1 Global Logistics Market Insight Analysis
In 2024, the total value of the global logistics market will reach US$9,974,033 million, with a CAGR of 6.60% from 2024 to 2033.
Logistics management is that part of supply chain management and supply chain engineering that plans, implements and controls the efficient and effective forward and reverse flow and storage of goods, services and related information between points of origin and consumption to satisfy customers requirements. The services provided by logistics companies include Forwarding, Transportation, Warehousing, Value-Added Services, Lead Logistics Provider Services (4PL).
Figure Global Logistics Market Size (M USD) and CAGR (2024-2033)
2 Logistics Market Growth Drivers and Restraints
The growth of the global logistics market is driven by a variety of factors, with the most significant being the expansion of the e-commerce sector and rapid technological advancements, including the application of automation and Artificial Intelligence (AI) to streamline logistics processes. The growth of e-commerce has had a substantial impact on the logistics industry, as logistics companies can be actively sought out by cargo owners and customers on a broader scale through the internet, thereby expanding their business scope.
Additionally, the globalization of supply chains and trade has driven an increase in the demand for logistics services, leading to unprecedented development in the logistics industry. Strong government support for the logistics industry is also a significant factor, with governments around the world introducing a series of policies to support the development of the logistics industry.
Challenges faced by the logistics market include adapting to rapidly changing consumer demands, managing the complexity of global supply chains, and reducing the carbon footprint of logistics. Moreover, logistics infrastructure in some regions is relatively backward, with a low proportion of modern facilities that cannot meet the requirements of modern logistics development, which is one of the challenges and difficulties facing the development of the logistics market. The lack of logistics talent is also a global issue, with many regions’ logistics industry markets facing problems and dilemmas due to a shortage of talent, which limits the development of the logistics market.
3 Technological Innovations in the Logistics Market
Technological innovation is a key driver of the development of the logistics market. The application of cloud computing and big data technology provides the logistics industry with powerful computing capabilities and efficient support for the storage, management, and analysis of big data.
The development of automation technology, including the automation of equipment and facilities in logistics operations such as transportation, loading and unloading, packaging, sorting, and identification, has improved the level of warehouse management and the degree of automation and efficiency of warehouse operations. The development of artificial intelligence technology, especially in the areas of vehicle-cargo matching in transportation management systems, unmanned logistics driving and distribution systems, and automatic input of logistics information, has brought revolutionary changes to the logistics industry.
In the competitive landscape of the logistics market, there are several leading companies that expand their geographical coverage and service range through strategic partnerships and acquisitions. For example, Maersk has completed the acquisition of Hong Kong-based LF Logistics, enhancing its contract logistics capabilities globally. Additionally, Deutsche Post DHL Group plans to acquire J.F. Hillebrand Group, a specialist in ocean freight forwarding, to strengthen its position in the dynamic ocean freight forwarding market. These merger and acquisition activities not only expand the service range of the companies but also enhance their competitiveness in the global logistics market.
4 Global Logistics Market Size by Type
Transportation: This segment is anticipated to be the largest contributor to the global logistics market in 2024, with a projected revenue of $6,988,816 million USD. Transportation accounts for the majority of the market share, reflecting its pivotal role in moving goods across different regions. The segment’s dominance is expected to continue due to the increasing demand for efficient and cost-effective transportation solutions, underpinned by the growth of global trade and e-commerce.
Forwarding: The forwarding segment is expected to generate a revenue of $286,370 million USD in 2024. This segment involves the organization and management of shipments between different modes of transport, ensuring the smooth flow of goods from origin to destination. Forwarding services are essential for multimodal logistics and contribute significantly to the overall efficiency of supply chains.
Warehousing: Warehousing is projected to reach a revenue of $1,091,366 million USD in 2024. This segment includes the storage and management of goods, providing essential inventory management services. The growth in warehousing is driven by the need for efficient storage solutions to support the increasing volume of goods in global trade and the rise of e-commerce.
Value-Added Services: This segment is expected to generate a revenue of $1,521,593 million USD in 2024. Value-Added Services encompass a range of services beyond basic transportation and storage, such as packaging, labeling, and other customized logistics solutions. The demand for these services is growing as companies seek to differentiate themselves and add value to their supply chains.
Lead Logistics Provider Services (4PL): The 4PL segment, which offers comprehensive supply chain solutions, is projected to reach a revenue of $85,889 million USD in 2024. 4PL providers manage the entire supply chain, from procurement to delivery, providing a single point of contact for customers seeking integrated logistics solutions.
Table Global Logistics Market Size and Share by Type in 2024
|
Type |
Market Size (M USD) 2024 |
Market Share 2024 |
|---|---|---|
|
Transportation |
6988816 |
70.07% |
|
Forwarding |
286370 |
2.87% |
|
Warehousing |
1091366 |
10.94% |
|
Value-Added Services |
1521593 |
15.26% |
|
Lead Logistics Provider Services (4PL) |
85889 |
0.86% |
5 Global Logistics Market Size by Application
Manufacturing: With a projected revenue of $3,826,813 million USD, manufacturing will continue to be a significant contributor to the logistics market. This sector’s reliance on efficient supply chain management and the global nature of manufacturing operations drive the demand for advanced logistics solutions.
Consumer Goods: This application is expected to generate a revenue of $2,912,004 million USD. The growth of e-commerce and the need for rapid and reliable distribution of consumer products have made consumer goods a key driver of the logistics market.
Retail: The retail sector is projected to reach $338,149 million USD in revenue. The shift towards online shopping and the need for efficient last-mile delivery have increased the demand for logistics services in the retail industry.
Food and Beverage: With a revenue of $830,196 million USD, this application is growing due to the need for temperature-controlled transportation and just-in-time delivery to meet consumer demand for fresh and perishable goods.
Healthcare: The healthcare sector is expected to generate $106,191 million USD in revenue. The need for secure and temperature-controlled transportation of pharmaceuticals and medical supplies has become increasingly important.
Government & Public Utilities: This application is projected to reach $469,780 million USD in revenue, driven by the need for efficient distribution of essential goods and services.
Banking & Financial Services: With a revenue of $242,916 million USD, this sector relies on logistics for the secure transportation of valuable goods and documents.
Table Global Logistics Market Size and Share by Application in 2024
|
Application |
Market Size (M USD) 2024 |
Market Share 2024 |
|---|---|---|
|
Manufacturing |
3826813 |
38.37% |
|
Healthcare |
106191 |
1.06% |
|
Aerospace |
75237 |
0.75% |
|
Consumer Goods |
2912004 |
29.20% |
|
Government & Public Utilities |
469780 |
4.71% |
|
Banking & Financial Services |
242916 |
2.44% |
|
Retail |
338149 |
3.39% |
|
Food |
830196 |
8.32% |
|
Beverage & Alcohol |
358580 |
3.60% |
|
Others |
814167 |
8.16% |
6 Global Logistics Market Size by Region
Asia Pacific: With a projected revenue of $4701449 million USD, Asia Pacific will maintain its position as the largest logistics market. The region’s rapid economic growth, particularly in China, and the expansion of e-commerce have significantly increased the demand for logistics services.
North America: Expected to generate $2365440 million USD, North America is a key region for logistics due to its mature market and the presence of major logistics companies.
Europe: The region is projected to reach $2071097 million USD in revenue. Europe’s well-developed infrastructure and strong manufacturing sector contribute to its significant share of the global logistics market.
South America: With a revenue of $495613 million USD, South America is experiencing growth in logistics due to increasing trade and the development of its manufacturing sector.
Middle East & Africa: This region is expected to generate $340434 million USD, with growth driven by the expansion of trade and the need for efficient logistics solutions in the region’s resource-rich economies.
Figure Global Logistics Market Size (M USD) by Region in 2024
7 Global Logistics Market Analysis by Major Players
7.1 United Parcel Service, Inc.
Company Introduction and Business Overview:
United Parcel Service, Inc., established in 1907 and headquartered in Atlanta, Georgia, is a global leader in the logistics industry, operating in more than 220 countries and territories. UPS is renowned for its integrated logistics solutions, including package delivery, freight forwarding, and supply chain management.
UPS is committed to providing innovative solutions to customers, large and small, and understands its responsibility to support safer, stronger, and more resilient communities through sustainable global practices. During the COVID-19 outbreak, UPS continued its operations, emphasizing the health and safety of its employees, customers, and suppliers.
Products:
UPS offers a range of logistics services, including ground freight, less-than-truckload (LTL), and full-truckload (FTL) services, ensuring reliable and on-time delivery across borders.
Market Performance in 2022:
In 2022, UPS reported a revenue of $102845 million USD and a gross of $22070 million USD, with a gross margin of 21.46%.
7.2 FedEx Corp
Company Introduction and Business Overview:
FedEx Corp, founded in 1971 and based in Memphis, Tennessee, is a global provider of express delivery, ground shipping, and logistics services. It has a vast network that spans across the world, making it one of the largest express delivery companies globally.
FedEx Corp has been at the forefront of serving customers and maintaining global connectivity, especially during the COVID-19 pandemic. The company leveraged its network and resources to quickly respond to the crisis, ensuring the delivery of essential supplies.
Products:
FedEx provides a variety of logistics solutions, including LTL freight shipping options, with services like FedEx Freight Priority, FedEx Freight Economy, and FedEx Freight Direct, catering to different customer needs.
Market Performance in 2022:
For the year 2022, FedEx Corp reported a revenue of $89225 million USD, a gross of $19318 million USD, and a gross margin of 21.65%.
7.3 Deutsche Post DHL Group
Company Introduction and Business Overview:
Established in 1995, Deutsche Post DHL Group is a global logistics company with a strong presence in more than 220 countries and territories. It operates under two strong brands, Deutsche Post and DHL, offering comprehensive solutions for communication and trade.
Deutsche Post DHL Group has been a pioneer in new technologies and CO2-neutral shipping. The company played a crucial role in overcoming the COVID-19 crisis by moving medicines, protective equipment, and medical equipment around the world.
Products:
The group offers a wide range of logistics services, including Warenpost International, which allows customers to send small format goods to over 220 countries and territories.
Market Performance in 2022:
In 2022, Deutsche Post DHL Group reported a revenue of $85326 million USD, a gross of $15840 million USD, and a gross margin of 18.56%.