Report Overview

United Kingdom Freight and Logistics Market – Industry Trends & Forecast Report, 2030

United Kingdom Freight and Logistics Market size by value was estimated at USD 132.40 billion in 2023. During the forecast period between 2024 and 2030, United Kingdom Freight and Logistics Market size is expected to expand at a CAGR of 3.70% reaching a value of USD 171.83 billion by 2030. Major factors driving the United Kingdom Freight and Logistics Market include the country’s thriving e-commerce industry. The E-commerce industry significantly contributes to transportation services, with sales from the fashion market and investments in inland transport infrastructure boosting the growth of United Kingdom Freight and Logistics Market. Investment in inland transport infrastructure is growing which is attributed to positive outcomes in the market growth. The UK government invests significantly to boost careers in logistics and create a more environmentally friendly haulage sector.

By volume, United Kingdom Freight and Logistics Market size was estimated at 1.65 million tons in 2023. During the forecast period between 2024 and 2030, United Kingdom Freight and Logistics Market size is projected to grow at a CAGR of 3.60% reaching a volume of 2.13 million tons by 2030. The expansion of trade agreements and international business relationships drives the market, necessitating a robust logistics network to handle international shipments and regulations. The UK's urban growth and infrastructure development are driving demand for efficient transportation and delivery services, while the pandemic has accelerated e-commerce, necessitating robust logistics solutions, increased investments in warehousing, last-mile delivery, and innovative business models.

Freight and Logistics – Overview

The freight and logistics sector is crucial for global trade, involving transportation, warehousing, inventory management, and distribution services. Technological advancements like IoT and automation improve efficiency. E-commerce growth demands adaptive logistics solutions. Challenges include supply chain disruptions, regulatory compliance, environmental concerns, and rising fuel costs. Sustainable practices and green logistics mitigate environmental impact. The sector's infrastructure, innovation, and strategic planning ensure timely delivery and customer satisfaction.

United Kingdom Freight and Logistics Market

Growth Drivers

Focus on Environmental Sustainability and Regulatory Compliance

UK Freight and Logistics Market is undergoing significant changes due to environmental concerns and regulatory compliance. The government has set ambitious targets to reduce carbon emissions, leading to investments in greener technologies like electric vehicles and energy-efficient warehousing. This has led to innovations in packaging, route optimization, and collaborative logistics models. Compliance management is also crucial for safety, quality control, and international trade agreements. These changes are driving innovation and promoting responsible business practices.

Challenges

Rising Fuel Costs

United Kingdom Freight and Logistics Market is facing significant challenges due to rising fuel costs, affecting both small and large companies. The UK Government significantly influences fuel prices, with fuel duty and VAT accounting for most costs. In February 2022, petrol and diesel prices reached record highs, leading to 5.4% inflation in December 2021. This increases operational expenses, transportation costs, and overall goods costs. Businesses struggle to maintain profitability and ensure timely deliveries, highlighting the need for efficient and sustainable practices.

Impact of Escalating Geopolitical Tensions on United Kingdom Freight and Logistics Market

The escalating geopolitical tensions could significantly impact United Kingdom Freight and Logistics Market, including the Russia-Ukraine war, which has disrupted global supply chains, increased costs, and reduced availability of goods and materials. The war has also led to higher fuel prices, affecting operational costs and financial planning. Additionally, stricter customs regulations and border controls have slowed down goods movement, causing delays and higher administrative costs. Overall, the combination of raised fuel prices, supply chain disruptions due to the Russia-Ukraine war, and increased regulatory hurdles have created a challenging environment for the UK Freight and Logistics Market, impacting efficiency and profitability.

United Kingdom Freight and Logistics Market

Segmental Information

United Kingdom Freight and Logistics Market – By Function

By function, United Kingdom Freight and Logistics Market is divided into Freight Transport, Freight Forwarding, CEP (Courier, Express, Parcel) services, Warehousing, and Others (Including Distribution, Custom Clearance, etc.) segments. The freight transport segment is the largest in United Kingdom Freight and Logistics Market. This segment dominates the market due to the extensive infrastructure and network supporting road, rail, air, and sea transport. The high volume of goods transported across the UK, driven by robust domestic trade and significant import-export activities, contributes to the prominence of this segment. Additionally, advancements in transport technologies and increased efficiency in logistics operations further bolster the freight transport segment's leading position in the market.

United Kingdom Freight and Logistics Market – Transportation Mode

On the basis of transportation mode, United Kingdom Freight and Logistics Market is divided into Roadways, Seaways, Railways, and Airways segments. The roadways segment is the largest in United Kingdom Freight and Logistics Market. Road transportation dominates the market due to its flexibility, extensive road network, and capability to provide door-to-door services. It is particularly favored for domestic and regional deliveries, offering cost-effective and efficient solutions for short to medium distances. Road transport's adaptability to various cargo types and sizes, along with its ability to reach remote and rural areas, further solidifies its leading position in the UK's freight and logistics sector.

Competitive Landscape

Key players in the highly competitive United Kingdom Freight and Logistics Market include DB Schenker, DHL Group, DSV A/S, Expeditors International of Washington, Inc., FedEx, Gregory Distribution, Kuehne + Nagel, Maritime Transport, Menzies Distribution, P&O FERRYMASTERS, Turners (Soham) Ltd, incanton PLC, and Xpediator PLC. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2024 – Kuehne + Nagel announced its Book & Claim in setting solution for electric vehicles, to improve its decarbonization solutions.

• In October 2023 – Kuehne + Nagel introduced three new charter connections between the Americas, Europe, and Asia. The flight serves key industries such as healthcare, perishables, and semiconductors.

Scope of the Report

By Function

• Freight Transport

• Freight Forwarding

• CEP (Courier, Express, and Parcel) services

• Warehousing

• Others (including Distribution, Custom Clearance etc.)

By Transportation Mode

• Roadways

• Seaways

• Railways

• Airways

By End User Industry

• Agriculture, Fishing, and Forestry  

• Construction  

• Manufacturing  

• Oil & Gas

• Mining & Quarrying  

• Wholesale & Retail Trade  

• Others (including IT Hardware)

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. United Kingdom Freight and Logistics Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growth and expansion of e-commerce sector
         2. Technological advancements such as automation, data analytics, and artificial intelligence (AI)
         3. Government initiatives to improve roads, ports, and railways
      2. Restraints
         1. Shortage of skilled labor, especially in truck driving and logistics management
         2. Rising fuel costs significantly
         3. Traffic congestion and infrastructure limitations
      3. Opportunities
         1. Developing and adopting eco-friendly logistics solutions
         2. Efficient solutions for last-mile delivery in congested cities
         3. Leveraging data analytics to optimize routes, predict demand, and improve resource allocation
      4. Challenges
         1. Changing consumer expectations
         2. Regulatory compliance
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. United Kingdom Freight and Logistics Market: Marketing Strategies
5. United Kingdom Freight and Logistics Market: Pricing Analysis
6. United Kingdom Freight and Logistics Market Overview
   1. Market Function & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By Function
         1. Freight Transport
         2. Freight Forwarding
         3. CEP (Courier, Express, and Parcel) Services
         4. Warehousing
         5. Others (including Distribution, Custom Clearance)
      2. By Transportation Mode
         1. Roadways
         2. Seaways
         3. Railways
         4. Airways
      3. By End User Industry
         1. Agriculture, Fishing, and Forestry  
         2. Construction  
         3. Manufacturing  
         4. Oil & Gas
         5. Mining & Quarrying  
         6. Wholesale & Retail Trade  
         7. Others (including IT, Hardware)
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. United Kingdom Freight and Logistics Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
8. Impact of Escalating Geopolitical Tensions on United Kingdom Freight and Logistics Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. DB Schenker
   2. DHL Group
   3. DSV A/S
   4. Expeditors International of Washington, Inc.
   5. FedEx
   6. Gregory Distribution
   7. Kuehne + Nagel
   8. Maritime Transport
   9. Menzies Distribution
   10. P&O FERRYMASTERS
   11. Turners (Soham) Ltd
   12. incanton PLC
   13. Xpediator PLC
   14. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1.   Qualitative Research
       1.  Primary & Secondary Research
    2.   Quantitative Research
    3.   Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.   Breakdown of Primary Research Respondents
    5.   Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       United Kingdom Freight and Logistics Segmentation

Figure 2       United Kingdom Freight and Logistics Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2021

Figure 4       United Kingdom Freight and Logistics Market Function, By Value (USD Billion), 2019–2029

Figure 5       United Kingdom Freight and Logistics Market Share, By Function, By Value (USD Billion), 2019–2029

Figure 6       United Kingdom Freight and Logistics Market Share, By Transportation Mode, By Value (USD Billion), 2019–2029

Figure 7       United Kingdom Freight and Logistics Market Share, By End User Industry, By Value (USD Billion), 2019–2029

List of Tables

Table 1        United Kingdom Freight and Logistics Market Function, By Value (USD Billion), 2019–2029

Table 2        United Kingdom Freight and Logistics Market Share, By Function, By Value (USD Billion), 2019–2029

Table 2        United Kingdom Freight and Logistics Market Share, By Transportation Mode, By Value (USD Billion), 2019–2029

Table 3        United Kingdom Freight and Logistics Market Share, By End User Industry, By Value (USD Billion), 2019–2029

Table 4 DB Schenker Company Overview

Table 5 DB Schenker Financial Overview

Table 6 DHL Group Company Overview

Table 7 DHL Group Financial Overview

Table 8 DSV A/S Company Overview

Table 9 DSV A/S Financial Overview

Table 10      Expeditors International of Washington, Inc. Company Overview

Table 11      Expeditors International of Washington, Inc. Financial Overview

Table 12      FedEx Company Overview

Table 13      FedEx Financial Overview

Table 14      Gregory Distribution Company Overview

Table 15      Gregory Distribution Financial Overview

Table 16      Kuehne + Nagel Company Overview

Table 17      Kuehne + Nagel Financial Overview

Table 18      Maritime Transport Company Overview

Table 19      Maritime Transport Financial Overview

Table 20      Menzies Distribution Company Overview

Table 21      Menzies Distribution Financial Overview

Table 22      P&O FERRYMASTERS Company Overview

Table 23      P&O FERRYMASTERS Financial Overview

Table 24      Turners (Soham) Ltd Company Overview

Table 25      Turners (Soham) Ltd Financial Overview

Table 26      incanton PLC Company Overview

Table 27      incanton PLC Financial Overview

Table 28      Xpediator PLC Company Overview

Table 29      Xpediator PLC Financial Overview