As per newly released data by FMI, the logistics outsourcing industry is estimated at USD 1,123.6 billion in 2024 and is anticipated to reach USD 2,153.7 billion by 2035, at a CAGR of 4.8% from 2025 to 2035. The share of the logistics outsourcing industry in its parent industry (the global freight and logistics Industry) is 20% to 25%.
| Attribute | Details |
|---|---|
| Logistics Outsourcing Sector Size 2025 (Estimated) | USD 1,346.8 billion |
| Projected Logistics Outsourcing (2035) Valuation | USD 2,153.7 billion |
| Value CAGR (2025 to 2035) | 4.8% |
| Industry Top Players Share (Logistic Outsourcing) in 2024. | 30% ot 35% |
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The global logistics outsourcing industry has experienced a growth rate of 3.7% between the period 2020 to 2024 owing to the globalized supply chain, demands on a more profound supply chain, and the emphasis on cost reduction.
Manufacturing industries including the healthcare and automotive sectors, the food and beverages industry, and the chemical industry relied on third-party logistics for efficiency in operations and accelerated turnaround, especially at third parties. This period witnessed an increased uptake of services such as warehousing, inventory management, and consulting which would meet firms' logistic needs.
Additionally, improvements in the transportation network through air freight, ocean carriers, railways, and trucks were considered most influential in driving the growth of the sector. Technological advancement in the industry was also noticeable, including in real-time tracking, the use of artificial intelligence in designing an optimal route for delivery, and supply chain analysis for better supply chain management in outsourced logistics services.
Further, the rapid growth of the e-commerce industry including the emerging economy, which resulted in a surge in the demand for novel techniques and faster the logistics reinforcement, accelerated the growth.
The industry also trends toward integrated services by simple and combined logistics services associated with consulting to offer total solutions. Firstly, North America and Europe remained the largest consuming country’s because of well-developed infrastructure and the existence of large-scale manufacturers, whereas, East Asia and South Asia, both increased their demands because of developing trades and industrialization during the forecast period.
In 2025 to 2035 period, the logistics outsourcing industry is expected to sustain a higher growth rate of 4.8% CAGR. The prognosis of logistics outsourcing based on modern tools and services such as IoT, blockchain, and autonomous transportation systems will require changes of outsourcing results in giving way to predictive analysis, proactive monitoring, and effective operational implementation.
Also the nature of logistics to cause a major share of Greenhouse gases emissions is expected to trigger increased demand for sustainable solutions in line with the regulations on environmental compliance.
AI automations including those being used in warehouses, smart fleet management systems could become standard elements of reefer solutions making use of value added services to be even stronger. Logistic regions including Latin America and MEA is expected to emerge as regions of considerable growth potential due to their progression in logistics investments and growing industrial base.
Growing Demand for Efficiency and Cost Savings Drives Expansion.
The logistics outsourcing sector is also in growing phase as many companies want to outsource its logistics functions in order to cut cost and avoid those outsourcing logistics services for transportation management, fulfillment services among others.
The trends of outsourcing in industries: The major reason why business organizations sources its logistics services or many of its business services to other firms is to realize the following benefits; This has been occasioned by the increased sophistication of supply chains, consumer demands for quality services more than ever and the ever increasing speed of globalization.
Also, there are innovation improvements in supply chain technology which comprise smart logistics and warehouse automation, Internet of Things (IoT) track and trace solutions and logistics analytics. These technologies are beneficial not only from the perspective of boosting operation efficiencies but also because they bring about costs cutting in logistic activities that enable organizations to act strategically in the industry. For instance, robotics used in warehouse and distribution centres optimise performance, cuts down on expenses for employees, and minimizes mistakes.
Furthermore, there is growing pressure on organizations to undertake sustainable measures in their logistics chain hence development of green logistics solutions. This comprises efficient fleets for transportation, carbon efficient premises for storage and environmentally friendly wrappings. People are becoming more sensitive to the environmental impact of their products and services hence pushing the need for logistics outsourcing.
Enhanced Supply Chain Management Capabilities Enabled by Expertise in End-to-End Logistics Operations
The drive toward improved representation of supply chain management is becoming the most significant driver of logistics outsourcing. Engaging third-party logistics providers for end-to-end logistics solutions, transportation, warehousing, and inventory makes business execution convenient.
These providers have rich experience in specific niches and implement high-tech solutions such as AI, automation, and data analysis that will help companies achieve the best results in supply chain management. When implemented within an organization, these technologies enable increased visibility to the supply chain network that aids in the development of proper routes, shorter time taken to deliver, and hence increased productivity.
Additionally, the 3PLs have better capacity to handle dynamics and uncertainty in supply chain management issues, demand volatility, supplier relations, and risks. These competencies can help firms better understand trends, cut costs, and improve services within and for the organization.
Consequently, a firm can develop a high level of competence in its strategic functions as all the nonstrategic logistics activities are handled by the 3PLs. Consequently not only does it increase operational productivity but also facilitates businesses to expand and grow their logistics requirement to match the ever-growing global industry.
Warehousing and fulfillment centers to grow as demand for effective e-commerce platform increases in the USA
The availability of warehousing services, and E-fulfillment centers is another factor that has fueling the USA logistics outsourcing industry hence it Is expected to grow at a CAGR of 3.2% from 2025 to 2035. As a result of the expansion of the e-tail business, it has been necessary to develop better and more different systems concerning warehousing and order fulfillment due to a high turnover and return rate of products. At the moment, e-commerce companies are investing in advanced fulfillment centers utilizing automation, Robotics, and also Knowledge processing systems.
These center also besides the warehousing and distribution of the e-commerce enhance as well the flexibility and responsivity of the other supply chains. Various changes in the courier industries have forced alteration of how many companies resort to third-party logistics providers (3PLs) for warehousing and distribution services. They have pointed focused to advances in growth and development, scalability needs and a progressively diminishing fixed cost acquiring ability to serve the fluctuating industry needs.
Consequently, the segment concerning the outsourcing of logistics functions has developed strongly in the USA; these larger 3PL suppliers provide basic services such as warehousing and transportation and also serve what is known as ‘value-added services’ - inventory management, order picking and preparing, and returning of products. While this advantage is largely extended to the e-commerce participants, other sectors where the finest in supply chain solutions are needed get to tap into it.
Increased focus on compliance has become the key factor that is influencing the need for temperature controlled logistics in India
In the field of logistics outsourcing, Temp-controlled logistics has gained steady growth and demand especially because of the enhancement of the pharmaceutical and healthcare sector in India.
This trend can be quite understandable as customers are beginning to ensure that different types of Pharmaceuticals and Healthcare products which may be sensitive to changes in temperature conditions in transportation/ storage are pure. The industry of logistic outsourcing is estimated to rise and the industry CAGR is expected at 5.4% for the period from 2025 to 2035.
Pharmaceutical and healthcare industries are growing in India, so the temperature sensitive delivery continues to be needed to manage the temperature for the products and to meet increasing regulation. Logistics providers are also increasing their capacity on delivering specialty temperature controlled solutions for this industry necessities.
Need for temperature sensitive transportation and the outbound distribution chains of the production companies including the pharmaceutical one is something else which is increasing the requirement for such logistic solutions and is therefore contributing to the growth of the logistic outsourcing in India.
Growing industrial production in emerging sectors fuels the demand for logistics outsourcing in the UK
Growth of industrial production in new economies is boosting the logistics outsourcing industry in the UK where corporations are looking for ways to increase effectiveness, cut expenditures and return to their strengths.
This shift is particularly expressive in industries that require complicated supply chain solutions; 3PL providers provide specialized solutions in transportation, warehousing, inventory and distribution. United Kingdom’s strong geographical location and a visionary transportation infrastructure, and the connection to major logistic service networks makes the country an optimal location for this service.
At the same time, e-commerce and cross-border transactions have spurred the demand for more scalability and adaptable logistic services that enable organizations to meet their global clients’ needs. Logistics outsourcing has also been made more effective and reliable by the focus on digital technologies of change such as AI, IoT, and data analysis.
Consequently, significant growth opportunities are expected for the logistics outsourcing industry in the UK, perhaps experiencing a CAGR of 4.3% between 2025 and 2035, and it remains a valuable component of global trade and industry.
Value-added Services Expected to Drive Sales
Value-added services emerged as the largest segment globally in the logistics outsourcing sector in 2024, with a share of 38.7%. This is due to the increasing need for flexibility in packaging, labeling, tracking inventory, order picking and delivery, and returning value to customers in the supply chain. Fields such as retail, health, and cars have become more reliant on the VAS as a way of enhancing production processes, cutting costs, and satisfying new demands.
Increasing globalization and demographics, the rationalization of supply chain networks, and the trend toward automation and real-time transparency create additional profitable industry for the segment. The segment is likely to grow at a CAGR of 3.5% from 2025 to 2035 due to the focus of companies on flexibility, scalability, and end-to-end solutions in the supply chain.
Truck Transportation Expected to Hold a Major Share in the Logistics Outsourcing
Truck transportation dominate the sector with a share of 42.3% in the global logistics outsourcing industry in 2024 owing to flexibility, relatively low cost, and the last mile. Truck transportation can be applied across virtually all industries involving the transport of goods such as the retail, F&B, automotive, and e-tailing industries because it is suitable for the short to the medium as well as cross-border transportation of commodities.
As more end users seek efficient supply chains and swift delivery solutions, truck transportation remains an option of preference. The segment is projected to grow at a CAGR of 3.8% during the period of 2025 to 2035 owing to technological innovation in the fleet management industry, increasing need for road transportation of goods, and growth of supply chains worldwide.
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Leading players in the global logistics outsourcing industry focus on technological advancements, such as automation, AI-driven supply chain solutions, and real-time tracking, to enhance operational efficiency.
For instance:
| Attribute | Details |
|---|---|
| Forecast Period | 2025 to 2035 |
| Historical Data Available for | 2020 to 2024 |
| Industry Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania & MEA |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, UK, France, Spain, Italy, Russia, South Africa, Northern Africa GCC Countries, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia & New Zealand. |
| Key Segments Covered | Product Type, Style, Size, Price Range, Sales Channel and Region. |
| Key Companies Profiled | FedEx Logistics; Kuehne + Nagel; UPS Supply Chain Solutions; DB Schenker; Nippon Express; XPO Logistics; CEVA Logistics; Geodis; Ryder System, Inc.; Others (as per client requirement) |
| Report Coverage | Industry Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The valuation of global logistics outsourcing reached at USD 1346.8 billion in 2025.
The global logistics outsourcing market grew at a sluggish 3.7% CAGR between 2020 and 2024.
Key trends driving logistics outsourcing sales include the demand for cost efficiency, access to advanced technology, scalability, and specialized expertise. Additionally, e-commerce growth and global supply chain complexities are significant factors.
Leading players operating in the global logistics outsourcing industry are FedEx Logistics, Kuehne + Nagel, UPS Supply Chain Solutions, DB Schenker, Nippon Express, XPO Logistics, CEVA Logistics, Geodis, and Ryder System, Inc.
The North America logistics outsourcing market is projected to grow at 3.8% CAGR over the forecast period.
Leading players in the global logistics outsourcing sector are estimated to account for approximately ~30%-35% of the total share.
The Europe logistics outsourcing industry is anticipated to expand at ~4.3% CAGR over the forecast period.
| Market Size, 2024 | USD 117.1 billion |
|---|---|
| Market Size, 2034 | USD 175.0 billion |
| Value CAGR (2024 to 2034) | 4.1% |
| Market CAGR (From 2023 to 2033) | 17.8% |
|---|---|
| Market Size (2023) | USD 626.23 billion |
| Market Size (2033) | USD 3221.36 billion |
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