The logistic services market size is projected to reach US$ 1,900.62 billion by 2031 from US$ 1257.69 billion in 2023. The market is expected to register a CAGR of 5.3% in 2023–2031. The growing demand for outsourcing logistics service operations with improved supply chain processes to reduce operational costs has created massive demand for the logistics services market growth. Also, the rising adoption of third-party logistics and fourth-party logistics providers has boosted the demand for the logistics service market globally. Currently, the leading logistics providers include freight forwarders, freight management companies, logistic consulting companies, inventory and storage management service providers, supply chain consultancy, and others.
Also, the rising adoption of advanced technology-based telematic solutions by logistics companies is driving market growth. The logistic services offer several operations such as real-time tracking, parcel tracking and monitoring, and warehouse planning is expected to drive the logistic services market growth. The global logistics services market is highly fragmented owing to the surge in the rapid advancement of the e-commerce industry at a rapid pace.
Logistic Services Market Analysis
Logistics services include first and second-party logistics providers, third-party logistics (3PL), Fourth Party Logistics, and Fifth Party Logistics. Logistic services are an essential part of supply chain management. Fourth-party logistics services deliver products to the end-customers and grow profit margins. Logistics services include all the elements of the supply chain, from the delivery of goods from the factories to the end consumers. They consist of the transportation of goods from manufacturer to warehouse, warehouse to distributors, customer order fulfillment, and delivery to the end users. 3PL facilitates all the logistics services as part of order fulfillment. Logistics services include transport from the factory to the fulfillment warehouses, warehousing order fulfilments, outbound shipping, and order delivery from and to the customers.
Logistic Services Market Overview
Logistics service transportation includes airways, railways, waterways, and roadways transportation. Among these, roadways transportation has the largest share in 2023, and this is owing to the increasing rapid adoption of the e-commerce industry at the global level. Also, waterways transportation involves the movement of goods and passengers through rivers, lakes, canals, and coastal waters. Water transport is cost-effective for the transportation of large volumes of goods for a long distance, and it has a high column carrying capacity compared to roadways and airways. Rapid industrialization growth in globalization with the surge in import and export activities across the globe are major driving factors for the logistic services market growth during the forecast period. Such factors are driving the logistic services market growth during the forecast period.
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Logistic Services Market: Strategic Insights
Market Size Value in US$ 1,122.6 Billion in 2018 Market Size Value by US$ 2,029.4 Billion by 2027 Growth rate CAGR of 6.9% from 2019-2027 Forecast Period 2019-2027 Base Year 2019
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Logistic Services Market: Strategic Insights
| Market Size Value in | US$ 1,122.6 Billion in 2018 |
| Market Size Value by | US$ 2,029.4 Billion by 2027 |
| Growth rate | CAGR of 6.9% from 2019-2027 |
| Forecast Period | 2019-2027 |
| Base Year | 2019 |
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Logistic Services Market Drivers and Opportunities
Rapid Growth in E-commerce Industry Drives the Logistics Services Market Growth
The e-commerce sector mostly depends on logistics services to manage the goods deliveries to the end customers. The increased demand for online shopping across the globe, along with the surge in internet penetration across the globe, is a major driving factor for the logistics services market growth during the forecast period. The e-commerce industry sales in the US reached around US$ 1.119 trillion in 2023, increased by 7.6% compared to US$ 1.03 trillion in 2022. Meanwhile, retail e-commerce sales reached US$ 5.088 trillion in 2023, increased by 3.8% compared with US$ 4.904 trillion in 2022. This rapid growth in the e-commerce industry, owing to the growing number of e-commerce consumers across the globe, drives the logistics services market growth during the forecast period. With the continuous expansion of the e-commerce sector, the demand for last-mile delivery logistic services also increased. The major sectors that drive the logistic services market growth include retail, pharmaceuticals, food & beverages. Moreover, fast-moving consumer goods sector products are also majorly contributing to the growth of the logistic services market growth during the forecast period.
Rising digitization and increased adoption of automation
The logistics sector is responsible for the management of the supply chain in the manufacturing sector. It involves the transportation of goods, services, and related products. The logistics industry is experiencing a significant demand with rapid digitization and adoption of automation. Logistic services providers are increasingly adopting technologies such as artificial intelligence, the internet of Things (IoT), Machine learning, and robotics to streamline logistic operations an improve transportation efficiency. This includes warehouse automation, robotics implementation, predictive analysis, autonomous vehicles, and others.
Logistic Services Market Report Segmentation Analysis
Key segments that contributed to the derivation of the logistic services market analysis are type, platform, application, and end-user.
- Based on the mode of transportation, the global logistics services market is divided into roadways, waterways, rail, and airways.
- Based on logistics providers, the market is divided into First- & Second-Party Logistics, Third-Party Logistics, Fourth-Party Logistics, and Fifth-Party Logistics.
- Based on end-users, the global logistics services market is divided into government & public utilities, healthcare, industrial manufacturing, retail & consumer goods, aerospace & defense, and others.
Logistic Services Market Share Analysis by Geography
The geographic scope of the logistic services market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South America.
The North American logistics services market is expected to have the largest share and is growing at a rapid pace during the forecast period. Primarily logistics services industry is growing at a rapid pace owing to the increased growth of the e-commerce industry. Countries such as the US and Canada have a significant presence of major logistics service providers, including UPS, FedEx, DHL, and C.H. Robinson. The region gained substantial demand owing to a high degree of trade activities facilitated by the United States-Mexico-Canada Agreement (USMCA). Moreover, the region also has the presence of several advanced technologies, such as artificial intelligence, big data, cloud computing, and the Internet of Things.
Logistic Services Market Report Scope
Logistic Services Market News and Recent Developments
The logistic services market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for Logistic Services market and strategies:
- On January 2023, Amazon.com Inc. launched Amazon Air, an air cargo fleet service in India. This service was launched to meet the growing e-commerce sector demand. The e-commerce company partnered with Quikjet India’s Bengaluru-City-based airline cargo service provider firm with an aim to speed up its parcel delivery. (Source: DJI, Press Release/Company Website/Newsletter)
- In March 2023, A.P. Moller-Merks, the logistics company, launched an air freight service between Billund, Denmark, and Hangzhou, China. The new logistic service was launched to respond to growing customer demand. (Source: Flyability, Press Release/Company Website/Newsletter)
Logistic Services Market Report Coverage and Deliverables
The “Logistic Services Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles with SWOT analysis
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Mode of Transportation ; Logistics Providers ; End-users
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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