UK Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The UK Contract Logistics Industry Report is Segmented by Type (insourced and Outsourced) and End-User (manufacturing and Automotive, Consumer Goods and Retail, Pharmaceuticals and Healthcare, Hi-Tech, and Other End-Users). The Report Offers the Market Size and Forecasts in Terms of Value (USD) for all the Above Segments.

UK Contract Logistics Market Size

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United Kingdom Contract Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 99.5 Billion
Market Size (2029) USD 116.53 Billion
CAGR (2024 - 2029) 3.21 %
Market Concentration Low

Major Players

United Kingdom Contract Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UK Contract Logistics Market Analysis

The United Kingdom Contract Logistics Market size is estimated at USD 99.5 billion in 2024, and is expected to reach USD 116.53 billion by 2029, growing at a CAGR of 3.21% during the forecast period (2024-2029).

  • Despite facing significant operational and financial disruption since March 2020, the logistics industry continued to supply the nation with goods, including food supplies and PPE. To deal with the COVID-19 pandemic, logistics businesses managed risks by scaling back operations, taking work back in-house, and reducing their reliance on third-party services. At the same time, many also focused on their core fleet of vehicles to save costs.
  • The United Kingdom has the most advanced logistics industry in Europe. Owing to the variety and higher prevalence of e-commerce, this may not change—the contract logistics market benefits from expanding e-commerce due to increased demand for contract logistics services. As a result of the e-commerce boom, logistics companies are expanding their services.
  • With the expansion of international trade and the interconnectedness of economies, companies in the UK are increasingly engaging in global business activities. This has led to a surge in the demand for efficient and streamlined logistics services to facilitate the movement of goods across borders.
  • The Need for expanded transportation networks, the complexity of global supply chains, advancements in technology, and the rise of e-commerce have all influenced the growth and evolution of contract logistics in the UK.
  • Contract logistics services are in high demand as a result of the retail e-commerce boom. Over the last decade, e-commerce has become the most popular retail trend in the United Kingdom. Even though e-commerce platforms have been around for a long time, they have only recently gained mainstream notice. In order to keep up with the rest of the globe, the expansion of internet shopping in the United Kingdom has been phenomenal.

UK Contract Logistics Market Trends

Growing demand for contract logistics in the manufacturing segment

  • The manufacturing sector in the UK is highly diverse, encompassing industries such as automotive, aerospace, pharmaceuticals, electronics, and more. Each industry has its unique logistics requirements, and contract logistics providers specialize in catering to these specific needs. This specialization allows manufacturers to benefit from industry-specific expertise and best practices.
  • One of the key benefits of contract logistics in the manufacturing sector is increased flexibility. Manufacturers can scale their logistics operations based on demand fluctuations, ensuring efficient utilization of resources and cost optimization.
  • Contract logistics providers offer customizable solutions tailored to the specific needs of manufacturers, allowing them to adapt quickly to changing market conditions.
  • By outsourcing logistics activities to experts, manufacturers can benefit from streamlined processes, optimized routing, and improved inventory management. This leads to reduced lead times, lower costs, and enhanced overall operational efficiency.
  • Contract logistics also plays a vital role in ensuring supply chain visibility and traceability. With the help of advanced technologies such as track and trace systems, manufacturers can monitor the movement of goods throughout the supply chain. This visibility helps in identifying bottlenecks, optimizing inventory levels, and ensuring timely delivery to customers.
United Kingdom Contract Logistics Market:  Estimated Industry revenue of “manufacturing“ in the United Kingdom from 2012 to 2025 (in USD billion)

Growth in e-commerce supporting the market advancement

Significant growth in the e-commerce industry and increasing consumer propensity to shop online are among the key factors creating a positive outlook for the UK market. Logistics plays a vital role in the smooth functioning of warehousing, transportation, shipping, and online delivery. The widespread adoption of this solution is also due to the increase in reverse logistics operations, such as simple return and refund policies offered by various e-commerce platforms with flexible tracking capabilities will drive market growth.

In addition, the widespread use of logistics by several industrial sectors is another growth driver due to growing awareness of the benefits of logistics, such as reduced investment, faster delivery times, and a greater focus on consumers rather than administrative tasks. The introduction of technology-driven logistics services and the Internet of Things (IoT)-)-enabled connected devices, enabling the tracking of objects and remote control of elements of the transportation process, is driving the market growth.

Moreover, growing interest in sustainable development has increased the demand for green logistics to support the growth of the market. Furthermore, the prevalence of radio frequency identification (RFID), Bluetooth, and other emerging technologies, such as drone delivery and unmanned vehicles, are having a positive impact on the market growth. Extensive research and development (R&D) activities and other factors, such as increasing demand for safe refrigerated transportation across the country, are expected to boost market growth. The building is equipped with new technology and the latest storage software, further expanding the logistical capacity to manage all services. The e-commerce industry is driving a new era in customer service with extensive automation. The logistics industry is constantly adapting to new technologies and innovations.

Soon, drone deliveries might become more common in the United Kingdom. At the same time, hyperlocal services would help businesses deliver their goods, thus fast-tracking last-mile delivery for a quick turnaround time on e-commerce orders from major retailers.

United Kingdom Contract Logistics Market: Percentage change in monthly internet retail sales value in Great Britain from January 2022  to June 2023

UK Contract Logistics Industry Overview

The market is relatively fragmented, with a large number of local and international players, including DHL Supply Chain, Wincanton, Clipper Logistics, and UPS as its key players. The market is experiencing expansions, mergers, and acquisitions as players focus on increasing their grasp over the nation as well as the international market.

The UK contract logistics market provides an example of near-perfect competition, as many buyers and sellers are operating in the market. Even though major players have a strong footprint across the region and account for a significant market share, the market is still fragmented to some extent, with many players providing contract logistics services at different levels.

UK Contract Logistics Market Leaders

  1. XPO Logistics

  2. CEVA Logistics

  3. DHL International GmbH.

  4. Eddie Stobart Logistics

  5. Kuehne Nagel

*Disclaimer: Major Players sorted in no particular order

United Kingdom Contract Logistics Market Concentration
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UK Contract Logistics Market News

  • July 2023: By 2025, CEVA Logistics is expected to switch all of its contract logistics and freight warehouses to 100% low-carbon electricity. The commitment will be based on a mix of low-carbon electricity purchases (renewable & nuclear) from local utilities, as well as increasing its generation of electricity through rooftop solar panels (which CEVA will triple by 2025). CEVA also aimed to achieve 100% LED lighting in warehousing facilities by 2023.
  • April 2023: Maersk’s UK warehousing network continues to grow with the signing of a new lease for 685,000 square feet (approximately 63,000 square meters) at SEGRO Logistics Park East Midlands Gateway. A.P. Møller – Mærsk A/S currently operates warehouses in the UK in Doncaster, Tamworth, and Kettering.

UK Contract Logistics Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Market Drivers

        1. 4.2.1.1 Increased Globalization boosting the market

        2. 4.2.1.2 Technological advancements bolstering the market

      2. 4.2.2 Market Restraints

        1. 4.2.2.1 Infrastructure limitation affecting the market

        2. 4.2.2.2 Shortage of Labour force affecting the market

      3. 4.2.3 Market Opportunities

        1. 4.2.3.1 International trade boosting the market

        2. 4.2.3.2 Specialized services boosting the market

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

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Buyers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitutes

      5. 4.3.5 Intensity of Competitive Rivalry

    4. 4.4 Technological Trends in the Market

    5. 4.5 Industry Policies and Regulations

    6. 4.6 Industry Value Chain Analysis

    7. 4.7 Insights into the E-commerce Industry in the Country (both 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

    10. 4.10 Spotlight on Freight Transportation Costs/Freight Rates

    11. 4.11 Insights into the Effect of Brexit in the UK 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 Manufacturing and Automotive

      2. 5.2.2 Consumer Goods and Retail

      3. 5.2.3 Pharmaceuticals and Healthcare

      4. 5.2.4 Hi-tech

      5. 5.2.5 Other End-Users (Energy, Construction, Aerospace, etc.)

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 DHL Supply Chain

      2. 6.2.2 UPS

      3. 6.2.3 Wincanton

      4. 6.2.4 XP Supply Chain

      5. 6.2.5 Eddie Sobert

      6. 6.2.6 CEVA Logistics

      7. 6.2.7 Clipper Logistics

      8. 6.2.8 FedEx

      9. 6.2.9 Rhenus Logistics

      10. 6.2.10 EV Cargo*

    3. *List Not Exhaustive
    4. 6.3 Other Companies (Key Information/Overview)

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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UK Contract Logistics Industry Segmentation

Contract logistics refers to a long-term collaboration for a wide plethora of services ranging from the conveyance of products or spare parts to the end customer delivery.

The UK contract logistics market is segmented by type (insourced and outsourced) and end-user (manufacturing and automotive, consumer goods and retail, pharmaceuticals and healthcare, hi-tech, and other end users). 

The report offers the market size and forecasts in terms of value (USD) for all the above segments.

By Type
Insourced
Outsourced
By End-User
Manufacturing and Automotive
Consumer Goods and Retail
Pharmaceuticals and Healthcare
Hi-tech
Other End-Users (Energy, Construction, Aerospace, etc.)
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UK Contract Logistics Market Research FAQs

The United Kingdom Contract Logistics Market size is expected to reach USD 99.5 billion in 2024 and grow at a CAGR of 3.21% to reach USD 116.53 billion by 2029.

In 2024, the United Kingdom Contract Logistics Market size is expected to reach USD 99.5 billion.

XPO Logistics, CEVA Logistics, DHL International GmbH., Eddie Stobart Logistics and Kuehne Nagel are the major companies operating in the United Kingdom Contract Logistics Market.

In 2023, the United Kingdom Contract Logistics Market size was estimated at USD 96.31 billion. The report covers the United Kingdom Contract Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Contract Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Contract Logistics in the UK Industry Report

Statistics for the 2024 Contract Logistics in the UK market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Contract Logistics in the UK analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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UK Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)