Logistics & Transportation Market
Logistics & Transportation Market by Revenue (Transportation, Inventory, Warehousing, Administrative), Freight Transportation by Mode (Road, Rail, Marine, Air), Region (Europe, US, China, India), Business Scenarios & Use Cases- Global Forecast to 2035
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The logistics & transportation market spending is projected to reach USD 23.0 trillion by 2035, from USD 9.4 trillion in 2024, with a CAGR of 8.4%. By 2035, more than 60% of the global population is expected to live in cities, driving the need for intensified urban freight movement. Additionally, digital twin-based logistics networks and IoT-enabled visibility platforms are expected to drive higher technology spending through 2035.
KEY TAKEAWAYS
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BY REGIONChina holds the dominant share in freight segments, due to large-scale industrial output and investments in transport infrastructure
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RevenueThe transportation segment accounting for 57% of the total logistics spending. This dominance is primarily driven by the extensive role of road transport in freight movement and the relatively high operational and fuel expenses associated with trucking compared to other modes.
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By ModeThe road segment has the highest market share in 2024, led by flexible connectivity and coverage for freight delivery across diverse regions, making it the preferred mode despite the presence of high-speed rail networks.
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COMPETITIVE LANDSCAPEKey market players have adopted both organic and inorganic strategies, including partnerships and investments. For instance, SunGas Pharmaceuticals entered into a deal with Maersk (A.P. Moller Holding) and ENEOS to invest USD 100 million in the production of green methanol.
The logistics & transportation market is primarily driven by the surge in global trade volumes, rapid urbanization, and the expansion of e-commerce networks. The proliferation of online retail and cross-border e-commerce has compelled companies to strengthen their last-mile and cross-docking capabilities, driving demand for efficient logistics systems. Additionally, digitalization and automation have transformed traditional supply chains into agile, data-driven ecosystems.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
The expansion of manufacturing hubs in emerging economies and government-led infrastructure projects—such as smart ports, dedicated freight corridors, and multimodal transport systems—further stimulate market growth. Sustainability initiatives are also influencing logistics planning, with companies investing in electric fleets and green warehousing to reduce carbon footprints. Moreover, geopolitical shifts and the reconfiguration of global supply chains post-pandemic are encouraging localized and resilient logistics frameworks. Together, these factors continue to accelerate market expansion across developed and developing economies.
MARKET DYNAMICS
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Acceleration of e-commerce and digital transformation has increased the need for efficient, tech-enabled logistics networks.
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Global market expansion and increasing export-import activity stimulate more integrated supply chain systems and international transport links.
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Development of logistics parks and urban warehousing hubs to serve growing cities and industrial zones fosters investment and efficiency.
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Integration of multimodal transport (coastal, rail, road, air) offers faster, more flexible services and competitive advantages in global trade.
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Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Acceleration of e-commerce and digital transformation has increased the need for efficient, tech-enabled logistics networks.
The rapid proliferation of e-commerce platforms has driven logistics providers to revamp their operational models with advanced technology. As consumers increasingly expect faster, more reliable, and transparent deliveries, logistics networks have adopted digital transformation measures like real-time tracking (IoT), route optimization, and automated inventory management systems.
Opportunity: Development of logistics parks and urban warehousing hubs to serve growing cities and industrial zones fosters investment and efficiency.
Logistics parks and urban warehousing hubs are emerging as major opportunities to support the demands of growing cities and industrial zones. These facilities leverage smart design—such as multi-story layouts, modular shelving, and automated systems—to maximize space utilization and streamline fulfillment.
logistics-transportation-market: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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Global multi-modal transport with ocean, air, and trucking options providing SKU-level tracking? | Real-time tracking and predictive analytics: provide unprecedented supply chain visibility and proactive disruption management? |
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Enables blending multiple map data sources, allowing enterprises to tailor route planning? | Businesses can integrate them proprietary map data to ensure routing is tailored to their unique operational geography? |
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Offers real-time GPS tracking of freight, enhancing visibility and communication, whereas traditional freight often lacks such immediate transparency? | Uses advanced routing algorithms and technology-driven load optimization to reduce idle truck time and route inefficiencies |
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Centralized WMS/OMS/IMS with one-to-many API/EDI/XML integrations, real-time order and inventory visibility, cross-network analytics, and SLA-based reporting? | Capabilities span network planning and optimization, item-level analysis to improve storage and labor efficiency, sourcing and matching of qualified operators, and delivery of market intelligence and insights? |
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Ship Net-Zero runs on XPO Connect®, a digital platform that sources capacity from over 1 million trucks and captures carbon impact data at the time a load is tendered? | Ship Net-Zero aim to reduce CO2 emissions by at least 20% within five years? |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The logistics and tranportation ecosystem covers key market stakeholders, reflecting a collaborative network driving the sector’s growth. Technology providers such as ShipBob, Delhivery, and JD Logistics are revolutionizing supply chain operations by deploying cloud-based platforms, automation, and artificial intelligence throughout the logistics ecosystem. They deliver solutions that streamline order fulfillment, optimize warehouse management, and assure real-time visibility for inventory and deliveries, powering the rapid growth of direct-to-consumer commerce. E-commerce suppliers, including Amazon, Ecom Express, and Cainiao, anchor the demand for robust logistics and transportation by managing high-volume, omnichannel fulfillment networks. Prominent logistics and transportation companies such as DHL, Blue Dart, and SF Express are leading the industry towards more sustainable and efficient operations. These providers implement multimodal transport strategies, adopt eco-friendly vehicles, and invest in green infrastructure and practices to minimize carbon footprint. Data analytics firms like XPO Logistics, GATI, and Kuehne+Nagel play an essential role in harnessing large volumes of information to optimize logistics performance and supply chain resilience.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
The logistics & transporatation market comprises include Transportation, Inventory Carrying Cost, Warehousing and Administration
Within the logistics and transportation market, the transportation segment accounts for the largest share of total revenue, driven by the increasing movement of goods across domestic and international routes. The segment’s dominance stems from the continuous rise in global trade, industrial production, and consumer demand that necessitate the physical movement of raw materials, components, and finished goods. Furthermore, advancements in telematics, route planning, and real-time shipment tracking have increased transparency, enabling transport operators to optimize fleet utilization and minimize idle time. The transportation sector’s role as the backbone of logistics operations—linking manufacturing, warehousing, and distribution—solidifies its revenue leadership. Growing demand for temperature-controlled transport for pharmaceuticals, perishables, and EV components further boosts this segment’s profitability, ensuring it remains the central contributor to market growth.
REGION
China Logistics and Transportation Market Witnesses Tremendous Growth During the Forecast Period
China logitics and tranportation market has experienced significant momentum, driven by rising inclination for eommerce platform. China’s strategic location as a hub linking Asia, Europe, and Africa enhances its position as a global trade gateway. The rapid growth of e-commerce giants such as Alibaba and JD.com has also driven demand for high-frequency domestic and international freight movements. Moreover, the integration of digital technologies, including AI-driven supply chain platforms, autonomous trucking pilots, and blockchain-based customs systems, has optimized freight operations. Environmental sustainability initiatives, like the electrification of truck fleets and green logistics zones, further strengthen China’s logistics leadership. With strong policy backing and technological innovation, China continues to dominate global freight transport capacity and throughput.
KEY MARKET PLAYERS
- DHL Group (Germany)
- FedEx Express (US)
- Maersk (Denmark)
- JDL Group (U.S.)
- ShipBob (U.S.)
- WebExpress (Russia)
- Blackbuck (India)
- Streebo (U.S.)
- IBM, (U.S.)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Logistic Spending in 2024 (value) | USD 9.4 Trillion |
| Logistic Spending in 2035 (value) | USD 23.0 Trillion |
| Growth Rate | CAGR of 8.4 % from 2025-2030 |
| Years Considered | 2024-2035 |
| Base Year | 2024 |
| Forecast Period | 2025-2035 |
| Units Considered | Value (USD Billion/Trillion) |
| Report Coverage | Revenue forecast, competitive landscape, growth factors, and trends. |
| Segments Covered | The logistics & transporatation market comprises include Transportation, Inventory Carrying Cost, Warehousing and Administration |
| Regions Covered | North America, Europe, China and India |
WHAT IS IN IT FOR YOU: logistics-transportation-market REPORT CONTENT GUIDE
RECENT DEVELOPMENTS
- April, 2025 : GeekPlus has introduced SkyCube the first pallet-to-person system to automated warehouse operations across frozen and chilled zones. The machine can operate between the -18°C to +5°C (-0.4°F to 41°F).
- February 2025 : Daifuku provides AMR, STVS, and AGV for cold chain automation, optimize material flow in cold stores. The company seeks to resolve social issues and achieve USD 673 trillion revenue by 2030.
- October, 2024 : ABB and U.S. startup collaborated to start developing the automated micro factories for? recycling data center equipment. The partnership is strategic move to handle growing e-waste in the needs to be recycled .
Table of Contents
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Methodology
The study encompassed primary tasks to determine the present and future scope of the logistics & transportation players in the market. Initially, extensive secondary research was conducted to gather data on the market, its related sectors, and overarching industries. Subsequently, primary research involving industry experts across the value chain corroborated and validated these findings and assumptions. The logistics and transportation revenue across segments transportation, inventory carrying cost, warehousing, and administration methodology. Following this, a market breakdown and data triangulation approach were utilized to determine the size of specific segments and subsegments within the market.
Secondary Research
The secondary sources referred to the company's annual reports/presentations, industry association publications, directories, technical handbooks, international energy agency, technical articles, and databases, which were used to identify and collect information for an extensive study of the key stakeholders of logistics and transportation in the market. The secondary sources used while estimating the market logistics spending are the corporate filings (such as annual reports, investor presentations, and financial statements), government websites. Secondary data was collected and analyzed to determine the overall market logistics spending further validated through primary research. The primary sources—experts from related industries, key players of logistics and transportation players—were interviewed to obtain and verify critical information and assess prospects and market estimations. Historical logistics and transportation data has been collected and analyzed and the industry trend is considered to arrive at the forecast, which is further validated by primary research.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, such as CXOs, vice presidents, directors from business development, marketing, product development/innovation teams, and related key executives from various key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.
Primary interviews have been conducted to gather insights such as logistics and transportation spending estimates on different segments market, transportation, inventory carrying cost, warehousing, and administration in upcoming years and forecast, and future technology trends. Data triangulation of all these points was done using the information gathered from secondary research and model mapping. Stakeholders from the demand and supply sides have been interviewed to understand their views on the abovementioned points.
Note: Other designations include sales, marketing, and product managers
Source: Secondary Research, Primary Interviews, and MarketsandMarkets Analysis
To know about the assumptions considered for the study, download the pdf brochure
Market Size Estimation
- Break down logistics spending into key segments such as freight transport modes (road, rail, ocean, inland waterways, air), warehousing, last-mile delivery, and value-added services.
- Considering the regional markets (e.g., US, Europe, China, India) due to varying logistics infrastructures, cost structures, and demand drivers.
- Data is collected on freight volumes (e.g., billion ton-kilometers) by each mode of transport and region to estimate utilization.
- Cost is determined per ton-kilometer for each mode, factoring fuel, labor, infrastructure tolls, equipment, and maintenance costs.
- projections on cost reduction or increase from technology adoption such as software-defined vehicles, automation, electrification, and digital platforms.
- Factor in changes in delivery models (e.g., same-day delivery, last-mile innovations) and their impact on overall spending.
- Finally validation of the findings for 2024 logistics spending estimates by calibrating against known market data and industry reports.
Logistics & Transportation Market : Top-Down and Bottom-Up Approach
Market Definition
- Robotics & Automation: Increases operational efficiency by speeding up warehousing, sorting, and order-fulfillment processes.? Lowers costs in the long term by minimizing labor dependency and enhancing resource utilization.
- Digitalization Across Supply Chain: Enables real-time, tracking and visibility of goods throughout transport and warehousing. ?Improves decision making through data analytics and predictive insights.
- Nearshoring: Reduces transportation time and costs by shifting operations closer to consumer markets.? Enhances supply chain resilience by reducing dependency on distant international suppliers
- Decarbonization: Drives innovation in eco-friendly vehicles, fuels, and smart route optimization systems. ?Reduces fuel and energy costs in the long run through green logistics practices.
- ? Trade Prospects and Tariffs: Expanding trade agreements creates new opportunities for logistics growth in emerging markets. Expanding trade agreements creates new opportunities for logistics growth in emerging markets.
- Technology Advancement: Facilitates predictive logistics through AI, IoT, and big data analytics. Facilitates predictive logistics through AI, IoT, and big data analytics.
Key Stakeholders
- Logistics & Transportation Players
- OEMs
- Reverse Logistics Players
- Specialized Logistics Players
- Digital Platform Providers
- Drone Service Providers
- Government Bodies & Associations
Report Objectives
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To define, describe, and forecast the logistics and transportation market in spending revenue models.
- To understand the dynamics (drivers, opportunities, and challenges) of the logistics and transportation market.
- To analyze the revenue earned leading players operating in the logistics and transportation market
- To strategically analyze key player strategies and revenue analysis
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To study the following with respect to the market
- Trends and Disruptions Impacting Customers' Businesses
- Market Ecosystem
- Investment and Funding Scenario
- Case Studies
- Business Scenarios
- Logistics And Transportation Players Strategies
- To analyze the growth opportunities in the logistics and transportation market for stakeholders
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