EUROPE CONTRACT LOGISTICS MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2022 - 2027)

The Europe Contract Logistics Market is Segmented by Type (Insourced and Outsourced), End User (Industrial Machinery and Automotive, Food and Beverage, Construction, Chemicals, Other Consumer Goods, and Other End Users), and Country (Germany, the United Kingdom, the Netherlands, France, Italy, Spain, Poland, Belgium, Sweden, and Rest of Europe). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

Market Snapshot

europe contract logistics market
Study Period: 2017-2027
Base Year: 2021
CAGR: 3 %

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Market Overview

Europe is a leader in the global contract logistics market. The market for contract logistics in Europe is expected to register a CAGR of 3% during the forecast period. While the impacts of COVID-19 have been negative overall on the economy, certain sectors have seen significant growth in sales, such as grocery, retail, and consumer electronics, marking positive developments for the European contract logistics market in 2022. Owing to the rise in demand for more integrated services, data management, and the preference for flexible solutions, the contract logistics market is expected to witness high growth.

  • As the demand for specific processes along the value chain and comprehensive services is growing, contract logistics is becoming the ideal solution for companies. The Western European region dominates the market by taking more than three-fourths of the market, with Germany accounting for the major share. However, countries in the Central and Eastern Europe regions are expected to achieve high growth in the future.
  • The retail sector is a key end-user sector of the contract logistics market in general. With Europe being a global hub for the automotive industry, it accounts for a significant share of the European contract logistics market. The contract logistics market across the world is witnessing trends of consolidation. From strategies adopted by major players, it can be observed that the companies are following the trend of acquisition to maintain a competitive edge in the market.

Scope of the Report

The report provides a complete background analysis of the European contract logistics market, including an assessment of the economy, a market overview, market size estimation for key segments, emerging trends in the market, market dynamics, and key company profiles are covered in the report. The report also covers the impact of COVID-19 on the market.

The European contract logistics market is segmented by type (insourced and outsourced), end user (industrial machinery and automotive, food and beverage, construction, chemicals, other consumer goods, and other end users), and country (Germany, the United Kingdom, the Netherlands, France, Italy, Spain, Poland, Belgium, Sweden, and Rest of Europe). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

By Type
Insourced
Outsourced
By End User
Industrial Machinery and Automotive
Food and Beverage
Construction
Chemicals
Other Consumer Goods
Other End Users
By Country
Germany
United Kingdom
Netherlands
France
Italy
Spain
Poland
Belgium
Sweden
Rest of Europe

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Key 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.

Europe Contract Logistics Market- Total retail e-commerce revenue

Growth in Manufacturing Expected to Drive Demand for Contract Logistics Services

The largest European nations, such as Germany, the United Kingdom, France, and Italy, traditionally dominate the manufacturing sector. As these countries became increasingly service-oriented, the manufacturing sector saw large losses, with manufacturing industries relocating and general employment in the sector decreasing. Luckily, for Europe, instead of moving abroad, much of the manufacturing has just moved over to Central and Eastern Europe. Countries such as Poland, Slovakia, and the Czech Republic have taken up the mantle of manufacturing in Europe. These countries and their neighbors have seen tremendous growth in the manufacturing sector, and they are helping reaffirm Europe as a global manufacturing center. The developed countries in Europe are of high importance, as they have the required infrastructure and skills readily developed. This is expected to result in a trend of reshoring manufacturing back to Europe, and automation is very often one of the reasons for reshoring in Europe.

Europe Contract Logistics Market- Manufacturing PMI

Competitive Landscape

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 the 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.

Major Players

  1. Deutsche Post DHL Group

  2. Kuehne + Nagel International AG

  3. DB Schenker

  4. CEVA Logistics

  5. SNCF Logistics/Geodis

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Recent Developments

September 2022: DHL Supply Chain (DHL), a global leader in contract logistics solutions, announced a EUR 500 million investment in India over the next five years. With this investment, DHL will own and operate its own large multi-client location in India, adding 12 million square meters of storage space to the Group's existing portfolio.

October 2022: DB Schenker, one of the world's leading logistics service providers, announced the opening of its next renewable energy mega hub DLC 3 in Dubai. After the opening of the DLC 1 warehouse in 2016 and the DLC 2 warehouse in 2019, this third hub has a total of EUR 200,000 pallets and has successfully completed the company's expansion phase in the UAE. DLC 3 is 35,000 square meters. Warehouse powered entirely by solar energy.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Technological Trends

    7. 4.7 Insights into the E-commerce Industry in the Region (Domestic and Cross-border)

    8. 4.8 Insights into Contract Logistics in the Context of After-sales/Reverse Logistics

    9. 4.9 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-added Services)

    10. 4.10 Spotlight on Freight Transportation Costs/Freight Rates

    11. 4.11 Insights into Effects of Brexit on the European Logistics Industry

    12. 4.12 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Insourced

      2. 5.1.2 Outsourced

    2. 5.2 By End User

      1. 5.2.1 Industrial Machinery and Automotive

      2. 5.2.2 Food and Beverage

      3. 5.2.3 Construction

      4. 5.2.4 Chemicals

      5. 5.2.5 Other Consumer Goods

      6. 5.2.6 Other End Users

    3. 5.3 By Country

      1. 5.3.1 Germany

      2. 5.3.2 United Kingdom

      3. 5.3.3 Netherlands

      4. 5.3.4 France

      5. 5.3.5 Italy

      6. 5.3.6 Spain

      7. 5.3.7 Poland

      8. 5.3.8 Belgium

      9. 5.3.9 Sweden

      10. 5.3.10 Rest of Europe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles (including Merger and Acquisition, Joint Ventures, Collaborations, and Agreements)

      1. 6.2.1 Deutsche Post DHL Group

      2. 6.2.2 XPO Logistics

      3. 6.2.3 Schenker AG (DB Schenker)

      4. 6.2.4 CEVA Logistics

      5. 6.2.5 SNCF Logistics/Geodis

      6. 6.2.6 DSV AS

      7. 6.2.7 Neovia Logistics Services

      8. 6.2.8 GEFCO SA

      9. 6.2.9 United Parcel Service Inc. (UPS Supply Chain Solutions)

      10. 6.2.10 Rhenus SE & Co. KG

      11. 6.2.11 Bertelsmann SE & Co. KGaA (Arvato)

      12. 6.2.12 FIEGE Logistik Stiftung & Co. KG

    3. 6.3 Other Companies (Key Information/Overview)

      1. 6.3.1 Expeditors International, United Parcel Service Inc., Bollore Logistics, Hellmann Worldwide Logistics GmbH & Co. KG, Agility Logistics Pvt. Ltd, H. Essers NV, Wincanton PLC*

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. APPENDIX

    1. 8.1 GDP Distribution by Activity for Key Countries

    2. 8.2 Insights on Capital Flows

    3. 8.3 External Trade Statistics - Export and Import by Product

    4. 8.4 Insights into Key Export Destinations of Europe

    5. 8.5 Insights into Key Import Origins of Europe

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Frequently Asked Questions

The Europe Contract Logistics Market market is studied from 2017 - 2027.

The Europe Contract Logistics Market is growing at a CAGR of 3% over the next 5 years.

Deutsche Post DHL Group, Kuehne + Nagel International AG, DB Schenker, CEVA Logistics, SNCF Logistics/Geodis are the major companies operating in Europe Contract Logistics Market.

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