Contract Logistics Global Market Report 2025

The contract logistics market size has grown strongly in recent years. It will grow from $336.26 billion in 2024 to $367.98 billion in 2025 at a compound annual growth rate (CAGR) of 9.4%. The growth in the historic period can be attributed to increasing globalization of trade and manufacturing networks, rising outsourcing of non-core logistics operations, growing consumer demand for diverse product availability, expansion of international retail and e-commerce distribution, surge in cross-border transportation and warehousing activities, and increasing focus on cost optimization and supply chain efficiency.

The contract logistics market size is expected to see strong growth in the next few years. It will grow to $521.11 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. The growth in the forecast period can be attributed to rising demand for sustainable and green logistics solutions, increasing need for flexible and scalable logistics operations, expansion of retail and e-commerce fulfillment requirements, growing cross-industry collaboration for integrated logistics services, surge in demand for value-added warehousing and packaging services, and heightened focus on risk management and supply chain resilience. Key trends in the forecast period include technological advancements in real-time supply chain visibility solutions, innovations in automation and robotics for warehouse operations, development of predictive logistics planning and demand forecasting, growth of digital freight management platforms, research in sustainable packaging and logistics materials, and innovations in data-driven performance monitoring and optimization systems.

Rising demand for warehousing and distribution services is expected to drive the growth of the contract logistics market in the coming years. Warehousing and distribution services involve the storage, handling, and transportation of goods efficiently from manufacturers or suppliers to end customers. This demand is increasing due to the rapid expansion of e-commerce, which requires extensive storage, inventory management, and last-mile delivery infrastructure to fulfill online orders. Contract logistics enhances these services by streamlining storage, inventory, and delivery operations through specialized, cost-efficient, and scalable management solutions. For example, in February 2024, the US Census Bureau reported that total US retail e-commerce sales for 2023 were estimated at $1.11 trillion, reflecting a 7.6 percent increase from 2022. Therefore, the rising demand for warehousing and distribution services is driving the growth of the contract logistics market.

Key companies in the contract logistics market are focusing on integrating advanced technologies to transform operations, improve visibility, efficiency, and fulfillment speed. Digital integration platforms unify systems such as warehousing, order management, and customer service, enabling real-time inventory tracking, automated order routing, and data-driven optimization. For instance, in June 2025, GXO Logistics Inc., a US-based contract logistics company specializing in warehousing, fulfillment, and value-added supply chain services, launched the Enhanced GXO Direct, a digitally integrated fulfillment solution for mid-sized brands. The platform offers real-time order visibility, seamless connection between warehousing and commerce systems, and automation-driven workflow management, improving operational flexibility, onboarding speed, and cost efficiency across shared-warehousing environments.

In April 2025, DSV A/S, a Denmark-based transport and logistics provider, acquired DB Schenker for approximately EUR 14.3 billion. Through this acquisition, DSV gains access to DB Schenker’s extensive global contract logistics network, advanced warehousing infrastructure, and end-to-end supply chain management expertise across more than 90 countries, thereby strengthening its logistics services capabilities and expanding operational scale and customer reach. DB Schenker is a Germany-based provider of freight forwarding and contract logistics services, known for its integrated logistics solutions and robust multimodal transport network spanning air, ocean, road, and warehousing operations.

Major players in the contract logistics market are DHL Group, United Parcel Service Inc., FedEx Corporation, CMA CGM Group, SNCF Group, CJ Group, Kuehne + Nagel International AG, DSV A/S, Nippon Yusen Kabushiki Kaisha (through Yusen Logistics Co. Ltd.), C.H. Robinson Worldwide Inc., Nippon Express Holdings Inc., Sinotrans Limited, J.B. Hunt Transport Services Inc., GXO Logistics Inc., Expeditors International of Washington Inc., Kintetsu World Express Inc., Lineage Inc., Logisteed Ltd., Hellmann Worldwide Logistics SE & Co. KG, Bolloré Group.

Asia-Pacific was the largest region in the contract logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in contract logistics report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the contract logistics 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.

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

Contract logistics refers to the outsourcing of a company’s logistics operations, such as warehousing, transportation, and order fulfillment, to a specialized service provider under a long-term agreement. In this model, the logistics partner manages functions including planning, storage, inventory control, and distribution, working closely with the company to deliver efficient and customized supply chain solutions. This approach helps businesses reduce operational costs, enhance efficiency, access expert resources, and focus more on their core activities.

The key types of contract logistics are insourcing and outsourcing. Insourcing refers to the process where a company manages logistics activities using its own facilities, workforce, and resources rather than relying on external providers. The services offered include warehousing, transportation, distribution, aftermarket services, and others, through various transportation modes such as railways, airways, roadways, and waterways. These services are used by a range of end-users, including automotive, aerospace and defense, high-tech, healthcare, and e-commerce sectors.

The contract logistics market includes revenues earned by entities by providing services such as inventory management, packaging and labelling, order processing, shipment tracking, route optimization, and last-mile delivery. 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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