The contract logistics market is set to grow from its current market value of more than $281.4 Billion to over $593.9 Billion by 2032; as reported in the latest study by Global Market Insights, Inc.
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The industry growth is driven by the globalization of trade and expansion of supply chains across several regions. Additionally, rapid advancements in technology, such as the adoption of automation, robotics, and data analytics, have revolutionized the contract logistics, enhancing operational efficiency, optimize inventory management, and enable real-time tracking and visibility throughout the supply chain. In March 2022, CEVA Logistics, a global leader in third-party logistics, collaborated with Kodiak Robotics, Inc., a leading self-driving trucking company, to supply freight autonomously between Dallas Fort-Worth to Austin and Oklahoma City.
The exponential growth of online retailing has resulted in a surge in demand for warehousing, fulfillment, and last-mile delivery services. Contract logistics providers help in meeting the evolving needs of e-commerce businesses by offering tailored solutions to manage inventory, process orders, and ensure timely delivery to end customers. Moreover, the emphasis on sustainability and environmental responsibility, along with the companies seeking eco-friendly logistics solutions to minimize their carbon footprint will favor the industry growth.
Automotive segment is poised to grow at substantial rate during 2023-2032, favored by the increasing complexity of automotive supply chains, characterized by diverse components. Contract logistics providers help in managing the intricate network of suppliers, manufacturers, and distributors, ensuring seamless coordination and efficient delivery of automotive parts, and finished vehicles. The shift towards electric and autonomous vehicles introduces new logistical challenges, such as battery transportation and specialized handling requirements, further drive demand for contract logistics expertise.
Waterways segment is slated to record high demand through 2032, owing to the inherent efficiency and cost-effectiveness of transporting goods via water routes. With larger cargo capacities and lower fuel consumption compared to road or air transport, waterway logistics offer a sustainable and economical solution for bulk shipments. Moreover, the expansion of inland waterway networks and the development of multimodal transportation hubs enhance the accessibility and connectivity of water routes, facilitating seamless integration with contract logistics operations.
North America contract logistics market will register a strong CAGR through 2032, attributed to the resurgence of manufacturing activities and the revival of domestic production in key industries such as automotive, aerospace, and electronics. Additionally, the rapid expansion of e-commerce and the proliferation of online retail platforms highlight the need for efficient and flexible logistics solutions to support the growing volume of shipments. The extensive network of transportation infrastructure, including highways, railways, and ports, facilitates seamless connectivity and efficient distribution of goods, further bolstering the regional industry growth.
The major players involved in contract logistics market are DSV, A.P. Moller – Maersk, XPO, Inc., CJ Logistics Corporation, DHL Supply Chain, Kuehne+Nagel, and DB Schenker.
Source: https://www.gminsights.com/industry-analysis/contract-logistics-market
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