Contract Logistics Market to Reach US$525.29 Billion By 2031, With CAGR Of 7.2% | The Insight Partners

NEW YORK, Sept. 1, 2025 /PRNewswire/ -- According to a new comprehensive report from The Insight Partners, the global contract logistics market is observing significant growth due to technological advances, such as automation, IoT, and AI.

Contract Logistics Market Experiences Significant Growth Owing to the Rapid Growth of E-Commerce and Increasing Demand for Efficient Supply Chain Solutions.

The Contract Logistics Market report runs an in-depth analysis of market trends, key players, and future opportunities. The contract logistics market generally comprises many types, service types, industry verticals, and geography, which are expected to register strength in the coming years.

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Overview of Contract Logistics Market Report Findings

1. Market Dynamics and Insights: E-commerce platforms often deal with high order volumes and diverse product ranges, requiring flexible and scalable logistics solutions. Contract logistics providers offer these capabilities, enabling businesses to meet customer expectations without investing heavily in infrastructure. Their ability to streamline operations, optimize routes, and reduce delivery times makes them increasingly valuable partners in the e-commerce ecosystem. According to the International Trade Administration (ITA), Global B2B e-commerce sales have been consistently increasing each year over the past decade, with the worldwide B2B e-commerce market expected to reach a value of US$36 trillion by 2026. The largest contributors to this sales volume are sectors such as advanced manufacturing, energy, healthcare, and professional business services.
   Additionally, the rise of same-day and next-day delivery expectations has created more pressure on retailers to improve supply chain performance. Contract logistics companies are leveraging automation, advanced tracking technologies, and data analytics to enhance operational efficiency and meet these demands. This has led to increased collaboration between online retailers and logistics firms, further driving market growth. In 2023, 75% of internet users aged 16 to 74 bought goods or services online in the EU.
   The share of e-shoppers grew from 53% in 2010 to 75% in 2023, an increase of 22 percentage points (pp). Global e-commerce giants and smaller sellers are now relying on third-party logistics providers to manage warehousing and distribution. This shift allows businesses to focus on core functions like product development and marketing, while ensuring smooth and timely deliveries. In summary, the booming e-commerce sector is reshaping the logistics landscape. As online retail expands, the need for sophisticated, reliable, and responsive contract logistics solutions will remain a key driver of market growth.
2. Regional Insights: The contract logistics market in South and Central America is experiencing robust growth, driven by increasing trade activities, rising e-commerce penetration, and significant infrastructure development across the region. Key economies such as Brazil, Argentina, and Chile dominate due to their sizable industrial bases and expanding manufacturing sectors. In Brazil, the government's ambitious PAC Infrastructure Plan, announced in 2023, allocates approximately US$200 billion to transportation and urban development projects, including road rehabilitation and port modernization, to improve logistics efficiency and lowering costs. Furthermore, in April 2025, the World Bank approved a US$200 million loan to upgrade infrastructure in Bahia state, focusing on climate-resilient roads and electric vehicle adoption, enhancing regional supply chain operations. Brazil's agro-sector also saw a planned investment of around US$950 million in 2024 for crop transportation logistics and agro corridors, reflecting efforts to optimize contract logistics in agricultural supply chains. Chile invested heavily in port modernization in 2024, improving infrastructure to support faster and more reliable goods movement. Argentina has focused on improving its transportation network between 2023 and 2025 to facilitate smoother logistics operations. In Colombia, the ongoing Toyo Tunnel construction (2023–2027) is set to improve road connectivity by 2027, benefiting logistics efficiency in the region.
3. Geographical Insights: Asia Pacific is expected to dominate the contract logistics market with the highest market share in 2024.

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Contract Logistics Market Segmentation

• Based on the type, the market is segmented into outsourcing and insourcing.
• On the basis of service type, the market is segmented into warehousing & distribution, transportation management, aftermarket logistics, and others.
• Based on industry vertical, the contract logistics market is segmented into retail & e-commerce, automotive, healthcare & pharmaceuticals, consumer goods & electronics, industrial & manufacturing, aerospace & defense, and others.
• The contract logistics market is segmented into five major regions: North America, Europe, Asia Pacific, the Middle East and Africa, and South and Central America.

Competitive Strategy and Development

• Key Players: A few major companies operating in the contract logistics market include Deutsche Post AG, FedEx Corp, GXO Logistics Inc., United Parcel Service Inc., Nippon Express Co Ltd., GEODIS SA, Ryder System Inc., CMA CGM SA, DSV AS, and Kuehne + Nagel International AG, among others.
• Trending Topics: Technology & Automation Revolution, Sustainability & Green Logistics, Real-Time Visibility, and Predictive Analytics & IoT Integration, among others.

Global Headlines on the Contract Logistics Market

• "DHL Group has announced a strategic investment of €2 billion over the next five years to enhance its logistics capabilities in the life sciences and healthcare sector. This investment supports the Group's 'Strategy 2030' and reinforces DHL's commitment to helping healthcare customers grow, innovate, and serve patients more effectively worldwide."
• "Federal Express Corporation (FedEx), the world's largest express delivery company, today announced the opening a new station in Brest. Thanks to its prime location near the city center, this new infrastructure, resulting from an investment of more than €700,000, strengthens FedEx's strategic position in the region. It enables faster and more efficient collection and delivery operations throughout northern Brittany."

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Conclusion

Contract Logistics is outsourcing supply chain and logistics operations, such as warehousing, transportation, inventory management, and order fulfillment, to a third-party provider under a long-term agreement. It enables companies to focus on their core business while leveraging specialized logistics expertise. Key factors driving growth in contract logistics include the rise of e-commerce, increasing demand for just-in-time delivery, globalization of trade, and the need for cost-efficient, scalable logistics solutions.

The report from The Insight Partners, therefore, provides several stakeholders, including service providers, technology providers, regulators and industry bodies and end-user industries, with valuable insights into how to successfully navigate this evolving market landscape and unlock new opportunities.

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