On-Demand Warehousing Market Report 2025

The on-demand warehousing market size has grown rapidly in recent years. It will grow from $114.5 billion in 2024 to $130.92 billion in 2025 at a compound annual growth rate (CAGR) of 14.3%. During the historical period, growth was driven by the increasing complexity of peak-season and omnichannel fulfillment, higher consumer demand for faster delivery, the need for closer proximity to customers, mounting cost pressures on fixed warehouse facilities, and greater adoption of flexible logistics technologies and platforms.

The on-demand warehousing market size is expected to see rapid growth in the next few years. It will grow to $220.96 billion in 2029 at a compound annual growth rate (CAGR) of 14%. In the forecast period, growth is expected to be driven by increasing adoption of asset-light models and interest from third-party logistics providers, rising customer preference for pay-as-you-go solutions, the globalization of supply chains, growing demand for returns management and reverse logistics, and greater participation of small and mid-sized businesses in e-commerce. Key trends anticipated include improvements in supply chain visibility tools, integration of digital platforms and marketplaces, deployment of automation and robotics technologies, advancements in data analytics and predictive modeling, development of cloud-based warehouse management systems, and adoption of blockchain technology.

The growth of e-commerce is expected to drive the expansion of the on-demand warehousing market. E-commerce involves buying and selling goods or services online through digital platforms and electronic payments. Its growth is fueled by increased smartphone and internet penetration, allowing consumers to browse, compare, and purchase products conveniently from anywhere. On-demand warehousing supports e-commerce by offering flexible, short-term storage and fulfillment solutions that help businesses scale quickly and meet fluctuating customer demand without long-term commitments. For example, in February 2025, the US Census Bureau reported that e-commerce sales in Q4 2024 rose by 9.4% compared to Q4 2023, surpassing overall retail sales growth of 3.8% and representing 16.4% of total retail sales.

Companies in the on-demand warehousing market are developing solutions such as real-time inventory visibility to optimize operations, improve supply chain efficiency, reduce storage costs, and enable faster, more accurate order fulfillment. Real-time inventory visibility allows instant tracking and monitoring of stock levels across multiple locations for precise inventory management. For instance, in June 2024, Kinaxia Logistics Limited, a UK-based warehousing and transport company, launched a nationwide on-demand warehousing service. The service provides retailers, manufacturers, wholesalers, and importers with scalable storage and dispatch solutions during seasonal peaks, promotional events, or urgent storage needs, integrating warehousing, e-commerce fulfillment, and distribution for a more efficient logistics network.

In July 2022, Shopify Inc., a Canada-based e-commerce company, acquired Deliverr for $2.1 billion. This acquisition allows Shopify to integrate Deliverr’s on-demand warehousing and fulfillment capabilities, offering merchants a flexible, scalable logistics platform for inventory management, distribution, and rapid nationwide delivery. Deliverr Inc. is a US-based provider of on-demand warehousing services.

Major players in the on-demand warehousing market are Allcargo Logistics Ltd., Emiza Supply Chain Services Pvt. Ltd., ShipMonk Inc., Xpressbees Logistics Pvt. Ltd., ShipBob Inc., Stord Inc., Red Stag Fulfillment LLC, Flexe Inc., Murphy Warehouse Company Inc., Extensiv Inc., Saltbox Inc., CubeWork Logistics Inc., Waredock Estonia OÜ, Wareflex Inc., ZhenHub Technologies Ltd., MyWarehouse.online Inc., WareIQ Inc., Stockarea Inc., Flowspace Inc., and Darkstore Inc.

North America was the largest region in the on-demand warehousing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in on-demand warehousing report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the on-demand warehousing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the transport services sector by driving up costs for vehicles, spare parts, and fuel, key inputs often sourced from tariff-affected regions. Freight operators, logistics providers, and public transportation systems are facing squeezed profit margins as higher equipment and maintenance costs coincide with limited ability to pass on these expenses to customers due to competitive pressures. The uncertainty has also delayed fleet modernization and the adoption of greener, more efficient vehicles, slowing progress toward sustainability goals. To adapt, transport firms are optimizing route planning, investing in fuel efficiency technologies, renegotiating supplier contracts, and exploring collaborative logistics models to share costs and mitigate the impact of higher tariffs.

On-demand warehousing is a flexible logistics model that allows businesses to rent storage space and manage inventory as needed, avoiding the commitment of long-term warehouse ownership. This strategy enables companies to quickly adjust storage capacity, simplify inventory management, and reduce logistics expenses without investing in permanent infrastructure.

The main services within on-demand warehousing include storage and warehousing, fulfillment and distribution, inventory management, transportation and logistics, and packaging and labeling. Storage and warehousing involve securely holding products, materials, or goods until they are required for sale, distribution, or use. Warehouses can be dry, cold, or climate-controlled, and operations may be managed via cloud-based platforms or on-site systems. This solution serves both small and medium enterprises (SMEs) as well as large organizations across sectors such as manufacturing, retail and e-commerce, healthcare, food and beverages, automotive, and more.

The on-demand warehousing market research report is one of a series of new reports that provides on-demand warehousing market statistics, including the on-demand warehousing industry global market size, regional shares, competitors with the on-demand warehousing market share, detailed on-demand warehousing market segments, market trends, and opportunities, and any further data you may need to thrive in the on-demand warehousing industry. This on-demand warehousing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The on-demand warehousing market includes revenues earned by entities by providing services such as platform subscriptions, real-time warehouse booking services, value-added services, data analytics, and consultancy. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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