United Kingdom E-commerce Logistics Market Size

United Kingdom E-commerce Logistics Market Analysis

The United Kingdom E-commerce Logistics Market size is estimated at USD 28.04 billion in 2024, and is expected to reach USD 36.94 billion by 2029, growing at a CAGR of 6.94% during the forecast period (2024-2029).

• The UK e-commerce logistics market has experienced significant growth over the years. It’s driven by the increasing popularity of online shopping.
• The E-commerce market penetration rate in the United Kingdom is projected to increase by 11 percentage points each year from 2024 to 2028. After nine consecutive years of rising, the indicator is expected to reach 93%, a new high in 2028. It is worth noting that the E-commerce penetration rate has been steadily rising in recent years.
• The growing demand for reliable and efficient logistics services has skyrocketed with the rise of e-commerce giants like Amazon.
• As of December 2023, Amazon.co.uk had the UK’s largest e-commerce site, accounting for about 35% of all desktop traffic in the country. EBay.co.uk came in second at 17.73 %.
• According to the 2023 report, 18% of the top 500 retailers in the United Kingdom offered free delivery for all orders. Consumer electronics and jewelry retailers accounted for 37% and 35%, respectively. Over 50% of the top retailers offered free delivery if you spent a minimum amount. Maternity and children’s product retailers were the most likely to offer free delivery. Eight out of 10 retailers offered free delivery when the customer spends the minimum amount.
• The United Kingdom boasts an extensive network of roads, railways, and airports, making transporting goods across the country easier for logistics providers. This infrastructure, coupled with advanced technology and tracking systems, enables faster and more efficient delivery of products to customers. In the United Kingdom, the rail freight transport volume in 2022 decreased by 836 MKT (-5.01%) compared to 2021.
• In recent years, several notable trends have shaped the UK's e-commerce logistics market. One of these trends is the growing emphasis on sustainability and environmentally friendly practices. GXO Logistics, a contract logistics services company, and Datasparq announced that it has successfully implemented AI solutions to increase productivity, reduce costs, and improve environmental performance by optimizing transport routes.
• With the rising awareness of climate change and the environmental impact of logistic operations, many companies are adopting greener practices, such as using electric vehicles and optimizing delivery routes to reduce carbon emissions.