United States Contract Logistics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 139.86 Billion |
| Market Size (2029) | USD 168.21 Billion |
| CAGR (2024 - 2029) | 3.76 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
United States Contract Logistics Market Analysis
The United States Contract Logistics Market size is estimated at USD 139.86 billion in 2024, and is expected to reach USD 168.21 billion by 2029, at a CAGR of 3.76% during the forecast period (2024-2029).
- Strategically poised to benefit from the burgeoning e-commerce landscape and technological advancements, the United States contract logistics sector is witnessing a transformation. This evolution is largely fueled by a surge in online shopping, reshaping both consumer behavior and logistics requirements.
- In response to surging demand, logistics firms are significantly investing in expanding their warehousing networks. Projections indicate that the U.S. will need an additional 500 million square feet of warehouse space to manage growing inventories and meet same-day delivery expectations. Leading logistics companies are upgrading their infrastructure with cutting-edge technologies like automation and robotics to boost efficiency and accelerate product flow.
- As of 2024, the U.S. contract logistics market is placing a heightened focus on sustainability and digitalization. Firms are embracing energy-efficient transportation methods and state-of-the-art tracking technologies, aiming to bolster operational capabilities while reducing environmental impact. Furthermore, the nation emerges as the leading contributor to North America's contract logistics market.
- AI and ML integration for supply chain optimization stands out as a pivotal driver of this market's expansion. Businesses are leveraging AI to enhance route planning, strengthen inventory management, and perform predictive analyses. For instance, XPO Logistics utilizes technology for route optimization and real-time tracking, enhancing its service offerings and solidifying its position as a key player in the contract logistics landscape.
- For instance, C.H. Robinson employs predictive analytics to oversee its fleet's performance, guaranteeing timely maintenance and reducing service disruptions. These applications empower companies to minimize inefficiencies and forecast demands with greater precision
United States Contract Logistics Market Trends
Surge in E-Commerce Sales Fuels Market Expansion
In the U.S., the rise of E-Commerce has significantly propelled the growth of contract logistics, spurring heightened demand for streamlined warehousing, distribution, and last-mile delivery services. As online shopping surged, logistics providers expanded their infrastructures and adopted cutting-edge technologies to meet fulfillment demands.
Delivery metrics in the U.S. showed marked improvements in 2023: the issue ratio dipped 3.6% year-over-year (YoY) to 6.4%, the on-time delivery ratio held steady at 98%, the first-attempt delivery success rate jumped 12.2% YoY to 97%, and average domestic transit times shortened by 24% YoY to 2.56 days, as reported by Statista.
This momentum carried into 2024, with average transit times further refining to 2.32 days. Even amidst economic headwinds, U.S. retail e-commerce sales in 2024 are set to rise by 10.5% from 2023, as per industry forecasts.
In tandem with the E-Commerce surge, major logistics players like FedEx, USPS, and UPS have bolstered parcel delivery speeds via route optimization, infrastructure enhancements, and state-of-the-art package tracking. In 2024, FedEx and UPS achieved average transit times of 2.08 days and 2.22 days respectively. Conversely, USPS, despite their concerted efforts, saw an uptick in average transit time to 2.55 days.
In conclusion, the continuous growth of E-Commerce is driving significant advancements in the U.S. contract logistics market. As logistics providers and carriers adapt to increasing demands, the sector is poised for further improvements in efficiency and delivery performance.
Contract Logistics Market Propelled by the Automotive and Manufacturing Sectors
As manufacturers hone in on their core competencies, a growing number are turning to third-party providers for logistics operations. This shift is especially evident in the automotive sector, where firms increasingly rely on specialized logistics services to navigate their intricate supply chains. For example, leading automotive giants Ford and General Motors have teamed up with logistics providers like XPO Logistics and DHL Supply Chain. This collaboration aims to streamline their supply chains, boosting operational efficiency and driving down costs.
Major logistics companies, including FedEx and DHL, are expanding their warehouse capacities at strategic U.S. locations in 2024. This expansion is a direct response to the surging demands from automotive manufacturers. Significant investments are being made in logistics infrastructure, particularly in warehouses and distribution centers, to meet the evolving needs of the manufacturing and automotive sectors.
DHL, a prominent player in the global logistics arena, has inaugurated its latest Electric Vehicle (EV) Center of Excellence (CoE) in the U.S. This center is poised to guide the auto-mobility sector and its affiliates on their electrification journey. The newly established U.S. center is part of a broader global network, complementing existing EV Centers of Excellence in strategic locations such as Mexico, Indonesia, China, the UAE, Italy, and the UK.
In conclusion, the contract logistics market is experiencing significant growth, driven by the increasing reliance of the automotive and manufacturing sectors on third-party logistics providers. This trend is expected to continue as companies seek to optimize their supply chains and embrace new technologies.
United States Contract Logistics Industry Overview
The market is fragmented, with XPO Logistics, Ryder System Inc., FedEx Supply Chain, Burris Logistics, UPS Supply Chain Solutions, KUEHNE+NAGEL, etc as its major players. Technological advancements, such as logistic automation, IoT, and the application of sensors and UAVs for detecting human-made damages on tracks, alongside AI's role in delivery and logistics, have revolutionized the industry. The market remains fragmented, featuring a diverse mix of local and international players.
In a bid to boost effectiveness, companies are joining hands. For instance, IMC Logistics, the nation's leading marine drayage provider, has entered into a strategic partnership with its long-standing client, Kuehne+Nagel. As reported by PR Newswire, Kuehne+Nagel is set to acquire a 51% stake in IMC Logistics. This collaboration aims to meet the surging demand for comprehensive cargo transportation services, facilitating movement to and from seaports, rail hubs, customer facilities, and inland locations across the United States.
United States Contract Logistics Market Leaders
-
XPO Logistics
-
Ryder System Inc.
-
FedEx Supply Chain
-
Burris Logistics
-
UPS Supply Chain Solutions
*Disclaimer: Major Players sorted in no particular order
United States Contract Logistics Market News
- October 2024: GPO Logistics has recently secured contracts worth a combined total of around 750 million USD, as highlighted in their financial results. This achievement underscores GPO's expanding footprint in the U.S. contract logistics market. Notably, GPO is witnessing growth in sectors like retail and high-tech. To bolster supply chain management and adapt to changing customer demands, GPO is harnessing cutting-edge technologies, including automation, AI, and sustainability initiatives.
- February 2024: DHL Supply Chain, a global frontrunner in contract logistics, has forged a partnership with the pioneering robotics company Robust.AI. (San Carlos, California, United States) Together, they aim to create and roll out a state-of-the-art fleet of warehouse robots. This collaboration marries DHL Supply Chain's profound insights into logistics hurdles and its established history of integrating automated solutions with Robust.AI's prowess in artificial intelligence and cutting-edge robotics. The initial focus for both companies will be on piloting and deploying 'Carter,' a mobile robot designed for versatile material handling in warehouses.
United States Contract Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 E Commerce Growth
4.2.1.2 Technological Advancements
4.2.1.3
4.2.2 Market Restraints
4.2.2.1 Labor Shortage
4.2.2.2 Rising Fuel and Transportation costs
4.2.3 Market Opportunities
4.2.3.1 Sustainability Initiatives
4.2.3.2 Customization and Tailored Solutions
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain / Supply Chain Analysis
4.5 Insights on Industry Policies and Regulations
4.6 Insights on Technological Integration
4.7 Insights on E-commerce Industry in the Region (Domestic and Cross-border)
4.8 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-Added Services)
4.9 Spotlight - Freight Transportation Costs/Freight Rates
4.10 Impact of Geopolitics and Pandemic on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Insourced
5.1.2 Outsourced
5.2 By End-User
5.2.1 Manufacturing and Automotive
5.2.2 Consumer Goods and Retail
5.2.3 High-tech
5.2.4 Healthcare and Pharmaceuticals
5.2.5 Other End-Users(Energy, Construction, Aerospace, etc.)
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 XPO Logistics
6.2.2 Ryder Supply Chain Solutions
6.2.3 DHL Supply Chain North America
6.2.4 FedEx Logistics
6.2.5 Burris Logistics
6.2.6 Kuehne + Nagel
6.2.7 GXO Logistics
6.2.8 UPS
6.2.9 GAC United States
6.2.10 GEODIS
6.2.11 Hellmann Worldwide Logistics
6.2.12 DB Schenker
6.2.13 Hub Group*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OUTLOOK OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity)
8.2 Economic Statistics - Transport and Storage Sector Contribution to Economy
8.3 External Trade Statistics - Exports and Imports by Product and by Country of Destination/Origin
United States Contract Logistics Industry Segmentation
Contract logistics refers to the process of outsourcing resource management tasks to a third-party company. In addition, the companies involved in this market handle activities such as designing and planning supply chains, designing facilities, warehousing, transporting and distributing goods, processing orders and collecting payments, managing inventory, etc. The report provides a comprehensive background analysis of the United States contract logistics market. It covers the assessment of the economy and the contribution of various sectors, offers an overview of the market, estimates the market size for key segments, highlights emerging trends, and discusses market dynamics and geographical trends.
The United States contract logistics market is segmented by type (outsourced and insourced), by end user (manufacturing and automotive, consumer goods and retail, high-tech, healthcare, and pharmaceuticals other end users (energy, construction, aerospace, etc.)). The report offers market size and forecasts in value (USD) for all the above segments.
| By Type | |
| Insourced | |
| Outsourced |
| By End-User | |
| Manufacturing and Automotive | |
| Consumer Goods and Retail | |
| High-tech | |
| Healthcare and Pharmaceuticals | |
| Other End-Users(Energy, Construction, Aerospace, etc.) |
United States Contract Logistics Market Research FAQs
How big is the United States Contract Logistics Market?
The United States Contract Logistics Market size is expected to reach USD 139.86 billion in 2024 and grow at a CAGR of 3.76% to reach USD 168.21 billion by 2029.
What is the current United States Contract Logistics Market size?
In 2024, the United States Contract Logistics Market size is expected to reach USD 139.86 billion.
Who are the key players in United States Contract Logistics Market?
XPO Logistics, Ryder System Inc., FedEx Supply Chain, Burris Logistics and UPS Supply Chain Solutions are the major companies operating in the United States Contract Logistics Market.
What years does this United States Contract Logistics Market cover, and what was the market size in 2023?
In 2023, the United States Contract Logistics Market size was estimated at USD 134.60 billion. The report covers the United States Contract Logistics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Contract Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
United States Contract Logistics Industry Report
Statistics for the 2024 US Contract Logistics market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. US Contract Logistics analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
