(MENAFN- GlobeNewsWire - Nasdaq) Dublin, June 11, 2025 (GLOBE NEWSWIRE) -- The "Contract Logistics Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2020-2030F" has been added to ResearchAndMarkets.com's offering. The Contract Logistics Market was valued at USD 451.8 billion in 2024, and is expected to reach USD 688.0 billion by 2030, rising at a CAGR of 7.10%. This growth is driven by the evolving logistics needs of businesses amid rising e-commerce activity, technological advances, and global supply chain complexities. E-commerce has dramatically increased the demand for agile logistics networks capable of supporting high-volume, rapid delivery operations.
Simultaneously, technologies such as AI, IoT, and automation are transforming how contract logistics providers manage warehouse efficiency, real-time tracking, and predictive analytics. As globalization expands trade across borders, contract logistics plays a pivotal role in helping businesses navigate international logistics challenges, including customs and compliance.
Outsourcing logistics operations to expert providers allows companies to streamline processes and focus on their core activities. Additionally, increasing emphasis on sustainable practices and the logistics demands of emerging markets in Asia, Africa, and Latin America are further propelling the market forward, solidifying contract logistics as a cornerstone of modern supply chains.
Key Market Drivers
E-Commerce Expansion and Digital Transformation: The explosive growth of e-commerce continues to be a pivotal force driving the global contract logistics market. Online retail demands high-speed fulfillment, precision in delivery, and efficient returns management - requirements that contract logistics providers are increasingly meeting through dedicated infrastructure and technology integration. The shift toward direct-to-consumer (D2C) business models amplifies the need for logistics agility.
To meet rising consumer expectations for fast shipping and real-time tracking, providers have adopted digital innovations such as AI-powered demand forecasting, IoT-enabled monitoring systems, and warehouse automation. These technologies enhance transparency, efficiency, and scalability, particularly during peak demand periods like holiday seasons or promotional events. Retailers benefit from the adaptability of contract logistics partners, allowing them to maintain operational flexibility without the burden of in-house logistics investment.
Key Market Challenges
Rising Operational Costs and Margin Pressure: Increasing operational expenses pose a major challenge for the contract logistics market, significantly pressuring profit margins. Key cost drivers include escalating wages due to labor shortages, particularly for drivers and warehouse personnel in developed economies. Additionally, surging fuel prices - subject to geopolitical volatility - inflate transportation costs.
While some expenses can be passed to customers through surcharges, competitive pressures often limit this practice. Logistics firms also face mounting expenditures related to compliance, maintenance, and workforce development. Balancing cost management while ensuring high service levels, retaining skilled labor, and investing in technology remains a critical issue, especially for firms operating in low-margin environments.
Key Market Trends
Integration of Advanced Technologies for Smart Logistics: The move toward smart logistics powered by digital technology is reshaping the contract logistics landscape. Automation technologies such as robotic picking systems, AGVs (automated guided vehicles), and RPA (robotic process automation) are now widely employed to streamline warehouse operations. These tools enhance accuracy, efficiency, and scalability.
AI and machine learning applications are being deployed for dynamic inventory planning, route optimization, and predictive maintenance, enabling more proactive and data-driven logistics management. The integration of these tools not only improves service performance but also helps logistics providers meet evolving client expectations for transparency, responsiveness, and real-time decision-making.
Key Players Profiled in the Contract Logistics Market:
DHL Supply Chain & Global Forwarding Kuehne + Nagel International AG DB Schenker Logistics XPO Logistics, Inc. CEVA Logistics Nippon Express Co., Ltd. UPS Supply Chain Solutions FedEx Logistics
Report Scope
In this report, the Global Contract Logistics Market has been segmented into the following categories:
Contract Logistics Market, By Type:
Contract Logistics Market, By Application:
Automotive Aerospace & Defense High-tech Healthcare E-Commerce Industrial Retail Others
Contract Logistics Market, By Service:
Warehousing Transportation Distribution Aftermarket Others
Contract Logistics Market, By Region:
North America United States Canada Mexico
Europe Germany France United Kingdom Italy Spain
Asia-Pacific China India Japan South Korea Australia
South America Brazil Colombia Argentina
Middle East & Africa Saudi Arabia UAE South Africa
Key Attributes
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