Contract Logistics Market Size, Share, Growth, Trends, and Global Industry Analysis: By Service Type (Warehousing & Distribution, Transportation & Freight Management, Inventory Management, Order Fulfilment, Value-Added Services, Others), By Organization Type (Large Enterprises, Small & Medium Enterprises (SMEs)), By End User (Retail & E-commerce, Automotive, Healthcare & Pharmaceuticals, Food & Beverage, Consumer Goods, Electronics, Industrial Manufacturing, Others) and Region Forecast 2020-2031

Contract Logistics Market size was valued at US$ 450.1 million in 2024 and is expected to reach US$ 713.4 million by 2031, growing at a significant CAGR of 6.5% from 2025-2031. Moreover, the U.S. Contract Logistics Market is projected to grow at 6.7% CAGR over the forecast period. The market refers to the outsourcing of supply chain management and logistics functions to third-party service providers, encompassing activities such as warehousing, transportation, distribution, inventory management, order fulfilment, and value-added services. These services are tailored to meet client-specific requirements, enabling businesses to focus on their core competencies while enhancing efficiency, reducing operational costs, and improving customer satisfaction.

The market is witnessing steady growth due to the increasing complexity of supply chains, globalization of trade, and rising demand for efficient and scalable logistics solutions. Companies across industries are adopting contract logistics to optimize resource utilization, enhance flexibility, and adapt quickly to changing market dynamics. Technological advancements, such as automation, data analytics, and real-time tracking, are further transforming service capabilities, while the rapid growth of e-commerce is significantly boosting market demand worldwide.

Facts & Figures

• In fact, over 60% of global companies outsource at least part of their logistics operations to contract logistics providers.
• Warehousing accounts for approximately 40-50% of total contract logistics service revenues worldwide.
• The retail and e-commerce sector contributes to more than 30% of contract logistics demand globally.
• The average warehouse size managed by contract logistics providers has increased by 25% over the past five years.
• Contract logistics providers typically manage inventory for over 10 million SKUs globally across multiple industries.
• About 70% of contract logistics companies have integrated some form of automation or AI technology into their operations as of 2024.

Key Developments:

• In July 2025, CEVA Logistics, a global leader in third-party logistics, partnered with Avolta, a prominent travel retail and F&B company, to launch a sustainable transport model pilot using three Duo Trailer vehicles powered by renewable hydrotreated vegetable oil (HVO). Deployed along Spain’s busiest transport corridor between Barcelona and Madrid, this initiative is projected to cut up to 520 tons of CO? and 180 kilograms of nitrogen oxide emissions annually equivalent to taking 440 trucks off the road demonstrating a significant step toward greener logistics operations.
• In June 2025, GXO Logistics, Inc., the world’s largest pure-play contract logistics provider, announced the launch of GXO IQ, the first AI-powered intelligent platform specifically designed for the logistics industry by logistics experts. This innovative platform aims to help businesses manage the complexities of global supply chains by leveraging advanced AI capabilities to create more efficient and dynamic logistics operations.
• In March 2024, Yusen Logistics (UK), a prominent logistics solutions provider, partnered with SEGRO, a leading owner, manager, and developer of modern warehouses and industrial properties, to establish a state-of-the-art shared user warehouse facility at SEGRO Logistics Park Northampton. This collaboration aims to set new industry standards in logistics efficiency and service quality.

Contract Logistics Market Segmentation:

Based on the service type:

• Warehousing & Distribution
• Transportation & Freight Management
• Inventory Management
• Order Fulfillment
• Value-Added Services
• Others

Among the various service types, Warehousing & Distribution is anticipated to lead the market due to the growing demand for efficient storage solutions and streamlined product delivery. The rise of e-commerce and omnichannel retailing has increased the need for strategically located warehouses that enable faster order processing and last-mile delivery. Additionally, advancements in warehouse automation, such as robotics and AI-driven inventory management, are enhancing operational efficiency and reducing costs. Companies are increasingly outsourcing warehousing and distribution to specialized providers to improve scalability and meet fluctuating consumer demands, making this segment a critical driver of market growth.

Based on the organization size:

• Large Enterprises
• Small & Medium Enterprises (SMEs)

Among the organization size segments, large enterprises are expected to lead the market due to their extensive supply chain networks and higher outsourcing capabilities. These enterprises often require sophisticated logistics solutions to manage complex operations across multiple regions and product lines. Their significant financial resources enable investments in advanced technologies, such as automation and real-time tracking, enhancing efficiency and scalability. Additionally, large enterprises face increasing pressure to optimize costs and improve customer service, driving demand for reliable contract logistics providers. Consequently, their substantial logistics needs position them as the primary growth drivers in the market.

Based on the end user:

• Retail & E-commerce
• Automotive
• Healthcare & Pharmaceuticals
• Food & Beverage
• Consumer Goods
• Electronics
• Industrial Manufacturing
• Others

Retail & E-commerce is anticipated to lead the market due to the exponential growth of online shopping and changing consumer expectations. The surge in e-commerce has significantly increased the demand for efficient warehousing, fast order fulfillment, and last-mile delivery services. Retailers are outsourcing logistics operations to specialized providers to handle seasonal fluctuations, expand their geographic reach, and improve customer satisfaction through timely deliveries. Moreover, technological advancements such as real-time tracking and automated warehouses are enhancing service quality in this segment. This strong demand from retail and e-commerce continues to be the primary driver propelling the market forward.