Contract Logistics Market

Contract Logistics Market Size

The global contract logistics market was valued at USD 337.38 billion in 2025 and is expected to expand at a CAGR of 7.7% from 2026 to 2034. Market growth is primarily driven by the rapid acceleration of e-commerce, which continues to reshape supply chain and fulfilment requirements across industries.

The surge in online retail has significantly increased demand for scalable contract logistics services, including warehousing, order fulfilment, and last-mile delivery. As order volumes, returns, and omnichannel inventory complexity grow, businesses increasingly rely on contract logistics providers for automated warehouses, integrated transportation networks, and flexible capacity to manage demand fluctuations efficiently.

The rising adoption of eco-friendly transportation solutions is another key factor supporting market expansion. Logistics providers are investing in electric vehicles (EVs), hybrid fleets, and alternative fuels such as CNG and hydrogen to meet regulatory requirements and corporate sustainability goals. These investments help reduce emissions, ensure compliance with environmental regulations, and deliver long-term operational cost efficiencies, strengthening the value proposition of outsourced logistics.

Rapid Expansion of E-Commerce

The sharp rise in global e-commerce is a primary driver of the contract logistics market. Online retailers increasingly rely on third-party logistics (3PL) providers for warehousing, order fulfilment, last-mile delivery, and reverse logistics to manage high-volume, time-sensitive shipments efficiently.

Rising Adoption of Eco-Friendly Transportation

Sustainability initiatives are accelerating demand for green contract logistics solutions. Companies are shifting toward fuel-efficient fleets, electric vehicles, and optimized routing to reduce carbon emissions and meet ESG and regulatory expectations, particularly in large markets like the U.S., Europe, China, and Japan.

Technological Advancements in Supply Chain Management

Digital transformation continues to reshape contract logistics services. Technologies such as warehouse automation, AI-based demand forecasting, IoT-enabled tracking, and cloud-based warehouse management systems (WMS) improve visibility, accuracy, and operational efficiency across global supply chains.

Globalization and Manufacturing Expansion

The globalization of manufacturing and international trade has increased demand for integrated contract logistics services. Expanding production hubs across Asia-Pacific and rising cross-border trade are pushing companies to outsource logistics operations to scalable and regionally optimized 3PL providers.

Restraints/Challenges

Stringent Transportation Regulations

Contract logistics providers face complex and evolving transportation regulations related to emissions, cross-border trade, labor laws, and safety standards. Compliance requirements can increase operating costs and affect service flexibility, especially in regulated markets such as North America and Europe.

Growing Global Political Instability

Geopolitical tensions, trade restrictions, sanctions, and supply chain disruptions pose ongoing risks to the contract logistics industry. Political instability can impact freight movement, fuel prices, and international trade flows, creating uncertainty for long-term logistics planning.

Contract Logistics Market Outlook

Despite regulatory and geopolitical challenges, the market is expected to grow steadily, supported by e-commerce penetration, technology-driven supply chain optimization, and rising demand for sustainable logistics solutions worldwide.

Contract Logistics Market Trends

The contract logistics industry is evolving rapidly, driven by continuous technological advancements in supply chain management. As a core contract logistics trend, logistics providers are increasingly integrating IoT, artificial intelligence (AI), automation, and advanced analytics to enhance operational efficiency, control costs, and improve service reliability. These technologies enable real-time shipment visibility, predictive demand planning, and optimized routing, directly supporting broader logistics market trends and long-term logistics industry growth.

Warehouse modernization further underpins logistics market growth. Advanced warehouse management systems (WMS), robotics, and automation streamline inventory control, order picking, and packaging, helping providers manage complex, high-volume operations with greater accuracy and speed. Cloud-based platforms also play a critical role by enabling seamless data sharing across supply chain partners, improving flexibility and scalability key factors shaping the global logistics forecast.

A clear example of this transformation emerged in January 2024, when DB Schenker highlighted its technology-led contract logistics strategy. Its automated warehouse in Rudna, Czech Republic, integrates over 100 autonomous mobile robots (AMRs) supporting more than 650 employees. These AMRs handle heavy and repetitive tasks, carrying loads of up to 500 kg, with a three-hour battery life and rapid recharging, allowing human workers to focus on complex, value-added activities.

Despite these advances, stringent transportation regulations remain a structural challenge. Safety, environmental, and labor regulations increase compliance costs and operational complexity, particularly in cross-border logistics. These factors influence future logistics revenue growth 2025, as providers balance regulatory compliance with efficiency and service quality.

Contract Logistics Market Analysis

By Service

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Based on service, the market is segmented into transportation, warehousing, distribution, and others. In 2025, transportation segment accounted for over 41.84% of market share and is projected to exceed USD 258 billion by 2034, This dominance highlights transportation’s central role in enabling efficient, time-sensitive supply chain operations.

Transportation services including road, rail, air, and sea freight are critical for ensuring timely deliveries and maintaining effective inventory flow. The rapid growth of e-commerce has intensified demand for fast and reliable last-mile delivery, increasing reliance on outsourced transportation solutions. At the same time, expanding global trade has added complexity to cross-border movements, driving demand for specialized contract logistics providers. Supported by advanced technologies for route optimization, cost control, and real-time visibility, transportation continues to form the backbone of the logistical services market.

By Type

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By type, the contract logistics market is divided into insourcing and outsourcing. The outsourcing segment held approximately 72.3% of market share in 2025, reflecting its strong value proposition across the market research logistics industry. Outsourcing enables organizations to achieve cost efficiency, operational flexibility, and scalability by delegating warehousing, transportation, and inventory management to experienced third-party providers.

This model is particularly attractive for sectors with fluctuating demand, such as e-commerce and retail, allowing companies to maintain service quality while reducing capital investment. As highlighted across leading logistics industry reports, outsourcing remains a strategic choice for businesses focused on optimizing end-to-end supply chain performance.

Regional Insights

China Contract Logistics Market Insights

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China dominated about 37.6% share of Asia Pacific contract logistics industry in 2025 and is expected to exceed USD 82 billion by 2034, driven by its extensive manufacturing base, thriving e-commerce sector, and robust logistics infrastructure.

Government initiatives, such as the Belt and Road Initiative, aim to modernize supply chain networks, increasing the demand for efficient contract logistics services. The surge in online retail, particularly during major shopping events like Singles' Day, further necessitates agile logistics solutions. Additionally, investments in automation, AI, and smart warehousing technologies enhance logistics efficiency in China, enabling faster delivery times and cost-effective operations, thereby maintaining its market leadership.

North America Contract Logistics Market Insights

The North America contract logistics market is driven by strong demand from industries such as e-commerce, automotive, retail, and healthcare. The U.S. and Canada, as key players, benefit from advanced infrastructure, technology adoption, and a growing focus on supply chain optimization. Increasing reliance on third-party logistics providers for inventory management, transportation, and last-mile delivery boosts the market. Additionally, the rise of automation, AI, and digital platforms in logistics operations enhances efficiency, making outsourcing an attractive option. The growing trend toward e-commerce and consumer expectations for fast delivery further fuels industry growth.

Europe Contract Logistics Market Insights

The contract logistics market in Europe thrives due to its advanced infrastructure, strong manufacturing base, and increasing demand from sectors such as automotive, retail, and e-commerce. Germany, the UK, and France lead the market, supported by robust supply chain networks and advanced logistics technologies. Additionally, the rise of digitalization, automation, and sustainability initiatives drives market demand. The e-commerce boom, in particular, has heightened the need for efficient logistics services, including last-mile delivery and inventory management, fueling the expansion of contract logistics across Europe.

Middle East and Africa Contract Logistics Market Insights

In the MEA (Middle East and Africa) region, expanding infrastructure, particularly in the UAE and Saudi Arabia, drives the contract logistics industry. This growth is fueled by oil revenues and industrial diversification. In Latin America, Brazil and Mexico lead the market due to their growing e-commerce and retail sectors. Both regions increasingly adopt technology-driven logistics solutions to optimize supply chains, improve efficiency, and meet rising consumer demand.

Contract Logistics Market Share

In 2024, DHL Supply Chain, United Parcel Service (UPS), and DB Schenker together accounted for over 9% of the global contract logistics industry, reinforcing their position among the world’s leading contract logistics companies and providers. Their strong market share reflects continued investments in technology, sustainability, and global network expansion.

DHL Supply Chain holds a significant share of the contract logistics industry by leveraging AI, robotics, IoT, and advanced data analytics to digitalize warehouse and transportation operations. These capabilities improve operational efficiency, enable predictive maintenance, and support customized supply chain solutions for clients. DHL also prioritizes sustainable warehousing, integrating green building designs and renewable energy across facilities. Ongoing expansion in high-growth regions, particularly Asia-Pacific, further strengthens DHL’s global contract logistics footprint and market leadership.

UPS continues to enhance its position as a leading contract logistics provider through automation-enabled warehouses, smart logistics systems, and data-driven decision-making. The company emphasizes sustainability by adopting electric vehicles and renewable energy within its logistics network. Investments in integrated technology platforms provide real-time visibility and seamless supply chain coordination for customers. Strategic partnerships and facility expansions support UPS’s growth in key global markets.

DB Schenker focuses on AI-driven logistics, warehouse automation, and omnichannel solutions to meet evolving demand across e-commerce and healthcare sectors. The company integrates carbon-neutral initiatives, including electric fleets and eco-friendly packaging, while expanding its global contract warehousing and end-to-end logistics capabilities.

Contract Logistics Market Companies

Major players operating in the contract logistics industry are:

• A.P. Moller – Maersk
• C.H. Robinson Worldwide
• DB Schenker
• DHL Supply Chain
• DSV
• Expeditors
• Kuehne+Nagel
• Ryder System
• United Parcel Service (UPS)
• XPO
  

Logistics Industry News

• In November 2024, AVA Global Logistics secured a significant contract for the shipment of steel coils to Europe and the Mediterranean region. This landmark deal underscores the company's growing influence in the logistics sector, particularly in handling heavy and bulk shipments. The contract involves transporting large quantities of steel coils, which are critical for various industries, including construction and manufacturing.
  
• In September 2024, CEVA Logistics celebrated its Second Annual Contract Logistics Innovation Week, an event that brought together over 30,000 participants across 220 locations globally. This initiative aimed to foster collaboration and showcase advancements in logistics through a series of virtual webinars, summits, and expos. The event saw participation from thousands of CEVA employees, suppliers, and customers in regions including the UK, Singapore, Brazil, and Malaysia. This broad engagement facilitated a rich exchange of ideas and innovations.
  

The contract logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and from 2021 to 2034, for the following segments:

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Market, By Service

• Transportation
• Warehousing
• Distribution
• Others

Market, By Mode

• Railways
• Airways
• Roadways
• Waterways

Market, By Type

• Insourcing
• Outsourcing

Market, By End Use

• Retail
• E-commerce
• Healthcare
• Automotive
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa