Distribution Logistics Market Report 2026

The distribution logistics market size has grown strongly in recent years. It will grow from $10.14 trillion in 2025 to $10.86 trillion in 2026 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to expansion of global retail networks, growth of centralized distribution centers, increasing adoption of warehouse management practices, rising importance of inventory optimization, improvement in transportation infrastructure.

The distribution logistics market size is expected to see strong growth in the next few years. It will grow to $14.18 trillion in 2030 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to increasing investments in smart logistics platforms, rising demand for same-day delivery services, expansion of e-commerce fulfillment networks, growing adoption of predictive analytics in logistics, increasing focus on cost-efficient distribution models. Major trends in the forecast period include increasing adoption of automated warehousing solutions, rising use of real-time inventory visibility tools, growing deployment of data-driven demand forecasting, expansion of omnichannel distribution models, enhanced focus on last-mile delivery optimization.

The growing e-commerce sector is expected to propel the growth of the distribution logistics market going forward. The growing e-commerce sector is driven by increased global internet access, which expands online shopping opportunities and enhanced supply chain and delivery solutions that ensure faster and more reliable shipping. Distribution logistics in e-commerce ensures efficient and timely delivery of products from warehouses to customers, enhancing overall satisfaction and operational efficiency. For instance, in December 2025, according to US Census Bureau, a US-based government agency, e-commerce sales in the third quarter of 2025, adjusted for seasonal variation but not for price changes, reached US$310.3 billion, reflecting a 5.1% increase compared with the third quarter of 2024, and accounted for 16.4% of total retail sales. Therefore, the growing e-commerce sector will drive the growth of the distribution logistics market.

Major companies operating in the distribution logistics market are developing AI-powered delivery logistic solutions such as route optimization solutions to enhance efficiency, reduce costs, and improve delivery accuracy. AI-powered route optimization enhances logistics by improving efficiency, reducing costs, and ensuring timely deliveries through real-time data and predictive analytics. For instance, in March 2024, Walmart Commerce Technologies, a US-based technology provider for the retail and logistics industry, launched AI-powered Route Optimization technology as a Software as a Service (SaaS). This solution helps businesses of all sizes enhance their supply chain by optimizing truck routes, packing trailers efficiently, and reducing emissions. The key features are automated multi-stop route planning, efficient trailer packing, on-time deliveries despite weather and traffic, strategic inventory pickup, and actionable insights for improved decision-making.

In May 2024, Total Distribution Inc., a US-based warehousing and storage company, acquired D+S Distribution Inc. and Integrated Logistics Services, Inc. for an undisclosed amount. This acquisition enables Total Distribution Inc. to expand its distribution and logistics business and strengthen its service quality and flexibility. D+S Distribution Inc. is a US-based distribution and logistics services provider companies. Integrated Logistics Services, Inc. is a US-based distribution and logistics services provider companies.

Major companies operating in the distribution logistics market are Deutsche Post AG, UPS SCS Inc., FedEx Corporation, Maersk Logistics and Services UK Ltd., Ceva Holdings LLC, Kühne + Nagel International AG, DSV A/S, DB Schenker, C.H. Robinson Worldwide Inc, Nippon Express Company Ltd., Kerry Logistics Network Limited, XPO Inc., ZTO Express (Cayman) Inc, Landstar System Inc., Yusen Logistics Co. Ltd, Agility Logistics Private Limited, Keppel Logistics Pte Ltd, Singapore Post Limited, GWC Logistic, YCH Group Limited, WHA Corporation, CWT Limited, Gemadept Corporation, CJ Century Logistics Holdings Berhad, Tiong Nam Logistics Holdings Berhad.

Asia-Pacific was the largest region in the distribution logistics market in 2025. The regions covered in the distribution logistics market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the distribution logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The distribution logistics market includes revenues earned by entities by providing services such as transportation, route planning, fleet management, supply chain optimization, and order fulfillment. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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