Europe Contract Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 292.77 Billion |
| Market Size (2029) | USD 342.11 Billion |
| CAGR (2024 - 2029) | 3.23 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
Europe Contract Logistics Market Analysis
The Europe Contract Logistics Market size is estimated at USD 292.77 billion in 2024, and is expected to reach USD 342.11 billion by 2029, growing at a CAGR of 3.23% during the forecast period (2024-2029).
- Europe’s outlook for 2024 is of gradual recovery. As prices fall and wages rise, European consumers are beginning to regain purchasing power, which will boost domestic demand. The strength of this recovery will vary across countries. Manufacturing and energy-intensive economies will recover more slowly than others. In advanced European economies, growth is projected to decline to 0.7% this year before some pickup in 2024 and 2025. In emerging European economies (except Russia, Ukraine, and Turkey, and Belarus), it is expected to recover from a decline of 4.5% in 2021 to 1.1% in 2025 and to recover to 2.9% in 2024.
- Inflation is projected to fall, driven by lower energy prices and loosening supply chain constraints. It is projected to average 5.8% in advanced European economies this year and to fall to 11.9% by 2025. Most countries will fall short of their inflation targets by 2025. The cost of logistics in Europe accounts for 11 to 12% of the European economy's GDP.
- Germany's central location in the middle of Europe and highly skilled logistics services provide ideal conditions for international shippers to succeed in European markets. Germany provides easy access to the EU's 500 million consumers. Germany's skilled workforce is attractive for international companies wanting to invest in the German logistics sector or consider setting up a local branch. About 70% of Germany's foreign trade and related goods and freight traffic takes place within Europe. The major European trading partners include France (with imports and exports of €170 billion (USD 185.90 bn) and the Netherlands (with exports of USD 167 billion (USD 182.62 billion)). The biggest destination for logistics outside Europe is Asia, followed by America. Many companies are opening warehouses to expand their business in Germany.
- For instance, in June 2023, GXO announced its plans to "deepen" its presence in Germany. As a first step, GXO will construct a new 587,000-square-foot warehouse in the Dormagen area to showcase its cutting-edge warehousing solutions. GXO has only six warehouses in Germany, compared with 700 in Europe and the United Kingdom and 300 in North America.
- For instance, In July 2023, Geopost and JD Logistics announced a strategic partnership to strengthen global logistics capabilities. By combining JDL's strong warehousing network with Geopost's logistics delivery capabilities, this partnership will expand international express services from China to Europe, providing consumers and businesses with high-quality express logistics solutions. JDL and Geoopost will create seamless C2C (direct-to-consumer) and B2C (business-to-consumer) shipping solutions from China to Europe in both directions. This new partnership will provide comprehensive end-to-end shipment tracking and delivery, with a convenient ‘one-stop’ express delivery service that includes doorstep delivery and dedicated customer support, as well as state-of-the-art digital tracking throughout the logistics process.
Europe Contract Logistics Market Trends
Outsourced Contract Logistics Market to Register Significant Growth
The outsourcing share of contract logistics is low, showing clear growth potential. Globally, the share of contract logistics in the total market is only 10-15%. In Europe, this proportion is estimated at around 20%. The extent of outsourcing varies greatly from country to country. Transportation and storage services are generally outsourced to a large extent.
E-commerce is expected to be a major driver of outsourcing growth. As the e-commerce market grows rapidly, so do consumer expectations for faster and more reliable delivery. As a result, outsourcing of warehousing and order processing is expected to increase. Contract logistics offers e-commerce companies of all sizes the following benefits: Business manageability, advanced technology solutions, risk mitigation, and scalability.
Contract logistics companies provide services to online businesses and help enter new markets by making good use of global networks. They also help move closer to customers by offering a choice of delivery options, taking care of customs and value-added tax (VAT) services, and more.
Contract logistics companies offer specialized services for businesses that manufacture consumer electronics, telecommunications devices, computer equipment, or other high-tech products. They help these businesses reduce inventory, lower distribution costs, and launch new products.
United Kingdom is dominating the region
The United Kingdom is the third biggest e-commerce market globally after China and the United States.
The United Kingdom is on track to become a digital economy as online shopping and online payments soar. The UK E-commerce market is one of Europe’s largest and fastest-growing. In 2023, UK households are expected to spend approximately GBP 120 billion (USD 152.54 billion) on e-commerce, growing at an annual rate of 8.8%.
Retail e-commerce is one of the fastest-growing retail trends in the world. Over the past decade, online shopping has become the UK’s most popular retail channel. While e-commerce sites have existed for decades, they’ve only recently started to gain traction. The growth of online shopping in the UK has been staggering to keep up with global trends. As a result, there’s a huge demand for contract logistics services.
In November 2023, EV Cargo invested in technology-driven supply chains and built a distribution network with a world-leading control tower system. EV Cargo, a global freight forwarding company and global supply chain services provider, has won new UK contracts for three new customers in road freight and warehousing, as well as contract logistics. EV Cargo has completed a strategic resource review of its UK fleet in response to wider market conditions that have affected the UK logistics industry over the past three years. The company has incorporated technology to drive efficiencies and improve agility.
Europe Contract Logistics Industry Overview
The prominent players in the market include Deutsche Post DHL Group, Schenker AG (DB Schenker), Ceva Logistics, DSV AS, and SNCF Logistics/Geodis. These players based in Europe have a significant presence across the world. Even though these major players have a strong footprint across the region and account for significant market share, the market is still fragmented to some extent, with many players providing contract logistics services at different levels.
It is necessary for companies to make sure they are constantly evolving to match the industry trends. This is likely to help them gain a stronger foothold by attracting new customers.
Most major companies are based out of the Western European region. The number of local contract logistics providers in the CEE region is comparatively lower. This is an opportunity for the existing local logistics players in the CEE region to enter the contract logistics market and gain significant market share.
Europe Contract Logistics Market Leaders
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Deutsche Post DHL Group
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Kuehne + Nagel International AG
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DB Schenker
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CEVA Logistics
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SNCF Logistics/Geodis
*Disclaimer: Major Players sorted in no particular order
Europe Contract Logistics Market News
- May 2024: Omoda and Jaecoo UK, brands under China's Chery Automobile Co., have inked a multi-year warehousing deal with DHL Supply Chain, marking their foray into the UK market. Under this agreement, DHL will manage aftermarket services for both brands, housing spare parts, accessories, and notably, batteries for their electric and hybrid vehicle lines.
- September 2023: JLR and DHL, in a continuation of their 15-year partnership, have inked a three-year transport contract extension. The highlight of this renewal is DHL's bold commitment to transition its entire UK core fleet, operating within JLR, to alternative fuels by April 2024. Not to be outdone, JLR is also making the shift to alternative fuels in its UK fleet. These combined efforts are projected to slash carbon emissions by an impressive 84%, equating to a yearly reduction of over 8,000 tonnes of CO2e. This joint move towards alternative fuels underscores the shared environmental aspirations of both entities. Aligned with its Reimagine strategy, JLR is targeting a 46% reduction in CO2e emissions across its SBTi scope 1 and 2, and an even more ambitious 54% reduction in its SBTi scope 3 emissions by 2030. These milestones pave the way for JLR's ultimate goal: achieving carbon neutrality by 2039.
Europe Contract Logistics Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Current Market Scenario
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4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.1.1 Increased Outsourcing of Services
- 4.2.1.2 Increasing Demand For Contract Logistics In Italy, France, And Poland
- 4.2.2 Restraints
- 4.2.2.1 Increasing Competition In The European Contract Logistics Market
- 4.2.2.2 Regulatory Compliance
- 4.2.3 Opportunities
- 4.2.3.1 Pooled Warehousing
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
- 4.4 Value Chain / Supply Chain Analysis
- 4.5 Government Regulations and Initiatives
- 4.6 Technological Trends
- 4.7 Insights into the E-commerce Industry in the Region (Domestic and Cross-border)
- 4.8 Insights into Contract Logistics in the Context of After-sales/Reverse Logistics
- 4.9 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-added Services)
- 4.10 Spotlight on Freight Transportation Costs/Freight Rates
- 4.11 Insights into Effects of Brexit on the European Logistics Industry
- 4.12 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
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5.1 By End User
- 5.1.1 Industrial Machinery and Automotive
- 5.1.2 Food and Beverage
- 5.1.3 Construction
- 5.1.4 Chemicals
- 5.1.5 Other Consumer Goods
- 5.1.6 Other End Users
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5.2 By Country
- 5.2.1 Germany
- 5.2.2 United Kingdom
- 5.2.3 Netherlands
- 5.2.4 France
- 5.2.5 Italy
- 5.2.6 Spain
- 5.2.7 Poland
- 5.2.8 Belgium
- 5.2.9 Sweden
- 5.2.10 Rest of the Europe
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (Market Concentration and Major Players)
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6.2 Company Profiles (including Merger and Acquisition, Joint Ventures, Collaborations, and Agreements)
- 6.2.1 Deutsche Post DHL Group
- 6.2.2 XPO Logistics
- 6.2.3 Schenker AG (DB Schenker)
- 6.2.4 CEVA Logistics
- 6.2.5 SNCF Logistics/Geodis
- 6.2.6 DSV AS
- 6.2.7 Neovia Logistics Services
- 6.2.8 GEFCO SA
- 6.2.9 United Parcel Service Inc. (UPS Supply Chain Solutions)
- 6.2.10 Rhenus SE & Co. KG
- 6.2.11 Bertelsmann SE & Co. KGaA (Arvato)
- 6.2.12 FIEGE Logistik Stiftung & Co. KG*
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6.3 Other Companies (Key Information/Overview)
- 6.3.1 Expeditors International, United Parcel Service Inc., Bollore Logistics, Hellmann Worldwide Logistics GmbH & Co. KG, Agility Logistics Pvt. Ltd, H. Essers NV, Wincanton PLC*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
- 8.1 GDP Distribution by Activity for Key Countries
- 8.2 Insights into Capital Flows
- 8.3 External Trade Statistics - Export and Import by Product
- 8.4 Insights into Key Export Destinations of Europe
- 8.5 Insights into Key Import Origins of Europe
Europe Contract Logistics Industry Segmentation
Contract logistics refers to a long-term partnership that includes a variety of services, from the transportation of goods or replacement parts to the delivery of goods to the ultimate customer.
The report provides a complete background analysis of the European contract logistics market, including an assessment of the economy, a market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles are covered in the report. The report also covers the impact of COVID-19 on the market.
The report covers the European Logistic Companies, and it is segmented by End User (Industrial Machinery and Automotive, Food and Beverage, Construction, Chemicals, Other Consumer Goods, and Other End Users), and Country (Germany, the United Kingdom, the Netherlands, France, Italy, Spain, Poland, Belgium, Sweden, and Rest of Europe). The report offers the market size in value terms in USD for all the abovementioned segments.
| By End User | Industrial Machinery and Automotive |
| Food and Beverage | |
| Construction | |
| Chemicals | |
| Other Consumer Goods | |
| Other End Users | |
| By Country | Germany |
| United Kingdom | |
| Netherlands | |
| France | |
| Italy | |
| Spain | |
| Poland | |
| Belgium | |
| Sweden | |
| Rest of the Europe |
Europe Contract Logistics Market Research FAQs
How big is the Europe Contract Logistics Market?
The Europe Contract Logistics Market size is expected to reach USD 292.77 billion in 2024 and grow at a CAGR of 3.23% to reach USD 342.11 billion by 2029.
What is the current Europe Contract Logistics Market size?
In 2024, the Europe Contract Logistics Market size is expected to reach USD 292.77 billion.
Who are the key players in Europe Contract Logistics Market?
Deutsche Post DHL Group, Kuehne + Nagel International AG, DB Schenker, CEVA Logistics and SNCF Logistics/Geodis are the major companies operating in the Europe Contract Logistics Market.
What years does this Europe Contract Logistics Market cover, and what was the market size in 2023?
In 2023, the Europe Contract Logistics Market size was estimated at USD 283.31 billion. The report covers the Europe Contract Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Europe Contract Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Contract Logistics Industry Report
Statistics for the 2024 Europe Contract Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Contract Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
