Global Logistics Outsourcing Market Assessment, By Type [Material Management, Supply Chain Management, Distribution Management, Shipment Packaging, Channel Management], By Mode of Transport [Airways, Railways, Waterways, Roadways], By End-user [Food and Beverages, Oil and Gas, E-commerce, Automotive, Consumer Goods, Government and Defense, Others], By Region, Opportunities and Forecast, 2017-2031F

Global logistics outsourcing market is projected to witness a CAGR of 5.14% during the forecast period 2024-2031, growing from USD 1022.65 billion in 2023 to USD 1526.53 billion in 2031. The global logistic outsourcing market is developing due to several important factors. Companies are increasingly transmitting logistics to reduce operational costs, increase efficiency, and concentrate on major commercial areas. Outsourcing allows companies to avoid the high costs of maintaining in-house logistics infrastructure and staff. The rise of e-commerce and globalization has increased the demand for faster and more reliable supply chain solutions, which third-party logistics providers are well-positioned to deliver. These providers often have advanced technology, such as real-time tracking and data analysis. This improves the supply chain's visibility and can meet customer demand more effectively. Due to fluctuations in fuel costs and the complexity of international trade regulations, it is difficult for companies to manage logistics themselves. Outsourcing to specialists helps alleviate these challenges as third-party logistics providers have the expertise to navigate customs tax and other regulatory requirements. This demand for reduced costs, increased efficiency, and greater agility to respond to market changes continues to drive the growth of the logistics outsourcing market.

In October 2023, Foresight Group invested USD 6.25 million into AmWorld Holdings Limited, an international outsourced logistics services provider known for bespoke customer service, rapid response times, and high-quality service. This investment will support a management buyout, expand operations, grow the client base, and increase service volume. By introducing experienced leadership and focusing on growth, AmWorld will enhance its logistics capabilities, meeting the rising demand for efficient logistics solutions. This will help the logistics outsourcing market by providing robust and scalable services, leveraging advanced technology, and improving overall efficiency and customer satisfaction, particularly in key industries such as video games, electronics, and IT services.

Cost-efficiency to Drive Market Growth

The growth of the logistics outsourcing market is largely driven by cost efficiency. The benefit is that a company can avoid the capital intensive aspect of building and maintaining its own warehousing transportation and distribution networks by outsourcing the logistics operations. Account of economies of scale logistics providers can offer competitive pricing and spread costs across multiple clients. This allows businesses to save on overhead costs such as people, infrastructure, and technology investments and, therefore, utilize them in other areas of the business. Through the adoption of state-of-the-art technology and optimized processes, third-party logistics companies ensure that productivity is maximized, delays are kept at bay, and costs are reduced, thus adding to the bottom line. This drives market growth as companies continue to seek cost-effective, streamlined solutions that meet customers' increasing needs. Businesses reduce operational costs and increase their efficiency, making outsourcing an attractive option.

In September 2023, Amazon introduced Amazon's supply chain. This is a complete and automated solution for supply chains that sellers can manage and move effectively with Amazon Logistics, warehouses, distribution, and transportation capacity. This innovation will aid the logistics outsourcing market by providing a scalable, cost-effective solution that improves the speed and reliability of deliveries, improves supply chain visibility, and reduces operational complexity for companies, particularly benefiting sectors such as e-commerce, where efficient logistics is vital to customer satisfaction and business growth.

Technological Advancements to Fuel the Logistics Outsourcing Market Growth

The expertise and technology offered by third-party logistics service providers is a key growth driver for the logistics outsourcing market. These suppliers provide expertise in areas such as supply chain management, route optimization, and regulatory compliance that are difficult for companies to manage internally. In addition, advanced technology such as actual monitoring systems, data analysis, and automatic warehouses can optimize operations, reduce delivery time, and improve accuracy. Companies that use these tools to send logistics can provide faster and more reliable services, enhancing customer satisfaction and loyalty. Additionally, as logistics service providers continually invest in the latest innovations, businesses benefit from increased efficiency without the costs of constant upgrades. This combination of experience and advanced technology makes outsourcing an attractive option for businesses seeking a competitive edge.

In March 2023, Mahindra Logistics Limited and ASCEENDAS-FIRSPACE announced the release of Multi-Tension Warehouse Park in Pune. Foot from 2023 to the end of 24 years. This installation, part of CHAKAN TALGANA Industrial Corridor, improves the Pan-Indian MLL network and includes the first center of business automation technology focusing on artificial intelligence, IoT, robot, and blockchain. Designed with sustainability in mind, the park will drive logistics growth in India by providing advanced and scalable warehousing solutions. It will support the logistics outsourcing market by providing high quality technology-driven services to companies across sectors, reducing operational costs and improving efficiencies.

Supply Chain Management to Dominate Logistics Outsourcing Market Share

Supply chain management is dominating the share of the global logistics outsourcing market by offering comprehensive, integrated solutions that improve efficiency and reduce costs. Supply chain management uses advanced technologies such as real-time tracking, data analytics, and automation to ensure seamless coordination of the entire supply chain, from procurement to final delivery. With this overall approach, companies can optimize the stock level, optimize operations, and increase customer satisfaction. In addition, a survey of the third part of the logistics suppliers in the field of navigation in the difficulties of complicated regulatory landscapes and international trade will strengthen their appeal. Since companies are trying to focus on their main abilities, SCM outsourcing specialty suppliers can benefit from scale, advanced technology, and industry knowledge and strengthen SCM control in the market.

In July 2024, Apollo Funds announced the acquisition of UK parcel delivery company Evri from Advent International for USD 700 million. This acquisition will enhance Apollo's logistics and transportation capabilities, providing advanced, scalable solutions for e-commerce delivery. It will support Evri's growth and expansion, improving efficiency and sustainability in the logistics outsourcing market.

Asia-Pacific to Dominate the Logistics Outsourcing Market Share

Rapid economic growth, high activity in manufacturing, and an increased boom of e-commerce across countries in China, India, Japan, and Southeast Asia have made the Asia-Pacific market lead the logistics outsourcing sector. This region has emerged as the world's best location for global manufacturing operations and is highly demanding logistics services for efficient domestic and international transport. Demand for last-mile delivery and warehousing solutions is hence large, with online purchasing emerging in the case, and it is dominated by third-party logistics providers. The latest technology investments that Asia-Pacific logistics providers have made, such as automation, real-time tracking, and data analytics, have helped improve their operational efficiency and attractiveness. It has a robust industrial base, technological developments, and high consumer demand to be at the forefront, furthering its position in the global logistics outsourcing market.

In September 2024, CMA CGM, a French Navigation Giant, announced the acquisition of WinCanton in British logistics with USD 700 million. This acquisition has improved the existence of CMA CGM in the UK Supermarket Logistics category, providing storage management and food logistics experience. The deal reflects a broader trend of consolidation in the logistics outsourcing market aimed at improving efficiency, reducing costs, and offering customers comprehensive supply chain solutions.

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Future Market Scenario (2024 – 2031F)

• The integration of AI, blockchain, and IoT will enhance supply chain visibility, efficiency, and accuracy.
• Continued expansion of online shopping will drive the demand for last-mile delivery and warehousing solutions.
• Companies will prioritize eco-friendly practices, such as reducing carbon emissions and using sustainable packaging.
• Rapid economic growth in regions such as Asia-Pacific will boost the demand for logistics services.

Report Scope

“Logistics Outsourcing Market Assessment, Opportunities and Forecast, 2017-2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global logistics outsourcing market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Base Year of the Analysis	2023
Historical Period	2017-2022
Forecast Period	2024-2031
Projected Growth Rate	CAGR of 5.14% between 2024 and 2031
Revenue Forecast in 2031	USD 1526.53 billion
Segments Covered	Type, Mode of Transport, End-user
Regions Covered	North America, Europe, South America, Asia-Pacific, Middle East and Africa
Key Companies Profile	DHL International GmbH, United Parcel Service, Inc., NIPPON EXPRESS HOLDINGS, INC., GXO Logistics, Inc., CJ Logistics Corporation, SHIPHYPE., CEVA Logistics Inc., Fedex Corporation, XPO, Inc., Kuehne + Nagel International AG
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, global logistics outsourcing market has been segmented into the following categories: 

• By Type
  • Material Management
  • Supply Chain Management
  • Distribution Management
  • Shipment Packaging
  • Channel Management
• By Mode of Transport
  • Airways
  • Railways
  • Waterways
  • Roadways
• By End-user
  • Food and Beverages
  • Oil and Gas
  • E-commerce
  • Automotive
  • Consumer Goods
  • Government and Defense
  • Others
• By Region
  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East and Africa

Key Players Landscape and Outlook

Technology-based solutions are getting acceptance by more companies, and expanded packages of offerings and customer-centric strategies are being adopted by them. Most logistics companies incur enormous investments in technologies such as artificial intelligence, blockchain, automation, and the Internet of Things towards increased supply chain visibility, tracking capabilities, and higher efficiency. For instance, warehouse and fulfillment center automation reduces human error and increases speed in processing, thus allowing companies to process higher volumes with greater accuracy. The firms diversify services, offering end-to-end solutions, including inventory management, order fulfillment, and last-mile delivery, allowing clients to depend entirely on a single provider for complete logistics needs. In line with this growing demand from the e-commerce industry, logistics companies enhanced last-mile delivery capabilities. Companies developed faster and more agile deliveries-including same and next-day deliveries for their customers. More than ninety percent of the companies employ sustainability practices that meet environmental requirements and the demands of the consumers. This may manifest ways such as the reduction of carbon emissions or the use of a more eco-friendly packaging system. With regard to technology, expanding services, speed focus, and sustainability commitments, logistics outsourcing companies are poised to adapt to the changing demands of the marketplace and remain competitive.

In March 2023, Knight-Swift Transportation Holdings Inc. announced the acquisition of U.S. Xpress Enterprises for approximately USD 808 million. This transaction will improve the income base of Knight-Swift by almost 30%, adding a sales scale and important experience. Xpress is supported by Knight-Swift Best Practices and continues under the same brand. This acquisition will improve profits, widen customer coverage, and use scale savings, thus offering extended logistics solutions on the outsourcing market. This will help optimize operations, reduce costs, and provide high quality and scalable logistics services that meet the growing demand for effective and reliable transport solutions.

Key Players Operating in Global Logistics Outsourcing Market are:

• DHL International GmbH
• United Parcel Service, Inc.
• NIPPON EXPRESS HOLDINGS, INC.
• GXO Logistics, Inc.
• CJ Logistics Corporation
• SHIPHYPE.
• CEVA Logistics Inc.
• Fedex Corporation
• XPO, Inc.
• Kuehne + Nagel International AG

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