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Transportation and Logistics Services Market Size, Share & COVID-19 Impact Analysis, By Service Type (Warehouse Services, Transportation, Inventory Management, and Administration & Supplies), By Mode of Transport Type (Airways, Railways, Roadways, and Waterways), By End Use (Automobiles, Machinery, Apparel and Footwear, Pharmaceutical Products, Retail, Aircraft, Ships and Railways, Electronics, Petrochemicals, Agriculture, Building Materials, and Others), and Regional Forecasts, 2022-2029

Last Updated :April 01, 2024 | Format: PDF | Report ID: FBI107357



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The global transportation and logistics services market size was USD 1,149.92 billion in 2021 and is projected to grow from USD 1,211.06 billion in 2022 to USD 1,804.49 billion by 2029, exhibiting a CAGR of 5.11% during the forecast period. Based on our analysis, the global market exhibited a decline of -8.3%in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with transportation and logistics services experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels.

Transportation and logistics services include acquiring raw materials and delivering finished goods to customers via various modes of transportation such as air, sea, rail, and road. In a nutshell, transportation and logistics services include goods storage, inventory, delivery, and distribution from point A to point B and its primary goal is to deliver goods in a safe, timely, and cost-effective manner.

In recent years, real-time monitoring of goods across multiple points is now possible owing to various technological developments. Factors such as the increase in use of the cloud-based system and the rise in trade agreements are anticipated to fuel the demand for the transportation and logistics services over the forecast period.


Disruption in the Movement of Goods Caused by the Pandemic Hampered Market Growth

The coronavirus pandemic has disrupted supply chain operations worldwide. The crisis put transport and logistics resources under unprecedented pressure. Shippers face uncertainties in the movement of goods due to exit restrictions in certain countries. The imbalance between supply and demand and lack of capacity for long-distance and last-mile fulfillment services disrupted the logistics industry network.

Limited staff and reduced working hours further restrict logistics activities. The COVID-19 outbreak has impacted the Domestic Transport Management (DTM) service. In the infected areas, there was an imbalance between incoming and outgoing goods, which increased the delivery time. Truck volume has decreased significantly, restricting the movement of medium and heavy trucks. Service providers face numerous problems such as transportation disruptions due to border closures and increased demand for storage facilities to store existing products that can no longer be sold due to closures. 3PL companies have started short-term memory identification services to deal with this situation. For example, DB Schenker Logistics implemented a service that identifies unused storage space. This service aims to inform customers about storage space at 794 locations in 60 countries to find additional storage space near production sites. Road traffic is severely affected by the current health crisis.


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Increasing Utilization of Cloud-based Systems in Logistics Management to Propel Market Growth

Technological advances are becoming increasingly popular in the transport and logistics market. Small and medium-scale businesses are aiming to double their investments in technologies by 2025. Leading companies operating in the market are focusing on technological advancements to maintain their dominating position in the market. All leading players are digitizing their supply chain systems. Transportation management (TMS) Such as Freight Viewer, tracking systems are now moved to the cloud for more efficiency.

Moreover, many logistics companies are moving their TMS to the cloud to create a cloud-based TMS. Cloud-based TMS enables automation, seamlessly eliminates manual tasks, streamlines work processes, and reduces additional expenses for the IT infrastructure. In addition, they also collect data from various internal and external sources, which leads to better visibility. The cloud-based TMSs can be implemented and accessed from anywhere worldwide.


Increasing Global Trade Activities to Facilitate Market Augmentation

Global trade activities include importing and exporting goods and services worldwide. Logistics and freight services are used to transport goods internationally through different modes of transport. An increase in trade activities globally has led to a rise in the volume of goods transported to various countries through other means of transportation. For instance, according to the United Nations, exports from developing countries increased by 30%, and global trade reached a record level of USD 28.5 trillion in 2021. China contributes the most, with 15% of global exports. Thus, increasing global trade activities in emerging economies are driving market growth.

In addition, the development of overseas markets and increased trading activities due to globalization boost transportation and logistics market expansion. Further, the proliferation of trade agreements among various governments is another primary driver for the logistics market. For instance, In December 2020, India and the U.K. announced Free Trade Agreement (FTA) between both nations for pharmaceuticals, fintech, chemicals, petroleum, and food products.

Growth in the E-commerce Industry to Support the Transportation and Logistics Services Market Growth

E-commerce refers to buying and selling goods on the internet. The e-commerce industry relies on logistics services and 3PL/4PL services to manage the deliveries of products to the customers. The rise in demand for online services, especially after the pandemic considering its benefits, contributed to the growth of the transportation and logistics sector. The change is attributed to fast consumer growth and cross-border sales as customers are available with many product varieties and can assess for any supplier across the globe.

With continuous proliferation of e-commerce industries, last-mile deliveries are also witnessing an upswing. The major benefiting sectors are pharmaceuticals and food & beverages; FMCG products have a greater emphasis on last-mile delivery options across logistics industries.

  • For instance, in July 2020, Movile Group, a mobile commerce platform, invested in Mensajeros Urbanos, a last-mile delivery startup based in Colombia. This investment aimed to expand its operations in major cities from Mexico & Colombia and expand the required infrastructure, such as warehouses


Lesser Control over the Operation of Logistics Services to Restrain Market Growth

Manufacturing companies or retailing units have to rely on the reliability, competency, and consistency of logistic service providers, and this situation lacks direct control over the process. The manufacturer cannot even monitor all operations in the warehouse, which can seriously threaten the product’s quality and safety. Outsourcing to third/fourth party logistics (3PL/4PL) may lead to a breach of any product, technology, or confidentiality, resulting in the exposure of customers’ data. This lack of control over logistics services hinders the growth of the market.


By Service Type Analysis

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Inventory Management to Lead the Market Owing to Rapid Technological Advancements

By service type, the market is segmented into warehouse services, transportation, inventory management, and administration & supplies.

The inventory management segment is the fastest-growing segment, with a CAGR of 6.12% from 2022 to 2029. Rapid technological advancements in inventory management are expected to offer beneficial opportunities for the market growth. Technological advancements such as using RFID technology to manage inventory and track goods in real-time are expected to increase the demand for the segment over the forecast period. In addition, the growing adoption of AI and machine learning in inventory management is another factor that is anticipated to increase the demand over the forecast period.

Transportation segment is the second fastest-growing segment in the market. The growth is attributed to the adoption of advanced technology such as anti-theft GPS systems. In this system, it is possible to obtain the real-time location of the complete fleet and separate items in transit. Additionally, the adoption of blockchain technology in the transportation segment is another factor fueling the demand over the forecast period. For instance, the use of IoT sensors helps to determine the amount of space a particular cargo occupies.

All the supply chain providers are using & developing a new software-based monitoring, analyzing system to make the system more efficient. Number of 3PL, 4PL service providers are also rising across the globe, which is the reason the administration & supplies segment has also shown significant growth during the forecast period.

By Mode of Transport Analysis

Growing Demand for Pure Electric Zero Emission Vehicles to Drive the Roadways Segment Expansion

Based on mode of transport, the market is divided into airways, railways, waterways, and roadways.The roadways segment holds the highest global transportation and logistics market share. The roadways segment is the most commonly used for the transportation of goods as it is cost-effective, simple, and can provide door-to-door service. Growing technological advancements and e-commerce are expected to drive growth of the road transport segment over the forecast period. Furthermore, an increase in global import and export activity is another factor driving the segment's growth during the forecast period.

Waterways holds the second-largest position in the market. Rising infrastructure development in the form of canals to shorten trade routes, increased trade agreements, and rising consumer disposable income have resulted in increased global demand for international goods. These factors are assisting the waterways segment to maintain its second-largest position over the forecast period.

Mail and parcels are transported via airway services. They are also used to quickly import something from one country to another. Global infrastructure spending on new and existing railway networks continues to rise. With increased business and commercial activity, the world population's personal and freight transportation needs are growing. The scenario is forcing governments to improve their transportation networks across the board, so airways and railways have witnessed significant growth during the forecast period.

By End Use Analysis

Petrochemicals Segment to Hold Major Share Due to its Growing Use to Make Several Products

By end use, the market is categorized into automobiles, machinery, apparel and footwear, pharmaceutical products, retail, aircraft, ships and railways, electronics, petrochemicals, agriculture, building materials, and others. Petrochemicals segment is one of the significant segments in various industrial processes. Products, such as industrial oils, plastics, detergents, and tires, are derived from petrochemicals. Additionally, the increase in demand for green warehouses is another factor driving the growth of the petrochemicals segment over the forecast period.

Others segment is anticipated to hold the second most prominent position in the market. Others segment includes plastics, wood, paper, metals, and glass. Increasing demand from numerous industries, such as electronics, automotive, aerospace, and defense, is helping to maintain the second-largest position of the others segment over the forecast period. Additionally, increasing industrialization and urbanization in developing countries drive the market's growth during the forecast period.


Asia Pacific Transportation and Logistics Services Market Size, 2021 (USD Billion)

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Rising Middle Class Population in Asia Pacific to Contribute to Market Augmentation

Regionally, the market is split into North America, Europe, Asia Pacific, and the rest of the world.

The Asia Pacific transportation and logistics services market share was 37.84% in 2021 and is anticipated to dominate the market throughout the forecast period. It also has the highest growth rate when compared to other segments. The growing middle-class population in India and South Korea is expected to boost the adoption of transportation and logistics services in this region. Furthermore, rising political tensions between China and other countries have compelled organizations to invest in Southeast Asian nations such as the Philippines, Malaysia, Thailand, and Singapore. Moreover, due to its significant European and North American exports, China dominates the market in this region.

North America is the market's second most important region. One of the primary factors driving this region's growth is the growing demand for green logistics to address rising environmental concerns. Furthermore, expanding e-commerce industries and the trend of online shopping in countries such as the United States and Canada is expected to drive the market over the forecast period. Europe has also shown remarkable market growth and is focusing on strategies to improve its market position such as early adoption of AI technology in the transportation and logistics service sector.


Upgrading of Product Transportation and Logistics Services Portfolio to Drive Competition in the Market

C.H. Robinson, headquartered in Minnesota, U.S., is establishing a third-party logistics service providing freight transportation services. It operates through North American Surface Transportation, Global Forwarding, Robinson Fresh, Managed Services, and Other Surface Transportation segments. The company offers logistics, intermodal transportation, and freight forwarding services, organizes air shipments, and provides door-to-door services. In 2021, the company handled approximately 20 million shipments, with 100,000 customers and 85,000 contract carriers, including contracted motor carriers, railroads, and ocean and air carriers. It operated throughout North America, South America, Europe, Asia, and the Oceanic. 

The company also provides transportation and logistics services, such as freight consolidation, supply chain consulting, customs brokerage and analysis, emission analytics, optimization, and reporting. In addition to transportation and logistics services, the company also provides sourcing services under the trade name Robinson Fresh, which consists of marketing, buying, and selling fresh fruits, vegetables, and other value-added perishables.

FedEx is a U.S.-based company providing transportation, logistics, and other business services. It primarily operates through four segments: FedEx Ground, FedEx Express, FedEx Services, and FedEx Freight. Its fleet comprises 697 aircraft working with 650 airports. The company has presence in around 220 countries globally. FedEx is one of the world's most significant transport, logistics & courier companies, with main cargo hubs in the U.S. and Hong Kong. The company also looks after several business logistics & supply chain managements for the U.S. government and has operations & presence in more than 200 countries.



  • February 2023: FourKites and RCS Logistics announced a partnership to provide RCS customers with a one-stop service that provides complete visibility into their shipments across ocean, water and air, intermodal and over-the-road (OTR). Using FourKites' real-time supply chain data, RCS's internal teams and customers benefit from automatic real-time visibility into the status and location of transit and resting shipments worldwide.

  • November 2022: A.P. Moller –Maersk launched a new ocean shipping service, Shaheen Express. It will rotate between Mundra, Pipavav, Jebel Ali, Dammam, and Jebel Ali and back to Mundra, creating a stable and reliable service for the India-UAE-Saudi Arabia corridor. The new service will primarily address the rising demand for customers trading between the Indian and the Gulf markets.

  • October 2022: DHL Supply Chain expanded its logistics service by offering a new solutions suite for electronic waste recovery management. The new circular supply chain solution helps companies in enabling appropriate reprocessing, reuse, or recycling of used electronic parts such as touchscreens, processors, computer modules, or tech assets. By implementing this solutions suite, companies can reduce their environmental impact and avoid the loss of scarce raw materials.

  • June 2022: FedEx Corp and supply chain visibility platform FourKites announced a strategic alliance to make supply chains smarter by bringing comprehensive and highly granular visibility into multi-modal and multi-carrier operations with the deep network and rich insights of their combined networks

  • January 2021: C.H. Robinson announced a new technology center in Cork (Ireland), delivering personalized solutions for shippers and carriers with the industry’s premier technology built for and by supply chain experts. This expansion is a commitment by the company to invest in the industry- technology to accelerate the pace of innovation and provide best-in-class technology and services to customers and carriers.


An Infographic Representation of Transportation and Logistics Services Market

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The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, end users, design, and technology. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)

By Service Type

  • Warehouse Services

  • Transportation

  • Inventory Management

  • Administration & Supplies

By Mode of Transport

  • Airways

  • Railways

  • Roadways

  • Waterways

By End Use

  • Automobiles

  • Machinery

  • Apparel and Footwear

  • Pharmaceutical Products

  • Retail

  • Aircraft

  • Ships and Railways

  • Electronics

  • Petrochemicals

  • Agriculture

  • Building Materials

  • Others

By Geography

  • North America (By Service Type, By Mode of Transport, & By End Use)

    • U.S. (By Service Type, By Mode of Transport, & By End Use )

    • Canada By Service Type, By Mode of Transport, & By End Use )

    • Mexico (By Service Type, By Mode of Transport, & By End Use )

  • Europe (By Service Type, By Mode of Transport, & By End Use )

    • Germany (By Service Type, By Mode of Transport, & By End Use )

    • France (By Service Type, By Mode of Transport, & By End Use )

    • U.K. (By Service Type, By Mode of Transport, & By End Use )

    • Rest of Europe (By Service Type, By Mode of Transport, & By End Use )

  • Asia Pacific (By Service Type, By Mode of Transport, & By End Use )

    • China (By Service Type, By Mode of Transport, & By End Use )

    • Japan (By Service Type, By Mode of Transport, & By End Use )

    • India (By Service Type, By Mode of Transport, & By End Use )

    • South Korea (By Service Type, By Mode of Transport, & By End Use )

    • Rest of Asia Pacific (By Service Type, By Mode of Transport, & By End Use )

  • Rest of the World (By Service Type, By Mode of Transport, & By End Use )


Frequently Asked Questions

Fortune Business Insights research reports say that the market was valued at USD 1,149.92 billion in 2021 and is projected to reach USD 1,804.49 billion by 2029.

The market is expected to register a CAGR of 5.11% during the forecast period 2022-2029.

Rise in global trade activities is boosting the market growth.

Asia Pacific led the global market in 2021.

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