Europe Contract Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)
The size of Europe Contract Logistics Market is USD 76.42 billion in the current year and is anticipated to register a CAGR of over 2.69% during the forecast period.
Key HighlightsThe outsourcing share of contract logistics is low, showing clear growth potential. Globally, the share of contract logistics in the total market is only 10-15%. In Europe, this proportion is estimated at around 20%. The extent of outsourcing varies greatly from country to country. Transportation and storage services are generally outsourced to a large extent.
E-commerce is expected to be a major driver of outsourcing growth. As the e-commerce market grows rapidly, so do consumer expectations for faster and more reliable delivery. As a result, outsourcing of warehousing and order processing is expected to increase. Contract logistics offers e-commerce companies of all sizes the following benefits: Business manageability, advanced technology solutions, risk mitigation, and scalability.
Growth in Manufacturing Expected to Drive Demand for Contract Logistics ServicesThe largest European nations, such as Germany, the United Kingdom, France, and Italy, traditionally dominate the manufacturing sector. As these countries became increasingly service-oriented, the manufacturing sector saw large losses, with manufacturing industries relocating and general employment in the sector decreasing. Luckily, for Europe, instead of moving abroad, much of the manufacturing has just moved over to Central and Eastern Europe. Countries such as Poland, Slovakia, and the Czech Republic have taken up the mantle of manufacturing in Europe. These countries and their neighbors have seen tremendous growth in the manufacturing sector, and they are helping reaffirm Europe as a global manufacturing center. The developed countries in Europe are of high importance, as they have the required infrastructure and skills readily developed. This is expected to result in a trend of reshoring manufacturing back to Europe, and automation is very often one of the reasons for reshoring in Europe.
Europe Contract Logistics Industry OverviewThe prominent players in the market include Deutsche Post DHL Group, Schenker AG (DB Schenker), Ceva Logistics, DSV AS, and SNCF Logistics/Geodis. These players based in Europe have a significant presence across the world. Even though these major players have a strong footprint across the region and account for significant market share, the market is still fragmented to some extent, with many players providing contract logistics services at different levels.
It is necessary for the companies to make sure they are constantly evolving to match the industry trends. This is likely to help them gain a stronger foothold by attracting new customers.
Most major companies are based out of the Western European region. The number of local contract logistics providers in the CEE region is comparatively lower. This is an opportunity for the existing local logistics players in the CEE region to enter the contract logistics market and gain significant market share.
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