E-Commerce Logistics Market will Triple in Size by 2033

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Global e-commerce sales exceeded $6 trillion last year—up from $5.62 trillion in 2023—and are expected to continue growing at a steady pace over the next three years. China and the U.S. are the two biggest contributors to this expansion, with sales from both countries totaling more than $2.32 trillion in 2023.

Moving all of these goods around the world takes some effort, and the e-commerce logistics sector has stepped up to the plate to make this happen. As a result, this sector is also benefitting from the impressive uptick in global online sales, both business to consumer (B2C) and business to business (B2B). 

According to Business Research Insights’ latest estimate, the e-commerce logistics market will grow to about $1.5 billion by 2033—more than triple its current value of $493 billion. This thriving sector is posting a compound annual growth rate (CAGR) of nearly 13% right now thanks to the growth of online buying and increased customer demand for fast shipping. 

What is E-Commerce Logistics?

In the e-commerce space, logistics providers handle the transport, storage and distribution of products that are purchased online and delivered to businesses, offices and individual residences. Business Research Insights says the market’s growth is supported by factors such as the upward push of e-commerce giants like Amazon, demand for home delivery and advancements in logistics processes. 

“Key players within the market are adopting techniques like ultimate-mile delivery optimization, computerized warehouses, and the usage of drones and [autonomous vehicles],” the research firm says. Demand for third-party logistics companies (3PLs) and the services they provide is also on the rise as organizations seek out new ways to outsource non-core logistics functions. 

Emerging markets are also playing a role in the e-commerce logistics market’s growth. “The fast growth of e-commerce trade in growing regions is similarly boosting the call for advanced logistics infrastructure,” the company says, “ensuring the seamless motion of goods to purchasers across diverse regions.”

Key E-Commerce Logistics Trends

Some of the other key trends that are currently impacting the global e-commerce logistics market include: 

Last-mile shipping innovation. This is a key driver of e-commerce logistics market growth. As customer demand for quicker shipping increases, for example, organizations are making an investment in drones, autonomous vehicles and electric delivery vans that help reduce delivery times, decrease costs and enhance environmental sustainability. 

No end in sight to the e-commerce boom. As more consumers turn to digital platforms to place orders, logistics carriers are being called upon to deliver faster shipping solutions. This growth is being seen across most industry sectors and includes both B2C and B2B orders.

Automation, artificial intelligence (AI) and robotics are transforming the market. AI-driven answers help optimize stock control, improve forecasting and streamline transportation routes. Automation improves warehouse performance and other advanced tools help logistics corporations lower costs, minimize mistakes and speed up the delivery process. 

North America dominates the e-commerce logistics market. Its superior infrastructure, high demand for e-commerce services and technological innovations make North America the hotbed for e-commerce logistics. Companies like Amazon, FedEx and UPS have all invested in automation, robotics and AI to optimize delivery chains and shorten delivery times. In 2023, for example, Amazon expanded its use of robotics software and AI for improving warehouse performance and decreasing delivery times. This has helped the company streamline operations, reduce errors and improve scalability.

A Dynamic, Diverse Market

Looking ahead, Mordor Intelligence expects the e-commerce logistics industry to continue ranking as one of the fastest-growing industries in the U.S. Its growth will be driven by the continuous advancement of logistics technologies like automation, robots, wearables, drones, self-driving vehicles, cloud computing and the Internet of Things (IoT). 

The research firm also expects companies to continue investing in their regional logistics networks by building new distribution centers and smart warehouses. “While some regions or cities may have more e-commerce activities or infrastructure,” it says, “the overall market is dynamic and diverse.”