Tennessee Freight And Logistics Market Size and Share
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 35.64 Billion |
| Market Size (2030) | USD 46.39 Billion |
| CAGR (2025 - 2030) | 5.47% |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Tennessee Freight And Logistics Market Analysis by Mordor Intelligence
The Tennessee Freight And Logistics Market size is estimated at USD 35.64 billion in 2025, and is expected to reach USD 46.39 billion by 2030, at a CAGR of 5.47% during the forecast period (2025-2030).
- Driven by rising demand from the food and beverage and pharmaceutical sectors, coupled with government initiatives, Tennessee's freight and logistics market is poised for significant expansion. Tennessee's warehousing and storage sector is experiencing a wave of investments and initiatives. For example, in July 2024, Tennessee Gov. Bill Lee, alongside Department of Economic and Community Development Commissioner Stuart C., and officials from Steel Warehouse, announced plans for an expansion in Jefferson City. Steel Warehouse is set to retrofit the former Footwear Industries of Tennessee building.
- The Tennessee Department of Transportation (TDOT) is spearheading government initiatives to bolster freight transportation systems. For instance, the Statewide Multimodal Freight Plan lays out strategies to alleviate congestion and boost intermodal movements, positioning Tennessee as a key player in the national logistics arena.
- Moreover, as the food and beverage industry, pharmaceutical sector, and other temperature-sensitive industries grow, so does the demand for temperature-controlled storage. For instance, in August 2024, PepsiCo Beverages North America (PBNA) celebrated the opening of its latest warehouse and distribution center in Smyrna, touting it as the company's largest facility in the Southeast and the second largest in the nation.
- Industry reports project a growth rate ranging from 10% to 40% across different segments of the freight market in 2024. This growth is anticipated to be fueled by factors like consumer spending, industrial recovery, and infrastructure development, with supply chain stability playing a pivotal role in sustaining the momentum.
- In conclusion, Tennessee's freight and logistics market is positioned for robust growth, supported by strategic investments, government initiatives, and increasing demand from key industries. These developments are expected to solidify the state's role as a critical hub in the national logistics network.
Tennessee Freight And Logistics Market Trends and Insights
Retail Expansion Influencing Market Dynamics
Driven by the retail sector's expansion, the freight and logistics market of Tennessee is witnessing a surge. This growth is fueled by heightened demands: transporting goods from manufacturers to consumers, the e-commerce boom necessitating swift parcel deliveries, and the complexities of global supply chains. Businesses are increasingly prioritizing optimized inventory management and seeking faster, more efficient logistics solutions to align with consumer expectations.
For example, in March 2024, Amazon is set to unveil a last-mile delivery hub in Jackson-Madison County, bolstering its services for West Tennessee clientele. Covering 65,000 square feet, the facility will be strategically located off Highway 223 and Lager Lane in Jackson. Construction kicked off just last month, but the facility's plans remain in their early stages.
Last-mile facilities are pivotal in preparing customer orders for dispatch. Amazon's footprint in Tennessee is extensive, featuring multiple operational centers and a corporate office in Nashville. Since 2010, the tech behemoth has created 24,000 full- and part-time jobs in the state, investing over USD 20.5 billion in infrastructure and employee compensation. Most employees in customer fulfillment and transportation earn hourly wages between USD 17 and USD 28.
In conclusion, the retail sector's growth, coupled with advancements in e-commerce and logistics, continues to drive the freight and logistics market. Companies like Amazon exemplify how strategic investments in infrastructure and last-mile delivery facilities are essential to meeting evolving consumer demands and maintaining competitive advantages in this dynamic market.
Surge in Warehouses Boosts Market Growth
Warehouse operators in Tennessee are increasingly investing in automation and advanced technologies, such as robotics, AI, and warehouse management systems (WMS), to enhance efficiency and meet surging demand.
In August 2024, Steel Warehouse Co., hailing from South Bend, IN, is poised to broaden its footprint in Jefferson County, TN. This strategic move highlights the company's commitment to industries spanning construction equipment, agriculture, lawn and garden, and truck and trailer sectors. With a USD 20 million investment, the company is unveiling a new 40,000 sq. ft. facility, anticipated to create over 70 jobs. Steel Warehouse is also eyeing to attract further business investments into Jefferson County. This facility will serve as an extension to Steel Warehouse's current sites in Chattanooga and Memphis, TN.
In August 2024, PepsiCo Beverages North America (PBNA) launched its expansive warehouse and distribution hub in Smyrna, Tennessee. This facility is PBNA's largest in the Southeast and ranks as the second largest in the nation. Furthermore, in July 2024, Second Harvest Food Bank of Middle Tennessee celebrated the opening of its 36,000-square-foot distribution warehouse on Almaville Road in Smyrna. This state-of-the-art facility, equipped with large refrigeration units to maintain the quality of perishable foods, is set to slash distribution costs for 15 agencies in southern Middle Tennessee and 110 partner agencies linked with Second Harvest.
In conclusion, the growing investments in warehouse infrastructure and technology in Tennessee reflect the state's strategic importance in meeting the increasing demand for efficient supply chain solutions. These developments are expected to drive economic growth and create significant employment opportunities in the region.
Competitive Landscape
In Tennessee's freight and logistics market, major players dominate, maneuvering through a landscape characterized by moderate fragmentation and competition. While industry titans lead the charge, numerous key players are forging collaborations, spearheading innovations, and expanding their business horizons. These strategic moves aim to bolster their service offerings and secure a competitive advantage. Prominent players in this domain include FedEx, Amazon, Mallory Alexander International Logistics, High Road Incorporated and Stellar Logistix Corp.
As an illustration, Yamaha Motor Co., Ltd. and its U.S. arm, Yamaha Motor Corporation, USA (Yamaha USA), recently unveiled a strategic alliance with Shippeo, a frontrunner in real-time transportation visibility solutions. With corporate offices in California and Georgia, facilities in Wisconsin and Alabama, and factories in Tennessee and Georgia, Yamaha's expansive footprint underscores the significance of such partnerships in propelling market dynamics.
Tennessee Freight And Logistics Industry Leaders
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FedEx
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Amazon
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Mallory Alexander International Logistics
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High Road Incorporated
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Stellar Logistix Corp
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- October 2024: Dreamliner, a Tennessee-based coach company, has acquired two entertainment transportation businesses. With this move, Dreamliner aims to broaden its transportation niche, collaborating with carriers previously associated with stars like Taylor Swift and Jelly Roll.
- April 2024: XPO, a prominent player in North America's LTL freight transportation arena, has inaugurated three new service centers. These centers are located in Goodlettsville (near Nashville), Tennessee; Grand Junction, Colorado; and Nogales, Arizona. These openings mark the first operational sites among the 28 locations XPO secured from Yellow Corporation in December 2023. With these additions, XPO's North American footprint now boasts 297 service centers.
Tennessee Freight And Logistics Market Report Scope
Freight and logistics involve planning, executing, and overseeing the movement and storage of goods, from their origin to their final destination, utilizing diverse transport modes and supply chain strategies.
Tennessee freight and logistics market report is segmented by logistics function (Courier, Express, and Parcel (CEP), freight forwarding, freight transport (by mode of transport (air, rail, road, sea and inland waterways)), warehousing and storage, other services), by end user industry (agriculture, fishing and forestry, construction, manufacturing, oil and gas, mining and quarrying, wholesale and retail trade, others). The report offers market size and market forecasts for Tennessee freight and logistics market in value (USD).
| Courier, Express, and Parcel (CEP) | ||
| Freight Forwarding | ||
| Freight Transport | By Mode of Transport | Air |
| Rail | ||
| Road | ||
| Sea and Inland Waterways | ||
| Warehousing and Storage | ||
| Other Services | ||
| Agriculture |
| Fishing and Forestry |
| Construction |
| Manufacturing |
| Oil and Gas |
| Mining and Quarrying |
| Wholesale and Retail Trade |
| Others |
| By Logistic Function | Courier, Express, and Parcel (CEP) | ||
| Freight Forwarding | |||
| Freight Transport | By Mode of Transport | Air | |
| Rail | |||
| Road | |||
| Sea and Inland Waterways | |||
| Warehousing and Storage | |||
| Other Services | |||
| By End User Industry | Agriculture | ||
| Fishing and Forestry | |||
| Construction | |||
| Manufacturing | |||
| Oil and Gas | |||
| Mining and Quarrying | |||
| Wholesale and Retail Trade | |||
| Others | |||
Key Questions Answered in the Report
How big is the Tennessee Freight And Logistics Market?
The Tennessee Freight And Logistics Market size is expected to reach USD 35.64 billion in 2025 and grow at a CAGR of 5.47% to reach USD 46.39 billion by 2030.
What is the current Tennessee Freight And Logistics Market size?
In 2025, the Tennessee Freight And Logistics Market size is expected to reach USD 35.64 billion.
Who are the key players in Tennessee Freight And Logistics Market?
FedEx, Amazon, Mallory Alexander International Logistics, High Road Incorporated and Stellar Logistix Corp are the major companies operating in the Tennessee Freight And Logistics Market.
What years does this Tennessee Freight And Logistics Market cover, and what was the market size in 2024?
In 2024, the Tennessee Freight And Logistics Market size was estimated at USD 33.69 billion. The report covers the Tennessee Freight And Logistics Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Tennessee Freight And Logistics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Tennessee Freight And Logistics Market Report
Statistics for the 2025 Tennessee Freight And Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Tennessee Freight And Logistics analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
