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United States Contract Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2019 - 2029

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  • 150 Pages
  • February 2024
  • Region: United States
  • Mordor Intelligence
  • ID: 5012788
The United States Contract Logistics Market size is estimated at USD 139.86 billion in 2024, and is expected to reach USD 168.21 billion by 2029, growing at a CAGR of 3.76% during the forecast period (2024-2029).

Key Highlights

  • The COVID-19 pandemic caused lockdowns all over the world. Business stopped, and the economy was put to the test. The market was thrown off by huge changes to operations, supply chains, regulations, and the number of workers needed.Later, after restrictions eased, the increasing e-commerce sales in the country recovered the contract logistics market.
  • Moreover, the country is the biggest contributor to the contract logistics market in North America. The growth in the market is driven by the increasing demand for integrated services and the advanced implementation of IoT and logistic automation. In addition, the retail sector is one of the major end users of the market, followed by the high-tech and automotive industries.
  • In the meantime, most of the market players are focusing on adding autonomous elements to their existing infrastructure and systems to change the fulfillment process without disrupting the supply chain. This is to meet the growing demand from end users. Contract logistics companies are also getting more productive by using technologies like drones, robots, augmented reality, and virtual reality in their work. Thus, the increasing retail and e-commerce sales and the adoption of innovative technologies will drive the contract logistics industry in the country.

US Contract Logistics Market Trends

Growth of Optimized Warehousing Network

In the United States, the warehouse network is growing quickly. This is mostly because retail sales are going up and more people are buying things online.Also, the demand for same-day delivery is growing, so companies are getting rid of geographical barriers by setting up warehouses and distribution centers in smart ways to cut down on the time and cost of the distribution process.Companies are putting a lot of effort into using new technology in these warehouses and making new tools to speed up the flow of products.

Also, to meet the growing demand for warehouse space, major logistics companies like DHL, Ceva Logistics, FedEx, etc. are investing in technology in the network of supply. This includes updated automated material handling machines, vision systems, robots that help move goods, and temperature-controlled frozen storage space.

Meanwhile, in 2022, the growing inventories were expected to create a need for more than 500 million square feet of warehouse space in the country. Southern California also became a hub for the warehousing industry. The Inland Empire warehouse, which is in this area, is one of the busiest warehouses in the country and has one of the lowest vacancy rates on record. So, the growth of the contract logistics market is helped by the fact that the country has a strong network of warehouses. In addition, since 2010, the number of warehousing and storage businesses grew at an increasing rate every year. Also in 2021, there were more than 20,000 storage and warehousing businesses, which was a 4% increase from the year before.

Increasing E-commerce Sales are Driving the Market Growth

Consumer shifts toward new and hybrid shopping patterns were the primary drivers of 2022's significant growth in e-commerce sales.In addition, big retailers such as Amazon.com Inc. and Walmart Inc. benefited from this consumer buying pattern. Meanwhile, e-commerce is driving rapid transformation in the retail sector. According to the United States Census Bureau of the Department of Commerce, in Q3 2022, the share of e-commerce in total retail sales registered at 14.8%, which is up by 3% when compared to Q2 2022.

Moreover, the Census Bureau of the Department of Commerce will report on retail e-commerce sales in the country in the third quarter of 2022. In Q3 2022, the total e-commerce sales in the country amounted to USD 265.9 billion, representing a growth rate of 3% from the second quarter of 2022. Also, retail sales for the third quarter were worth USD 1,792 billion, which is 0.7% more than the previous quarter of the same year.

Furthermore, in Q3 2022, the fastest-growing category of e-commerce sales was clothing and general merchandise, including clothing and clothing accessories, followed by furniture, building materials, and electronics. In addition, the e-commerce sales generated by clothing and general merchandise were more than USD 42.4 billion, which was up by more than 39% when compared to Q3 2021. Thus, the growing e-commerce and retail sales create a huge opportunity for contract logistics services across the country.

US Contract Logistics Industry Overview

The market is fragmented, with DHL Supply Chain, XPO Logistics, Kuehne + Nagel, and CEVA Logistics as its major players. The technological advancements in the market, like logistic automation and IoT, the use of sensors and UAV for the detection of human-made damages on the tracks, and AI in delivery and logistics, have modernized the industry. The concept of the final mile is driving the companies to focus on mergers and collaborations that not only help them expand globally but also enhance their service quality holistically. The market is relatively fragmented, with a large number of local and international players.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain / Supply Chain Analysis
4.5 Insights on Industry Policies and Regulations
4.6 Insights on Technological Integration
4.7 Insights on E-commerce Industry in the Region (Domestic and Cross-border)
4.8 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-Added Services)
4.9 Spotlight - Freight Transportation Costs/Freight Rates
4.10 Impact of COVID-19 on the Contract Logistics Market
5.1 By Type
5.1.1 Insourced
5.1.2 Outsourced
5.2 By End-User
5.2.1 Manufacturing and Automotive
5.2.2 Consumer Goods and Retail
5.2.3 High-tech
5.2.4 Healthcare and Pharmaceuticals
5.2.5 Other End-Users(Energy, Construction, Aerospace, etc.)
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 XPO Logistics
6.2.2 Kuehne + Nagel
6.2.3 DHL Supply Chain North America
6.2.4 Ryder Supply Chain Solutions
6.2.5 Hub Group
6.2.6 FedEx Logistics
6.2.7 GXO Logistics
6.2.8 UPS
6.2.9 GAC United States
6.2.10 GEODIS
6.2.11 Hellmann Worldwide Logistics
6.2.12 DB Schenker
6.2.13 Burris Logistics*

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • XPO Logistics
  • Kuehne + Nagel
  • DHL Supply Chain North America
  • Ryder Supply Chain Solutions
  • Hub Group
  • FedEx Logistics
  • GXO Logistics
  • UPS
  • GAC United States
  • Hellmann Worldwide Logistics
  • DB Schenker
  • Burris Logistics*