Russia Freight and Logistics Market Size

Russia Freight and Logistics Market Analysis

The Russia Freight and Logistics Market size is estimated at 70.87 billion USD in 2024, and is expected to reach 83.73 billion USD by 2030, growing at a CAGR of 2.82% during the forecast period (2024-2030).

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70.87 Billion

Market Size in 2024 (USD)

83.73 Billion

Market Size in 2030 (USD)

1.35 %

CAGR (2017-2023)

2.82 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

3.17 %

Projected CAGR, Air, 2024-2030

Considering soaring rates in ocean freight and increasing transit times faced by rail operators, Russia's air carriers are looking to capitalize on their competitive advantages.

Largest CEP Market by Destination

68.05 %

value share, Domestic, 2023

One of the main drivers for the domestic CEP market is e-commerce. The Russian e-commerce industry grew by 50% YoY in 2023, reaching a value of USD 36 billion.

Largest Market by End User Industry

34.51 %

value share, Wholesale and Retail Trade, 2023

The e-commerce industry is expected to record a CAGR of 12.78% during 2023-2027 and drive the growth of the wholesale and retail trade end-user industry.

Largest Warehousing Market by Temperature Control

91.78 %

value share, Non-Temperature Controlled, 2023

In 2024, the Russian Post aims to open five logistics centers in Khabarovsk, Krasnodar, Ufa, Voronezh, and Chelyabinsk. These centers handle mail processing, order sorting, and warehouse services.

Fastest Growing Warehousing Market by Temperature Control

2.70 %

Projected CAGR, Temperature Controlled, 2024-2030

The Russian government aims to double the domestic production of pharmaceutical drugs by 2030, which is expected to drive the demand for temperature-controlled warehouses.

Rising infrastructure development is improving the supply of goods in Russia, led by demand from the e-commerce market

Russia Freight and Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

• In October 2023, the Government of Abkhazia partnered with Infrastructure Development, a newly formed Russian firm, to rejuvenate operations at Babushera airport near Sukhumi, the Abkhazian capital. The project's centerpiece is a new terminal, slated to be operational by December 31, 2024, with a capacity to handle 1,300 passengers per hour. The estimated cost for this reconstruction stands at RUB 8 billion (USD 84 million).
• In 2021, a significant uptick was witnessed in the transportation of goods from various regions. Notably, Transbaikalia saw a 152% surge, Primorye 134%, the Amur Region 111%, and the Khabarovsk Territory 79%. While the countrywide rate increases were slightly lower than the demand growth, they were still notable. The primary catalyst for this demand was the rapid expansion of e-commerce and the delivery sector.
• The Russian government unveiled a road infrastructure development program spanning until 2035. This initiative encompasses the construction, reconstruction, and launch of regional roads and infrastructure facilities. The government has been actively financing road infrastructure projects across regions. By the end of 2022, an additional RUB 10.4 billion (USD 142.04 million) was allocated for highway repairs and construction in Crimea, Tatarstan, the Novosibirsk regions, and the Kamchatka Territory. A significant portion, around RUB 7.3 billion (USD 99.7 million), has been earmarked for a 1.5 km bridge across the Ob River in Novosibirsk. This bridge, an extension of Ippodromskaya Street, will connect with Station Street.