive end-to-end solutions, including last-mile delivery, warehousing, and reverse logistics. This expansion meets the needs of a growing e-commerce market and provides clients with a more seamless logistics experience. Through these strategies, contract logistics companies adapt to market demands, strengthening customer relationships and their position in a competitive market.

In March 2023, Allcargo Logistics plans to acquire a 38.87% stake from partners, boosting its stake to 100% in the contract logistics business. This move enhances management control, service delivery, and growth by creating synergies between contract logistics and express distribution. Additionally, exiting the non-core customs clearance business allows Allcargo to focus on core segments, further strengthening its position in the fast-growing logistics market. This acquisition drives efficiency, broadens service offerings, and enhances operational capabilities, helping meet rising demand and streamline logistics processes.