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Outbound Logistics Market Size - By Mode of Transportation (Road, Rail, Air, Sea), By Service (Transportation, Warehousing, Distribution, Inventory Management, Packaging, Value-added Services), By Organization Size, By Industry Vertical & Forecast, 2024 - 2032

  • Report ID: GMI10062
  • Published Date: Jun 2024
  • Report Format: PDF

Outbound Logistics Market Size

Outbound Logistics Market size was valued at USD 2.7 trillion in 2023 and is estimated to register a CAGR of 7.2% between 2024 and 2032. The rise of online shopping and e-commerce boom across the world boosts market growth. E-commerce results in a tremendous rise in the quantity of orders that require fulfillment. Outbound logistics businesses are busier than ever, transporting a bigger range of items to a broader range of locations. Consumers have learned to anticipate quick deliveries, with choices such as same-day or next-day becoming more popular.

Outbound Logistics Market

In March 2022, the International Monetary Fund (IMF) issued a report on the increased consumer expenditure online. It indicated that the proportion of total online spending surged from 10.3% in 2019 to 14.9% during the height of the pandemic.

The increasing globalization among businesses in selling products around the world is fueling the adoption of outbound logistics. Globalization enables firms to reach new client bases throughout the world. This results in a rise in product shipments across borders, necessitating sophisticated outbound logistics networks to accommodate the increasing volume. Free trade agreements and lower trade barriers result in an increase in international trade. This results in more items being sent, necessitating a larger and more efficient outbound logistics infrastructure.

Globalization exposes firms to a greater variety of client preferences. Outbound logistics businesses must accommodate to these varying demands, by giving alternative delivery choices or packaging solutions based on the destination.

The rising fuel prices, labor costs, and warehouse space pose a major challenge to the outbound logistics market, potentially slowing down its growth. Transportation, whether by truck, ship, or plane, is significantly dependent on gasoline. Transportation providers are obliged to boost their rates as fuel prices rise, resulting in increased expenses for logistics organizations. Outbound logistics businesses frequently work on fixed contracts with clients. Rising gasoline prices can dramatically reduce profitability, affecting the bottom line.

The logistics sector is facing a scarcity of trained staff for jobs such as warehouse picking and packaging or delivery vehicle driving. This shortage raises salaries, making it more expensive to acquire and keep employees. Logistics firms compete with other industries for competent employees. Offering competitive pay and benefits is essential, but it may strain finances.

Outbound Logistics Market Trends

Outbound logistics systems are witnessing significant technological advancements in automation and warehouse management technology. Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) are examples of technologies that improve operational efficiency. WMS helps improve warehouse layouts, picking routes, and inventory management, resulting in faster order fulfillment and fewer mistakes. TMS streamlines delivery routes, saves fuel usage, and offers real-time tracking for improved visibility.

The Internet of Things (IoT) enables real-time tracking of commodities across the supply chain. Sensors on trucks, warehouses, and even individual parcels offer constant information about location, temperature, and other vital aspects. This enables logistics organizations to detect delays, optimize routes, and proactively handle possible concerns. Parallel to this, robotics and automation are revolutionizing warehouses and distribution facilities.

For instance, in March 2024, Mujin, a leader in robotics and automation technology, unveiled several innovations for inbound and outbound logistics automation at the MODEX 2024 trade show. Mujin showcased its robotic palletizing solutions engineered for superior efficiency in sorting, stacking, and organizing goods for storage or further processing. Mujin demonstrated its mixed case depalletizing solutions, which are an ideal fit for operations receiving mixed loads on pallets. Mujin also introduced a new robotic case-picking solution that tackles the case pick workflow within the order fulfillment process.

Outbound Logistics Market Analysis

Outbound Logistics Market Size, By Organization Size, 2022 – 2032, (USD Trillion)

Based on the organization size, the market is categorized into large enterprises and Small and Medium Enterprises (SMEs). The large enterprises segment accounted for around 66% of the outbound logistics market share in 2023. Large organizations often deal with much greater numbers of outbound shipments than smaller enterprises. This creates a larger demand for strong and scalable logistics systems. They may also have complicated supply chains with several product lines and worldwide shipping requirements, necessitating a sophisticated logistics infrastructure.

Large companies have the financial resources to invest in advanced logistics technology such as WMS and TMS. These solutions streamline operations, boost efficiency, and increase visibility throughout the supply chain. Furthermore, their high cargo quantities provide them with tremendous bargaining leverage with logistics suppliers, possibly resulting in reduced pricing and more advantageous contracts.

Outbound Logistics Market Share, By Mode of Transportation, 2023

Based on the mode of transportation, the outbound logistics market is divided into road, rail, air, and sea. In 2023, the road segment accounted for a market share of over 49% and is expected to exceed USD 2.37 trillion by 2032. The world's most extensive road networks connect isolated places that are unreachable by air or sea. This flexibility enables point-to-point delivery, making them perfect for last-mile supplies to clients. For small to medium distances, road freight is frequently the most cost-effective alternative.

Trucks may be loaded to capacity and have cheaper fuel costs than flights. This makes road transportation an affordable option for many enterprises. Trucks may transport a variety of things, from small gifts to large machinery. Refrigerated trucks provide temperature-controlled deliveries for perishable commodities, while specialized trailers can handle large loads. Road transportation can meet a wide range of logistical requirements due to this adaptability. 

Asia Pacific Outbound Logistics Market Size, 2022 -2032, (USD Billion)

Asia Pacific outbound logistics market accounted for 34% of the revenue share in 2023. APAC is seeing a huge surge in e-commerce, driven by rising internet access, smartphone use, and a burgeoning middle class. This results into a tremendous increase in online orders, necessitating excellent outbound logistics for timely delivery. The area is a worldwide industrial powerhouse, led by China, India, and Vietnam. This strong industrial base demands effective outbound logistics to supply completed goods to both domestic and foreign markets.

Additionally, APAC countries are aggressively adopting automation, data analytics, and other logistics technology. This emphasis on innovation increases efficiency, visibility, and cost-effectiveness in the outbound logistics network.

The U.S. is a leader in e-commerce adoption, with a sizable share of retail sales occurring online. This creates a significant need for effective outbound logistics to deliver online orders to customers. The U.S. contains significant urban regions on both coasts and in the Midwest, necessitating strong last-mile delivery methods to negotiate these heavily populated areas. The U.S. has a well-developed network of highways, trains, airports, and seaports that enable the efficient movement of commodities across the country.

European countries, including France, Germany, the UK, and the Netherlands, are witnessing significant growth in the outbound logistics market. The European Union (EU) promotes the free movement of commodities between member states. This dynamic internal market generates a large volume of intra-regional commerce, necessitating excellent outbound logistics networks. In addition, European countries are well-known for emphasizing environmental stewardship.

Green logistics options, such as improving delivery routes and using eco-friendly packaging, are gaining acceptance and influencing the outbound logistics scene. Moreover, countries in the Middle East & Africa (MEA) region, such as the UAE and Saudi Arabia, are increasingly diversifying their economies away from a reliance on oil & gas. This spurs growth in manufacturing and retail sectors, leading to a rise in domestic and international outbound shipments.

Outbound Logistics Market Share

FedEx, UPS, and DHL dominate outbound logistics industry holding market share over 7%. FedEx Corporation enhances transparency and customer satisfaction by investing in advanced tracking systems that offer real-time shipment updates. It also implements AI-driven solutions and automation in sorting and distribution centers to boost efficiency and lower operational costs.

UPS invests in drone technology for last-mile deliveries in remote or congested areas to enhance service speed and reduce costs. It also integrates IoT devices to monitor the condition of goods in transit, ensuring the quality and safety of sensitive shipments. Along with this, they also use advanced route planning software to optimize delivery routes, reduce fuel consumption, and improve delivery times.

DHL Supply Chain provides tailored logistics solutions that align with customer preferences and business requirements, boosting customer loyalty. They also establish loyalty programs to reward repeat customers and encourage long-term partnerships. Furthermore, they establish regional hubs in key markets to streamline operations and improve delivery speeds.

Outbound Logistics Market Companies

Major players operating in the outbound logistics industry are:

  • DHL Supply Chain
  • FedEx Corporation
  • UPS (United Parcel Service)
  • XPO Logistics
  • C.H. Robinson
  • DB Schenker
  • Kuehne + Nagel
  • DSV Panalpina
  • Nippon Express
  • Ryder System
  • Maersk (A.P. Moller-Maersk)

Outbound Logistics Industry News

  • In January 2024, BonCulina UK, a frozen ready meals manufacturer, invested USD 2.78 million in a new commercial fleet to improve its outbound logistics operations. The new fleet includes vehicles ranging from 3.5 tonnes to 18 tonnes, with both chilled and frozen capacity to serve routes across the UK mainland. BonCulina has selected Prohire as its fleet management partner.
  • In July 2023, Mahindra Logistics revamped its subsidiary, 2x2 Logistics, to boost its automotive outbound logistics business. The revamp came as the automotive industry ramped up operations after the pandemic slowdown. Mahindra Logistics aimed to get more of its fleet back on the road, bring on drivers, and increase monthly running kilometers for the vehicles.

The outbound logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and volume (000’tonnes) from 2021 to 2032, for the following segments:

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Market, By Mode of Transportation

  • Road
  • Rail
  • Air
  • Sea

Market, By Service

  • Transportation
  • Warehousing
  • Distribution
  • Inventory management
  • Packaging
  • Value-added services

Market, By Organization Size

  • Large Enterprises
  • Small and Medium Enterprises (SMEs)

Market, By Industry Vertical

  • Retail
    • Road
    • Rail
    • Air
    • Sea
  • Manufacturing
    • Road
    • Rail
    • Air
    • Sea
  • Healthcare and pharmaceuticals
    • Road
    • Rail
    • Air
    • Sea
  • Automotive
    • Road
    • Rail
    • Air
    • Sea
  • Consumer goods
    • Road
    • Rail
    • Air
    • Sea
  • Food and beverage
    • Road
    • Rail
    • Air
    • Sea
  • Technology and electronics
    • Road
    • Rail
    • Air
    • Sea
  • Aerospace and defense
    • Road
    • Rail
    • Air
    • Sea
  • Others
    • Road
    • Rail
    • Air
    • Sea

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

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


Authors: Preeti Wadhwani, Aishvarya Ambekar

Frequently Asked Questions (FAQ) :

The market size of outbound logistics reached USD 2.7 trillion in 2023 and is set to witness 7.2% CAGR from 2024 to 2032, owing to the rise of online shopping and e-commerce boom worldwide.

Outbound logistics industry from the large enterprises segment held 66% share in 2023, due to dealing with much greater numbers of outbound shipments than smaller enterprises.

Asia Pacific market recorded around 34% share in 2023, attributed to surge in e-commerce, driven by rising internet access, smartphone use, and a burgeoning middle class in the region.

DHL Supply Chain, FedEx Corporation, UPS (United Parcel Service), XPO Logistics, C.H. Robinson, DB Schenker, Kuehne + Nagel, DSV Panalpina, Nippon Express, Ryder System, and Maersk (A.P. Moller-Maersk), are some of the major outbound logistics companies worldwide.

Outbound Logistics Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 20
  • Tables & Figures: 300
  • Countries covered: 25
  • Pages: 250
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