North America E-commerce Logistics Market Outlook, 2029

The activity or specific process of delivering any entity to the customer is commonly referred to as logistics. E-commerce logistics is a fellowship of various processes such as inventory management, warehousing, packaging, labelling, billing, shipping, payment collection, return, and exchange that work in harmony, leading to a supply chain. All these put together turn into a crucial task that requires a full-proof strategy to be accomplished. Also, e-logistics helps in managing the new challenges in the supply chain field.

Compared to other regions, e-commerce grew most quickly in North America, particularly in the USA, due to the increasing number of Internet-savvy shoppers as well as the world's largest base of technical experts, who not only were available to work on e-commerce projects, but also, in many cases, they have launched their own firms. Also, fuelling the North American e-commerce boom was the unparalleled level of funding available from a variety of sources. Various e-commerce companies have significant opportunities to explore the e-commerce logistics market due to the high internet and smartphone penetration in the North American region.

According to the research report, “North America E-commerce Logistics Market Outlook, 2029”, the market is anticipated to add USD 171 Billion from 2024 to 2029. The e-commerce logistics market in North America is driven by several key factors, with the growing demand for faster delivery services being one of the most prominent. Consumers' increasing preference for online shopping has led businesses to focus on improving the efficiency and speed of their supply chains, resulting in the expansion of logistics networks. Technological advancements, such as automation, AI, and data analytics, are also playing a major role in streamlining operations, enhancing warehouse management, and optimizing delivery routes.

The rise of same-day and next-day delivery expectations has spurred investments in advanced warehousing infrastructure and last-mile delivery solutions. Additionally, the growth of cross-border e-commerce has created a need for more robust international logistics capabilities. The increasing adoption of mobile commerce and digital payment systems has also contributed to the surge in e-commerce transactions, further boosting demand for logistics services.

In the North America e-commerce logistics market, the segmentation by service type highlights the dominance of the transportation category, which plays a crucial role in ensuring timely and efficient delivery of goods. As online shopping continues to surge in popularity, the demand for robust transportation solutions has intensified, making it essential for logistics providers to develop agile and responsive networks. Transportation encompasses various modes, including road, air, and rail, each tailored to meet the specific needs of different product categories and delivery timelines.

While warehousing remains a vital component of the logistics ecosystem, facilitating storage and inventory management, it is the transportation segment that directly impacts customer satisfaction through prompt delivery. Additionally, other services such as returns and inventory management are increasingly important, as they enhance the overall shopping experience and streamline operations for e-commerce businesses. However, the transportation category's ability to connect consumers with products swiftly and reliably solidifies its leadership position in the market.

Based on the transportation mode, the North American e-commerce logistics market is categorised into four types, including road, sea, air, and rail. Among these types, road transport is expected to dominate the market during the forecast period. As it is the most convenient mode of domestic transportation, it is expected to witness higher adoption. More than 50% of the market share is anticipated to be occupied by road transport.

However, based on the product types, the market is segregated into various types such as electronics, apparel and accessories, home furnishing products, health, personal care and beauty, autos and parts, baby products, books and others (food and beverages, toys and hobbies, office equipment, sports and leisure, etc.). Among these types, the apparel and accessories segment will dominate the market in 2023 with more than 20%.

In the North America e-commerce logistics market, the segmentation by product type reveals distinct trends, with electronics and apparel and accessories emerging as the leading categories. The electronics segment is particularly significant, driven by a high demand for consumer gadgets, smart devices, and home technology products. This category's rapid growth is fueled by technological advancements and a consumer base that increasingly values innovation and connectivity. As a result, logistics providers are focusing on efficient supply chain solutions to ensure timely delivery of these high-value items, which often require specialized handling and packaging.

Similarly, the apparel and accessories segment has gained substantial traction, reflecting changing consumer preferences towards online shopping for fashion. The convenience of browsing and purchasing clothing and accessories online has made this category a staple in e-commerce, prompting logistics companies to enhance their capabilities in managing returns and exchanges, which are common in the fashion industry. The logistics challenges associated with apparel, such as size variations and seasonal trends, necessitate a robust and responsive supply chain to maintain customer satisfaction. Other product categories, including home furnishing products, health, personal care and beauty items, auto parts, baby products, and books, also contribute to the e-commerce landscape, but they do not match the dominance of electronics and apparel.

The USA holds a key share in the North American e-commerce logistics market due to the development in logistics technologies attributed to the introduction of automation, robotics, wearable technology, drone technology, autonomous vehicles, cloud computing, and IoT in logistics technology. On the other hand, the same-day delivery market across the country has grown over the years, owing to the fact that major market players serve the majority of the area. Same-day delivery in e-commerce is quickly becoming one of the most popular services in the USA, particularly in grocery and pharmacies. Also, the business-to-consumer market in the USA is growing at an exponential rate for the e-commerce industry, fuelling higher demand for essential and effective logistics services.

According to the report, the North American e-commerce logistics market is segmented into various service types, including warehousing, transportation, return and inventory management. The transportation segment, as the most important component in the logistics process, will have the largest market share in 2023.However, increasing e-commerce sales have created higher demand for warehouses to fulfil consumer demands for faster deliveries. Further, the market is categorised into two operational areas, including international and domestic. Among these types, a major portion of the market is occupied by the domestic segment. The increasing rate of home deliveries during the last few years has heavily impacted the market's growth.

COVID-19 impact

In North America, e-commerce logistics market was hardly hit by the COVID-19 outbreak. Logistics firms those were involved in the movement or flow of goods had been directly affected by the COVID-19 pandemic. Despite that, the COVID-19 pandemic has driven e-commerce growth by development and expansion to new companies, consumers, and product categories. It has given consumers access to a wide range of goods from the comfort and protection of their own homes, and it has enabled businesses to continue operating through communication limitations and other restrictions.

Major Companies present in the market

FedEx Corporation, Deutsche Post AG, SF Express Co. Limited, United Parcel Service, Inc., Aramex International, XPO Logistics, Inc., Deutsche Bahn AG, Nippon Express Co., Limited, Kerry Logistics Network Limited, Rhenus Group, Clipper Logistics plc, Gati Limited, Kenco Group, Inc., ZTO Express.

Considered in this report

• Geography: North America
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• North America E-Commerce Logistics market with its value and forecast along with its segments
• Country-wise e-commerce logistics market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• United States
• Canada
• Mexico

By service type in the report

• Warehousing
• Transportation
• Other Service (Return, Inventory management)

By operational area in the report

• International
• Domestics

By transportation mode in the report

• Road
• Rail
• Air
• Sea

By product type in the report

• Electronics
• Apparel and Accessories
• Home Furnishing Products
• Health, Personal Care and Beauty
• Auto and Parts
• Baby Products
• Books
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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