United States Contract Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

The United States Contract Logistics Market size is estimated at USD 145.12 billion in 2025, and is expected to reach USD 174.53 billion by 2030, at a CAGR of 3.76% during the forecast period (2025-2030).

Key Highlights

• 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.

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