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The contract logistics market share in the US is expected to increase by USD 9.04 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 5.98%. This contract logistics market in the US research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The contract logistics market in the US report also offers information on several market vendors, including Burris Logistics, C.H. Robinson Worldwide Inc., Deutsche Post AG, FedEx Corp., Hub Group Inc., Kuehne Nagel International AG, Ryder System Inc., Schenker AG, United Parcel Service Inc., and XPO Logistics Inc. among others. Furthermore, this report extensively covers the contract logistics market in the US segmentation by end-user (retail, pharmaceutical, automotive, and others) and type (outsourcing and insourcing).
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The growth in the e-commerce market in the US is notably driving the contract logistics market growth in the US, although factors such as increased lead time and supply-demand imbalance may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the contract logistics industry in the US. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Contract Logistics Market Driver in US
One of the key factors driving the contract logistics market growth in the US is the growth in the e-commerce market in the US. For instance, according to the Census Bureau of the Department of Commerce, in the third quarter of 2021, e-commerce sales increased 6.6% from the third quarter of 2020, while total retail sales increased 13.1% in the same period. With the outbreak of COVID-19, there has been an increase in the growth of the e-retail industry, which has created the demand for contract logistics service providers serving electronics, fast-moving consumer goods (FMCG), pharmaceuticals, and food and beverage industries. Big brands, such as Puma and Adidas, have many packages to be shipped per day. According to a recent survey by Accenture and GEODIS (of 200 large retail & consumer goods brands), vendors expect the shift to online sales on their websites. This shift is expected to remain even after the pandemic subsides and is anticipated to create opportunities for contract logistics vendors in the next five years.
Key Contract Logistics Market Trend in US
Another key factor driving the contract logistics market growth in the US is the emergence of big data analytics to derive meaningful insights from large quantities of data and gain a competitive advantage in the market. Implementing big data analytics solutions enables companies to derive insights to power strategic planning initiatives that include customizing services, accelerating market demand, and implementing a new business model based on agility. Furthermore, advanced real-time processing and predictive techniques promise to enhance the accuracy of capacity forecast and resource control. Big data also provides real-time analytics and aids in the end-to-end visibility in the supply chain, and therefore, allows the logistics companies to act quickly on the potential loss of revenues and profits margins that might occur at various points in the supply chain. Such factors are expected to support the market growth during the forecast period.
Key Contract Logistics Market Challenge in US
One of the key challenges to the contract logistics market growth in the US is the increased lead time and supply-demand imbalance. Other factors such as limited workforces and reduced working time have further restrained the logistics activities. Domestic transportation services have also been affected by the pandemic-induced restrictions, as there has been an imbalance between incoming and outgoing freight in the restricted areas. Furthermore, contract logistics vendors have been facing complications due to changing norms in different states and countries, which resulted in delayed lead time. Such factors are expected to limit the growth of the market in focus in the forecast period.
This contract logistics market in the US analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the contract logistics market in the US as a part of the global air freight and logistics market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the contract logistics market in the US during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the contract logistics market in the US encompasses successful business strategies deployed by the key vendors. The contract logistics market in the US is fragmented and the vendors are deploying growth strategies such as technological innovations to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The contract logistics market in the US forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the contract logistics market in US, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chains is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global air freight and logistics market includes the following core components:
The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.
Executive Summary
Market Landscape
Market Sizing
Five Forces Analysis
Market Segmentation by End-user
Market Segmentation by Type
Vendor Landscape
Vendor Analysis
Appendix
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