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United Kingdom Freight and Logistics Market Size

The United Kingdom Freight and Logistics Market is projected to experience growth over the forecast period, driven by various factors including the expansion of the e-commerce sector and initiatives aimed at sustainability and decarbonization. The market's expansion is supported by the UK's commitment to achieving zero-emission status for new heavy goods vehicles and the development of a nationwide network to power electric trucks. Government initiatives to promote careers in logistics and invest in innovative technologies further contribute to the market's growth trajectory.

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Market Size of united kingdom freight and logistics Industry

United Kingdom Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 137.9 Billion
svg icon Market Size (2030) USD 163.8 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 2.91 %
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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United Kingdom Freight and Logistics Market Analysis

The United Kingdom Freight and Logistics Market size is estimated at 137.9 billion USD in 2024, and is expected to reach 163.8 billion USD by 2030, growing at a CAGR of 2.91% during the forecast period (2024-2030).

137.9 Billion

Market Size in 2024 (USD)

163.8 Billion

Market Size in 2030 (USD)

2.40 %

CAGR (2017-2023)

2.91 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

3.28 %

Projected CAGR, Air, 2024-2030

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The UK government unveiled plans in 2022 to build a 164-mile automated superhighway for drone deliveries. The Skyway project will connect the airspace between Cambridge, Oxford, Rugby, Milton Keynes, and Coventry.

Largest CEP Market by Destination

65.08 %

value share, Domestic, 2023

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The e-commerce industry is a leading factor in domestic CEP segment growth wherein the e-commerce sector's value is expected to grow at a CAGR of 7.77% from 2023-2027.

Largest Market by End User Industry

41.63 %

value share, Wholesale and Retail Trade, 2023

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The wholesale and retail trade end-user segment is supported by the rise in consumer e-commerce. Moreover, e-commerce now accounts for 30% of the total retail market in the UK.

Largest Warehousing Market by Temperature Control

92.42 %

value share, Non-Temperature Controlled, 2023

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The demand for logistics and industrial spaces experienced a recovery in the third quarter of 2023, rising to 6.7 million sq. ft from 6.3 million sq. ft in the second quarter of 2023.

Fastest Growing Warehousing Market by Temperature Control

2.80 %

Projected CAGR, Temperature Controlled, 2024-2030

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The over-the-counter (OTC) pharmaceuticals market in the UK was USD 3.72 billion in 2023 and is expected to reach USD 4.57 billion by 2028, driving the growth of the segment.

E-commerce, infrastructure development, and strategy launches will boost technology adoption are leading the market demand

  • The UK aims to achieve zero-emission status for new heavy goods vehicles by 2040. Projections indicate a robust CAGR of nearly 70% for the UK's electric truck market from 2020 to 2026, with sales forecasted to hit 2,167 units in 2026. Of these, approximately 22 out of every 25 vehicles are expected to be medium-duty electric trucks. In a notable development, Amazon announced plans in 2022 to introduce five electric heavy goods vehicles (HGVs) into its delivery fleet, covering a distance of 100,000 miles annually. This initiative is anticipated to reduce carbon emissions by over 170 tonnes. The UK is actively working on establishing a nationwide network of overhead wires to power long-distance electric trucks, aligning with its 2050 goal of decarbonizing transportation.
  • In June 2022, the UK government launched a campaign to promote careers in logistics, with a strong emphasis on sustainability in the haulage sector. As part of this initiative, the government allocated a GBP 7 million (USD 9.44 million) investment to drive the adoption of innovative technologies, facilitating both decarbonization and digitalization. This funding could be utilized for initiatives such as piloting hydrogen cranes or exploring low-carbon fuels across the industry.
  • The rapid growth of e-commerce is a major catalyst for the UK's transportation sector. Projections indicate that e-commerce revenue in the UK will reach USD 179.5 billion by 2025. In 2023, revenue from e-commerce sales of fashion products, including apparel and bags, saw a significant surge, rising by over USD 5.38 billion to approximately USD 43.89 billion. This upward trend is expected to continue, with revenue from e-commerce sales in the fashion market projected to reach around USD 54.36 billion by 2025.
United Kingdom Freight and Logistics Market

United Kingdom 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.

  • The UK aims to achieve zero-emission status for new heavy goods vehicles by 2040. Projections indicate a robust CAGR of nearly 70% for the UK's electric truck market from 2020 to 2026, with sales forecasted to hit 2,167 units in 2026. Of these, approximately 22 out of every 25 vehicles are expected to be medium-duty electric trucks. In a notable development, Amazon announced plans in 2022 to introduce five electric heavy goods vehicles (HGVs) into its delivery fleet, covering a distance of 100,000 miles annually. This initiative is anticipated to reduce carbon emissions by over 170 tonnes. The UK is actively working on establishing a nationwide network of overhead wires to power long-distance electric trucks, aligning with its 2050 goal of decarbonizing transportation.
  • In June 2022, the UK government launched a campaign to promote careers in logistics, with a strong emphasis on sustainability in the haulage sector. As part of this initiative, the government allocated a GBP 7 million (USD 9.44 million) investment to drive the adoption of innovative technologies, facilitating both decarbonization and digitalization. This funding could be utilized for initiatives such as piloting hydrogen cranes or exploring low-carbon fuels across the industry.
  • The rapid growth of e-commerce is a major catalyst for the UK's transportation sector. Projections indicate that e-commerce revenue in the UK will reach USD 179.5 billion by 2025. In 2023, revenue from e-commerce sales of fashion products, including apparel and bags, saw a significant surge, rising by over USD 5.38 billion to approximately USD 43.89 billion. This upward trend is expected to continue, with revenue from e-commerce sales in the fashion market projected to reach around USD 54.36 billion by 2025.
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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United Kingdom Freight and Logistics Market Size Summary

The United Kingdom Freight and Logistics Market is poised for steady growth, driven by a combination of technological advancements and strategic government initiatives. The market is experiencing a transformation with a strong focus on sustainability, particularly in the adoption of electric vehicles and the development of infrastructure to support zero-emission goals. The government's commitment to decarbonization and digitalization is evident through significant investments aimed at fostering innovation in the logistics sector. The rapid expansion of e-commerce is a key factor propelling the transportation industry, with increasing demand for efficient logistics solutions to support online retail growth. This trend is further supported by the expansion of large warehouses, which are increasingly being repurposed as e-commerce fulfillment centers, reflecting the shift towards consumer-centric distribution models.

The market landscape is characterized by a fragmented structure, with major players like DHL Group, DSV A/S, Kuehne + Nagel, UPS, and Wincanton PLC holding a modest share. These companies are actively enhancing their service offerings to meet the evolving demands of the logistics sector. Recent developments include Kuehne + Nagel's introduction of carbon reduction solutions for electric trucks and the expansion of its global charter connections to streamline supply chain operations. The strategic partnerships and technological innovations within the industry underscore the UK's commitment to maintaining a competitive edge in the global freight and logistics market, despite challenges such as fluctuating fuel prices and geopolitical tensions impacting supply chains.

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United Kingdom 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

United Kingdom Freight and Logistics Market Size FAQs

The United Kingdom Freight and Logistics Market size is expected to reach USD 137.86 billion in 2024 and grow at a CAGR of 2.91% to reach USD 163.77 billion by 2030.

In 2024, the United Kingdom Freight and Logistics Market size is expected to reach USD 137.86 billion.

United Kingdom Freight and Logistics Market Report Snapshots

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