Global contract logistics market will be growing but not fast

By the end of 2023, the global contract logistics market will generate more than EUR 284.458 billion and the sector will grow by 3.8%. In 2022, the growth reached 2.9%. The current analysis presented in June by Transport Intelligence (TI), a UK-based think tank, indicates a significant decline in the dynamics compared to 2021, when the sector, powered by e-commerce, added 8.7% in value.

Asia and the Pacific region will continue to be the market leader in the contract logistics market. In 2023, the revenue in these markets will increase by 7.8%, mainly due to China and India, and will amount to more than EUR 113.783 billion, i.e. 40% of the global value.

Currently, Europe is the second largest contract logistics market in the world with a 29% share of global value. At the end of the year, this will result in a value of approximately EUR 82.493 billion. However, the local operators will lose the global market share to Asian companies.

North America is also in the top three, as it will generate 25% of the global revenue this year, i.e. almost EUR 71.115 billion.

The Middle East and North Africa will be the fastest growing markets, achieving a growth rate equal to the global average of 3.8%. However, these regions generate only 2% of the global revenue, and the value of services provided there will amount to slightly more than EUR 5.689 billion.

Although the logistics industry has achieved significant crisis resistance over recent years, the long-term forecasts remain contingent on many macroeconomic and geopolitical factors that are increasingly difficult to predict.