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Logistics Outsourcing Market

Market Insights on Logistics Outsourcing covering sales outlook, demand forecast & up-to-date key trends

Logistics Outsourcing Market by Service Type, Transportation Used & Region - Forecast 2022 - 2032

Logistics Outsourcing Market Snapshot (2022-2032)

[250 Pages Report] The Logistics Outsourcing Market is likely to hold the global market at a moderate CAGR of ~4.5% during the forecast period. The global market holds a forecasted revenue of US$ 986.4 Billion in 2022 and is likely to cross US$ 1,521 Billion by the end of 2032.

The Logistics Outsourcing market is anticipated to show promising growth prospects during the forecast period, expanding the Logistics Outsourcing market size.



The Logistics Outsourcing Market Estimated Size (2021)

~US$ 980.0 Bn

The Logistics Outsourcing Market Estimated Size (2022)

~US$ 986.4 Bn

The Logistics Outsourcing Market Projected Size (2032)

~US$ 1,521 Bn

The Logistics Outsourcing Market CAGR (2022-2032)


The practise of subcontracting industrial tasks including cross-docking, inventory management, warehousing, and shipping to a third party or supply chain management provider is known as logistics outsourcing, sometimes known as third-party logistics. Suppliers of raw materials, distributors, and other providers of value-added services are examples of third-party logistics providers. To make these services more convenient for end users, they are typically combined and integrated. A parent business's decision to outsource logistics is typically based on the size of the company, the complexity of the logistics, and the economic benefits of outsourcing.

Contracting for material management, supply chain management, distribution management, shipment packaging, and channel management is a form of logistics outsourcing. Online retailers and portals for e-business are in dire need of the round-the-clock dispatch and delivery services provided by outside logistics companies.

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Factors considered to help in Growth of Logistics Outsourcing Market

Global market trends driven by technological innovations like remote tracking and monitoring using RFID tags and EDI-based location of the shipment include globalised product availability, demand for product individualization in terms of logistics, on-time delivery of the goods, just-in-time inventory, agility in time response transport, big data analytics regarding inventory and deliveries, and atomization of shipment. Big data analytics are improving the accuracy of task frequency and decision-making abilities. Online merchants (like Amazon) are increasingly outsourcing solely end-product transportation services in order to be more cost-effective and operationally cohesive and to insource their inventory. The services offered by outsourced logistics firms are continually improved by these technology advancements.

Third party logistics providers and lack of technology will affect the overall performance of logistics companies

Many companies tie up with third party logistic providers, and these providers adopt customer branding for getting more employees and assets. There are chances that these providers will be responsible for your representation to customers. If there are any inconveniences or problems created by the third party service providers, it will reflect directly on the company. If the contracts and agreements are not clear and they are not properly translated to customers it can have adverse effects on the organisation.

Failing to be updated with new systems helping with data entry and management will create problems internally, and ultimately can affect the customer experiences with company. All the departments of company should be able to see the data and have access to edit it time to time, to ensure the data flow through systems. Failure to maintain such channels will lead to failed relations with consumers.

Nikhil Kaitwade
Principal Consultant
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Country Insights

Japanese people are preferring domestic, quick deliveries over cheap and time consuming services.

Japan is known for its automated, tech loving attitude. Japanese people are also wanting such automated services from logistic companies. There are some unwritten rules about delivery in Japan and one-day delivery is one of them. The factors like well-developed logistics sector and small country size allows faster deliveries. Japanese customers are also preferring domestic markets over international sellers. They are certainly choosing quality of logistics services over cost.

The European logistics industry is constrained by a general lack of structural organisation within sector.

The European logistics sector is mainly fragmented as there are very less transportation market players in the region. Even the biggest transportation companies are contributing 10% of the transporting market. This is resulting into segmented and divided. There is also shortage of drivers, making the transportation part of logistics very weak. There are number of laws and regulations that hinder the shipping companies and ultimately impacting the logistics in the countries.

Competitive Landscape

Some key players in the Logistics Outsourcing market are Exel Logistics, Menlo Worldwide Logistics, GXO Logistics, Americold, Lineage Logistics, FedEx, Ryder Logistics and Tibbett and Britten among others.

These organisations are involved in logistics outsourcing worldwide and provide services to multiple brands and online markets. They are likely to contribute most to the Logistics Outsourcing Market during forecast period.

  • Ryder Supply Chain Solutions are one of the biggest and successful logistics companies, managing transport, supply chains and providing services to consumers worldwide. They are developing end-to-end visibility tools, to create a customer centric solution in logistics.
  • The FedEx are well known 3rd party logistics providers, helping multiple companies worldwide. FedEx have personalized services and technology, which help in better, faster and efficient order fulfillment, even on Product Return Orders, which are complicated to process and often get misprocessed.
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Scope of Report



Growth Rate

CAGR of ~4.5% from 2022 to 2032

Base year for estimation


Historical Data Available for


Forecast Period


Quantitative units

Revenue in USD Billion, volume in Units, and CAGR from 2022 to 2032

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends, pricing analysis

Segments covered

Service Type, Transportation Used, Region

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; Italy; Spain; Russia; India; Thailand; China; India; Japan; Australia; Brazil; Argentina; Colombia; Saudi Arabia; UAE; South Africa

Key Companies Profiled

  • Exel Logistics
  • Menlo Worldwide Logistics
  • GXO Logistics
  • Americold
  • Lineage Logistics
  • FedEx
  • Ryder Logistics
  • Tibbett and Britten
  • Others

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs.

Key Segments Profiled in the Logistics Outsourcing Market

By Service Type:

  • Simple Service
  • Combines Service
  • Consulting Service
  • Value-added Service

By Transportation Used:

  • Air Freight
  • Ocean Carriers
  • Railways
  • Trucks

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • MEA

Frequently Asked Questions

The logistics outsourcing market is expected to reach a valuation of US$ 986.4 Bn in 2022.

Trends like globalisation, customer awareness, ever evolving IT support structure, time-proportional economy, etc. are main drivers for the Logistics Outsourcing Market. To become biggest supplier of goods and dominate the logistics market, many leasing organizations are following these trends.

Leading players operating in logistics outsourcing market, Lineage Logistics, are Exel Logistics, Menlo Worldwide Logistics, GXO Logistics, Americold, FedEx, Ryder Logistics and Tibbett and Britten and among others.

Table of Content


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Nikhil Kaitwade
Principal Consultant
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Logistics Outsourcing Market