Global Contract Logistics Markets Report 2021: By 2025, the Market will be 24% Larger than Before COVID-19

The global contract logistics market contracted by 3.3% in 2020, ending a decade-long growth streak

The global contract logistics market is projected to grow at a real 2020-2025 CAGR of 5.1%, and the CRT for 2025 shows the market will be 24% larger when compared with 2019, signifying a robust rebound from the economic effects of the pandemic.

This report provides an extensive assessment of the current state of the contract logistics market, including market growth rates for 2021 through to 2025, analysis of warehousing trends and developments and comparative profiles of leading contract logistics providers.

The report analyses the effects of M&A on its development and argues that the largest contract logistics players will look very different from today as investment activity and strategic imperatives drive investment activity on a global basis.

Further change will also be driven by the wide-ranging technological development the logistics industry continues to see, with the report showing that the development of robotics, sensors, 3D printing and wearable devices amongst others will have as profound an effect on operations as the fallout from the COVID-19 pandemic.

The global contract logistics market was dealt a number of blows during the COVID-19 pandemic, notably from the closure of retail and manufacturing locations as public health measures were implemented causing consumer demand to vanish. As the market size forecasts show, however, the rebound is expected to be strong.

The rapid growth we expect to see in the market over the next five-years will be accompanied by an even quicker pace of technological change, and alongside this, 3PLs will have to react to increased demand for more sophisticated and responsive services.

Key Findings

• The global contract logistics market contracted 3.3% in 2020 

• Momentum has returned to the market in 2021, the publisher forecasts 6.5% growth this year 

• The COVID Recovery Tracker shows the market will be 2.9% larger at the end of 2021, compared to pre-pandemic levels 

• Rapid technological change and demand for more sophisticated and responsive services will drive growth, alongside recoveries in manufacturing and consumer confidence 

• By 2025, a global contract logistics market 24% larger than before COVID-19 is forecasted 

• Shifting demands and the need for greater sophistication are likely to drive renewed M&A activity in the market in the years ahead