Logistics - Industry - Europe Market, Share and Trends 2023-2028

Summary of Logistics

The logistics industry plays a vital role in Europe’s economy, facilitating the seamless flow of goods throughout the region and internationally. Logistics encompasses transportation, warehousing, freight forwarding and other services that support the movement of materials, components and finished products across sectors.

Adoption of advanced technologies like AI, IoT, robotics and data analytics is gaining momentum across warehouses and distribution centers to optimize operations and supply chain planning. Based on our estimates, we can say that Europe’s regional logistics industry is forecasted to be a $2967.76 billion industry in 2029 from $2327.6 billion in 2023 with a CAGR of 4.09%.

Infrastructure upgrades are expanding port capacities and improving rail/road connections. This will maximize efficiency of transportation networks to support projected industry growth rates of 3-5% annually through 2030. E-commerce continues to boom, growing over 15% annually across major European markets like the UK, Germany and France. This is fueling strong demand for fulfillment centers and last-mile delivery networks.

Logistics touches every major industry vertical in Europe – from manufacturing to retail – agriculture to energy. Efficient supply chain networks are essential for businesses to access domestic and global markets cost-effectively. Whether shipping automotive parts between factories or delivering online orders to consumers, logistics underpins economic activity.

Recent Trends and Insights

Rising e-commerce continues to drive strong demand for fulfillment and delivery capabilities. Labor constraints across transportation are putting upward pressure on costs as demand remains high. Leading logistics providers are investing in green technologies and sustainability initiatives in response to customer priorities.

Governments throughout Europe are dedicating billions towards upgrading ports, rail infrastructure, roads and bridges to support ongoing industry growth. These improvements will help maximize efficiency and capacity across the regional logistics network in the coming years.

Automation adoption is accelerating to address labor challenges and boost productivity in warehouses and distribution centers. Data analytics and artificial intelligence are also being deployed to optimize operations and supply chain planning.

Sustainability priorities are rising up the agenda for logistics firms. Major players are investing heavily in electric vehicle fleets, carbon offset programs and initiatives to reduce packaging waste. Customers increasingly prioritize green credentials in selecting logistics partners.

Brexit disruptions have stabilized but continue to impact cross-border flows between the UK and EU, increasing red tape for shippers. Logistics providers are adapting cross-trade solutions.

Product Insights

As the European logistics sector continues its projected growth towards €3 trillion by 2029– transportation and warehouse technologies are increasingly important for optimizing complex international supply chains. Leading logistics providers throughout the EU are investing in advanced software and automation solutions to streamline operations, maximize efficiency and meet rising customer demands.

Transportation Management Systems (TMS) from major European developers like Descartes and CargoSmart are allowing logistics firms to gain end-to-end visibility and control of cross-border shipments traversing the continent. Meanwhile– Warehouse Management Systems (WMS) featuring voice-picking, robotics and automated storage/retrieval are being deployed across distribution centers to boost productivity and space utilization within facilities.

As labor constraints tighten across Europe’s transportation networks, Labor Management Solutions are also in high demand. Tools for optimizing workforce scheduling, tracking performance and ensuring compliance with employment regulations can help alleviate capacity pressures.

At the operational level, fleet telematics solutions provide asset-level tracking for trucks, trains and cargo vessels. Integrating real-time location data with predictive maintenance alerts and route optimization helps cut fleet operating costs.

Lastly, innovations in final-mile delivery for urban centers are gaining interest. Technologies like autonomous vehicles, drones and mobile applications that seamlessly coordinate inventory, scheduling and routing stand to revolutionize delivery logistics within major European cities in the years ahead.

Key Companies

Some major players within this vast domain of industry are

• Deutsche Post/DHL Group
• Maersk
• DPD
• FedEx
• Kuehne + Nagel
• DB Schenker
• Hermes UK
• PostNL
• Parcelhub

Regional Analysis

Germany dominates with the largest market size, owing to its position as Europe’s largest economy and the presence of major logistics hubs like Frankfurt. Strong manufacturing and auto industries fuel demand.

The UK, France, Spain, Italy and Poland represent other significant logistics markets across Europe. Infrastructure investments are expanding capacity at major ports and logistics parks nationwide. Labor constraints remain widespread – necessitating further automation – especially in warehouses. Technology adoption will continue transforming European logistics operations in the coming years.

Scandinavian countries have highly developed logistics networks and rank among the world’s most advanced in terms of supply chain digitization and automation adoption. Central and Eastern European nations are experiencing rapid market growth – driven by expanding e-commerce – manufacturing growth and infrastructure upgrades enhancing regional connectivity.

Brexit has impacted cross-border flows between the UK and EU markets, but trade volumes are stabilizing as logistics firms adapt customs clearance solutions. Sustainability is a growing priority across Europe – with industry investments in electric fleets – carbon offset programs and initiatives to reduce waste. Customers are increasingly factoring environmental performance into supplier selection.

Market Segmentation

By Type:

• Transportation management systems
• Warehouse management systems
• Fleet management solutions
• Asset tracking technologies
• Order management software

By End user:

• Third-party logistics providers
• Manufacturers
• E-commerce retailers
• Wholesalers

By Enterprise Size:

• Large logistics companies
• Small parcel and LTL carriers
• Startups innovating new solutions

By Country:

• Germany
• United Kingdom
• France
• Italy
• Russia
• Netherlands
• Switzerland

Our Methodology

We have offered a well-founded review of Europe’s regional logistics market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.