UK Logistics Market Size, Industry Share, Growth, Forecast 2023-2028

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The latest report by IMARC Group, titled “UK Logistics Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2023-2028“, The UK logistics market size reached US$ 478.3 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 689.2 Billion by 2028, exhibiting a growth rate (CAGR) of 6.18% during 2023-2028.

Factors Affecting the Growth of the UK Logistics Industry:

  • Rapid Expansion of the E-commerce Industry: 

The e-commerce sector in the UK has experienced unprecedented growth, driven by changing consumer behaviors and the convenience of online shopping. As a result, the logistics market has had to adapt rapidly to handle the exponential increase in parcel volumes and the demand for efficient and timely deliveries. Companies in the logistics industry have implemented advanced technologies, including route optimization, automated warehouses, and real-time tracking, to meet the expectations of e-commerce customers. The need for last-mile delivery solutions and efficient supply chain management has positioned logistics as a critical enabler of the expanding digital marketplace in the UK.

  • Rising Brexit Impact:

The UK’s departure from the European Union has brought about significant changes in trade regulations, customs procedures, and border controls. These developments have added complexity to the logistics landscape, requiring logistics companies to navigate new trade barriers and regulatory requirements. Customs clearance processes have also become more stringent, leading to delays and potential disruptions in the movement of goods between the UK and the EU. Logistics providers have had to invest in compliance expertise and technology to ensure smooth cross-border operations, thus propelling the growth of the logistics market in the UK.

  • Sustainability and Green Logistics:

In recent years, environmental consciousness and sustainability have gained immense traction in the UK logistics market. Companies are proactively adopting eco-friendly practices to reduce carbon emissions and minimize their environmental footprint. This includes transitioning to electric or hybrid vehicle fleets, using alternative fuels, and optimizing transportation routes to decrease fuel consumption. Sustainability initiatives align with global efforts to combat climate change and resonate with consumers who prefer eco-conscious businesses. As a result, green logistics practices are becoming integral to the strategies and operations of logistics companies in the UK, accelerating the adoption of environmentally responsible transportation methods and positively influencing the industry’s future direction.

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Report Segmentation:

The report has segmented the market into the following categories:

By Model Type:

  • 2 PL
  • 3 PL
  • 4 PL

3PL represented the leading segment due to the increasing reliance on outsourcing logistics services that allows companies to focus on their core operations while benefiting from the expertise and resources of third-party providers.

By Transportation Mode:

  • Roadways
  • Seaways
  • Railways
  • Airways

Roadways accounted for the largest market share owing to the extensive road network in the UK, which makes it a convenient and widely used mode of transportation for goods, domestically and internationally.

By End Use:

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

Manufacturing held the majority of the market share on account of the critical role logistics plays in supplying raw materials, managing inventory, and distributing finished products within the manufacturing sector.

Breakup by Country:

  • North West England
  • Yorkshire and the Humber
  • West Midlands
  • East of England
  • South West England
  • South East England
  • East Midlands
  • North East England
  • Greater London
  • Others

North West England’s dominance in the UK logistics market is attributed to its strategic location, with key ports and transport hubs like Liverpool and Manchester.

UK Logistics Market Trends:

The UK logistics industry is significantly influenced by the rapid growth of e-commerce and the escalating demand for fast and efficient delivery services. The rise in online shopping has also amplified the need for streamlined supply chains and last-mile delivery solutions. Apart from this, the Brexit transition has led to changes in trade regulations and border procedures that encourage logistics companies to adapt and navigate new complexities in the movement of goods between the UK and the EU, representing another major growth-inducing factor. Furthermore, the increasing sustainability and environmental concerns have accelerated the adoption of greener logistics practices, with a heightened focus on reducing carbon emissions and promoting eco-friendly transportation methods, thus supporting market growth.

Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.

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IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.

IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.

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