Contract Logistics Market Size Worth $298.82 Billion by 2025 at 5.0% CAGR with Insourcing logistics Segment Driving Growth During 2018-2025 | Report by The Insight Partners


Asia-Pacific dominated the contract logistics market, due to swift growth of manufacturing industry & their focus laid on core competencies and Enhanced focus on risk management in the supply chains and increasing collaborations.

Pune, India, July 20, 2023 (GLOBE NEWSWIRE) — The Insight Partners published latest research study on “Contract Logistics Market Size Report, Share, Revenue, Growth Strategy, Industry Trends and Forecast to 2025 – COVID-19 Impact and by by Type, Services, End-User, and Geography”, the contract logistics market was valued at US$ 203.93 billion in 2017 and is projected to reach US$ 298.82 billion by 2025; it is expected to grow at a CAGR of 5.0% from 2018 to 2025. The exponential growth of e-commerce, and expansion in the e-commerce industry. However, the poor infrastructure for logistics is expected hinder the growth of the market.


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Global Contract Logistics Market Analysis: Competitive Landscape and Key Developments

Deutsche Post AG, XPO Logistics Inc., Kuehne + Nagel International AG, CEVA Logistics AG, DB Schenker, Hitachi Transport System Ltd, Geodis, Neovia Logistics Services, UPS Supply Chain Solutions, and Ryder System are a few of the key companies operating in the contract logistics market. The market leaders focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.

In September 2020, Bureau of Reproductive Health, Department of Health, Ministry of Public Health, and Bayer Thai Co., Ltd., join a collaboration international campaign to reduce unplanned pregnancies among Thai teens as well as promote awareness of effective birth control methods to improve quality of life on World Contraception Day 2020.

In 2018, DHL declared its plan to provide the latest technologies by investing USD 300 million across 350 of its 450 sites in North America, thus, providing customers with an end-to-end visibility solution called “MySupplyChain.

In August 2018, Luye Pharma Group Ltd. agreed to acquire the global rights to hormonal contraceptive Apleek from Bayer AG.

China has emerged as a leader in the global contract logistics market, showcasing significant growth and exerting a considerable influence on the industry. Several factors contribute to China’s leadership in the market. China’s position as the world’s most populous country and its rapid economic growth have created a massive consumer market and a thriving manufacturing base. The country’s manufacturing sector is renowned for its scale and diversity, encompassing industries such as electronics, automotive, textiles, and more. This has resulted in a high demand for contract logistics services to manage the transportation, warehousing, and distribution of goods within China and across international borders. Additionally, China’s strategic geographical location makes it a crucial logistics hub, serving as a gateway between Asia and the rest of the world. The country’s extensive transportation infrastructure, including ports, airports, rail networks, and highways, facilitates efficient movement of goods domestically and internationally. Contract logistics providers in China leverage this infrastructure to offer seamless logistics solutions, serving both domestic and global clients.

China’s e-commerce market has experienced explosive growth, bolstered by a large and digitally savvy population. The country boasts some of the world’s largest e-commerce platforms, such as Alibaba’s Taobao and, driving substantial online retail activities. This has led to a surge in demand for contract logistics services to support e-commerce operations, including warehousing, fulfillment, and last-mile delivery. Contract logistics providers in China have capitalized on this trend, offering specialized e-commerce logistics solutions to cater to the unique needs of online retailers. Furthermore, China’s government policies and initiatives have played a significant role in shaping the contract logistics market. The Belt and Road Initiative (BRI), for instance, aims to strengthen trade and connectivity between China and countries across Asia, Europe, and Africa. This initiative has facilitated increased trade flows, cross-border investments, and infrastructure development, generating opportunities for contract logistics providers to expand their operations and establish strategic partnerships. China’s leadership in the contract logistics market is further enhanced by its local logistics players, who possess a deep understanding of the country’s business environment, regulations, and cultural dynamics. These local providers offer a wide range of logistics services tailored to the specific needs of domestic and international clients, solidifying China’s position as a key player in the global contract logistics industry.

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Increasing adoption of Artificial Intelligence in Contract Logistics Operations Provides Lucrative Opportunities for Contract Logistics Market:

The increasing adoption of artificial intelligence (AI) in contract logistics operations presents a significant opportunity for the growth of the contract logistics market. AI technologies are revolutionizing logistics companies’ operations, improving efficiency, cost savings, and enhancing customer experiences.
Demand forecasting and inventory management are key areas where AI is making a substantial impact. AI algorithms can analyze vast amounts of historical data, market trends, and other relevant factors to predict demand patterns and optimize inventory levels accurately.

This capability helps logistics providers minimize stockouts, reduce excess inventory, and streamline their supply chains, resulting in cost savings and improved customer satisfaction. Another area where AI is beneficial is route optimization and transportation planning. By leveraging real-time data, including traffic conditions, weather forecasts, and delivery schedules, AI algorithms can generate optimized vehicle routes and schedules. This reduces transportation costs and enhances efficiency by minimizing empty miles and improving on-time delivery performance. Additionally, AI can dynamically adjust routes to changing conditions, such as traffic congestion, accidents, or road closures, further improving operational agility. AI-powered analytics also play a crucial role in contract logistics operations. By analyzing large datasets, AI algorithms can identify patterns, trends, and anomalies that human analysts may miss. These insights enable logistics companies to make data-driven decisions, optimize resource allocation, and proactively address potential bottlenecks or disruptions.

AI can also help automate repetitive and time-consuming tasks, such as data entry and document processing, releasing human resources for more strategic and value-added activities. The AI technologies enable enhanced visibility and transparency throughout the supply chain. Through IoT devices and sensors, coupled with AI-powered analytics, logistics providers can gain real-time insights into the location, condition, and status of goods in transit. This increased visibility helps improve supply chain traceability, ensuring compliance with regulations and mitigating risks associated with theft, damage, or delays. Adopting AI in contract logistics operations offers numerous benefits, including improved efficiency, cost savings, better resource utilization, enhanced customer service, and increased supply chain visibility. As logistics companies recognize these advantages, they increasingly invest in AI solutions to optimize their operations. This growing adoption of AI is expected to drive the growth of the contract logistics market as companies seek to remain competitive in a rapidly evolving industry landscape.

Global Contract Logistics Market: Segmental Overview

Based on type, the contract logistics market is segmented into outsourcing and insourcing. The insourcing segment held the largest share of the market in 2020 and is anticipated to register the highest CAGR in the market during the forecast period. Based on services, the market is segmented into transportation, warehousing, packaging processes and solutions, distribution, production logistics, aftermarket logistics, and others. The transportation segment held the largest share of the contract logistics market in 2020, whereas the warehousing segment is anticipated to register the highest CAGR in the market during the forecast period. Based on end-user, the contract logistics market is segmented into aerospace, automotive, consumer, high- tech, industrial, pharma & healthcare, retail, and others. The retail segment held the largest share of the market in 2020, whereas the automotive segment is estimated to register the highest CAGR in the market during the forecast period.

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