Armenia Freight And Logistics Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Armenia Freight And Logistics Market Trends and Insights

Mining-Sector Capex Surge Creating Oversize/Project-Cargo Opportunities

Metal mining generated 39.3% of export receipts and 5.4% of state revenue in 2024, with Zangezur Copper-Molybdenum Combine leading output^{[1]EITI Armenia, “Mining sector revenue contribution report 2024,” eiti.org} . New exploration, such as Sagamar LLC’s 5,000 ha Chknagh-Armanis license, drives a flow of equipment consignments weighing hundreds of tons, forcing shippers to deploy multi-axle trailers and escort services. Specialized heavy-haul demand is emerging as a niche where operators with engineering know-how can capture high margins despite the broader industry’s fragmented fleet profile.

Russian Cargo, Once Diverted by War, Now Reroutes Through Georgia-Armenia Corridor

Transit volumes on the Middle Corridor climbed from 1.1 million tons in 2022 to 2 million tons in 2023^{[2]Caspian Policy Center, “Middle Corridor trade doubles amid war,” caspianpolicy.org} . Container traffic expanded 33% over the same span, underscoring Armenia’s role as a buffer route between Russian suppliers and Gulf buyers. Operators gain volume but also shoulder geopolitical risk, as any flare-up in regional relations can quickly redirect flows elsewhere.

North-South Road Corridor Investment by Government has Unlocked Transit Potential

The Kajaran-Agarak leg broke ground in early 2024 and features 17 bridges, two tunnels, and five hubs built to European specifications. By tying Iran’s border to Georgia’s ports, the highway slices door-to-door transit times between Mumbai and Moscow from six weeks to three. Completed segments already register faster customs clearance and smoother axle weight enforcement, raising confidence among foreign forwarders.

Returnees and the Diaspora Drive SME Exports of High-Value Processed Foods

Programs such as iGorts channel diaspora skills and capital into agro-processing ventures that require cold chains and traceability. SMEs selling organic preserves and ready-to-eat specialties rely on temperature-controlled consignments and direct-to-consumer parcel flows targeting Armenian expatriate communities across North America and the EU.

Land-Locked Geography and Closed Borders with Turkey/Azerbaijan Elevate Transit Times

Container rates from Far-East ports to Black Sea gateways stand at USD 4,100 per 40-ft box, a premium that filters into domestic retail prices. Dependence on a single Georgian corridor lengthens Europe-bound hauls by 2-3 days versus a hypothetical open Turkish frontier, while the shuttered Azerbaijan border blocks cost-effective Caspian crossings.

Import-Heavy Trade Imbalances Lead to High Empty-Backhaul Ratios in Armenia

Imports reached USD 16.80 billion against exports of USD 13.02 billion in 2024, pushing empty-backhaul rates beyond 40% on European lanes. Carriers recoup losses by raising outbound rates, a cycle that dents the price competitiveness of Armenian exporters.

Segment Analysis

By End User Industry: Wholesale Trade Leads Diversified Demand

Wholesale and retail trade retained a 30.50% revenue share in 2024 as Armenian distributors absorbed diverted Russian throughput, especially fast-moving consumer goods pivoted from Baltic ports^{[3]Eurasianet, “Heavy truck queue grows at Georgia-Armenia checkpoint,” eurasianet.org} . The Armenia freight and logistics market size derived from this vertical climbed to USD 0.46 billion in the base year, feeding continuous demand for palletized storage and groupage services. Retailers reward 3PLs that deliver 99.5% on-time warehouse receipts, nudging providers to adopt radio-frequency identification for case-level accuracy.

Manufacturing registers the fastest 2.47% CAGR between 2025-2030, aided by diaspora equity in processed foods and electronics sub-assemblies. Plant operators must satisfy CEPA traceability standards, stimulating certified third-party logistics contracts for temperature control, hazardous material handling, and bonded warehousing. Over the forecast horizon, processed food lines targeting the EU could push cold-chain lane utilization above 70%, unlocking scale economies despite Armenia’s relatively modest domestic demand.

Note: Segment shares of all individual segments available upon report purchase

By Logistics Function: Freight Transport Dominates Multi-Modal Operations

Freight Transport commanded 47.06% of the Armenia freight and logistics market share in 2024. Road freight transport contributed 75.96% of that value, leveraging 377 km of rebuilt Lori Province roads financed with USD 223 million between 2018-2023. Forwarders note that the modality’s flexibility offsets terrain constraints, yet the prevalence of pre-EURO 3 rigs drags average fleet age above 18 years. Rail retains a sub-8% tonnage slice, but niche minerals and bulk cereal flows keep the mode operationally relevant. Air freight’s 0.26% of load picked (tons) share belies its role in high-value electronics and pharmaceuticals, segments willing to pay USD 1.41 per ton-km versus USD 0.12 on road.

Courier, express, and parcel (CEP) services sit at the inflection of e-commerce and diaspora gifting. CEP services are expected to grow at 2.70% CAGR between 2025-2030, underpinned by same-day delivery coverage in Yerevan, Gyumri, and Vanadzor. Automated sorters and micro-fulfillment hubs shrink last-mile costs, while blockchain-anchored smart contracts reduce cash-on-delivery disputes. As international CEP accelerates, carriers are co-loading outbound parcels with high-yield air cargo to smooth space. Government incentives on customs pre-clearance for sub-USD 200 parcels further compress delivery windows to North American destinations.

By Courier, Express, and Parcel Destination: Domestic Growth Outpaces International

Domestic CEP deliveries are sustaining 76.57% market share in the segment in 2024. The e-commerce gross merchandise value (GMV) grew to USD 766.42 million in 2025 and will approach USD 1.08 billion by 2029, sharpening demand for same-day routing algorithms. 

International CEP, while smaller, is on a 2.88% CAGR (2025-2030) trajectory as diaspora-linked gifting surges during religious and national holidays. Carriers mitigate Armenia’s landlocked limitations by consolidating Yerevan uplift into 3 weekly Narita-Tbilisi freighters, then trucking to Armenian delivery nodes within 12 hours.

By Warehousing and Storage Temperature Control: Non-Controlled Dominates Operations

Non-Temperature Controlled facilities represented 81.87% of the warehousing and storage segment during 2024 in the Armenia freight and logistics market. Unit economics are attractive, operating cost per m² averages USD 3.20 monthly, half the chilled-storage equivalent. 

Yet, temperature-controlled is expected to expand at a 2.31% CAGR (2025-2030), catalyzed by EU-standard food lines and vaccine-grade pharma requiring +2°C to +8°C regimes. The Syunik Customs and Logistics Centre’s EUR 12 million (USD 13.24 million) financing includes modular cold stores sized for 12,000 pallet places, a pivotal benchmark for provincial infrastructure.

By Freight Transport Mode: Road Infrastructure Drives Modal Choice

Road freight undertakings accounted for 75.96% of the Armenia freight transport segment in 2024, moving high freight volumes over a 7,700 km network. The network’s interstate share sits at 1,400 km, with tolling studies under review to finance maintenance without inflating shipper costs. Planned truck weighing stations aim to cut overloading damage, a chronic issue that lifts per-kilometer depreciation.

Air freight, though a 0.26% sliver on load picked (tons), is slated for a 2.58% CAGR (2025-2030), propelled by Zvartnots International Airport’s 60-city connectivity and terminal expansion that lifts annual cargo capacity toward 40,000 tons. Consignments range from pharmaceuticals to IT components, lines where transit time beats price elasticity. Rail stabilizes at around 7.93% of the load picked (tons) share as Georgia-Black Sea bottlenecks limit competitive throughput. Should the discussed Armenia-Iran railway proceed, mineral exporters forecast a modal pivot that halves the distance to Persian Gulf ports.

Note: Segment shares of all individual segments available upon report purchase

By Freight Forwarding Mode: Air Services Command Premium Positioning

Air freight forwarding earned 77.65% of forwarding revenues in 2024, buoyed by electronics, precision machinery, and active pharmaceutical ingredients that tolerate freight rates above USD 7.50 per kg. 

Air freight forwarding remained the fastest growing sub-segment as well, growing at a 2.89% CAGR between 2025-2030. Freight forwarders leverage the Digital Trade Corridor’s customs-pre-lodgment to shave documentation cycles to under four hours. Multimodal specialists focus on project cargo, orchestrating break-bulk deliveries of 120-ton mine crushers through Poti port, then onto hydraulic dollies across the mountainous Kapan road.

Geography Analysis

Armenia’s 257.6 km of roads per 1,000 km² yields functional domestic reach, yet only the Georgian and Iranian borders are open to trucks year-round, funneling 85% of external trade through Georgian ports^{[4]U.S. Department of Commerce, “Country Commercial Guide – Armenia,” privacyshield.gov} . Modernization of the Friendship Bridge doubled axle capacity and provided an alternate passage when Georgian customs intensified checks on Russia-bound loads in 2024. The Armenia freight and logistics market, therefore, balances proximity advantages with political sensitivity, a duality visible every time a policy change in Tbilisi cascades into Yerevan rate sheets.

The North-South Road Corridor’s EUR 236 million (USD 260.45 million) Sisian-Kajaran tranche features gradient cuts and 1.5 km tunnels to secure year-round road availability, lowering accident risk, and freeing oversized carriers from seasonal daylight restrictions. The southern link to Iran’s Norduz crossing is increasingly strategic as discussions on an India-Iran-Armenia multimodal chain progress, potentially shortening Mumbai-Moscow voyages by three weeks.

Shirak Province’s dry port anchors a government plan to create 2,000 direct jobs and an ecosystem of customs brokers, insurers, and 3PLs. Once operational, the site aims to process 4.7 million tons annually. The facility’s rail spur links to the Gyumri-Vanadzor trunk line, offering an inland clearance option that circumvents Yerevan congestion.