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Market Research Report

United Kingdom Contract Logistics Market - Growth, Trends, and Forecasts (2020 - 2025)

Published by Mordor Intelligence LLP Product code 937861
Published Content info 150 Pages
Delivery time: 2-3 business days
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United Kingdom Contract Logistics Market - Growth, Trends, and Forecasts (2020 - 2025)
Published: May 1, 2020 Content info: 150 Pages

The United Kingdom freight and logistics market is the backbone of the economy of the United Kingdom, contributing about 5% of the country's GDP, and is expected to show a CAGR of over 2.78% during the forecast period of 2020-2025.

The United Kingdom is the fourth-largest exporter of automobiles across the world, exporting to 160 countries, including the United States, Germany, and major countries of the European Union. With the implementation of Brexit, United Kingdom experienced slow growth in the economy in the year 2019, but, the country is expected to strengthen in 2020, post-election, with the growing business activities and rising consumer confidence index. Being one of the developed countries in terms of infrastructure in the logistics sector, United Kingdom is now focusing on the development of its transportation and warehousing infrastructure in a way that not only is environmentally efficient but also boosts its production and processing capacity.

Key Market Trends

Growth in the Warehousing Facilities

The logistic supply chains are expected to experience cost hikes and delays caused due to the customs checks after the separation of the European Union and the United Kingdom. This has led the e-retailers to either expand their storage capacities or outsource the warehousing facilities, increasing the price and strong demand for the warehousing space. For instance, in March 2020, Xpediator PLC got into a 20-year contract with Associated British Ports and leased out a distribution centre at Southampton's container port with approximately 200,000 sq. feet warehousing capacity, increasing the total UK warehousing capacity to approximately 700,000 sq. feet. The increased demand for the warehousing space has accelerated the adaptation of robotics and AI in the sector, which, is, in turn, aimed at increasing the cost efficiency and better utilization of space. Some of the large e-retailers, like Amazon, are working on the development of inhouse logistics services focusing on last-mile logistics in a cost-efficient way. Additionally, as per the British Property Federation (BPF), with the growing population of the United Kingdom, each additional household in the United Kingdom needs 69 sq. feet of warehouse to support it. The BPF stated that South Wales needs a further 5000,000 sq. feet of warehousing space by 2023 to meet the demands of the people in the region.

Growth in Retail Sector, despite Brexit

With Brexit increasing the challenges in the trading environment of the United Kingdom, especially in the retail sector with companies experiencing a fall in sales in the Q4 of 2019. Companies, like Asda (a subsidiary of Walmart), reported a 1.3% fall in the total sales. However, the retail companies, like Marks & Spencers, Tesco, Lidl, Amazon, and Waitrose & Partners, are now focusing on the expansion of their logistics services and distribution centers in order to increase their reach in the country digitally and be ready for the upcoming of the uncertainties in the market. Among recent developments, XPO Logistics, one of the leading logistics companies of the United Kingdom, that is planning to restructure its divisions for more efficient management of divisions, has also secured a long-term partnership agreement with Mercedes Benz Parts to manage the UK distributions.

Competitive Landscape

The market is relatively fragmented with CEVA Logistics, DHL Supply Chain, Eddie Stobart, XPO Logistics and Kuehne Nagel as its major players. The companies are actively participating in mergers and acquisitions in order to attain economies of scale. Acquisition of CM Downtown by EV Cargo, P2P Mailing Limited by FedEx Corporation and Core Management Logistics and PSL Group by Rhenus Logistics are some of the examples of the merger and acquisitions in the country with the aim to increase the warehousing space, decrease the delivery time and cost optimization through economies of scale.

Market leaders, now, are focusing on the integration of IoT and AI in their services, increasing their efficiency and accessibility in a highly adaptable, agile, responsive and cost-effective way. For instance, a collaborative platform called VAST (Virtual Access to Storage and Transport), launched by Wincanton Logistics and Flexe launched to operate by connecting the warehousing network providers and allowing them to advertise their unutilized space to the companies and an on-demand warehouse marketplace.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Table of Contents
Product Code: 68908

Table of Contents


  • 1.1 Study Deliverables
  • 1.2 Study Assumptions
  • 1.3 Scope of the Study


  • 2.1 Analysis Methodology
  • 2.2 Research Phases



  • 4.1 Current Market Scenario
  • 4.2 Market Dynamics
    • 4.2.1 Drivers
    • 4.2.2 Restraints
    • 4.2.3 Opportunities
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
  • 4.4 Value Chain / Supply Chain Analysis
  • 4.5 Industry Policies and Regulations
  • 4.6 Technological Integration


  • 5.1 By Type
    • 5.1.1 Insourced
    • 5.1.2 Outsourced
  • 5.2 By End User
    • 5.2.1 Aerospace
    • 5.2.2 Automotive
    • 5.2.3 Consumer & Retail
    • 5.2.4 Energy
    • 5.2.5 Hi-Tech and Heath care
    • 5.2.6 Industrial and Aerospace
    • 5.2.7 Technology
    • 5.2.8 Other End Users


  • 6.1 Market Concentration Overview
  • 6.2 Company Profiles
    • 6.2.1 DHL Supply Chain
    • 6.2.2 UPS
    • 6.2.3 Wincanton
    • 6.2.4 XP Supply Chain
    • 6.2.5 Eddie Sobert
    • 6.2.6 CEVA Logistics
    • 6.2.7 Clipper Logistics
    • 6.2.8 FedEx
    • 6.2.9 Rhenus Logistics
    • 6.2.10 EV Cargo*


  • 7.1 Recent Mergers and Acquisitions



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