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The logistics market valued at $10.2 trillion in 2023 is seen to reach $20.1 trillion by 2033, according to a new report from Allied Market Research
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This translates to a compound annual growth rate of 7.3% from 2024 to 2033
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Government investments in infrastructure development, such as smart ports and digital freight corridors, support market expansion
The logistics market valued at $10.2 trillion in 2023 is seen to reach $20.1 trillion by 2033, translating to a compounded annual growth rate of 7.3% from 2024 to 2033. So says a new report from Allied Market Research (AMR) titled “Logistics Market by Mode of Transport, End Use and Model.”
The AMR report cites several reasons for the projected growth, namely expanding global trade, rise in e-commerce activities, and advancements in supply chain technologies.
The rise in demand for efficient transportation and warehousing solutions, along with the rise in adoption of automation and AI, enhances operational efficiency and reduces costs.
“Government investments in infrastructure development, such as smart ports and digital freight corridors, further support market expansion,” the report stated.
Also, the push for sustainable logistics, including electric and autonomous vehicles, is reshaping industry dynamics. With rapid urbanization and evolving consumer expectations, companies are focusing on last-mile delivery optimization, fostering innovation and growth in the logistics sector, it further said.
On the basis of mode of transport, the report points out that the roadways segment held the highest market share in 2023, accounting for more than 33% of the global logistics market revenue. The reason is its cost-effectiveness, flexibility, and extensive connectivity.
According to AMR, “road transport enables last-mile delivery, seamless intercity and cross-border trade, and efficient freight movement for e-commerce, retail, and industrial sectors.”
As such, advancements in trucking technology and improved infrastructure have enhanced efficiency, making roadways the preferred logistics mode.
On the basis of end use, manufacturing held the highest market share in 2023, accounting for more than 25% of the worldwide logistics market earnings.
“This is due to the constant need for efficient transportation, warehousing, and supply chain management of raw materials and finished goods.”
Growing industrialization, global trade expansion, and on time inventory strategies further drive demand for reliable logistics solutions, ensuring seamless operations and timely product delivery.
More than 33% of the global logistics industry revenue came from the fourth party logistics or 4PL segment in 2023.
4PL is a supply chain model where a single provider manages and coordinates all aspects of a business’s logistics operations.
By integrating technology, data analytics, and strategic oversight, 4PL providers optimize operations, reduce costs, and enhance efficiency for businesses.
Growing globalization and outsourcing trends have further boosted demand for 4PL services, said AMR.
Region-wise, North America held the largest market share in terms of revenue in 2023, accounting for more than 40% of the global logistics market revenue.
The reason is its “well-established transportation infrastructure, high e-commerce penetration, and strong industrial sector,” said the report.
North America benefits from advanced supply chain technologies, government investments in logistics efficiency, and the presence of major global logistics providers, ensuring seamless freight movement across domestic and international trade routes.
READ: Global logistics industry faces mixed prospects in 2025
