United Kingdom Contract Logistics Market Size, Share, By Type (Outsourcing, Insourcing), By Service (Transportation, Warehousing, Distribution, Aftermarket Logistics, and Other Services), By Transportation Mode (Roadways, Railways, Airways, and Waterways), United Kingdom Contract Logistics Market Insights, Industry Trend, Forecasts to 2035.

United Kingdom Contract Logistics Market Insights Forecasts to 2035

• United Kingdom Contract Logistics Market Size 2024: USD 20.4 Billion
• United Kingdom Contract Logistics Market Size 2035: USD 51.7 Billion
• United Kingdom Contract Logistics Market CAGR 2024: 8.82%
• United Kingdom Contract Logistics Market Segments: Type, Service, and Transportation mode

The United Kingdom contract logistics market is defined as outsourcing of logistics and management of the supply chain services to third party specialists in the retail, e-commerce, manufacturing, healthcare, automotive, and the consumer goods sectors. The market encompasses services such as the warehousing, inventory management, order fulfilment, transportation management, packaging, reverse logistics, and the value added services. This market is fueled by the increasing pace of e-commerce growth, the need for optimized last-mile delivery, the rise of omnichannel retail, need for cost optimization and supply chain flexibility. The increasing number of international trade movements, the development of distribution networks, and the implementation of digital technologies such as warehouse automation, robotics, artificial intelligence, and real-time tracking systems are also fueling the market.

The United Kingdom contract logistics market has the bright future prospects because of the fast growth of e-commerce, need for efficient warehousing and fulfilment operations, development of omnichannel retailing, and the need for optimized supply chain solutions. There is increase in the complexity of distribution networks and the growth in the international trade movements are also fueling the development of the market. Moreover, the advancements in technology, such as warehouse automation, robotics, artificial intelligence, real-time tracking systems, and data-driven inventory management systems, are increasing the efficiency of operations. The growing need for sustainable warehousing operations and green transportation solutions is also influencing the future of the market.

Market Dynamics of the United Kingdom Contract Logistics Market

The major factors that are driving the contract logistics market in the United Kingdom are the growing need for efficient supply chain management, warehousing, distribution solutions in the retail, e-commerce, manufacturing, healthcare, and the automotive industries. The growing popularity of online shopping, omnichannel retailing, and the need for faster and more reliable delivery solutions are also contributing to the growing demand for contract logistics solutions. The growing need for smart warehouse infrastructure, automation solutions, real-time inventory management, and optimized transportation networks all these factors are fueling the positive growth of the contract logistics market.

The United Kingdom contract logistics market faces restraints due to high operational and infrastructure costs, including warehouse leasing expenses, transportation fleet maintenance, fuel price volatility, and investments in automation and digital logistics systems.

The future outlook for the United Kingdom contract logistics market looks bright and promising due to the growing impact of e-commerce, the need for efficient warehousing and fulfilment solutions, and the growing need for integrated and flexible supply chain solutions in the retail, manufacturing, healthcare, automotive, and FMCG industries.The development of omnichannel distribution networks and the growing need for faster deliveries are also fueling market growth. In addition, the use of advanced technologies such as warehouse automation, robotics, artificial intelligence, real-time tracking systems, and data-driven inventory management solutions is also improving market efficiency. The growing need for sustainable warehousing solutions and low-emission transportation solutions is also fueling market growth.

The United Kingdom contract logistics market share is classified into type, service, and transportation mode.

By Type

The United Kingdom contract logistics market is divided by type into outsourcing, and insourcing. Among these, the outsourcing segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. It is dominating because the outsourcing reduces operating costs and eliminates the need for significant capital expenditure on logistics infrastructure.

By Service

The United Kingdom contract logistics market is divided by service into transportation, warehousing, distribution, aftermarket logistics, and other services. Among these, the transportation segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. It is because of the high demand for fast, last-mile delivery, the expansion of e-commerce, and a, the sector is, driven by the need for efficient, last-mile delivery, e-commerce, and extensive road network

By Transportation Mode

The United Kingdom contract logistics market is divided by transportation mode into roadways, railways, airways, and waterways. Among these, the roadways segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period.It is because the road transport offers adaptable, reliable services for both short-haul and long-haul, making it essential for diverse logistics needs.

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the United Kingdom contract logistics market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. 

Top Key Companies in United Kingdom Contract Logistics Market

• DHL Supply Chain
• GXO Logistics
• Wincanton
• Kuehne+Nagel
• DSV
• Eddie Stobart Logistics
• Maersk
• CEVA Logistics
• Clipper Logistics
• DPD Group
• Others

Recent Developments in United Kingdom Contract Logistics Market

In May 2025, FedEx announced plans to develop two advanced UK logistics hubs near Kingsbury and Marston Gate, consolidating road hub operations into tech-enabled facilities to enhance efficiency, capacity, and long-term growth within the United Kingdom contract logistics market.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the United Kingdom, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the United Kingdom contract logistics market based on the below-mentioned segments:

United Kingdom Contract Logistics Market, By Type

• Outsourcing
• Insourcing

United Kingdom Contract Logistics Market, By Service

• Transportation
• Warehousing
• Distribution
• Aftermarket Logistics
• Other Services

United Kingdom Contract Logistics Market, By Transportation Mode

• Roadways
• Railways
• Airways
• Waterways