US E-commerce Logistics Market by Service, Mode of Transportation and Type - Forecast and Analysis 2024-2028

US E-commerce Logistics Market Forecast 2024-2028 

The US E-commerce logistics market size is forecast to increase by USD 87.33 billion at a CAGR of 20.15% between 2023 and 2028. The growth rate of the e-commerce market depends on various factors, including the rise in online spending and smartphone penetration. Additionally, the increase in cross-border e-commerce activities and the proliferation of e-commerce startups in the US contribute significantly to market expansion. These trends reflect evolving consumer preferences and a shift towards digital platforms for shopping, driving the overall growth trajectory of the e-commerce sector in the country.

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

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Market Dynamic and Customer Landscape

The market is witnessing robust growth driven by the surge in e-commerce sales and the increasing adoption of online shopping. Last-mile delivery issues and supply chain management challenges persist, leading to rising costs and disruptions. However, automation technologies like robots, wearables, and drones, along with innovations in cloud computing and IoT, are enhancing efficiency. Challenges include regulatory compliance, pandemic-related disruptions, and the need for seamless B2C and B2B logistics solutions. AI, machine learning, and data analytics are revolutionizing demand forecasting and customer service, while AR is reshaping the shopping experience. Our researchers studied the market research and growth data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Key Market Driver

The rise in online spending and smartphone penetration is notably driving the market growth. Online shopping through smart devices has gained popularity because of the high penetration of Internet services in the US, the shift of consumers to online platforms, and the upgradation of purchase and delivery options with the emergence of e-commerce. Further, the increasing emphasis on mobile commerce is mainly driven by the purchase of millions of new smartphones and the creation of more opportunities for buyers to shop. Moreover, a few of the major retailers, such as Amazon and Walmart, have their mobile applications. eBay and Amazon are the two major vendors in the online space and have mobile applications that are compatible with Windows, Blackberry, iOS, Android, and other operating systems.

Additionally, these platforms help users shop conveniently using their mobile devices. Additionally, factors such as last-mile delivery issues, supply chain management issues, increasing costs, regulatory compliance issues, automation, robots, wearables, drones, self-driving vehicles, cloud computing, and the Internet of Things (IoT) also contribute to shaping the landscape of e-commerce. Thus, a rise in online spending and smartphone penetration will drive the growth of the market during the forecast period.

Key Market Trends

Technological advances in e-commerce logistics are an emerging trend shaping market growth. Advances in printed electronics technology are making e-commerce supply chain management economical by reducing the previously prohibitive costs associated with this technology. Smart packaging plays a major role in interacting with end-users. Smart packaging can be tracked during the entire delivery process as it provides customers with product information using quick response (QR) codes or features individualized design and messages for the customer. 

Moreover, automatic identification and data capture (AIDC) technology helps in automatically identifying objects, collecting data, and entering them directly into computer systems without human involvement. The implementation of AIDC helps in improved inventory accuracy, elimination of shipping errors and associated costs, reduction of unreported shipping errors, increased speed of activity, reduction of data entry costs, and reduced wastage of time. Such technological advances are likely to help service providers stay competitive in the e-commerce-driven world and will foster the market during the forecast period.

Major Market Challenge

High logistics cost is a significant challenge hindering market growth. Direct logistics costs are costs incurred in the process of moving goods. They include costs related to transportation, warehousing, and value-added services. Indirect costs include inventory-carrying costs, theft, damages, and losses in transit. Factors such as the rising fuel prices are increasing the overall shipping cost for e-commerce logistics. The volatility in crude oil prices is one of the major cost determinants for the increase in transportation costs, reducing the profitability of e-commerce logistics service providers.

Additionally, logistics providers focus on the fast delivery of goods to improve customer satisfaction and obtain a competitive edge over other providers. Quick delivery necessitates the need for efficient e-commerce logistics. This will eventually drive up the operational costs for logistics and transportation. Cost pressures are driving e-commerce logistics firms to switch to surface transit for deliveries, which, in turn, might affect market growth negatively during the forecast period.

Market Customer Landscape

The market forecasting 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 market growth analysis strategies.

 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.

FedEx Corp. - The company offers E-commerce logistics services such as international and domestic express, return management, and priority express.

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

• Deutsche Post AG
• United Parcel Service Inc.
• XPO Inc.
• DB Schenker
• GEODIS
• Saddle Creek Logistics Services
• Rakuten Group Inc.
• Kenco Group Inc.
• Kuehne Nagel Management AG
• Naqel Express
• CMA CGM SA Group
• Aramex International LLC
• C H Robinson Worldwide Inc.
• DSV AS
• Agility Public Warehousing Co. K.S.C.P
• Nippon Express Holdings Inc.
• Rhenus SE and Co. KG
• GXO Logistics Inc.
• dotdigital Group Plc

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.

What is the Largest-Growing Segment in the Market?

The transportation segment is estimated to witness significant growth during the forecast period. Transportation is expected to have the largest market share in the  E-commerce logistics market in US, due to the use of different modes of transport such as road, rail, air, and water. As supply chain management services require high investment and expertise that add significantly to operational costs, many e-commerce companies are outsourcing these services to logistics providers. There is growing importance of transportation in the entire chain of e-commerce supply chain management processes as various large and small logistics companies are focusing on last-mile delivery.

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The transportation segment was the largest and was valued at USD 9.87 billion in 2018. The integration of e-commerce transportation with transportation management software (TMS) has boosted the E-commerce logistics market in US growth. TMS aids in planning deliveries across the supply chain. It helps in lowering the cost of transportation as it provides a smarter way to transport products along the supply chain. Further, optimizing the flow of goods and leveraging consolidated capacity have increased the growth potential of the market. TMS also helps in optimizing the workflow by increasing opportunities for freight consolidation and intermodal shipping. Transportation services for cross-border e-commerce are outsourced because these are highly capital-intensive and require a high level of expertise. Moreover, retail store operators such as Walmart are further investing in supply chain management to increase online sales. Thus, such factors will drive the segment during the forecast period.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Service Outlook
  • Transportation
  • Warehousing
  • IT services and others

• Mode Of Transportation Outlook
  • Domestic
  • International

• Type Outlook
  • Forward logistics
  • Reverse logistics

Market Analyst Overview 

The US E-commerce logistics market is experiencing significant growth, driven by various consumer trends and advancements in supply chain management. However, challenges such as increasing costs, product recalls, and regulatory compliance issues persist. The industry is witnessing a surge in the adoption of self-driving vehicles and Internet of Things (IoT) technology to optimize operations in cities, distribution centers, and smart warehouses. Supply chain disruptions, delays, and shortages have emphasized the need for robust supply chain management solutions provided by companies like Maersk and Visible Supply Chain Management. Trends like AI-powered inventory management, intelligent product recommendations, and personalized virtual assistants are reshaping the landscape, particularly for small and medium-sized enterprises (SMEs).

Further, the COVID-19 pandemic has accelerated digitization and the adoption of digital technologies, including drone delivery and digital payments. Supply chain management businesses, including third-party logistics providers (3PLs), are adapting to the changing demands of consumers and the e-commerce ecosystem, focusing on speedier delivery methods and efficient cross-border shipments. Verticals like apparel, electronic gadgets, and healthcare are witnessing a surge in demand, driving the need for advanced inventory management software and innovative logistics solutions.

Market Scope
Report Coverage	Details
Page number	142
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 20.15%
Market Growth 2024-2028	USD 87.33 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	19.54
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Deutsche Post AG, FedEx Corp., United Parcel Service Inc., XPO Inc., DB Schenker, GEODIS, Saddle Creek Logistics Services, Rakuten Group Inc., Kenco Group Inc., Kuehne Nagel Management AG, Naqel Express, CMA CGM SA Group, Aramex International LLC, C H Robinson Worldwide Inc., DSV AS, Agility Public Warehousing Co. K.S.C.P, Nippon Express Holdings Inc., Rhenus SE and Co. KG, GXO Logistics Inc., and dotdigital Group Plc
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our 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 between 2024 and 2028
• Precise estimation of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across US
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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