United Kingdom Freight and Logistics Market- Growth, Trends, and Forecasts (2020 - 2025)

UK Freight and Logistics Market is segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other services) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Construction, Distributive Trade, Healthcare and Pharmaceutical, Agriculture, Fishing and Forestry, and Others End Users (Chemicals, Telecommunications, etc.)

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

CAGR:

2.5 %

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Market Overview

The logistics business sector is one of the biggest industries in Europe, which represents just under 7% of the total GDP and employs more than 7 million people.

Logistics is a sector traditionally defined by big-box warehouses in cheap, out-of-town locations, but developers’ focus is shifting to more densely populated areas where under-supply and a lack of available land are typical. The United Kingdom benefits from an open market, where economic operators have long traded with neighboring countries, first and foremost Germany, the Netherlands, and France.

According to industry sources, Brexit is going to have a significant impact on the international road freight transport market. As per the current situation, the UK haulers would not be allowed for cabotage transport in the EU from January 2021, and the EU haulers are not going to be allowed for cabotage transport in the United Kingdom.

Rail freight is poised to play a much bigger and prominent role in the movement of goods in the UK. The use of rail freight is steadily increasing in the UK with a total volume of rail freight moved to rise by 3% Y - o - Y. ​ Network Rail has forecast that rail freight could grow by around 30% by 2035 if sufficient capacity were made available. The development of Europe – China rail network and underground rail networks can bolster the growth in this sub-sector.​

Technical developments and commercial and environmental pressures over the next 30 years are expected to encourage freight operators to explore innovative ways to ship goods through ports. According to British Ports Association, it would result in a growth in traffic through almost all the ports in Britain.

The supply chain will need to respond to heightened competition in the last mile as e-commerce operations grow in the wake of the coronavirus. Last mile logistics will be a highly competitive environment as companies look to their supply chains to give the best possible customer experience.

This will call for technological innovation to enable retailers to scale up home delivery systems fast once normality returns.

Scope of the report

The UK Freight and Logistics market covers the growing trends, a complete background analysis of the freight and logistics market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and logistics spending by the end-user industries and the impact of COVID – 19 on the market are covered in the report.

By Function
Freight Trasnport
Road
Shipping and Inland Water
Air
Rail
Freight Forwarding
Warehousing
Value-added Services and Others
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing , and Forestry
Healthcare and Pharmaceutical
Construction
Distributive Trade (Wholesale and Retail)
Others (Telecommunications, chemicals, etc.)

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Key Market Trends

E-Commerce Market to Drive Growth in the Sector

The logistics sector is restless, seeing the growing demand for logistics services generated by the boom and evolution of e-commerce. The United Kingdom (UK) has the most advanced e-commerce market in Europe. According to the most recent figures from the Office of National Statistics (UK), the country’s e-commerce revenue in 2019 amounted to USD 82.4 billion, an increase of 7.7 % when compared to 2018.

The total value of the UK B2C e-commerce market is calculated to be around USD 248.88 billion and has grown at 11% Y-o-Y between 2018 and 2019. E-commerce currently accounts for 19% of total retail spending. The fastest growing online shopping categories are food and personal care, furniture and appliances, and fashion and beauty.

The United Kingdom’s continued leading role in online retail is causing the logistics and transport sectors to rethink their models to ensure future growth. Consumer demands for flexible deliveries have increased, which provides retailers and the logistics sector the challenge to achieve the required level of flexibility.

In 2019, UK has almost 90.5% of its total population using the internet services which is only expected to rise during the forecast period driving the business in e-commerce. On sectoral basis, wholesale and manufacturing were the two biggest industry sectors that generated the highest e-commerce sales in the same year. Fashion is the largest segment based on revenue generated in the year 2019 with a share of 33.7%.

In regard to this, the demand for last mile delivery services and less than truck load service has been growing significantly with many start-ups are entering the market to address the challenges occurred the explosion of e-commerce.

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Road Freight Transport Holds the Major Share in Freight Transport

Around 89% of all goods transported by land in Great Britain are moved directly by road, and 98% of all food and agricultural products in Great Britain are transported by road freight. Approximately 98% of all consumer products and machinery in Great Britain are transported by road freight.

Domestic road freight activity is on a positive trend. It is observed that the number of journeys to storage hubs increased by 16%, and the number of journeys to the distribution centers increased by 17% in 2018. 

The road freight transport operates the most extensive transport network of all the freight modes, which provides flexibility and convenience of door-to-door delivery and supports the growing e-commerce. Road freight transport occupies a major share in the inland freight transport, with around 90% followed by rail.

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Competitive Landscape

The report covers the major players operating in the UK Freight and Logistics market. The freight and logistics market in the UK is fiercely competitive, fragmented in nature with the presence of many international and domestic companies. The top players in the segment include DHL, DPD, UPS among international players and, Clipper, Wincanton, ACS among domestic players.

In this environment, where profit margins are shrinking, road haulage operators have to be highly efficient and cost-effective, in order to remain profitable. ​Throughout Europe, and especially in the United Kingdom, there are thousands of road transport operators handling materials for retail, manufacturing, automotive, and construction industries. ​

E-commerce and digital platform have transformed the logistics sector largely due to the high presence of logistics companies which makes it easier for the consumer to order and get the product delivered.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Technological Trends

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Industry Value Chain/Supply Chain Analysis

    5. 4.5 Insights on Freight Rates

    6. 4.6 Spotlight on E-Commerce Market (Regional trends of domestic as well as cross-border e-commerce, and key performance indicators will be provided)

    7. 4.7 Insights on Courier, Express, and Parcel (CEP) market (Market volume, Key Players, Future Outlook)

    8. 4.8 Brief on 3PL Market in Italy (market size and forecast, top players)

    9. 4.9 Spotlight on Free-trade zones (FTZs) and Special economic zones (SEZs)

    10. 4.10 Spotlight on Key Logistics Hubs and Cities​ in UK

    11. 4.11 Demand and Supply Analysis – Trucks, Drivers and Labor

    12. 4.12 Insights on Inter Modal Transportation

    13. 4.13 Effect of BREXIT on Europe and UK Logistics Markets

    14. 4.14 Brief on China – Europe Rail Freight Network and Importance of UK ( Current Freight Flows and Future Outlook)

    15. 4.15 Spotlight on Operating Costs and Fuel Costs

    16. 4.16 Impact of Covid-19 (Short-term and Long-term impact on the market and the economy)

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

    2. 5.2 Market Restriants

    3. 5.3 Market Oppurtunities

    4. 5.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Function

      1. 6.1.1 Freight Trasnport

        1. 6.1.1.1 Road

        2. 6.1.1.2 Shipping and Inland Water

        3. 6.1.1.3 Air

        4. 6.1.1.4 Rail

      2. 6.1.2 Freight Forwarding

      3. 6.1.3 Warehousing

      4. 6.1.4 Value-added Services and Others

    2. 6.2 By End User

      1. 6.2.1 Manufacturing and Automotive

      2. 6.2.2 Oil and Gas, Mining, and Quarrying

      3. 6.2.3 Agriculture, Fishing , and Forestry

      4. 6.2.4 Healthcare and Pharmaceutical

      5. 6.2.5 Construction

      6. 6.2.6 Distributive Trade (Wholesale and Retail)

      7. 6.2.7 Others (Telecommunications, chemicals, etc.)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Market Concentration Overview

    2. 7.2 Company Profiles

      1. 7.2.1 DPD

      2. 7.2.2 DHL

      3. 7.2.3 UPS

      4. 7.2.4 Wincanton PLC

      5. 7.2.5 Kuehne + Nagel International AG

      6. 7.2.6 BulkHaul

      7. 7.2.7 XPO Logistics

      8. 7.2.8 Hermes

      9. 7.2.9 Turners (Soham) Limited

      10. 7.2.10 Fedex Uk

      11. 7.2.11 Maritime Transport

      12. 7.2.12 Eddie Stobart Logistics PLC

      13. 7.2.13 DSV Group

      14. 7.2.14 Clipper Logistics Group

      15. 7.2.15 Palletways

      16. 7.2.16 Allport Cargo Services, ACS

      17. 7.2.17 Great Bear Distribution

      18. 7.2.18 Gist Ltd

      19. 7.2.19 W H Malcolm Ltd

      20. 7.2.20 Eddie Stobart Logistics*

      21. 7.2.21 Other Companies (CEVA Logistics, Davis Turner, Yusen logistics, P&O FERRYMASTERS, GEFCO UK, City Sprint UK, Menzies Distribution, Brenntag UK & Ireland, Gregory Distribution (Holdings),Fowler Welch, Hoyer Petrolog UK,C M Downton (Haulage Contractors) Ltd, Kinaxia Logistics Limited, Pentalver Transport*)

  8. *List Not Exhaustive
  9. 8. FUTURE OUTLOOK OF THE MARKET

  10. 9. APPENDIX

    1. 9.1 GDP Distribution, by Activity and Region

    2. 9.2 Insight into Capital Flows (investments by sector)

    3. 9.3 Economic Statistics – Transport and Storage Sector

    4. 9.4 External Trade Statistics – Export and Import, by Product

    5. 9.5 Insight into Key Export Destinations

    6. 9.6 Insight into Key Import Origin Countries

    7. 9.7 List of Prospective Clients for Logistics Service Providers

** Subject to Availability

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