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United Kingdom Contract Logistics Market Size (2024 - 2029)

The United Kingdom Contract Logistics Market is experiencing growth driven by the expansion of e-commerce and the increasing complexity of global supply chains. Despite challenges posed by the COVID-19 pandemic, the logistics sector has adapted by optimizing operations and focusing on core services. The demand for contract logistics is rising as businesses engage more in international trade, necessitating efficient logistics solutions to manage cross-border goods movement. The UK's advanced logistics industry continues to evolve, influenced by technological advancements and the need for expanded transportation networks, making it a key player in the European market.

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Market Size of United Kingdom Contract Logistics Industry

United Kingdom Contract Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 99.5 Billion
Market Size (2029) USD 116.53 Billion
CAGR (2024 - 2029) 3.21 %
Market Concentration Low

Major Players

United Kingdom Contract Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

UK Contract Logistics Market Analysis

The United Kingdom Contract Logistics Market size is estimated at USD 99.5 billion in 2024, and is expected to reach USD 116.53 billion by 2029, growing at a CAGR of 3.21% during the forecast period (2024-2029).

  • Despite facing significant operational and financial disruption since March 2020, the logistics industry continued to supply the nation with goods, including food supplies and PPE. To deal with the COVID-19 pandemic, logistics businesses managed risks by scaling back operations, taking work back in-house, and reducing their reliance on third-party services. At the same time, many also focused on their core fleet of vehicles to save costs.
  • The United Kingdom has the most advanced logistics industry in Europe. Owing to the variety and higher prevalence of e-commerce, this may not change—the contract logistics market benefits from expanding e-commerce due to increased demand for contract logistics services. As a result of the e-commerce boom, logistics companies are expanding their services.
  • With the expansion of international trade and the interconnectedness of economies, companies in the UK are increasingly engaging in global business activities. This has led to a surge in the demand for efficient and streamlined logistics services to facilitate the movement of goods across borders.
  • The Need for expanded transportation networks, the complexity of global supply chains, advancements in technology, and the rise of e-commerce have all influenced the growth and evolution of contract logistics in the UK.
  • Contract logistics services are in high demand as a result of the retail e-commerce boom. Over the last decade, e-commerce has become the most popular retail trend in the United Kingdom. Even though e-commerce platforms have been around for a long time, they have only recently gained mainstream notice. In order to keep up with the rest of the globe, the expansion of internet shopping in the United Kingdom has been phenomenal.

UK Contract Logistics Industry Segmentation

Contract logistics refers to a long-term collaboration for a wide plethora of services ranging from the conveyance of products or spare parts to the end customer delivery.

The UK contract logistics market is segmented by type (insourced and outsourced) and end-user (manufacturing and automotive, consumer goods and retail, pharmaceuticals and healthcare, hi-tech, and other end users). 

The report offers the market size and forecasts in terms of value (USD) for all the above segments.

By Type
Insourced
Outsourced
By End-User
Manufacturing and Automotive
Consumer Goods and Retail
Pharmaceuticals and Healthcare
Hi-tech
Other End-Users (Energy, Construction, Aerospace, etc.)
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United Kingdom Contract Logistics Market Size Summary

The UK contract logistics market is poised for steady growth, driven by the country's advanced logistics infrastructure and the burgeoning e-commerce sector. Despite challenges posed by the COVID-19 pandemic, which prompted logistics companies to adapt by streamlining operations and reducing reliance on third-party services, the market has shown resilience. The rise of e-commerce has significantly boosted demand for contract logistics services, as businesses seek to enhance their supply chain efficiency to meet consumer expectations. The UK's diverse manufacturing sector, encompassing industries such as automotive, aerospace, and pharmaceuticals, further fuels the demand for specialized logistics solutions that offer flexibility, cost optimization, and improved operational efficiency.

Technological advancements and the increasing importance of sustainable practices are also shaping the market's trajectory. The integration of IoT-enabled devices, track and trace systems, and green logistics initiatives are enhancing supply chain visibility and reducing environmental impact. The market is characterized by a high level of competition, with numerous local and international players like DHL Supply Chain, Wincanton, and Clipper Logistics vying for market share. This competitive landscape is marked by ongoing expansions, mergers, and acquisitions as companies strive to strengthen their presence both nationally and internationally. As the e-commerce industry continues to evolve, the UK contract logistics market is expected to adapt, incorporating innovations such as drone deliveries and hyperlocal services to meet the demands of a rapidly changing retail environment.

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United Kingdom Contract Logistics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Market Drivers

        1. 1.2.1.1 Increased Globalization boosting the market

        2. 1.2.1.2 Technological advancements bolstering the market

      2. 1.2.2 Market Restraints

        1. 1.2.2.1 Infrastructure limitation affecting the market

        2. 1.2.2.2 Shortage of Labour force affecting the market

      3. 1.2.3 Market Opportunities

        1. 1.2.3.1 International trade boosting the market

        2. 1.2.3.2 Specialized services boosting the market

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitutes

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Technological Trends in the Market

    5. 1.5 Industry Policies and Regulations

    6. 1.6 Industry Value Chain Analysis

    7. 1.7 Insights into the E-commerce Industry in the Country (both Domestic and Cross-border)

    8. 1.8 Insights into Contract Logistics in the Context of After-sales/Reverse Logistics

    9. 1.9 Brief on Different Services Provided by Contract Logistics Players

    10. 1.10 Spotlight on Freight Transportation Costs/Freight Rates

    11. 1.11 Insights into the Effect of Brexit in the UK Logistics Industry

    12. 1.12 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Insourced

      2. 2.1.2 Outsourced

    2. 2.2 By End-User

      1. 2.2.1 Manufacturing and Automotive

      2. 2.2.2 Consumer Goods and Retail

      3. 2.2.3 Pharmaceuticals and Healthcare

      4. 2.2.4 Hi-tech

      5. 2.2.5 Other End-Users (Energy, Construction, Aerospace, etc.)

United Kingdom Contract Logistics Market Size FAQs

The United Kingdom Contract Logistics Market size is expected to reach USD 99.5 billion in 2024 and grow at a CAGR of 3.21% to reach USD 116.53 billion by 2029.

In 2024, the United Kingdom Contract Logistics Market size is expected to reach USD 99.5 billion.

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