The global contract logistics market size was valued at USD 426.00 billion in 2023. The market is expected to expand from USD 454.74 billion in 2024 to USD 805.40 billion by 2032, exhibiting a CAGR of 7.41% over the study period.
Contract logistics entails the outsourcing of tasks related to resource management by one company to another third-party company. The service is necessary in the order fulfillment process, which entails receiving customer orders to shipping & packaging. The surging demand for distribution and warehousing services by key end-use industries is fostering market growth.
The COVID-19 pandemic triggered an unexpected and huge change in the logistics sector. The market was majorly impacted due to disruptions in transportation activities, non-availability of raw materials and labor, a halt in the supply chain, and closures of businesses.
Fortune Business Insights™ provides this information in its research report, titled “Contract Logistics Market, 2024-2032”.
Segmentation:
Outsourcing Dominates the Market by Driving Efficiency and Cost Savings
In terms of type, the market is bifurcated into outsourcing and insourcing. Outsourcing dominates by holding the largest share, benefiting organizations by avoiding significant capital expenditures and providing potential advantages such as reduced operating costs and increased productivity.
Warehousing Emerges as Essential Service Segment for Efficient Goods Management
On the basis of service, the market is divided into aftermarket, distribution, transportation, warehousing, and others. Warehousing is the dominant service segment essential for storing and managing goods, providing businesses with storage space, efficient inventory management, and enhanced security.
Delivery of Value-added Services by Solution Providers to Surge the Automotive Segment Expansion
With respect to end use, the market is classified into aerospace & defense, e-commerce, retail, high-tech, automotive, industrial, healthcare, and others. The automotive segment holds the leading position in the market as the providers of contract logistics deliver value-added services, including kitting, optimization of supply chain efficiency, line feeding to support production lines and sequencing.
On the regional front, the market is segregated into Asia Pacific, Latin America, the Middle East & Africa, North America, and Europe.
Report Coverage
The market research report offers an in-depth analysis of the strategic moves implemented by top companies to gain a competitive edge. It further provides vital insights into the key trends, major industry developments, and the impact of the COVID-19 pandemic on the market growth. Additional aspects of the report include the significant driving and restraining factors affecting the market growth.
Drivers and Restraints:
Growing E-commerce Sector to Accelerate Market Growth
Contract logistics aid in outsourcing many logistics functions to a specific service provider, which allows companies to emphasize their core competencies while modernizing their supply chain operations. In addition, e-commerce businesses can improve overall efficiency while optimizing their supply chain activities by joining forces with the logistics provider on a contract basis.
However, the lack of total control coupled with steep logistics prices may hamper the contract logistics market growth.
To get to know more about this market, please visit: https://www.fortunebusinessinsights.com/contract-logistics-market-109771
Regional Insights: