Europe - Logistics Market by Type, End-user and Geography - Forecast and Analysis 2023-2027

Europe Logistics Market Forecast 2023-2027

The Europe logistics market size is estimated to grow by USD 51.35 billion at a CAGR of 3.86% between 2022 and 2027. The market's expansion hinges on various factors, notably the flourishing e-commerce sector in Europe, amplifying the demand for streamlined logistics and supply chain management solutions. Moreover, businesses are prioritizing their core competencies, consequently leaning on third-party logistics providers (3PLs) to manage their logistics operations efficiently. This escalating reliance on 3PL services is significantly propelling market growth, underlining the critical role of logistics in meeting evolving business needs. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the Size of the Europe Logistics Market During the Forecast Period?

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Market Segmentation

Type Segment Analysis

The 3PL segment is estimated to witness significant growth during the forecast period. The 3PL services segment comprises transportation, warehousing, distribution, freight forwarding, inventory management, and packaging. The main advantage of the 3PL segment is that it customizes the solutions to meet individual client needs, optimizing routes, minimizing costs, and improving operational efficiency. Additionally, there is significant economies of scale and specialized knowledge, enabling companies to focus on core competencies while leaving complexities to experts. 

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The 3PL segment was the largest segment and was valued at USD 197.48 billion in 2017. There is increasing adoption of the 3PL segment as it enables cross-border trade and overcomes logistical challenges in Europe, where diverse regulatory environments, border crossings, and varying infrastructure exist. Additionally, some of the main advantages of this segment include providing flexibility to scale operations based on demand fluctuations and supporting seasonal peaks and market expansions. In addition, the integration of technology is a significant feature of this segment. This technology integration offers flexibility to scale operations depending on demand fluctuations, supporting seasonal peaks and market expansions. hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

End-user Segment Analysis

Based on end-user, the segment is classified into manufacturing, automotive, consumer goods, retail industry, and others. The manufacturing industry comprises a broad range of activities and production techniques, spanning small-scale enterprises that use traditional production techniques to large-scale enterprises that manufacture complex products. This is an essential part of the manufacturing segment as it is vital for carrying out planning, coordination, and service functions. Additionally, the increasing competitiveness in the market is encouraging several companies to offer better and quality solutions for growing industries, such as manufacturing. Hence, such factors are expected to fuel the growth of this segment which in turn will drive the market growth during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing significant transformation driven by digitalization, where advancements in Artificial Intelligence (AI), Machine Learning, and Robotics are optimizing supply chains across various sectors, including consumer goods, retail, industrial, and manufacturing. The integration of IoT, GPS trackers, RFID sensors, and Bluetooth technology is enhancing fleet connectivity and enabling real-time data analytics for green initiatives aimed at reducing carbon footprint and improving sustainability. Additionally, the growth of e-commerce, both in B2B and B2C segments, is reshaping last-mile delivery strategies, while advancements in omnichannel logistics and integrated logistics management are revolutionizing the air, road, rail, and seaway transportation networks in the region, facilitating efficient and environmentally friendly cargo volume management for businesses operating within and outside the European Union. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

One of the key factors driving the market growth is the growing demand for third-party logistics (3PLs). There has been an increase in the adoption of 3PL services across several companies, including those in the retail industry and the oil & gas sector. Numerous companies are outsourcing transport services and a set of complex processes, such as transportation and warehousing, to outside firms. This trend is particularly evident in the European Union, where the demand for 3PL services is on the rise, fueled by the expanding manufacturing operations and the need for green logistics solutions. Moreover, the implementation of artificial intelligence (AI), machine learning, and robotics is transforming the landscape of 3PL services, optimizing processes and enhancing efficiency.

Moreover, the main advantage of these 3PL services, which is fuelling their demand, is that they offer savings of 10%-30% on costs. There has been an increase in demand for 3PL across Europe, with the growing returns in the manufacturing sector. As they are expanding their manufacturing operations, Thus, 3PL services are helping them in transporting raw materials to factories and finished goods to distributors and retailers. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.

Significant Market Trend

A key factor shaping the market growth is the increasing customer-centric logistics. There is an increasing focus on customer-centric logistics by several providers across Europe. Additionally, there is a significant shift to this new approach as empowered consumers have forced supply chains to reinvent themselves. As a result, several logistic providers are analyzing historical forecasts based on customers' orders to understand their behavior.

For instance, some of the forecast data analyzed by the logistic providers include sales forecasts, weather forecasts, and customer sentiments. Hence, the companies can generate data from point-of-sales, traffic reports, and market share reports based on these data. Furthermore, there is an increasing adoption of predictive analytics to highlight, simulate, and predict future situations to make crucial decisions. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market growth during the forecast period.

Major Market Challenge

The impact of logistics on the environment is one of the key challenges hindering the market growth. Oil supplies are one of the significant factors impacting transportation. The growing concerns regarding climate change, along with issues including congestion, noise, and urban pollution or oil spills at sea have high impacts on the environment. For instance, the European transport sector consumes approximately 30% of the total energy used.

Therefore, there is an increasing focus on sustainable transportation in the European market to ensure energy security and, at the same time, to protect the environment. The transport sector significantly contributes to the growth of greenhouse gas emissions. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.

Market Customer Landscape

The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

AP Moller Maersk AS: The company offers logistics services such as Maersk Project Logistics, Maersk E-Commerce Logistics, and Cold Chain Logistics services.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• BDP International Inc.
• Bertelsmann SE and Co. KGaA
• C H Robinson Worldwide Inc.
• CEVA-Logistics S A
• Deutsche Bahn AG
• Deutsche Post AG
• DSV AS
• Expeditors International of Washington Inc.
• FedEx Corp.
• Hellmann Worldwide-Logistics SE and Co KG
• International Distributions Services plc
• Kintetsu World Express Inc.
• Kuehne Nagel Management AG
• Nippon Yusen Kabushiki Kaisha
• Rhenus SE and Co. KG
• SDK FREJA A S
• SF Express Co. Ltd.
• XPO Inc.
• Bollore SE

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

In the dynamic landscape of Europe, service delivery standards are evolving rapidly, driven by the digitalization of logistics operations and significant capital investments in automation equipment. Innovations such as drone delivery are reshaping the industry, while integrated logistic models are enhancing efficiency and customer satisfaction. Various participants, including Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL) providers, play a vital role in inbound, outbound, and reverse logistics operations. From construction to e-commerce, logistics services are adapting to diverse needs, with a focus on digital logistics and efficient modes of transport. Tech-driven solutions are optimizing last mile deliveries, cutting costs, and reducing lead times, ensuring competitive advantage and customer-centricity in the market.

The landscape of logistics services is rapidly evolving with the integration of technology-driven solutions. IoT-enabled connected devices are revolutionizing supply chain management, providing real-time insights and enhancing efficiency. However, challenges such as the lack of control of manufacturers on logistics services and poor infrastructure persist, leading to higher logistics costs. To address these issues, there's a growing emphasis on last-mile deliveries and logistics automation to streamline processes, cut costs, and reduce lead times. Embracing a multi-modal system is also crucial for optimizing transportation networks and ensuring seamless connectivity across various modes of transport. As the industry continues to innovate, leveraging tech-driven solutions remains essential for staying competitive in the dynamic landscape.

The market is experiencing a transformative phase driven by technological innovations and shifting consumer preferences. Artificial Intelligence (AI), Machine Learning, and Robotics are revolutionizing operations, optimizing processes, and enhancing efficiency across the supply chain. The European Union plays a pivotal role in shaping policies and regulations governing these activities, fostering a conducive environment for sustainable practices such as Green logistics. With the rise of e-commerce, both B2B e-commerce and B2C e-commerce segments are witnessing significant growth, necessitating advanced last-mile delivery solutions and omnichannel integration. Roadways, railways, airways, and seaways form the backbone of European logistics, supported by GPS trackers, RFID sensors, Bluetooth, and IoT for fleet connectivity and integrated logistics management. Big Data analytics further enhance decision-making and supply chain visibility in this dynamic landscape.

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027. 

• Type Outlook 
  • 3PL
  • 4PL
• End-user Outlook 
  • Manufacturing
  • Automotive
  • Consumer goods
  • Retail industry
  • Others
• Geography Outlook 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe

Europe Logistics Market Scope
Report Coverage	Details
Page number	171
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.86%
Market growth 2023-2027	USD 51.35 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.21
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AP Moller Maersk AS, BDP International Inc., Bertelsmann SE and Co. KGaA, C H Robinson Worldwide Inc., CEVA-Logistics S A, Deutsche Bahn AG, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., FedEx Corp., Hellmann Worldwide-Logistics SE and Co KG, International Distributions Services plc, Kintetsu World Express Inc., Kuehne Nagel Management AG, Nippon Yusen Kabushiki Kaisha, Rhenus SE and Co. KG, SDK FREJA A S, SF Express Co. Ltd., XPO Inc., and Bollore SE
Market dynamics	Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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