Untapped Market Potential of Contract Logistics: €90 Billion in Europe
Over the past thirty years, the outsourcing of logistics services has transformed how European companies manage their supply chains. In 2024, contract logistics continues to thrive, driven by long-term agreements between industrial or commercial clients and logistics service providers. These contracts, often highly customized, represent an annual market of €130 billion in Europe (1). Each agreement typically involves tailor-made investments for the client’s operations, with a minimum contract value ranging between €0.5 million and €1 million. These are not off-the-shelf solutions, but integrated, cost-effective, and high-quality logistics processes. The client-provider relationship becomes a strategic asset, fostering collaboration and innovation throughout the duration of the contract.
Despite the sector’s extensive reach, the European contract logistics market has not yet reached full maturity. In 2024, around €90 billion in logistics activities are still handled in-house by companies, even though they could be outsourced. These services fall within a potential market of €220 billion, representing operations that are structurally suitable for external providers. The total logistics market in Europe stands at €450 billion, but €230 billion is tied to small and medium-sized enterprises, such as small retailers and artisans, which often lack the scale needed to justify outsourcing. The realistically addressable market for contract logistics in Europe is therefore €220 billion, highlighting significant untapped potential.
In 2024, contract logistics providers in Europe are becoming increasingly specialized, focusing on sectors such as automotive, fast-moving consumer goods (FMCG), chemicals, healthcare, and high tech. Mastering industry-specific workflows and seamlessly integrating into client operations have become key differentiators. These services are not off-the-shelf products — they require customized investments, shared infrastructure, and integrated digital platforms. According to the Fraunhofer Institute, many providers rely on multi-user logistics hubs and shared IT systems to deliver flexibility and high performance.
However, despite the €90 billion in untapped potential, the market appears to be approaching a saturation point. This is not due to a lack of demand, but to structural and operational barriers that slow down the transition of in-house logistics services to outsourced solutions. These barriers include client reluctance to alter established systems, onboarding complexity, and the high degree of customization required. In essence, while demand exists, capturing it requires substantial investments in innovation, trust-building, and scalable digital tools. To unlock this remaining potential, providers must look beyond traditional service models — leveraging automation, data-driven planning, and value-added services to deliver compelling, future-ready solutions in an increasingly competitive landscape.
(1) All data and figures referenced in this article are sourced from the Fraunhofer Institute.