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The global contract logistics market is expected to grow by 3.3% in real terms 2025, down slightly from 3.6% in 2024, according to the Global Contract Logistics 2025 report from Transport Intelligence
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Contract logistics continues to expand globally, but growth momentum is shifting eastward
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The Asia Pacific is expected to lead global expansion, with 5.9% growth in 2025, driven by e-commerce, infrastructure investment, and supply chain upgrades
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Distribution remains the dominant segment globally
The global contract logistics market is expected to grow by 3.3% in real terms 2025, down slightly from 3.6% in 2024, according to the Global Contract Logistics 2025 report from Transport Intelligence (Ti), released recently.
The Asia Pacific is expected to lead global expansion, with 5.9% growth in 2025, driven by e-commerce, infrastructure investment, and supply chain upgrades.
Paul Chapman, Senior Editor at Ti, said: “Contract logistics continues to expand globally, but growth momentum is shifting eastward. Asia Pacific is now firmly the engine of growth, while Europe and North America are entering a more mature, margin-focused phase.”
He added that “providers that combine scale with automation and vertical expertise will be best placed to compete over the next cycle.”
The global contract logistics sector faces variable regional dynamics as economic momentum shifts further towards Asia Pacific, while Europe and North America maintain modest growth weighed by inflationary pressures, high operating costs, and subdued consumer demand.
The analyzed the global contract logistics market across key regions, verticals, and service segments.
Meanwhile, Europe remains stagnant, forecast to grow just 1.3% in 2025, reflecting a saturated and mature market.
Distribution remains the dominant segment globally, representing nearly 59% of the market last year, even as leading contract logistics players posted organic growth of 3–5%, broadly in line with market trends.
Contract awards remain concentrated in retail and automotive sectors, with 64% of contracts lasting three or five years.
The global contract logistics market is entering a phase of measured, regionally uneven growth, according to Ti.
Economic momentum is strongest in Asia Pacific, where industrial investment, domestic consumption, and infrastructure development continue to support high single-digit expansion.
In contrast, North America and Europe are seeing slower growth, constrained by inflation, stagnant industrial output, and subdued consumer demand.
The North American market is growing at a slower pace, with digitalization and automation helping to offset structural constraints in retail and distribution.
Europe’s growth is marginal, reflecting a mature market with limited upside outside select verticals and geographies.
Emerging regions such as the Middle East and parts of Africa are growing from a small base, supported by trade corridor initiatives and increased outsourcing.
Distribution remains the backbone of contract logistics, growing 3.5% in 2025 and accounting for nearly 59% of market value. Warehousing is seen to rise by 3.2%, supported by automation investment.
“Value-added services grow more slowly at 2.5%, as clients demand tailored logistics but providers remain cautious due to margin pressure,” said Ti.
Automation is becoming central to operations. Autonomous robots, AI-driven fulfilment systems, and warehouse execution software are being deployed at scale, especially in high-volume and labor-sensitive environments.
Ti’s report profiles eight robotics providers and tracks deployments across GXO, CEVA, DHL Supply Chain, and others. Warehouse execution systems, collaborative robots, and predictive analytics are helping providers mitigate labor constraints and enhance service quality. However, adoption remains uneven, with smaller firms constrained by capital and scale.
Strategic acquisitions have been taking place, of late; 2024–2025 saw a wave of acquisitions, led by DSV’s takeover of DB Schenker, while GXO’s acquisition of Wincanton enhances UK market share and expands retail capabilities, though it faced regulatory scrutiny which has required grocery warehousing divestment. CEVA continued its acquisition-led growth in Turkey and France, adding warehousing space and sectoral strength.
