United Kingdom E-commerce Logistics Market Size (2024 - 2029)

The United Kingdom e-commerce logistics market is experiencing substantial growth, driven by the increasing popularity of online shopping and the demand for efficient logistics services. The market's expansion is supported by a rising e-commerce penetration rate, which is expected to reach a new high in the coming years. The UK's well-developed infrastructure, including roads, railways, and airports, facilitates the efficient transport of goods, while advancements in technology and tracking systems enhance delivery speed and reliability. Additionally, there is a growing focus on sustainability within the logistics sector, with companies adopting environmentally friendly practices to mitigate their impact on climate change.

Market Size of United Kingdom E-commerce Logistics Industry

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United Kingdom E-commerce Logistics Market Summary
Study Period 2020-2029
Base Year For Estimation 2023
Market Size (2024) USD 28.04 Billion
Market Size (2029) USD 36.94 Billion
CAGR (2024 - 2029) 6.94 %
Market Concentration High

Major Players

United Kingdom E-commerce Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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United Kingdom E-commerce Logistics Market Analysis

The United Kingdom E-commerce Logistics Market size is estimated at USD 28.04 billion in 2024, and is expected to reach USD 36.94 billion by 2029, growing at a CAGR of 6.94% during the forecast period (2024-2029).

  • The UK e-commerce logistics market has experienced significant growth over the years. It’s driven by the increasing popularity of online shopping.
  • The E-commerce market penetration rate in the United Kingdom is projected to increase by 11 percentage points each year from 2024 to 2028. After nine consecutive years of rising, the indicator is expected to reach 93%, a new high in 2028. It is worth noting that the E-commerce penetration rate has been steadily rising in recent years.
  • The growing demand for reliable and efficient logistics services has skyrocketed with the rise of e-commerce giants like Amazon.
  • As of December 2023, Amazon.co.uk had the UK’s largest e-commerce site, accounting for about 35% of all desktop traffic in the country. EBay.co.uk came in second at 17.73 %.
  • According to the 2023 report, 18% of the top 500 retailers in the United Kingdom offered free delivery for all orders. Consumer electronics and jewelry retailers accounted for 37% and 35%, respectively. Over 50% of the top retailers offered free delivery if you spent a minimum amount. Maternity and children’s product retailers were the most likely to offer free delivery. Eight out of 10 retailers offered free delivery when the customer spends the minimum amount.
  • The United Kingdom boasts an extensive network of roads, railways, and airports, making transporting goods across the country easier for logistics providers. This infrastructure, coupled with advanced technology and tracking systems, enables faster and more efficient delivery of products to customers. In the United Kingdom, the rail freight transport volume in 2022 decreased by 836 MKT (-5.01%) compared to 2021.
  • In recent years, several notable trends have shaped the UK's e-commerce logistics market. One of these trends is the growing emphasis on sustainability and environmentally friendly practices. GXO Logistics, a contract logistics services company, and Datasparq announced that it has successfully implemented AI solutions to increase productivity, reduce costs, and improve environmental performance by optimizing transport routes.
  • With the rising awareness of climate change and the environmental impact of logistic operations, many companies are adopting greener practices, such as using electric vehicles and optimizing delivery routes to reduce carbon emissions.

United Kingdom E-commerce Logistics Industry Segmentation

The term "E-commerce logistics" refers to the transportation, warehousing, and distribution services the logistics company provides to an online retailer.

The UK e-commerce logistics market is segmented by service (transportation, warehousing and inventory management, and value-added services (labeling, packaging, etc.)), business (B2B and B2C), destination (domestic and international/cross-border), and product (fashion and apparel, consumer electronics, home appliances, furniture, beauty and personal care products, and other products (toys, food products, etc.)). The report offers market size and forecasts value (USD) for all the above segments.

By Service
Transportation
Warehousing and Inventory Management
Value-added services (labeling, packaging, etc.)
By Business
B2B
B2C
By Destination
Domestic
International/Cross Border
By product
Fashion and pparel
Consumer electronics
Home Appliances
Furniture
Beauty and Personal care
Other products (Toys, Food Products, etc.)
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United Kingdom E-commerce Logistics Market Size Summary

The United Kingdom e-commerce logistics market is experiencing robust growth, driven by the increasing adoption of online shopping. This surge in e-commerce activity has created a heightened demand for efficient and reliable logistics services, particularly with the dominance of major players like Amazon. The UK's extensive infrastructure, including roads, railways, and airports, coupled with advanced technology and tracking systems, facilitates swift and efficient product delivery. The market is also witnessing a shift towards sustainability, with companies implementing environmentally friendly practices such as using electric vehicles and optimizing delivery routes to reduce carbon emissions. Collaborative delivery models, like crowdsourcing and peer-to-peer delivery, are emerging as cost-effective solutions to meet the growing demand for urban deliveries.

The competitive landscape of the UK e-commerce logistics market is vibrant, with key players such as Royal Mail, DPD, Hermes, Amazon Logistics, and DHL actively vying for market share. This competition drives continuous innovation and improvement in logistics services, benefiting both businesses and consumers. Strategic partnerships and technological advancements, such as DHL's collaboration with AutoStore and Robust.ai, are enhancing automation and efficiency in warehouse operations. The market's growth is further supported by the high internet penetration rate in the UK, which facilitates access to online shopping platforms and contributes to the increasing number of online shoppers. As a result, the e-commerce logistics market in the United Kingdom is poised for continued expansion, with significant investments in technology and infrastructure to support its development.

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United Kingdom E-commerce Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Current Market Scenario

    3. 1.3 Technological Trendsin the Industry

    4. 1.4 Government Initiatives and Regulations

    5. 1.5 Insights into the E-commerce

    6. 1.6 Value Chain/ Supply chain analysis

    7. 1.7 Demand and Supply Analysis

    8. 1.8 Impact of COVID-19 on the market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Service

      1. 2.1.1 Transportation

      2. 2.1.2 Warehousing and Inventory Management

      3. 2.1.3 Value-added services (labeling, packaging, etc.)

    2. 2.2 By Business

      1. 2.2.1 B2B

      2. 2.2.2 B2C

    3. 2.3 By Destination

      1. 2.3.1 Domestic

      2. 2.3.2 International/Cross Border

    4. 2.4 By product

      1. 2.4.1 Fashion and pparel

      2. 2.4.2 Consumer electronics

      3. 2.4.3 Home Appliances

      4. 2.4.4 Furniture

      5. 2.4.5 Beauty and Personal care

      6. 2.4.6 Other products (Toys, Food Products, etc.)

United Kingdom E-commerce Logistics Market Size FAQs

The United Kingdom E-commerce Logistics Market size is expected to reach USD 28.04 billion in 2024 and grow at a CAGR of 6.94% to reach USD 36.94 billion by 2029.

In 2024, the United Kingdom E-commerce Logistics Market size is expected to reach USD 28.04 billion.

United Kingdom E-commerce Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)