Manufacturing Logistics Market Size & Share 2024 – 2032
Market Size by Services (Transportation, Warehousing, Distribution, Inventory Management, Supply Chain Consulting), by Industry, by Transportation Mode, by Technology & Forecast.
Report ID: GMI10094
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Published Date: July 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Manufacturing Logistics Market Size
Manufacturing Logistics Market size was valued at USD 149.6 billion in 2023 and is estimated to register a CAGR of over 9% between 2024 and 2032. The market for manufacturing logistics is mostly driven by the growth of global trade networks. As more companies execute business internationally, there is an increased demand for efficient logistics services to manage customs procedures and cross-border transportation. In addition, the industry is expanding due to the broad diversification of services, which includes advanced supply chain management systems, warehousing, and conventional transportation.
Manufacturing Logistics Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
For instance, the UK government collaborated with Amazon Marketplace, where buyers from other countries may find a variety of products from small UK companies and well-known British brands. In addition, the market is expanding due to the growing need for advanced logistics solutions and proficiency in global logistics management. Furthermore, there is an increased demand for adaptable and resilient supply chain solutions due to the volatility of global markets, which includes changes in fuel prices, trade disputes, and currency exchange rates.
The logistics sector has experienced a change due to the incorporation of technologies like blockchain, IoT, and artificial intelligence. In supply chain management, these technologies increase transparency, reduce expenses, and increase efficiency. However, the manufacturing logistic market is anticipated to grow because of the increasing use of sensors and radio frequency identification (RFID) tags to provide real-time data on the location and condition of items, enabling more efficient tracking and inventory management.
Manufacturing logistics experts often struggle with how to balance inventory levels to meet demand without either overstocking or understocking. Ineffective inventory management can result in higher storage expenses, obsolescence, stockouts, and eventually, client dissatisfaction. Furthermore, in logistics, transportation is a major source of costs. Transportation network capacity limitations, traffic jams, and rising fuel prices can all increase expenses and cause delays. For timely delivery and economic effectiveness, routes and modes of transportation (such as air, sea, rail, and road) must be optimized.
Manufacturing Logistics Market Trends
The logistics industry is experiencing business growth due to the increasing expansion of the e-commerce sector, which is driving up demand for numerous faster shipping choices. Accordingly, the sudden shift in business towards online sales drives growth in the logistics industry by pushing enterprises to improve their distribution networks and incorporate cutting-edge technologies for effective handling and real-time tracking of goods.
The market is expanding at an even faster rate due to consumers' growing preference for quick delivery options. Micro-fulfilment centers are smaller warehouses situated closer to customers that may substantially cut down on delivery times. The industry is also expanding because of alliances and partnerships between local retailers and logistics companies as well as the application of cutting-edge software for route optimization. Additionally, Quick Commerce—an e-commerce strategy that focuses on lightning-fast deliveries within an hour—is becoming more and more popular globally. Furthermore, the business is expanding due to rapid inventions such as the use of aerial drones and underground distribution networks to avoid traffic jams.
For instance, by 2030, Amazon aims to use renewable energy projects and electric delivery trucks to offset the carbon emissions from half of its shipments. In addition, IoT sensors in manufacturing equipment may allow a business to track production status in real-time and modify logistical plans as necessary.
Manufacturing Logistics Market Analysis
Based on services, the market is divided into transportation, warehousing, distribution and inventory management. The transportation segment accounted for a market share of around 42% in 2023. Since supply chain logistics entails moving finished items to distribution centers or end users as well as raw materials to manufacturing facilities, transportation is essential. The entire manufacturing process may be hampered by ineffective transportation, which could influence customer satisfaction and production schedules.
A vast array of services is included in the category of transportation, such as intermodal transport, trucking, shipping, and freight forwarding. This range enables transportation firms to meet a range of demands in the industrial industry, from bulk raw material transportation to specialized handling of hazardous or fragile commodities.
Based on industry, the manufacturing logistics market is categorized into automotive, electronics, industrial, aerospace, pharmaceuticals, food and beverages, textiles, and others. The automotive segment accounted for a market share of around 33% in 2023. The supply networks used by the automotive industry are extremely intricate and widespread, spanning several countries.
Automobile manufacturers rely largely on excellent logistics to manage complex supply chains, from acquiring raw materials like metals, polymers, and electronics to assembling components into finished vehicles. High amounts of heavy and expensive final items and components are produced during the automotive manufacturing process. To control the flow of these items from suppliers to assembly factories, and then to dealerships or straight to customers, effective logistics are essential. The scale of the market is largely influenced by the quantity and value of automobile shipments.
Asia Pacific dominated the global manufacturing logistics market with a major share of over 34% in 2023, due to cost efficiency, countries like China, India, and ASEAN countries like Malaysia and Vietnam have advantages for businesses to set up production and distribution centres which is beneficial for manufacturing and logistical activities. Also, investments for large expenditures in communication technology and transportation networks, such as highways, ports, and airports. This infrastructure improvement facilitates effective logistical processes, cutting down on lead times and distribution and transportation expenses.
In the U.S. the availability of a well-developed infrastructure for road and rail connectivity is responsible for the region's logistic growth. With a highly integrated supply chain network that links manufacturers with consumers transportation methods, including rail, truck, marine, and express and air delivery services.
Europe's manufacturing logistics market is growing because of e-commerce tendencies. Furthermore, research and development in logistics are being funded by European nations. In addition, the availability of workers and the prospective infrastructure in the region provide European countries with a lucrative chance to advance in this sector.
Manufacturing Logistics Market Share
UPS Supply Chain Solutions, C.H. Robinson and DSV Panalpina hold a significant market share of 16% in manufacturing logistics industry, this market presence reflects their extensive capabilities in providing comprehensive logistics solutions that cater to the diverse needs of manufacturing sectors. UPS Supply Chain Solutions leverages its global network and advanced technology to offer end-to-end logistics services, from freight forwarding to warehousing and distribution.
C.H. Robinson excels in freight transportation and logistics, known for its robust global freight management and sophisticated supply chain optimization tools. DSV Panalpina, a major player in global transport and logistics, provides a broad range of services including air and sea freight, road transport, and contract logistics, tailored to support complex manufacturing supply chains.
Europe's manufacturing logistics market is growing because of e-commerce tendencies. Furthermore, research and development in logistics are being funded by European nations. In addition, the availability of workers and the prospective infrastructure in the region provide European countries with a lucrative chance to advance in this sector.
Manufacturing Logistics Market Companies
The major players operating in the manufacturing logistics industry are:
Manufacturing Logistics Industry News
The manufacturing logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) and volume (in 000’ tons) from 2021 to 2032 for the following segments:
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Market, By Services
Market, By Transportation Mode
Market, By Technology
Market, By Industry
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
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2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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5. Forecast model & key assumptions
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✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
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Verified data sources
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GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
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Parameters studied & evaluated
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