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Canada Freight and Logistics Market Size

The Canada Freight and Logistics Market is projected to experience significant growth, driven by the robust performance of the land freight segment. This expansion is fueled by the increasing demand from e-commerce and the construction, pharmaceutical, and healthcare sectors. The rail transport industry plays a crucial role, with rail freight operations generating the majority of the industry's revenue. Additionally, recent developments, such as the expanded air transport agreement between Canada and Panama and the Canadian government's investment in infrastructure projects like the new container terminal at the Port of Montreal, are expected to further enhance the market's capacity and efficiency.

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Market Size of canada freight and logistics Industry

Canada Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 106.4 Billion
svg icon Market Size (2030) USD 139.2 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 4.58 %
svg icon Fastest Growing by Logistics Function Courier, Express, and Parcel (CEP)
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Canada Freight and Logistics Market Analysis

The Canada Freight and Logistics Market size is estimated at 106.4 billion USD in 2024, and is expected to reach 139.2 billion USD by 2030, growing at a CAGR of 4.58% during the forecast period (2024-2030).

106.4 Billion

Market Size in 2024 (USD)

139.2 Billion

Market Size in 2030 (USD)

3.36 %

CAGR (2017-2023)

4.58 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

6.22 %

Projected CAGR, Pipelines, 2024-2030

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A major pipeline initiative in British Columbia is nearing completion. TC Energy reported that the 670-kilometer Coastal GasLink pipeline, spanning from Dawson Creek to Kitimat, was fully installed.

Largest CEP Market by Destination

62.78 %

value share, Domestic, 2023

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To boost the domestic CEP market, drone deliveries are rapidly growing in Canada wherein the commercial drone market is expected to grow by more than 17% by 2027.

Largest Market by End User Industry

29.10 %

value share, Wholesale and Retail Trade, 2023

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The wholesale and retail trade end-user segment experienced growth in 2023, driven by the 10.95% YoY growth of the e-commerce sector in Canada (compared to the 2.97% in 2022), among other factors.

Largest Warehousing Market by Temperature Control

92.18 %

value share, Non-Temperature Controlled, 2023

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By Q4 2023, the Greater Toronto Area (GTA) had approximately 16.77 million sq. ft. of warehousing space under construction, pushing the total warehousing inventory in the GTA to 819.94 million sq. ft.

Fastest Growing Warehousing Market by Temperature Control

4.40 %

Projected CAGR, Temperature Controlled, 2024-2030

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In 2023, many cold storage facilities have started construction. For instance, in June 2023, Conestoga Cold Storage Limited started the construction of a new greenfield facility in Halton Hills, Ontario.

Rising freight volumes supported by e-commerce sales are driving the demand for all modes of transport in Canada

  • Canada's rail transport industry, boasting an extensive track length of over 48,309 km, holds a prominent position within the nation's transportation system. Rail freight operations dominate the industry's revenue, accounting for 95%, while the remaining 5% is attributed to passenger services, including commuter, intercity, and tourist rail. In the air transport industry, in October 2023, the Minister of Transport announced the conclusion of an expanded air transport agreement between Canada and Panama. Each country's airlines are now able to operate an unlimited number of all-cargo flights.
  • The Canadian freight and logistics market started experiencing strong growth in 2024, primarily driven by the strong performance of the land freight segment. The surge in e-commerce, coupled with expansions in the construction, pharmaceutical, and healthcare sectors, drives this growth. This surge in demand has also led to an uptick in the need for truck drivers. In 2021, Canada saw a rise in the number of truck drivers to 324,200, up from 300,000 in 2020.
  • In 2023, the Canadian government committed CAD 150 million (USD 110 million) from its National Trade Corridors Fund to establish a new container terminal at the Port of Montreal. This initiative was part of a broader program, with a budget of USD 4.6 billion spanning 2017 to 2028, aimed at bolstering Canada's trade through transportation-related projects. The new terminal, slated for construction in Contrecoeur, Quebec, approximately 40 kilometers (24.9 miles) upstream from the existing port facilities, is expected to be operational by the end of 2026. The Port of Montreal, which handled 1.72 million TEUs in 2022, is poised for further expansion with this new addition.
Canada Freight and Logistics Market

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.

  • Canada's rail transport industry, boasting an extensive track length of over 48,309 km, holds a prominent position within the nation's transportation system. Rail freight operations dominate the industry's revenue, accounting for 95%, while the remaining 5% is attributed to passenger services, including commuter, intercity, and tourist rail. In the air transport industry, in October 2023, the Minister of Transport announced the conclusion of an expanded air transport agreement between Canada and Panama. Each country's airlines are now able to operate an unlimited number of all-cargo flights.
  • The Canadian freight and logistics market started experiencing strong growth in 2024, primarily driven by the strong performance of the land freight segment. The surge in e-commerce, coupled with expansions in the construction, pharmaceutical, and healthcare sectors, drives this growth. This surge in demand has also led to an uptick in the need for truck drivers. In 2021, Canada saw a rise in the number of truck drivers to 324,200, up from 300,000 in 2020.
  • In 2023, the Canadian government committed CAD 150 million (USD 110 million) from its National Trade Corridors Fund to establish a new container terminal at the Port of Montreal. This initiative was part of a broader program, with a budget of USD 4.6 billion spanning 2017 to 2028, aimed at bolstering Canada's trade through transportation-related projects. The new terminal, slated for construction in Contrecoeur, Quebec, approximately 40 kilometers (24.9 miles) upstream from the existing port facilities, is expected to be operational by the end of 2026. The Port of Montreal, which handled 1.72 million TEUs in 2022, is poised for further expansion with this new addition.
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
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Canada Freight and Logistics Market Size Summary

The Canadian freight and logistics market is poised for significant growth, driven by the robust performance of the land freight segment. The expansion of e-commerce, along with developments in the construction, pharmaceutical, and healthcare sectors, has been a major catalyst for this growth. The rail transport industry plays a crucial role, with rail freight operations contributing the majority of the revenue. Additionally, the air transport sector is witnessing enhancements, such as the expanded air transport agreement between Canada and Panama, allowing for unlimited all-cargo flights. The government's investment in infrastructure, including a new container terminal at the Port of Montreal, underscores the commitment to bolstering trade and improving transportation networks across the country.

The market landscape is characterized by a fragmented structure, with key players like Canada Post Corporation, DHL Group, FedEx, TFI International Inc., and United Parcel Service of America, Inc. (UPS) holding significant shares. Technological advancements are also shaping the industry, as seen with C.H. Robinson's new technology to streamline freight shipping and Kuehne + Nagel's decarbonization solutions for road freight. Despite challenges such as rising operational costs due to high fuel prices, the market is expected to continue its upward trajectory, supported by strategic investments and innovations aimed at enhancing efficiency and sustainability in logistics operations.

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Canada Freight and Logistics Market Size - Table of Contents

  1. 1. 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 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

Canada Freight and Logistics Market Size FAQs

The Canada Freight and Logistics Market size is expected to reach USD 106.37 billion in 2024 and grow at a CAGR of 4.58% to reach USD 139.17 billion by 2030.

In 2024, the Canada Freight and Logistics Market size is expected to reach USD 106.37 billion.

Canada Freight Forwarders Market Report Snapshots

Canada Freight and Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030