Global logistics market moves toward $24 trillion: the growth logic behind supply chain restructuring

In the cycle of deep adjustments in globalization, logistics is no longer a mere ancillary function of "transporting goods," but a key to understanding changes in the structure of international trade. According to the latest report by Precedence Research, the global logistics market size will reach $11.23 trillion in 2025, is expected to grow to $12.68 trillion in 2026, and will climb to $24.36 trillion by 2035, with a compound annual growth rate (CAGR) of 8.05%. This is not an isolated industry figure, but a microcosm of the synchronized evolution of global production networks, trade routes, and consumption patterns.

I. The Underlying Drivers of Logistics Market Growth: The "Volume" and "Density" of Global Trade Are Rising Simultaneously

The expansion of the logistics market first stems from a substantial rise in both volume and price in global trade. Although "de-globalization" has been frequently discussed in recent years, the actual scale of cross-border goods flows is still expanding—only the structure has changed. E-commerce's penetration rate in global retail continues to rise, and the rise of the middle class in emerging markets in particular has directly pushed up demand for parcels, express delivery, and last-mile distribution. At the same time, manufacturing supply chains are shifting from "pursuing the lowest cost" to "balancing cost and resilience." Companies have begun adopting "China+1" or nearshoring strategies, which extends intermediate goods trade routes and significantly increases the frequency and complexity of logistics services.

The report shows that industrial and manufacturing sectors remain the largest end users of logistics services, accounting for 31.78% of the market share in 2025. This confirms that manufacturing activity is still the core engine of global logistics demand, but the driving logic has changed: factories no longer pursue only large-scale centralized production, but are shifting toward regionalized, multi-node networks, which increases the demand for coordinated warehousing, distribution, and transportation.

II. Asia-Pacific Dominance: Regional Trade Blocs Are Reshaping the Logistics Landscape

The Asia-Pacific region dominated the global logistics market in 2025 with a 44.59% share. This share not only reflects China's weight as the global manufacturing center, but also reflects the accelerating integration of supply chains within the Asia-Pacific region following the entry into force of regional trade agreements such as RCEP. Intermediate goods trade between East Asia and Southeast Asia continues to grow. ASEAN is becoming the world's new assembly center, while China is transitioning from "world factory" to a dual role of "world market" and "supply chain hub."

The regional concentration of the logistics market is highly correlated with trade flows. The continued expansion of Asian port throughput, airport cargo volumes, and cross-border rail transport (such as China-Europe Railway Express) is all strengthening the density of the logistics network in this region. In the next decade, as infrastructure investment in India, Vietnam, Indonesia, and other countries materializes, the Asia-Pacific logistics market will continue to lead, but competition will shift from low cost to digitalization and service efficiency.

III. The "Leading Role" of Road Transport: The Combined Effect of Domestic Demand and RegionalizationIn terms of transportation modes, road transport holds the largest share at 39.04%. This may seem inconsistent with the high attention given to maritime and air transport in international trade narratives, but in fact it reflects the true composition of the global logistics market: most cargo value is realized through domestic markets and regional overland transport. As manufacturing reshoring and nearshoring trends strengthen, road freight volumes within North America and Europe are gradually increasing, while the rapid expansion of domestic distribution networks in emerging markets is also driving road transport demand.

The digital upgrading of road transport—such as AI route optimization, real-time tracking, and electric trucks—is changing its cost structure and efficiency boundaries. This not only improves the profit margins of logistics companies, but also creates integration opportunities in the previously fragmented domestic transport market.

IV. The Dominance of Second-Party Logistics and the Rise of Third-Party Logistics

By logistics type, second-party logistics (2PL) contributed the largest share in 2025. This reflects that large manufacturing and retail enterprises still tend to build their own transportation and warehousing systems to maintain direct control over their supply chains. However, a trend worth noting is that 3PL and contract logistics are expected to grow faster than the overall market. Against the backdrop of frequent supply chain risk exposures, companies are increasingly inclined to outsource non-core logistics functions to specialized service providers in order to gain flexibility, data insights, and economies of scale.

This shift is consistent with the "deepening specialization of labor" in global supply chains. The future winners will not be companies that merely own assets, but rather smart logistics service providers that can integrate data, forecast demand, and coordinate multimodal transportation.

V. AI and Digitalization: The Technological Underpinning of the Logistics Efficiency Revolution

The report particularly emphasizes the role of AI in the logistics market. From route optimization to demand forecasting, from smart warehousing to autonomous transportation, AI is redefining the minimum efficiency threshold for logistics operations. At the same time, blockchain, IoT, and augmented reality technologies are being used to improve supply chain transparency, enabling companies to monitor cargo status in real time and respond quickly to disruptions.

These technology investments are not "icing on the cake," but necessary means to address structural labor shortages and fluctuations in transportation costs. Events such as the sharp volatility in global shipping prices during the pandemic and the Red Sea crisis further highlight the resilience value of digital supply chains.

VI. Long-Term Outlook: Structural Changes in the Logistics Market and a New Phase of Globalization

Projections of reaching $24.36 trillion by 2035 mean that the global logistics market will more than double in size over the next decade. Behind this growth is a shift in the form of globalization from "ultra-efficient long-distance supply chains" to a new system that prioritizes "regionalization, multimodality, and resilience." Ports and airports are no longer just transit corridors but have become the "dispatch centers" of global supply chains; logistics companies have become key nodes connecting trade policy, industrial layout, and consumer demand.For policymakers and corporate decision-makers, logistics market data is not only a reference for industry prosperity but also a "comprehensive dashboard" for observing international trade flows, regional economic integration, and technology penetration rates. In the wave of global restructuring, the strength of logistics capabilities will directly determine whether a country or enterprise can secure a favorable position in the next round of the trade landscape.

*This article is written based on data from the logistics market report published by Precedence Research; all data comes from that report.*