Over the past three decades, 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 providers. These contracts, often highly customized, represent a €130 billion annual market in Europe (1). Each agreement typically involves investments tailored to the client’s operations, with a minimum contract value ranging from €0,5 to €1 million per client. Rather than generic solutions, these contracts aim for integrated, cost-efficient, and high-quality logistics processes. The client-provider relationship becomes a strategic component, fostering collaboration and innovation throughout the contract duration.
Despite its impressive scale, Europe’s contract logistics market has not yet reached full maturity. In 2024, around €90 billion in logistics activities are still performed internally by companies, although they could be outsourced. These services fall within a potential market size 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 associated with small and medium-sized enterprises, such as small retailers and craftsmen, who typically lack the scale needed to justify outsourcing. Therefore, the realistically addressable market for contract logistics in Europe is €220 billion, indicating a still significant untapped potential.
In 2024, contract logistics providers in Europe are becoming more specialized, focusing on sectors such as automotive, FMCG, chemicals, healthcare, and high-tech. Mastery of sector-specific workflows and the ability to embed seamlessly within client operations are now key differentiators. These services are not off-the-shelf — they require custom investments, shared infrastructure, and integrated digital platforms. According to the Fraunhofer Institute, many providers rely on multi-client logistics hubs and shared IT systems to deliver flexibility and performance.
Yet, despite the €90 billion in untapped potential, the market appears to be approaching saturation. This is not due to lack of available business, but rather structural and operational barriers that slow the conversion of internal logistics to outsourced solutions. These include client reluctance to change established systems, complex onboarding processes, and the high degree of customization required. In essence, while the demand exists, capturing it requires significant investment in innovation, trust-building, and scalable digital tools. To unlock this remaining potential, providers must go beyond traditional service models — leveraging automation, data-driven planning, and value-added services to offer compelling, future-ready solutions in an increasingly competitive landscape.
(1) All data and numbers in this article are sourced from the Fraunhofer Institute.
