Warehousing and Distribution Logistics Market Outlook - Forecast Trends, Market Size, Share and Growth Analysis Report (2025-2034)

Recent Developments

May 2025

DHL has acquired a minority stake in British parcel carrier Evri, merging its UK e-commerce business with the combined company. Together, the two entities will sort and deliver over 1 billion parcels annually, establishing DHL's position as a major player in the UK logistics sector. The tie-up also places Evri in the UK business letter delivery business, with over 30,000 van drivers and couriers involved.

May 2025

LondonMetric Property PLC on Friday said it has agreed to acquire Urban Logistics REIT PLC in a cash-and-share deal worth approximately £698.9 million, as it doubles down on its bet that urban warehousing will drive rental growth in the UK real estate market. the combined group would have a portfolio worth £7.3 billion and a pro forma market cap of £4.4 billion. Logistics assets would account for 55% of the portfolio, with 40% in higher-growth urban logistics.

May 2025

Africa Global Logistics, which operates Ivory Coast's main port, plans to invest over 60 million euros ($67 million) in inland logistics over the next five years to boost its position as a transport hub and gateway for landlocked West African nations. The company plans to establish operational hubs across Ivory Coast and develop dry warehouses equipped with cooling facilities, Regional Director Asta-Rosa Cisse told Reuters.

May 2025

With a view to strengthen the industrial and logistics ecosystem in Uttar Pradesh, Invest UP and the Lucknow Division of Northern Railway signed a memorandum of understanding at the Lok Bhawan in Lucknow. The memorandum of understanding (MoU) aims to offer railway land to investors at a concessional lease rate of 1.5 per cent of the prevailing industrial or circle rate for a period of 35 years.

Key Trends and Drivers

Automation and AI Integration

Warehousing operations are increasingly adopting automation and artificial intelligence (AI) to enhance efficiency and accuracy. AI-driven tools are optimising route planning, demand forecasting, and warehouse management. By 2025, it is estimated that up to 50,000 warehouses will be using around 4 million robots, highlighting the scale of this shift. Robots can reduce labour costs by up to 60% and increase productivity by 30%. This shift towards automation addresses labour shortages and meets the growing demand for faster, more reliable logistics solutions.

E-commerce Expansion

The rapid growth of e-commerce continues to be a significant driver for the warehousing and distribution logistics market growth. With online retail sales projected to reach new heights, there is an increasing need for efficient storage and distribution systems to handle the surge in order volumes. In April 2025, Amazon stated that it will spend USD 4 billion by the end of 2026 on expanding deliveries to small towns in rural America. Once the expansion is complete, more than 200 delivery stations will be added, tripling the size of Amazon’s rural delivery network.

Sustainability Initiatives

Environmental concerns are prompting logistics companies to adopt sustainable practices, thereby impacting the growth of the warehousing and distribution logistics market. This includes the use of electric vehicles for transportation, energy-efficient warehouse designs, and the implementation of green technologies to reduce carbon footprints. In May 2023, CEVA Logistics announced that it plans to grow its fleet of electric vehicles (EVs) to 1,450 by the end of 2025 as the next step in its commitment to reaching net zero by 2050. The major sustainability commitment includes 1,000 delivery vans, 300 straight trucks and 150 tractor units deployed across CEVA’s dedicated fleet operations.

Geopolitical Influences and Trade Policies

Geopolitical tensions and changing trade policies are influencing warehousing strategies. Companies are diversifying their supply chains and investing in warehouses closer to key markets to mitigate risks associated with tariffs and trade restrictions. For example, Chinese e-commerce firms are leasing warehouse spaces in the U.S. to ensure goods are shielded from future tariff changes. As per industry reports, Mexico and Southeast Asia are benefiting from the “China+1” sourcing strategy. Multinational firms are now investing in warehousing hubs in these regions to reduce over-reliance on China and gain proximity to the U.S. market via trade-friendly corridors like USMCA. As a result, industrial real estate in Mexico’s Bajío region and Vietnam’s northern provinces has seen record-level occupancies, driven by U.S. and Japanese investors.

Cold Chain Logistics Growth

The demand for cold chain logistics is rising, driven by the need to transport perishable goods like food and pharmaceuticals. Advancements in temperature-controlled storage and transportation are essential to maintain product integrity. In March 2025, Atlanta-based Americold announced that it is expanding with the recent USD 127 million acquisition of a cold storage warehouse in Houston, adding 35,700 pallet positions to its portfolio. The facility was constructed in 2022, has 10.7 million cubic feet, and is located in the Cedar Port Industrial Park in Baytown. The acquisition includes approximately 16 acres of adjacent land that could be used for future expansion projects and support the demand of the warehousing and distribution logistics market.

Warehousing and Distribution Logistics Industry Segmentation

Global Warehousing and Distribution Logistics Market Share

Surging Demand in Refrigerated and Agricultural Warehousing

As per the warehousing and distribution logistics market report, the refrigerated warehousing segment is experiencing significant growth due to rising demand for perishable goods storage, including food and pharmaceuticals. Factors driving this growth include globalisation of the food supply chain, increased consumer demand for fresh products, and the expansion of online grocery shopping. For instance, with 22 facilities worldwide, the UK's largest automated cold storage warehouse in Corby, operated by NewCold, plays a crucial role in storing and distributing frozen foods efficiently.

Farm product warehousing is vital for preserving agricultural commodities and ensuring food security. Growth drivers of warehousing and distribution logistics market include the globalisation of trade, implementation of quality standards, and the development of cold chain logistics. For instance, the European Union's Regulation (EC) No. 37/2005 mandates comprehensive temperature monitoring for cold chain foods, ensuring consistent quality during transportation and storage. Similarly, the U.S. Food Safety Modernization Act enforces strict guidelines on the sanitary transportation of food, emphasizing the importance of maintaining quality standards throughout the supply chain. Additionally, advancements in robotic solutions for on-farm packaging are enhancing efficiency in this sector.

Surging Growth in the Distribution Segment Driven by Efficiency and Technology

As per the warehousing and distribution logistics market analysis, the distribution segment is experiencing significant growth, driven by the need for efficient delivery systems to meet rising consumer expectations. Advancements in real-time tracking, route optimisation, and the adoption of just-in-time (JIT) inventory systems are enhancing distribution efficiency. For instance, Uber Freight utilizes AI-driven platforms to match truckers with continuous loads, minimizing empty miles and enhancing delivery efficiency. Since its 2023 launch, Uber Freight has managed over USD 20 billion in freight, serving numerous Fortune 500 companies and reducing empty miles by 10–15%.

Value-added services, including packaging, labeling, kitting, and reverse logistics, are becoming increasingly vital in differentiating logistics offerings. The demand for VAS is growing as companies seek to enhance customer satisfaction and streamline supply chain operations. For instance, the integration of VAS allows for customised packaging and faster order fulfillment, which are critical in the competitive e-commerce landscape.

Logistics Demand Surges Across Consumer Goods and Cold Chain Sectors

The consumer goods industry relies heavily on warehousing and distribution logistics to meet the demands of a vast and diverse customer base. The sector's emphasis on timely delivery and inventory management has led to increased investment in logistics infrastructure, thereby supporting the warehousing and distribution logistics market expansion. In May 2025, Uber has launched a new logistics service called Courier XL in India, targeting the delivery of large goods. This move signifies Uber's entry into the large-item logistics sector, positioning itself to compete with established players like Porter. The service aims to address the growing demand for transporting bulky merchandise, thereby enhancing Uber’s portfolio and potentially capturing a broader customer base in the logistics domain.

The food and beverage sector is experiencing significant growth in warehousing and distribution logistics market due to the rising demand for perishable goods and the need for temperature-controlled storage solutions. In May 2025, Indian cold chain aggregator Celcius Logistics raised INR 250 crore through equity and debt funding, co-led by Eurazeo and Omnivore. The capital will support the company's efforts to scale operations and expand its reach within India's logistics and cold chain sectors, reflecting growing interest in strengthening infrastructure for temperature-sensitive goods.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Warehousing and Distribution Logistics Market Regional Analysis

Europe’s Warehousing Boom Driven by Trade and Infrastructure Expansion

Europe's warehousing and distribution logistics market is bolstered by its strategic location, facilitating trade between Asia and North America. The rise of e-commerce has led to increased demand for last-mile delivery solutions, prompting investments in urban logistics hubs. Europe's central position between Asia and North America makes it a pivotal hub in global trade routes. Major ports like Rotterdam, Antwerp, and Hamburg serve as key entry points for goods moving between continents. This strategic advantage has led to significant investments in logistics infrastructure to handle increasing trade volumes. For instance, the Port of Antwerp-Bruges has been expanding its capacity to accommodate larger vessels and increased cargo, reinforcing Europe's role in global supply chains.

Asia Pacific is experiencing rapid growth in the warehousing and distribution logistics market. This expansion is fueled by the booming e-commerce industry, particularly in countries like China and India, and significant investments in infrastructure development. Companies are focusing on enhancing supply chain resilience and adopting advanced technologies to meet the increasing consumer demand and navigate the region's complex logistics landscape. In May 2025, Koch Disruptive Technologies led a USD 40 million funding round for Optimal Dynamics, a logistics tech startup specializing in AI-driven fleet management software. The platform is used by trucking operators across various sectors to improve operational efficiency by matching freight loads, trucks, and routes. This investment underscores the increasing role of advanced technologies in optimizing logistics operations in the Asia Pacific region.

Competitive Landscape

Other key players in the warehousing and distribution logistics market report are Americold Logistics, Inc., Lineage, Inc., A.P. Moller – Maersk A/S, Agility Logistics, United Parcel Service Inc., and Aramex PJSC, among others.

Key Features of the Report

• Comprehensive quantitative analysis of global warehousing and logistics market trends.
• Region-wise and segment-wise breakdown for accurate market forecasting.
• Insights into key drivers, challenges, and emerging industry opportunities.
• Competitive landscape profiling top warehousing and logistics companies.
• Supply chain analysis with technological and infrastructure developments.
• Strategic recommendations for new entrants and established logistics providers.

Why Choose Expert Market Research?

• Trusted industry insights backed by real-world data and expertise.
• Customized reports tailored to your specific business needs.
• Up-to-date trends and forecasts across global logistics sectors.
• Extensive coverage of emerging and established logistics markets.

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