Global Contract Logistics 2025

Ti’s latest report finds the global contract logistics market continues modest growth in 2025, led by Asia Pacific while Europe remains flat.

London, 25th June 2025: The global contract logistics sector faces variable regional dynamics as economic momentum shifts further towards Asia Pacific, while Europe and North America maintain modest growth weighed by inflationary pressures, high operating costs, and subdued consumer demand.

Ti’s latest report, Global Contract Logistics 2025, analyses the global contract logistics market across key regions, verticals, and service segments, and explores how technology and M&A are shaping future competitiveness.

Key Takeaways:

• Global contract logistics market to grow by 3.3% in real terms in 2025, down slightly from 3.6% in 2024
• Asia Pacific to lead global expansion, with 5.9% growth in 2025, driven by e-commerce, infrastructure investment, and supply chain upgrades
• Europe remains stagnant, forecast to grow just 1.3% in 2025, reflecting a saturated and mature market
• Distribution remains the dominant segment globally, representing nearly 59% of the market in 2024.
• Leading contract logistics players posted organic growth of 3–5% in 2024, broadly in line with market trends
• Contract awards remain concentrated in retail and automotive sectors, with 64% of contracts lasting 3 or 5 years
• Technology adoption accelerates as logistics providers deploy AI, AMRs, and warehouse automation at scale
• M&A continues to reshape the competitive landscape with DSV’s €14.3bn acquisition of DB Schenker and GXO’s £762m acquisition of Wincanton highlighting sector consolidation

Modest growth in Western economies

The global contract logistics market is entering a phase of measured, regionally uneven growth. Economic momentum is strongest in Asia Pacific, where industrial investment, domestic consumption, and infrastructure development continue to support high single-digit expansion. In contrast, North America and Europe are seeing slower growth, constrained by inflation, stagnant industrial output, and subdued consumer demand. Emerging regions such as the Middle East and parts of Africa are growing from a small base, supported by trade corridor initiatives and increased outsourcing.

Asia Pacific remains the primary driver of global contract logistics growth, supported by demand from economic growth, e-commerce, manufacturing shifts, and domestic supply chain upgrades. The North American market is growing at a slower pace, with digitalisation and automation helping to offset structural constraints in retail and distribution. Europe’s growth is marginal, reflecting a mature market with limited upside outside select verticals and geographies. In all regions, distribution continues to dominate service demand, while warehousing and value-added services evolve slowly, constrained by labour availability and real estate costs.

Distribution remains core to contract logistics

Distribution remains the backbone of contract logistics, growing 3.5% in 2025 and accounting for nearly 59% of market value. Warehousing is forecast to rise by 3.2%, supported by automation investment. Value-added services grow more slowly at 2.5%, as clients demand tailored logistics but providers remain cautious due to margin pressure.

Robotics becoming standard

Automation is becoming central to operations. Autonomous robots, AI-driven fulfilment systems, and warehouse execution software are being deployed at scale, especially in high-volume and labour-sensitive environments. The next phase of competitiveness will depend on providers’ ability to align digital infrastructure with physical scale, delivering speed, resilience, and cost control. Ti’s report profiles eight robotics providers and tracks deployments across GXO, CEVA, DHL Supply Chain, and others. Warehouse execution systems, collaborative robots, and predictive analytics are helping providers mitigate labour constraints and enhance service quality. However, adoption remains uneven, with smaller firms constrained by capital and scale.

Continued consolidation shaping the market

2024–2025 saw a wave of strategic acquisitions, led by DSV’s takeover of DB Schenker, pushing combined contract logistics revenues above €6bn. GXO’s acquisition of Wincanton enhances UK market share and expands retail capabilities, though it faced regulatory scrutiny which has required grocery warehousing divestment. CEVA continues its acquisition-led growth in Turkey and France, adding warehousing space and sectoral strength.

Paul Chapman, Senior Editor at Ti, said:

"Contract logistics continues to expand globally, but growth momentum is shifting eastward. Asia Pacific is now firmly the engine of growth, while Europe and North America are entering a more mature, margin-focused phase. Providers that combine scale with automation and vertical expertise will be best placed to compete over the next cycle."