Market Trends of Europe Contract Logistics Industry
Outsourced Contract Logistics Market to Register Significant Growth
The outsourcing share of contract logistics is low, showing clear growth potential. Globally, the share of contract logistics in the total market is only 10-15%. In Europe, this proportion is estimated at around 20%. The extent of outsourcing varies greatly from country to country. Transportation and storage services are generally outsourced to a large extent.
E-commerce is expected to be a major driver of outsourcing growth. As the e-commerce market grows rapidly, so do consumer expectations for faster and more reliable delivery. As a result, outsourcing of warehousing and order processing is expected to increase. Contract logistics offers e-commerce companies of all sizes the following benefits: Business manageability, advanced technology solutions, risk mitigation, and scalability.
Contract logistics companies provide services to online businesses and help enter new markets by making good use of global networks. They also help move closer to customers by offering a choice of delivery options, taking care of customs and value-added tax (VAT) services, and more.
Contract logistics companies offer specialized services for businesses that manufacture consumer electronics, telecommunications devices, computer equipment, or other high-tech products. They help these businesses reduce inventory, lower distribution costs, and launch new products.
United Kingdom is dominating the region
The United Kingdom is the third biggest e-commerce market globally after China and the United States.
The United Kingdom is on track to become a digital economy as online shopping and online payments soar. The UK E-commerce market is one of Europe’s largest and fastest-growing. In 2023, UK households are expected to spend approximately GBP 120 billion (USD 152.54 billion) on e-commerce, growing at an annual rate of 8.8%.
Retail e-commerce is one of the fastest-growing retail trends in the world. Over the past decade, online shopping has become the UK’s most popular retail channel. While e-commerce sites have existed for decades, they’ve only recently started to gain traction. The growth of online shopping in the UK has been staggering to keep up with global trends. As a result, there’s a huge demand for contract logistics services.
In November 2023, EV Cargo invested in technology-driven supply chains and built a distribution network with a world-leading control tower system. EV Cargo, a global freight forwarding company and global supply chain services provider, has won new UK contracts for three new customers in road freight and warehousing, as well as contract logistics. EV Cargo has completed a strategic resource review of its UK fleet in response to wider market conditions that have affected the UK logistics industry over the past three years. The company has incorporated technology to drive efficiencies and improve agility.
