North America Logistics Market

North America Logistics Market:

The North America logistics market size reached US$ 1,447.3 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,754.2 Billion by 2032, exhibiting a growth rate (CAGR) of 2.1% during 2024-2032. The increasing consumer preference for quick delivery services, along with the rising e-commerce industry, is augmenting the regional market.

North America Logistics Market Analysis:

• Major Market Drivers: The growing number of international trade activities is stimulating the market across the region. Moreover, the inflating need for managing several activities is also augmenting the market.
• Key Market Trends: The increasing popularity of using data analytics to manage inventory levels, track shipments, optimize routes, streamline processes, etc., is one of the emerging trends bolstering the regional market. Besides this, the introduction of transparent tracking systems is further acting as another significant growth-inducing factor.
• Geographical Landscape: The United States exhibits a clear dominance in the market, owing to advanced transportation networks. Additionally, the elevating focus among key players on efficient supply chain management will propel the market across the country over the forecasted period.
• Challenges and Opportunities: One of the key challenges hindering the market is the strain on infrastructure, on account of the changing e-commerce demands, which can be overcome by investing in advanced technologies, such as enhancing transportation networks, automation, improving supply chain visibility, etc.

North America Logistics Market Trends:

Inflating E-Commerce Industry

The rising number of e-commerce activities is primarily driving the regional market. In May 2024, the Census Bureau of the Department of Commerce announced that the estimate of U.S. retail e-commerce sales for the first quarter of 2024 was approximately US$ 289.2 Billion, an increase of roughly 2.1% from the fourth quarter of 2023. Consequently, the expanding growth of online retail is inflating the need for efficient logistics systems. According to the data showcased by Talking Logistics, in 2022, carrier-related factors were responsible for around 82% of the delivery issues in the United States. As a result, various businesses are focusing on conducting data-driven analysis on their choice of carriers or third-party logistics providers, which is elevating the North America logistics market revenue. As per a survey by Rakuten Insight Global, consumers in the U.S. tend to value speed and cost above all else when it comes to delivery experiences. In line with this, prominent delivery firms are enhancing logistics infrastructures to handle the elevating volume of shipments. For example, United Parcel Service, Inc., invested US$ 40 Billion in new equipment, thereby increasing its daily processing capacity to 70 million packages in 2023 from 60 million in 2022.

Introduction of Advanced Solutions

The development of novel automated solutions to gain valuable insights into supply chain processes is strengthening the market in the region. According to LogisticsIQ's latest market research study, the warehouse automation market is expected to reach US$ 30 Billion by 2026, at a CAGR of around 14% between 2020 and 2026. Additionally, automated solutions also help in providing real-time monitoring and tracking systems. For example, in September 2023, A.P. Moller and Maersk (Maersk) and Fabric collaborated to offer innovative fulfillment solutions for e-commerce, thereby uniting Maersk's logistics expertise with Fabric's world-class automation fulfillment solution. In line with this, they introduced a 38,000-square-foot automated fulfillment center in Texas, United States. Moreover, the introduction of state-of-the-art warehousing solutions represents one of the North America logistics market recent opportunities. For instance, in February 2024, HWArobotics partnered with Darwynn, one of the e-commerce logistics providers in Canada, to implement advanced robotic automated storage and retrieval systems (Shuttle ASRS) at its Toronto facility. Apart from this, the widespread adoption of advanced analytics is also propelling the regional market. For example, in February 2024, Dexory announced its strategic expansion into North America by introducing its autonomous robotics and AI-powered analysis solution, DexoryView, for the evolving landscape of logistics and warehousing. Furthermore, the inflating popularity of last-mile delivery options is acting as another significant growth-inducing factor. For instance, in April 2024, UniUni, one of the tech companies in Canada, raised US$ 50 Million in an oversubscribed Series C financing round led by venture capital firm DCM to enhance its B2C last-mile delivery model.

Increasing 3PL Providers

The rising need for streamlining supply chain operations for businesses across several industries is one of the drivers fueling the regional market. Furthermore, these providers offer a wide range of services, thereby enabling companies to focus on their core competencies while outsourcing complex logistics tasks. According to a report published by CBRE in April 2023, 3PL providers leased more big-box (200,000 sq. ft. or larger) warehouse space in North America than any other occupier category. Apart from this, businesses across the region are seeking cost-effective solutions to manage the rapid movement of goods, which is also creating a North America logistics market outlook. For example, in May 2024, LIXIL Americas appointed Kenco, one of the third-party logistics providers in North America, to manage its Groveport distribution center in Ohio. Additionally, strategic collaborations among key players to offer better service to their clients are further driving the market. For instance, in February 2023, Kenco Group, one of the third-party logistics (3PL) providers, opened the North Georgia Distribution Center to offer customers of Kerry timely product distribution. Moreover, in January 2024, Kenco, a 3PL company in North America, acquired the Shippers Group, a Dallas-based third-party warehousing company that added to Kenco’s capabilities of broader geographic reach, an expanded suite of services for the benefit of customers, providing increased capacity, etc.

North America Logistics Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the North America logistics market forecast at the regional and country levels for the period 2024-2032. Our report has categorized the market based on the model type, transportation mode, and end-use.

Breakup by Model Type:

• 2 PL 
• 3 PL
• 4 PL
   

2 PL dominate the market

The report has provided a detailed breakup and analysis of the market based on the model type. This includes 2 PL, 3 PL, and 4 PL. According to the report, 2 PL represented the largest market segmentation.

2PL or second-party logistics providers are gaining popularity, owing to their direct control over transportation assets and infrastructure, such as trucks, ships, and aircraft. Unlike third-party logistics providers, which offer comprehensive supply chain management services, they focus specifically on the transportation segment of the logistics chain, providing essential freight and transport services. For example, in February 2024, FedEx Freight, one of the 2PL providers in North America, expanded its fleet and service coverage to accommodate the elevating requirement for efficient and reliable transportation solutions across various industries. This specialization allows businesses to leverage dedicated transportation resources and expertise, ensuring reliable and efficient movement of goods. Additionally, the escalating demand for efficient transportation solutions amid growing e-commerce activities and complex supply chains is augmenting the segment's growth. This, in turn, is increasing the North America logistics market's recent price.

Breakup by Transportation Mode:

• Roadways
• Seaways
• Railways
• Airways
   

Roadways accounted for the largest market share

The report has provided a detailed breakup and analysis of the market based on the transportation mode. This includes roadways, seaways, railways, and airways. According to the report, roadways represented the largest market segmentation.

The dominance of road transportation is driven by its ability to offer door-to-door delivery, making it an essential component for both short-haul and long-haul logistics. According to the North America logistics market overview, the rise of e-commerce has further amplified the demand for roadways as businesses and consumers increasingly rely on the timely and efficient delivery of goods. Moreover, road transportation benefits from lower initial infrastructure investment compared to rail and air transport, making it a more accessible and scalable option for many companies. In October 2023, Renault and CMA CGM collaborated to provide electric urban transportation for companies in the logistics and transportation sector seeking to decarbonize their fleets. Across the U.S. trucking industry, more than 1 billion appointments are made each year, commonly through phone calls and emails. The versatility of trucks in handling a wide variety of goods, coupled with advancements in vehicle technology and logistics management systems, will continue to fuel the North America logistics market demand in the coming years. In February 2024, C.H. Robinson developed a new technology that assists in removing the work of scheduling an appointment at the place where a load needs to be picked up and scheduling another appointment, thereby creating a major efficiency in freight shipping.

Breakup by End-Use:

• Manufacturing
• Consumer Goods
• Retail
• Food and Beverages
• IT Hardware
• Healthcare
• Chemicals
• Construction
• Automotive
• Telecom
• Oil and Gas
• Others
   

According to North America logistics market statistics, manufacturing exhibits a dominance in the market

The report has provided a detailed breakup and analysis of the market based on the end use. This includes manufacturing, consumer goods, retail, food and beverages, IT hardware, healthcare, chemicals, construction, automotive, telecom, oil and gas, and others. According to the report, manufacturing represented the largest market segmentation.

The manufacturing sector relies heavily on logistics for the procurement of raw materials, efficient production processes, and the distribution of finished goods. As manufacturers seek to optimize their operations and reduce costs, the need for reliable and efficient logistics services becomes paramount. The complexity of manufacturing supply chains, which often involve multiple suppliers, intricate assembly processes, and diverse distribution channels, necessitates robust logistics support to ensure timely delivery and maintain production schedules. Additionally, the growth of advanced manufacturing techniques, such as just-in-time production and lean manufacturing, further increases the dependence on sophisticated logistics networks to minimize inventory costs and enhance operational efficiency. For example, in April 2024, Ascend Elements developed a complex logistics simulation model for its EV battery materials (pCAM) manufacturing facility in Kentucky, United States.

Breakup by Country:

• United States
• Canada
   

United States exhibits a clear dominance in the North America logistics market share 

The report has also provided a comprehensive analysis of all the major regional markets, which include the United States and Canada. According to the report, the United States represented the largest regional market.

The expanding e-commerce industry is driving the market in the United States. As per the Statista Research Department, the revenue in the e-commerce market across the U.S. is estimated to reach US$ 1.9 Trillion by 2029. Additionally, the increasing number of distribution facilities equipped with enhanced technologies is also acting as another significant growth-inducing factor. For example, in August 2023, DHL eCommerce opened a distribution center in Illinois, United States, encompassing a total area of 352,000 square feet. Moreover, the facility is equipped with an Automated Honeywell Cross-belt Loop Sorter, which can handle up to forty thousand parcels and packages an hour. Apart from this, the rising focus on adopting sustainable practices in logistics operations is creating a positive outcome for the market across the country. For instance, in April 2023, DHL Express announced the expansion of its sustainable business services in the U.S. Furthermore, the introduction of GoGreen Plus, a service that allows customers to set the carbon footprint of their shipments, is anticipated to bolster the market over the forecasted period.

Competitive Landscape

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major North America logistics market companies have been provided.
• Key players in the market are taking various steps to strengthen their positions and stay competitive. They are investing in advanced technologies such as artificial intelligence (AI), machine learning (ML), big data analytics, and the Internet of Things (IoT) to optimize operations, improve efficiency, and enhance customer experience. They are developing sophisticated logistics management systems, tracking and tracing solutions, and real-time visibility platforms to provide end-to-end supply chain visibility. Moreover, key players are expanding their physical network by establishing new warehouses, distribution centers, and fulfillment centers in strategic locations and investing in improving their transportation infrastructure, including increasing fleet size and implementing route optimization techniques. Besides this, many logistics companies are focusing on sustainability by adopting eco-friendly practices and incorporating green technologies, including utilizing alternative fuel vehicles, optimizing routes to reduce carbon emissions, and implementing sustainable packaging solutions.

North America Logistics Market Recent Developments:

• May 2024: LIXIL Americas appointed Kenco, one of the third-party logistics (3PL) providers in North America, to manage its 906,000-square-foot Groveport distribution center in Ohio, U.S.
• April 2024: UniUni raised US$ 50 Million in an oversubscribed Series C financing round led by venture capital firm DCM to expand its B2C last-mile delivery model.
• February 2024: HWArobotics collaborated with Darwynn, one of the e-commerce logistics providers in Canada, to implement its Shuttle ASRS technology at its Toronto facility.

North America Logistics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the North America Logistics market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the North America Logistics market.
• The study maps the leading, as well as the fastest-growing, markets. It further enables stakeholders to identify the key country-level markets within the region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the North America Logistics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.