Market Size of Europe Contract Logistics Industry
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 |
Major Players*Disclaimer: Major Players sorted in no particular order |
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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 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 Size Summary
The Europe Contract Logistics Market is poised for steady growth over the forecast period, driven by a combination of economic recovery and increasing demand for efficient logistics solutions. As European consumers regain purchasing power, domestic demand is expected to rise, although the pace of recovery will differ across countries. Germany's strategic location and skilled workforce make it a hub for international logistics, attracting investments and facilitating trade within Europe. The market is characterized by a low outsourcing share, indicating significant growth potential, particularly with the rapid expansion of e-commerce. Contract logistics companies are increasingly catering to the needs of online businesses, offering scalable and technology-driven solutions to enhance delivery efficiency and customer satisfaction.
The United Kingdom stands out as a major player in the e-commerce sector, with online shopping becoming the dominant retail channel. This surge in e-commerce has created a robust demand for contract logistics services, prompting investments in technology-driven supply chains and distribution networks. Prominent market players like Deutsche Post DHL Group, Schenker AG, and CEVA Logistics maintain a strong presence in Europe, although the market remains fragmented, offering opportunities for local providers, especially in the Central and Eastern European regions. Strategic partnerships and investments in sustainable logistics practices, such as the transition to alternative fuels, are shaping the future of the market, aligning with broader environmental goals and enhancing operational efficiencies.
Europe Contract Logistics Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Current Market Scenario
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.1.1 Increased Outsourcing of Services
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1.2.1.2 Increasing Demand For Contract Logistics In Italy, France, And Poland
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1.2.2 Restraints
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1.2.2.1 Increasing Competition In The European Contract Logistics Market
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1.2.2.2 Regulatory Compliance
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1.2.3 Opportunities
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1.2.3.1 Pooled Warehousing
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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1.4 Value Chain / Supply Chain Analysis
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1.5 Government Regulations and Initiatives
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1.6 Technological Trends
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1.7 Insights into the E-commerce Industry in the Region (Domestic and Cross-border)
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1.8 Insights into Contract Logistics in the Context of After-sales/Reverse Logistics
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1.9 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-added Services)
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1.10 Spotlight on Freight Transportation Costs/Freight Rates
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1.11 Insights into Effects of Brexit on the European Logistics Industry
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1.12 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By End User
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2.1.1 Industrial Machinery and Automotive
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2.1.2 Food and Beverage
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2.1.3 Construction
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2.1.4 Chemicals
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2.1.5 Other Consumer Goods
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2.1.6 Other End Users
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2.2 By Country
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2.2.1 Germany
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2.2.2 United Kingdom
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2.2.3 Netherlands
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2.2.4 France
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2.2.5 Italy
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2.2.6 Spain
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2.2.7 Poland
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2.2.8 Belgium
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2.2.9 Sweden
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2.2.10 Rest of the Europe
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Europe Contract Logistics Market Size 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.