Retail And Warehouse Logistics Industry Forecast : $2.3 Trillion By 2034 At 5.9% CAGR

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WILMINGTON, NEW CASTLE, DE, UNITED STATES, September 15, 2025 /EINPresswire / -- According to a new report published by Allied Market Research, titled,“Retail and Warehouse Logistics Market ," The retail and warehouse logistics market size was valued at $1.3 trillion in 2024, and is estimated to reach $2252.5 billion by 2034, growing at a CAGR of 5.9% from 2025 to 2034.

Retail and warehousing logistics includes infrastructure, services, and systems that support the storage, handling, and distribution of retail goods across various channels. It includes physical warehousing facilities, transportation fleets, inventory control technologies, and software platforms used for order tracking and supply chain optimization. Retail and logistics serves a wide range of industries such as FMCG, electronics, fashion, healthcare, and automotive by enabling efficient movement and storage of products at larger scale. As retailers are shifting toward omnichannel strategies, the demand for real-time visibility, scalable warehouse space, and flexible logistics operations continues to grow.

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The adoption of automation and artificial intelligence has gained significant momentum across the retail and warehousing logistics industry, as companies are seeking ways to improve speed, accuracy, and efficiency in their operations. Automation technologies such as robotic picking systems, automated guided vehicles, and conveyor-based sorting are being increasingly used to streamline warehouse functions and reduce dependency on manual labor. Moreover, these systems allow for faster order processing, reduced error rates, and can operate around the clock, which is becoming critical in meeting the demands of rapid e-commerce growth.

In addition, the use of AI is allowing companies to optimize their logistics processes by enabling real-time decision-making, demand forecasting, and smarter inventory management. AI-powered software can analyze large sets of data to predict consumer buying trends, recommend restocking schedules, and optimize delivery routes to reduce fuel and time costs.

Moreover, the growing focus on digital transformation and the need to manage rising operational costs is encouraging logistics providers to invest in AI and automation. For instance, in August 2024, Flipkart announced the deployment of AI-enabled robotic arms at its Bengaluru fulfillment center to speed up the sorting and packing process. Such developments are expected to drive the growth of retail and warehouse logistics market analysis during the forecast period.

However, the manufacturers, retailers, and customers are completely dependent on the reliability, competency, and honesty of logistics service providers. In this scenario, the manufacturing or retailing company is fully reliant on the logistics service provider, which results in a lack of direct control. In addition, the manufacturer is not able to monitor the operations at the warehouse, which is a serious threat to the quality of products and can result in product damage or deterioration in product quality.

Moreover, outsourcing to a third-party reverse logistics (3PL) company could potentially lead to a breach of confidentiality, resulting in the exposure of customer personal data or the sharing of commercially sensitive information. Thus, the lack of control of manufacturers on reverse logistics service is anticipated to hinder the growth of the retail and warehouse logistics market forecast market during the forecast period.

Likewise, the expansion of third-party logistics (3PL) and fourth-party logistics (4PL) services has emerged as a major opportunity in the retail and warehousing logistics market. As retailers and manufacturers focus on core business activities, there is a growing trend to outsource complex logistics operations to specialized service providers. 3PL and 4PL companies offer end-to-end solutions, including transportation, warehousing, inventory management, and supply chain optimization, allowing businesses to reduce operational costs, increase efficiency, and scale more effectively. Moreover, outsourcing logistics helps companies navigate regional complexities, improve delivery timelines, and adopt advanced technologies without heavy upfront investments.

Moreover, industry collaborations and rising demand from small and medium enterprises (SMEs) are further fueling the expansion of outsourced logistics. For instance, in September 2023, Mahindra Logistics signed a pan-India agreement with e-commerce giant Flipkart to manage a dedicated fleet of heavy commercial vehicles, optimized routing, and advanced analytics for hub-to-hub parcel transport. As a result, the expansion of 3PL and 4PL services is expected to drive significant growth in the retail and warehouse logistics market share during the forecast period.

The global retail and warehouse logistics market size is segregated into type, mode of transport, end user and region. Based on type the global market is segregated into transportation, warehousing and storage, inventory management, packaging and labelling, reverser logistics and others. On the basis of mode of transport the market is segregated into road, rail, air and sea. Based on end user the global market is studied across healthcare, manufacturing, aerospace, automotive, FMCG, electronics, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The key companies profiled in the global retail and warehouse logistics market research report include DHL Group, XPO Logistics, Kuehne + Nagel, DB Schenker, FedEx, UPS Supply Chain Solutions, C.H. Robinson Worldwide, Inc., Geodis, CEVA Logistics, and DSV.

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Key Findings Of The Study :

By type, the transportation segment is anticipated to exhibit significant growth in the retail and warehouse logistics industry in the near future.

By mode of transport, the sea segment is anticipated to exhibit significant growth in the retail and warehouse logistics industry in the near future.

By end user, the FMCG segment is anticipated to exhibit significant growth in the global retail and warehouse logistics market in the near future.

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About Us :

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of“Market Research Reports” and“Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies, and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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