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

The Europe Contract Logistics Market size is estimated at USD 302.23 billion in 2025, and is expected to reach USD 354.29 billion by 2030, at a CAGR of 3.23% during the forecast period (2025-2030).

Key Highlights

• Europe's outlook for 2024 is of gradual recovery. As prices fall and wages rise, European consumers are beginning to regain purchasing power, which will boost domestic demand. The strength of this recovery will vary across countries. Manufacturing and energy-intensive economies will recover more slowly than others. In advanced European economies, growth is projected to decline to 0.7% this year before some pickup in 2024 and 2025. In emerging European economies (except Russia, Ukraine, and Turkey, and Belarus), it is expected to recover from a decline of 4.5% in 2021 to 1.1% in 2025 and to recover to 2.9% in 2024.
• Inflation is projected to fall, driven by lower energy prices and loosening supply chain constraints. It is projected to average 5.8% in advanced European economies this year and to fall to 11.9% by 2025. Most countries will fall short of their inflation targets by 2025. The cost of logistics in Europe accounts for 11 to 12% of the European economy's GDP.
• Germany's central location in the middle of Europe and highly skilled logistics services provide ideal conditions for international shippers to succeed in European markets. Germany provides easy access to the EU's 500 million consumers. Germany's skilled workforce is attractive for international companies wanting to invest in the German logistics sector or consider setting up a local branch. About 70% of Germany's foreign trade and related goods and freight traffic takes place within Europe. The major European trading partners include France (with imports and exports of €170 billion (USD 185.90 bn) and the Netherlands (with exports of USD 167 billion (USD 182.62 billion)). The biggest destination for logistics outside Europe is Asia, followed by America. Many companies are opening warehouses to expand their business in Germany.
• For instance, in June 2023, GXO announced its plans to "deepen" its presence in Germany. As a first step, GXO will construct a new 587,000-square-foot warehouse in the Dormagen area to showcase its cutting-edge warehousing solutions. GXO has only six warehouses in Germany, compared with 700 in Europe and the United Kingdom and 300 in North America.
• For instance, In July 2023, Geopost and JD Logistics announced a strategic partnership to strengthen global logistics capabilities. By combining JDL's strong warehousing network with Geopost's logistics delivery capabilities, this partnership will expand international express services from China to Europe, providing consumers and businesses with high-quality express logistics solutions. JDL and Geoopost will create seamless C2C (direct-to-consumer) and B2C (business-to-consumer) shipping solutions from China to Europe in both directions. This new partnership will provide comprehensive end-to-end shipment tracking and delivery, with a convenient 'one-stop' express delivery service that includes doorstep delivery and dedicated customer support, as well as state-of-the-art digital tracking throughout the logistics process.

Europe Contract Logistics Market Trends

Outsourced Contract Logistics Market to Register Significant Growth

The outsourcing share of contract logistics is low, showing clear growth potential. Globally, the share of contract logistics in the total market is only 10-15%. In Europe, this proportion is estimated at around 20%. The extent of outsourcing varies greatly from country to country. Transportation and storage services are generally outsourced to a large extent.

E-commerce is expected to be a major driver of outsourcing growth. As the e-commerce market grows rapidly, so do consumer expectations for faster and more reliable delivery. As a result, outsourcing of warehousing and order processing is expected to increase. Contract logistics offers e-commerce companies of all sizes the following benefits: Business manageability, advanced technology solutions, risk mitigation, and scalability.

Contract logistics companies provide services to online businesses and help enter new markets by making good use of global networks. They also help move closer to customers by offering a choice of delivery options, taking care of customs and value-added tax (VAT) services, and more.

Contract logistics companies offer specialized services for businesses that manufacture consumer electronics, telecommunications devices, computer equipment, or other high-tech products. They help these businesses reduce inventory, lower distribution costs, and launch new products.

United Kingdom is dominating the region

The United Kingdom is the third biggest e-commerce market globally after China and the United States.

The United Kingdom is on track to become a digital economy as online shopping and online payments soar. The UK E-commerce market is one of Europe's largest and fastest-growing. In 2023, UK households are expected to spend approximately GBP 120 billion (USD 152.54 billion) on e-commerce, growing at an annual rate of 8.8%.

Retail e-commerce is one of the fastest-growing retail trends in the world. Over the past decade, online shopping has become the UK's most popular retail channel. While e-commerce sites have existed for decades, they've only recently started to gain traction. The growth of online shopping in the UK has been staggering to keep up with global trends. As a result, there's a huge demand for contract logistics services.

In November 2023, EV Cargo invested in technology-driven supply chains and built a distribution network with a world-leading control tower system. EV Cargo, a global freight forwarding company and global supply chain services provider, has won new UK contracts for three new customers in road freight and warehousing, as well as contract logistics. EV Cargo has completed a strategic resource review of its UK fleet in response to wider market conditions that have affected the UK logistics industry over the past three years. The company has incorporated technology to drive efficiencies and improve agility.

Europe Contract Logistics Industry Overview

The prominent players in the market include Deutsche Post DHL Group, Schenker AG (DB Schenker), Ceva Logistics, DSV AS, and SNCF Logistics/Geodis. These players based in Europe have a significant presence across the world. Even though these major players have a strong footprint across the region and account for significant market share, the market is still fragmented to some extent, with many players providing contract logistics services at different levels.

It is necessary for companies to make sure they are constantly evolving to match the industry trends. This is likely to help them gain a stronger foothold by attracting new customers.

Most major companies are based out of the Western European region. The number of local contract logistics providers in the CEE region is comparatively lower. This is an opportunity for the existing local logistics players in the CEE region to enter the contract logistics market and gain significant market share.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support