Europe Freight and Logistics Market Size

Central and Eastern Europe Freight & Logistics Market Analysis

The Europe Freight and Logistics Market size is estimated at USD 126.85 billion in 2024, and is expected to reach USD 154.70 billion by 2029, growing at a CAGR of 4.05% during the forecast period (2024-2029).

• Eastern European countries, like Poland, the Czech Republic, Romania, Hungary, Bulgaria, and Slovakia, are among the fast-growing economies in Europe. Such strong economic performance is prompting countries in Eastern Europe to demand a greater say in the future of the European Union. With Germany dominating the logistics market, the eastern countries have to work a lot to increase their market share. In particular, Eastern European countries need to address issues such as poor infrastructure, political corruption, lack of competitiveness, staff shortages, etc.
• The logistics market in the region has been impacted due to COVID-19 restrictions with the decrease in volumes of freight transported. However, the demand has picked up, and with the growth in e-commerce, the market has recovered.
• The rapid growth in the e-commerce segment will support the growth of the logistics market in the region. While Germany and the United Kingdom remain the top e-tailing markets in Europe, the fastest growth is expected to take place in Eastern Europe, with Poland leading the growth.
• Rapidly growing online sales, a large consumer market, access to a relatively cheap labor force, and an established logistics market make Poland an exceptionally attractive location for international e-tailers.
• Existing online retailers are likely to continually expand their warehouse space in the coming years, while new market players may search for suitable facilities and supply chain operators. Increasing demand for appropriate distribution space, as well as tailored logistics services, puts pressure on developers and 3PLs to adjust their offer to meet these new requirements.
• Despite the unstable environment, logistics operators have been clamping down cooperation year by year, offering a growing range of services with a modern technology and significant capacity.
• The logistics sector in Eastern Europe is a relatively young market. In Poland, there are more than 13.4 million sq. m of modern warehouses and the demand for warehouse space is growing gradually. Also driving this growth are the relatively cheap costs in CEE, which have attracted companies, such as Amazon (Slovakia) and Alibaba (Poland).