Study Period | 2017 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 111.7 Billion |
Market Size (2030) | USD 139.2 Billion |
CAGR (2025 - 2030) | 4.50 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
Canada Freight and Logistics Market Analysis
The Canada Freight and Logistics Market size is estimated at 111.7 billion USD in 2025, and is expected to reach 139.2 billion USD by 2030, growing at a CAGR of 4.50% during the forecast period (2025-2030).
Canada's logistics industry demonstrates robust international connectivity, with 15 authorized free trade agreements spanning 49 countries and providing access to over 1.5 billion global consumers. The nation's extensive transportation infrastructure includes a comprehensive pipeline network stretching 760,000 kilometers, facilitating efficient movement of resources across the vast territory. In October 2023, Canada further strengthened its international logistics capabilities through an expanded air transport agreement with Panama, enabling airlines to operate unlimited cargo flights between the two nations. This strategic expansion of air transport agreements reflects Canada's commitment to enhancing its global trade partnerships and diversifying its freight logistics networks.
The rail transport industry maintains a dominant position in Canada's freight infrastructure, with an extensive track length exceeding 48,309 kilometers. Rail freight operations generate 95% of the industry's revenue, highlighting its crucial role in the nation's cargo movement capabilities. In March 2024, Transport Canada demonstrated its commitment to rail infrastructure development by announcing an investment exceeding CAD 13.5 million (USD 9.96 million) to support 112 projects in Ontario's Greater Toronto and Hamilton Areas through the Rail Safety Improvement Program. This investment underscores the government's focus on maintaining and enhancing the safety and efficiency of rail freight operations within the Canadian transportation industry.
The warehousing sector continues to expand significantly, particularly in major metropolitan areas. By Q4 2023, the Greater Toronto Area had approximately 16.77 million square feet of warehousing space under construction, pushing the total warehousing inventory to 819.94 million square feet. The sector has experienced substantial growth in rental rates, with the average net asking rate reaching USD 17.08 per square foot in Q3 2023. This trend reflects the increasing demand for storage and distribution facilities in strategic locations across Canada's major urban centers, driven by the growth of the logistics industry.
Major infrastructure developments are reshaping Canada's logistics landscape, particularly in maritime transportation. The Port of Montreal, which handled 1.72 million TEUs in 2022, is set for significant expansion with a new container terminal project. Additionally, the Ridley Island Export Logistics Project, announced with a budget of CAD 750 million (USD 540 million), aims to enhance rail-to-container transloading capabilities with a capacity of 400,000 TEUs for agricultural goods, forestry products, and plastic resin. In June 2023, the cold storage sector saw notable growth with Conestoga Cold Storage Limited breaking ground on a new state-of-the-art facility in Halton Hills, Ontario, designed to be one of the world's largest with over 96 million cubic feet of capacity, marking a significant milestone in the logistics sector.
Canada Freight and Logistics Market Trends
Canada's transportation sector soars, boosted by infrastructure projects, eased travel policies and urban transit growth
- An efficient and reliable transportation system is crucial for the economy. Through the National Trade Corridors Fund, the Government of Canada invests in improving supply chains, reducing trade barriers, and fostering business growth for future economic opportunities. In May 2024, the Minister of Transport announced up to USD 51.2 million for 19 digital infrastructure projects under this fund. By promoting innovative technologies for stronger supply chains, the government aims to move goods faster and cheaper, making life more affordable for Canadians. This initiative will foster strong collaboration with stakeholders nationwide on key digital projects to better address transportation bottlenecks, vulnerabilities, and congestion at Canada's ports.
- In November 2024, the government announced progress in various projects. They had completed highway infrastructure improvements, enhancing road connections for First Nations communities to the province’s highway network. This included the successful removal and replacement of seven culverts on Highway 584 in 2024 and the completion of work planned on three culverts along Highway 11 in 2025. Looking ahead, an additional 26 culverts were set to be replaced along Highway 584 during the 2025-2026 construction seasons, with pavement rehabilitation of Highway 584 planned for 2027.
Rising tensions in the Middle East are expected to affect crude oil supplies and lead to sudden price hikes
- Gasoline prices rose 0.8% YoY in February 2024. Additionally, gasoline prices rose by 5.6% YoY in May 2024, compared to 6.1% in April, 4.5% in March, and 0.8% in February. North America, strong crude oil production is expected to continue in the coming years. Also, as more Canadian crude oil is expected to reach global markets with the Trans Mountain Pipeline expansion coming online, there will be amply supplied crude oil markets. However, increased risks due to rising tensions in the Middle East are expected to affect crude oil supplies and lead to sudden price hikes.
- Annual maintenance on Canada's oil sands plants in 2024 is expected to cause no more disruption than usual. However, trade union officials warn of a labor shortage during Alberta's 2025 turnaround season due to the start of two new industrial projects. Each year, Alberta producers hire thousands of skilled workers for essential maintenance on oil sands upgraders, thermal projects, and refineries. Canada, the world's fourth-largest oil producer, gets about two-thirds of its 4.9 million barrels per day of crude from the oil sands in northern Alberta. This might raise fuel prices in 2025.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Canada's population growth surged in Q1 2024, fueled by immigration and growing metropolitan areas
- The government introduced Green Manufacturing Initiative worth USD 4 million to boost the economy of Canada
- Employment in retail-wholesale trade sector is expected to grow, supported by increased e-commerce activities and digital sales
- Energy and petroleum costs rise on the US East Coast due to the Russia-Ukraine War impacted Canadian pricing
- The online food market is exploding in Canada and about 10% of food sales are expected to occur online by 2025
- Small- and medium-sized enterprises (SMEs) in Canada account for 93% of the manufacturing industry
- Canada strives towards its ambitious goal of 50% export growth by the year 2026
- Canada is considering imposing import tariffs on Chinese-made electric vehicles (EVs)
- Rising tensions in the Middle East are expected to affect crude oil supplies and lead to sudden price hikes
- Growing operational costs owing to rising fuel costs and driver shortages in the country
- Walmart Canada introduced a new hydrogen fuel cell-powered electric semi-truck in June 2024
- Canada ranked 7th in the Logistics Performance Index due to a rise in investment and infrastructure development
- The federal government decided to invest USD 547.5 million in the purchase incentive program of Transport Canada for medium and heavy-duty ZEVs
- Growing demand for all modes of transport in Canada owing to rising Government initiatives
- Construction projects, digitization and fluctuating trade are significantly impacting overall vessel movements
- Canada ranks as the 33rd best-connected country in the world as of 2024
- The Canadian government is increasing investments to modernize and improve port performance
- Freight rates increased in 2022 majorly due to high fuel costs, surge in trucking prices, and shortage of drivers
- Rising initiatives witnessed by Government and private players to increase cargo tonnage in the country
- Canada expands road network with USD 250 million investment and strengthens port efficiency with an investment of USD 75 million
Segment Analysis: End User Industry
Wholesale and Retail Trade Segment in Canadian Freight and Logistics Market
The wholesale and retail trade segment dominates the Canadian freight and logistics market, commanding approximately 29% market share in 2024. This segment's prominence is largely driven by the robust growth in e-commerce sales, which surged by nearly 11% year-over-year in 2023. The segment's strength is further reinforced by the presence of over 1.5 million consumers engaging in online shopping activities. Major retailers across Canada have been actively expanding their digital presence, with companies like Ralph Lauren launching dedicated digital businesses and Aisle 24 expanding its automated grocery chain concept across various locations. The segment's growth is also supported by the increasing adoption of advanced Canadian retail logistics solutions, with retailers investing in automated warehousing systems and last-mile delivery optimization to meet growing consumer demands.
Agriculture, Fishing and Forestry Segment in Canadian Freight and Logistics Market
The agriculture, fishing, and forestry segment is emerging as the fastest-growing segment in the Canadian freight and logistics market for the forecast period 2024-2029. This growth is primarily driven by Canada's strengthening position in the Indo-Pacific region, where fish and seafood exports alone reached a value of USD 2 billion in 2023. The segment's expansion is supported by robust infrastructure developments and strategic trade agreements. Agriculture and Agri-Food Canada's field crop estimates for 2024-2025 project grain exports to reach 49.3 million metric tons, indicating strong growth potential. The segment is also benefiting from increased investment in cold chain logistics for cargo and specialized transportation solutions to maintain product quality during transit.
Remaining Segments in End User Industry
The manufacturing segment maintains a significant presence in the market, driven by the automotive sector and the government's Green Manufacturing Initiative. The construction segment continues to grow through infrastructure development projects and residential construction activities. The oil and gas, mining, and quarrying segment, while smaller, remains crucial for Canada's economy, particularly with ongoing pipeline projects and energy infrastructure developments. The 'Others' segment encompasses various industries including healthcare, technology, and consumer goods, contributing to the market's diversity. Each of these segments benefits from Canada's extensive transportation network and ongoing investments in Canadian freight logistics infrastructure.
Segment Analysis: Logistics Function
Freight Transport Segment in Canada Freight and Logistics Market
The freight transport segment continues to dominate the Canadian freight and logistics market, accounting for approximately 45% of the total market value in 2024. This segment's strong performance is primarily driven by robust road freight operations, which handle about 47% of the total freight tonnage in Canada. The segment's prominence is further reinforced by Canada's extensive transportation infrastructure, including over 1,090,000 kilometers of roads and a well-developed railway network spanning 48,000 kilometers. In 2024, the freight transport segment is witnessing significant developments in sustainable transportation, with the government's initiative to ensure that 35% of medium and heavy-duty vehicle sales are zero-emission by 2030. Additionally, major investments in infrastructure development, including the USD 4.6 billion National Trade Corridors Fund spanning from 2017 to 2028, are strengthening the segment's position in the Canadian logistics market.
Pipeline Transport Segment in Canada Freight and Logistics Market
The pipeline transport segment is emerging as the fastest-growing segment within the freight transport category, projected to grow at approximately 6% annually from 2024 to 2029. This remarkable growth is supported by significant infrastructure developments, including the completion of major pipeline projects like the Trans Mountain Pipeline expansion, which is set to increase capacity by 600,000 barrels per day. The segment is benefiting from substantial investments in new pipeline infrastructure and modernization projects across Canada. The growth is further driven by increasing demand for efficient and safe transportation of oil, natural gas, and other commodities. Recent developments include the implementation of advanced monitoring systems and safety protocols, enhancing the reliability and efficiency of pipeline operations. The segment's expansion is also supported by growing export demands and the government's commitment to strengthening energy infrastructure while maintaining environmental standards.
Remaining Segments in Logistics Function
The Canadian freight and logistics market's remaining segments, including warehousing and storage, freight forwarding, CEP (Courier, Express & Parcel), and other services, each play vital roles in the overall logistics ecosystem. The warehousing and storage segment is experiencing significant transformation with the rise of automated facilities and cold storage solutions, particularly in major urban centers. The freight forwarding segment continues to evolve with digital transformation initiatives and enhanced cross-border services. The CEP segment is witnessing rapid growth due to e-commerce expansion, with companies implementing innovative last-mile delivery solutions and sustainable practices. Other services, including value-added logistics services and supply chain consulting, are becoming increasingly important as businesses seek comprehensive logistics solutions in Canada to meet their complex supply chain needs.
Canada Freight and Logistics Industry Overview
Top Companies in Canada Freight and Logistics Market
The market's leading players are demonstrating a strong commitment to innovation and operational excellence through various strategic initiatives. Leading logistics companies in Canada are heavily investing in digital transformation, with many implementing advanced tracking systems, automated warehousing solutions, and AI-powered logistics platforms to enhance operational efficiency. There's a notable trend toward sustainability, with major players expanding their electric vehicle fleets and developing green logistics solutions. Warehouse automation and cold chain infrastructure development have become key focus areas, particularly in response to growing e-commerce demands. Canadian freight companies are also strengthening their cross-border capabilities through strategic partnerships and infrastructure investments, especially along the US-Canada corridor. The integration of drone delivery systems and autonomous vehicles for last-mile delivery represents another significant innovation trend, while several players are expanding their temperature-controlled logistics capabilities to serve the pharmaceutical and food sectors.
Fragmented Market with Strong Local Presence
The Canadian freight and logistics market exhibits a fragmented structure with a mix of global logistics giants and well-established local players. The market is characterized by the strong presence of government-owned enterprises operating alongside private multinational corporations, creating a diverse competitive landscape. Global players leverage their international networks and technological capabilities, while local operators capitalize on their deep understanding of regional markets and established customer relationships. The market has witnessed significant consolidation activity, particularly in specialized segments like cold chain logistics and e-commerce fulfillment, as companies seek to expand their service portfolios and geographical coverage. Major players are actively pursuing vertical integration strategies, acquiring smaller specialized operators to strengthen their end-to-end logistics capabilities.
The competitive dynamics are further shaped by the presence of asset-light logistics providers competing alongside traditional asset-heavy operators. Companies with strong last-mile delivery capabilities and extensive warehouse networks hold competitive advantages in the rapidly growing e-commerce segment. The market has seen increased participation from technology-focused logistics startups, particularly in urban logistics and specialized delivery services. Cross-border logistics capabilities have become a crucial differentiator, with companies investing in border infrastructure and customs expertise to facilitate US-Canada trade flows. The industry is witnessing growing collaboration between traditional logistics providers and technology companies to enhance digital capabilities and service offerings. Canadian logistics companies with strong last-mile delivery capabilities are particularly well-positioned in this competitive landscape.
Innovation and Sustainability Drive Future Success
Success in the Canadian freight and logistics market increasingly depends on companies' ability to adapt to evolving customer demands and technological advancements. Market leaders are focusing on developing integrated logistics solutions that combine traditional services with digital capabilities. Investment in sustainable practices, including electric vehicle fleets and green warehousing, has become crucial for maintaining a competitive advantage. Companies are also emphasizing the development of specialized capabilities in high-growth segments like healthcare logistics and temperature-controlled transportation. Building strong partnerships with e-commerce platforms and retailers has emerged as a key strategy for capturing market share in the rapidly growing online retail segment. The ability to offer flexible, scalable solutions while maintaining cost efficiency will be crucial for future success.
Regulatory compliance and sustainability requirements are becoming increasingly important factors in shaping competitive strategies. Companies must navigate complex environmental regulations while maintaining operational efficiency. The development of robust risk management capabilities, particularly in cross-border operations, will be crucial for long-term success. Market players are increasingly focusing on building resilient supply chain networks to address potential disruptions. Investment in employee training and development has become essential as the industry becomes more technology-driven. Companies that can effectively combine technological innovation with sustainable practices while maintaining strong customer relationships will be best positioned for future growth in the market. The largest logistics companies in Canada are setting benchmarks in this regard, leading the way with innovative practices.
Canada Freight and Logistics Market Leaders
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Canada Post Corporation (including Purolator)
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DHL Group
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FedEx
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TFI International Inc.
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United Parcel Service of America, Inc. (UPS)
- *Disclaimer: Major Players sorted in no particular order
Canada Freight and Logistics Market News
- September 2024: DSV completed the acquisition of Schenker from Deutsche Bahn for EUR 14.3 billion (around USD 15.78 billion). Following the acquisition, DSV and Schenker was expected to achieve a combined revenue of about EUR 39.3 billion (USD 43.73 billion) (based on 2023 estimates) and employ roughly 147,000 individuals across over 90 nations. Beyond expanding its global footprint, the Schenker acquisition was expected to enhance DSV's growth trajectory and its commitment to a more sustainable, digital future in transport and logistics.
- September 2024: FedEx partnered with and invested in Nimble, an AI robotics and autonomous e-commerce fulfillment technology company, to scale FedEx Fulfillment with their fully autonomous 3PL model. FedEx offered a comprehensive approach to help e-commerce and omnichannel brands make faster, smarter supply chain decisions. With more than 130 warehouse and fulfillment operations in North America and 475 million returns processed annually, FedEx Supply Chain helped brands consolidate functions, increase agility, and accelerate click-to-door speed to maximize supply chain value. To support this alliance, FedEx invested in Nimble.
- August 2024: FedEx introduced new digital visibility products to enhance the experience for shippers and recipients by merging digital solutions with essential data. These paid solutions catered to the rising market demand for advanced data analytics. These products were crafted to deliver real-time insights and predictive analytics, enhancing the post-purchase journey for customers. Furthermore, FedEx's paid data integration solutions provided access to third-party providers for shipment tracking information, including the Track API, Track EDI, and newly introduced webhook subscriptions, all designed to enhance premium post-purchase tracking and supply chain visibility.
Canada Freight and Logistics Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Demographics
- 4.2 GDP Distribution By Economic Activity
- 4.3 GDP Growth By Economic Activity
- 4.4 Inflation
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4.5 Economic Performance And Profile
- 4.5.1 Trends in E-Commerce Industry
- 4.5.2 Trends in Manufacturing Industry
- 4.6 Transport And Storage Sector GDP
- 4.7 Export Trends
- 4.8 Import Trends
- 4.9 Fuel Price
- 4.10 Trucking Operational Costs
- 4.11 Trucking Fleet Size By Type
- 4.12 Logistics Performance
- 4.13 Major Truck Suppliers
- 4.14 Modal Share
- 4.15 Maritime Fleet Load Carrying Capacity
- 4.16 Liner Shipping Connectivity
- 4.17 Port Calls And Performance
- 4.18 Freight Pricing Trends
- 4.19 Freight Tonnage Trends
- 4.20 Infrastructure
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4.21 Regulatory Framework (Road and Rail)
- 4.21.1 Canada
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4.22 Regulatory Framework (Sea and Air)
- 4.22.1 Canada
- 4.23 Value Chain & Distribution Channel Analysis
5. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3. Forecasts up to 2030 and analysis of growth prospects)
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5.1 End User Industry
- 5.1.1 Agriculture, Fishing, and Forestry
- 5.1.2 Construction
- 5.1.3 Manufacturing
- 5.1.4 Oil and Gas, Mining and Quarrying
- 5.1.5 Wholesale and Retail Trade
- 5.1.6 Others
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5.2 Logistics Function
- 5.2.1 Courier, Express, and Parcel (CEP)
- 5.2.1.1 By Destination Type
- 5.2.1.1.1 Domestic
- 5.2.1.1.2 International
- 5.2.2 Freight Forwarding
- 5.2.2.1 By Mode Of Transport
- 5.2.2.1.1 Air
- 5.2.2.1.2 Sea and Inland Waterways
- 5.2.2.1.3 Others
- 5.2.3 Freight Transport
- 5.2.3.1 By Mode Of Transport
- 5.2.3.1.1 Air
- 5.2.3.1.2 Pipelines
- 5.2.3.1.3 Rail
- 5.2.3.1.4 Road
- 5.2.3.1.5 Sea and Inland Waterways
- 5.2.4 Warehousing and Storage
- 5.2.4.1 By Temperature Control
- 5.2.4.1.1 Non-Temperature Controlled
- 5.2.4.1.2 Temperature Controlled
- 5.2.5 Other Services
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 6.4.1 Air Tindi Ltd.
- 6.4.2 Algoma Central Corporation
- 6.4.3 C.H. Robinson
- 6.4.4 Canada Post Corporation (including Purolator)
- 6.4.5 Cargojet Inc.
- 6.4.6 Delmar International Inc.
- 6.4.7 Deutsche Bahn AG (including DB Schenker)
- 6.4.8 DHL Group
- 6.4.9 DSV A/S (De Sammensluttede Vognmænd af Air and Sea)
- 6.4.10 Expeditors International of Washington, Inc.
- 6.4.11 FedEx
- 6.4.12 Kuehne+Nagel
- 6.4.13 Lineage Logistics LLC
- 6.4.14 Logistec Corp.
- 6.4.15 TFI International Inc.
- 6.4.16 United Parcel Service of America, Inc. (UPS)
7. KEY STRATEGIC QUESTIONS FOR FREIGHT AND LOGISTICS CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (Market Drivers, Restraints & Opportunities)
- 8.1.5 Technological Advancements
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
- 8.7 Currency Exchange Rate
Canada Freight and Logistics Industry Segmentation
Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.End User Industry | Agriculture, Fishing, and Forestry | |||
Construction | ||||
Manufacturing | ||||
Oil and Gas, Mining and Quarrying | ||||
Wholesale and Retail Trade | ||||
Others | ||||
Logistics Function | Courier, Express, and Parcel (CEP) | By Destination Type | Domestic | |
International | ||||
Freight Forwarding | By Mode Of Transport | Air | ||
Sea and Inland Waterways | ||||
Others | ||||
Freight Transport | By Mode Of Transport | Air | ||
Pipelines | ||||
Rail | ||||
Road | ||||
Sea and Inland Waterways | ||||
Warehousing and Storage | By Temperature Control | Non-Temperature Controlled | ||
Temperature Controlled | ||||
Other Services |
Canada Freight and Logistics Market Research FAQs
How big is the Canada Freight and Logistics Market?
The Canada Freight and Logistics Market size is expected to reach USD 111.66 billion in 2025 and grow at a CAGR of 4.50% to reach USD 139.17 billion by 2030.
What is the current Canada Freight and Logistics Market size?
In 2025, the Canada Freight and Logistics Market size is expected to reach USD 111.66 billion.
Who are the key players in Canada Freight and Logistics Market?
Canada Post Corporation (including Purolator), DHL Group, FedEx, TFI International Inc. and United Parcel Service of America, Inc. (UPS) are the major companies operating in the Canada Freight and Logistics Market.
Which segment has the biggest share in the Canada Freight and Logistics Market?
In the Canada Freight and Logistics Market, the Freight Transport segment accounts for the largest share by logistics function.
Which is the fastest growing segment in the Canada Freight and Logistics Market?
In 2025, the Courier, Express, and Parcel (CEP) segment accounts for the fastest growing by logistics function in the Canada Freight and Logistics Market.
What years does this Canada Freight and Logistics Market cover, and what was the market size in 2025?
In 2025, the Canada Freight and Logistics Market size was estimated at 111.66 billion. The report covers the Canada Freight and Logistics Market historical market size for years: 2017, 2018, 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Canada Freight and Logistics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Canada Freight and Logistics Market Research
Mordor Intelligence provides a comprehensive analysis of the Canadian logistics industry. We leverage extensive expertise in transportation and logistics industry research. Our detailed report examines key segments, including freight transportation logistics, air cargo companies in Canada, and the evolving freight forwarding sector. The analysis covers crucial aspects of logistics industry growth across major hubs. We focus particularly on cross Canada shipping companies and freight logistics companies operating within the region.
Stakeholders in the transportation and logistics market gain valuable insights through our easily downloadable report PDF. It provides detailed logistics industry statistics and an analysis of the transportation industry growth rate. The report benefits logistics companies in Canada by offering strategic intelligence on freight transportation trends, cargo logistics developments, and retail logistics opportunities. Our research supports decision-makers across the logistics sector. From top freight forwarders in Canada to emerging players in transportation logistics industrial segments, we provide actionable data on logistics market size and growth projections through 2024.