Logistics - Industry - North America Market, Share and Trends 2023-2028

Summary of Logistics

The logistics industry lies at the heart of North America’s $20 trillion economy and is responsible for the seamless flow of goods between all sectors. Logistics encompasses – transportation, warehousing, freight forwarding and other services essential for moving raw materials, parts and finished products both within domestic markets as well as for cross-border trade.

According to the latest industry reports, the total economic value added by the logistics sector in the US, Canada and Mexico amounts to over $1 trillion annually. This represents nearly 10% of the region’s combined GDP. The industry employs millions of workers in high-wage jobs across the continent. Based on our estimates, we can say that North America’s regional logistics industry is forecasted to be a $3220.18 billion industry in 2029 from $2681.8 billion in 2023 with a CAGR of 3.08%.

Logistics touches virtually every industry vertical ranging from manufacturing, retail and agriculture to energy, construction and technology. Efficient logistics networks are critical for North American businesses to optimize supply chains and access domestic and international markets cost-effectively. They play a key role in ensuring just-in-time delivery of components for manufacturers, timely replenishment of store shelves for retailers and timely deliveries for e-commerce customers.

Whether it’s transporting cars from assembly plants to dealerships, ferrying food and beverages between processing facilities and grocery stores or moving machinery and equipment between construction sites – logistics underpins economic productivity across sectors in North America. As industries evolve and new trade opportunities emerge– the logistics industry continues to adapt and grow in importance to the regional economy.

Recent Trends and Insights

Online retail continues to surge, growing over 13% annually. This is fueling demand for fulfillment and delivery services from third-party logistics providers. The driver shortage remains acute, limiting freight capacity. Combined with high demand – this is keeping transportation costs elevated above pre-pandemic levels.

Leading logistics firms are investing in green technologies like electric vehicles and carbon offset programs. Customers are increasingly prioritizing sustainability in vendor selection. The new USMCA trade agreement is streamlining North American cross-border trade. This is boosting volumes moving between the US, Canada and Mexico.

Adoption of automation solutions is accelerating to address labor constraints and improve productivity. Robotics, artificial intelligence and data analytics are being deployed across warehouses and distribution centers.

Governments are earmarking billions for transportation infrastructure upgrades. This includes port expansions, rail improvements and road/bridge repairs to support continued industry growth.

Product Insights

As supply chains grow more complex– TMS software solutions are in high demand to optimize fleet utilization, load planning and freight visibility. Leading providers include – Oracle, SAP and BluJay Solutions.

Automating warehouse operations through WMS (Warehouse Management Systems) improves productivity, accuracy and labor management. Major players are Manhattan Associates, Blue Yonder and JDA Software.

Amid severe driver shortages, LMS platforms help dispatching, hiring, onboarding and compliance monitoring of logistics workforces. Trimble and Kronos are notable vendors. Fleet tracking systems provide real-time vehicle location data, driver behavior monitoring and fuel usage analytics. Verizon Connect, Geotab and Trimble are leaders.

Technologies facilitating fast and flexible last mile deliveries are gaining ground. Examples include – delivery management platforms, autonomous vehicles, lockers and pickup kiosks.

Specialized equipment like refrigerated trucks, containers and monitoring devices ensure quality of temperature-sensitive cargo shipments. Automated cross-dock operations using conveyors, sorters and scanners improve throughput at distribution hubs.

Key Companies

Some major players within this vast domain of industry are

• H. Robinson
• Deutsche Post DHL Group
• FedEx
• Kuehne + Nagel
• United Parcel Service (UPS)
• DB Schenker
• DSV A/S
• Expeditors International
• GXO Logistics
• J.B.Hunt Transport Services Inc.

Regional Analysis

The continuous advancements in logistics, including automated material handling equipment, biometrics, and GPS that aid organizations and businesses to work proficiently, are also catalyzing the market across North America.

Apart from this – the expanding e-commerce industry and the increasing number of international trade activities are acting as significant growth-inducing factors. The rising need for green solutions by the leading manufacturers to reduce the environmental impact and improve the credentials of their businesses is also stimulating the market growth. Furthermore– the growing popularity of driverless vehicles and drones for enhancing operational efficiency and time of these services is expected to bolster the market in the coming years.

Key logistics hubs in the region include major ports like Los Angeles/Long Beach, distribution centers around major cities and inland ports in the Midwest that connect rail/truck. This infrastructure facilitates domestic and international trade flows.

Regional trends like nearshoring of manufacturing back to North America from Asia can impact demand for logistics services. Logistics providers are investing in capabilities to serve nearshored supply chains.

The future outlook remains positive with continued e-commerce growth and investment in advanced technologies like automation and data analytics systems across the North American logistics sector.

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:

• The U.S.
• Canada
• Mexico

Our Methodology

We have offered a well-founded review of North America’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.