North America Contract Logistics Market Size

North America Contract Logistics Market Analysis

The North America Contract Logistics Market size is estimated at USD 158.59 billion in 2024, and is expected to reach USD 173.79 billion by 2029, growing at a CAGR of 1.85% during the forecast period (2024-2029).

• Infrastructure development, digitization, and industrialization are all results of increasing government initiatives for economic diversification. They will probably expand the e-commerce and contract logistics markets, creating a big need for contract logistics services. Several non-asset newcomers are joining current companies as a result of the increase in foreign direct investments (FDIs), the rapid expansion of the e-commerce industry, and the emphasis on risk management in supply chains.
• Additional factors that contribute to market expansion include the manufacturing sector's quick expansion and focus on core competencies, the rising demand for work optimization, achieving cost efficiency, and technological supply chain integrations. The contract logistics industry will not develop because of some constraints and challenges. For instance, managing logistical databases is difficult due to factors including potential misconceptions that lead to inaccurate interpretations of facts, data, and information. Regional disparities and the complexity of the supply chain have a detrimental impact on the process as a whole since there aren't enough experienced people to understand and address problems so that transparency is maintained.
• In 2022, the United States saw a sharp rise in warehouse space rental from regional logistics players in recent years. Retailers are increasingly outsourcing more of their services as a result of rising service requirements like e-commerce and same-day delivery.
• The pandemic's impact on global supply chains put the United States' whole supply chain under unprecedented pressure and exposed long-standing issues with its freight transportation system. Delays and a highly unbalanced flow of products to American ports were caused by interruptions in manufacturing and port closures. More inbound freight arrived at ports as a result of cargo owners switching to "just-incase" inventory plans rather than "just-in-time" methods, which put a strain on storage capacity. The system experienced a significant boost in flow as a result, with each of America's four largest container ports exceeding their prior records and importing over 16% more containers in 2021 than in 2020.