Australia Logistics and Warehousing Market Outlook to 2029

The report titled “Australia Logistics and Warehousing Market Outlook to 2029 - By Market Structure, By End-User Industry, By Mode of Transport, By Type of Warehousing, By Region.” provides a comprehensive analysis of the logistics and warehousing market in Australia. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation; trends and developments, regulatory landscape, customer level profiling, issues and challenges, and comparative landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players in the logistics and warehousing ecosystem. The report concludes with future market projections based on industry revenue, by transport mode, end-user, and warehousing type, with cause and effect relationships, and success case studies highlighting major opportunities and caution areas.

Australia Logistics and Warehousing Market Overview and Size

The Australia logistics and warehousing market was valued at AUD 117 billion in 2024, driven by strong domestic and international trade, rapid e-commerce expansion, and the country's strategic location as a gateway to the Asia-Pacific. The industry is characterized by major players such as Toll Group, Linfox, DB Schenker, DHL Supply Chain, Australia Post, and Mainfreight, which offer integrated logistics and storage services across the country.

In 2023, Australia Post expanded its national fulfillment network by launching automated distribution hubs in Melbourne and Sydney to address rising last-mile delivery demand. Major urban centers such as Sydney, Melbourne, and Brisbane serve as key logistics hubs due to their high freight volumes, dense consumer bases, and access to multimodal transport networks.

Market Size for Australia Logistics and Warehousing Industry on the Basis of Revenue in USD Billion, 2018-2024

What Factors are Leading to the Growth of the Australia Logistics and Warehousing Market:

• E-commerce Boom: With a 12% CAGR in e-commerce retail sales between 2019 and 2023, logistics providers have rapidly expanded their last-mile and fulfillment capabilities. By 2023, e-commerce logistics accounted for nearly 25% of total warehousing demand, particularly in urban and peri-urban regions.

• Infrastructure Investments: Major investments in inland rail freight corridors, port modernization (e.g., Port of Melbourne upgrades), and airport logistics have created a robust backbone for domestic and international logistics. In 2023, government and private sector investments exceeded AUD 8 billion, aiming to increase supply chain resilience and capacity.

• Third-Party Logistics (3PL) Demand: Small and medium enterprises (SMEs) and large multinationals increasingly outsource logistics functions to 3PL providers to reduce operational complexity. In 2023, 3PL services comprised over 60% of warehousing revenue, reflecting strong trust in end-to-end supply chain solutions.

Which Industry Challenges Have Impacted the Growth for Australia Logistics and Warehousing Market

• Rising Operational Costs: The Australian logistics sector faces rising fuel, labor, and property lease costs, which directly affect profitability. In 2023, average warehousing rental costs increased by 9%, particularly in high-demand cities such as Sydney and Melbourne. Moreover, driver shortages and increasing wage expectations have placed added pressure on transport companies, reducing margins for smaller logistics operators.

• Infrastructure Bottlenecks: Despite government investments, outdated infrastructure in certain regional corridors continues to impede supply chain efficiency. For instance, inefficiencies in intermodal connectivity and congestion at key ports such as the Port of Botany and Port of Melbourne led to average delivery delays of 2.5 days in 2023, impacting customer satisfaction and service reliability.

• Skilled Labor Shortage: The sector is experiencing a growing gap in skilled labor, particularly in roles involving warehouse automation systems, supply chain analytics, and heavy-vehicle drivers. A 2023 survey revealed that 42% of logistics companies reported difficulties in recruiting and retaining qualified staff, which slowed down digital transformation and scalability efforts.

What are the Regulations and Initiatives which have Governed the Market

• Heavy Vehicle National Law (HVNL): Administered by the National Heavy Vehicle Regulator (NHVR), this law governs vehicle safety, driver fatigue, load limits, and route access. In 2023, stricter enforcement of compliance led to a 15% increase in fines for overloading and non-compliant transport vehicles, prompting logistics firms to invest in advanced tracking and telematics solutions.

• National Freight and Supply Chain Strategy: The Australian government’s long-term policy aims to streamline freight movement across state borders, encourage intermodal freight development, and reduce emissions. Under this framework, more than AUD 4 billion was allocated between 2020–2024 to develop freight rail lines and port expansions, boosting long-term logistics infrastructure capacity.

• Warehousing Compliance and Zoning: Local councils and state authorities enforce stringent zoning regulations for warehousing facilities, especially in urban regions. Compliance includes fire safety, environmental impact assessments, and operational hours. In 2023, 26% of proposed new warehouse developments in major cities faced delays or rejections due to planning permission issues, pushing developers to consider regional hubs.

Australia Logistics and Warehousing Market Segmentation

• By Market Structure: The logistics market in Australia is largely dominated by organized players, especially in metro and tier-1 logistics corridors. These include integrated service providers like Toll Group, Linfox, and DHL, which offer end-to-end supply chain services across transport, warehousing, and last-mile delivery. Their extensive infrastructure, compliance capability, and digital tools give them a competitive edge. Unorganized players—mostly small fleet owners and independent warehouse operators—maintain stronghold in regional areas due to their local familiarity, lower cost base, and flexible operations. However, their share has been gradually declining due to the increasing complexity of logistics needs and digital integration across the supply chain.

• By End-User Industry: The retail and e-commerce sector holds the largest share of the warehousing and logistics market, supported by high delivery volumes and rapid fulfillment requirements. In 2023, companies like Amazon, Woolworths, and Kmart contributed significantly to warehousing demand across key metro hubs. FMCG and Food Processing is another key vertical, especially in cold chain logistics, driven by rising consumer demand for perishable goods. Meanwhile, pharmaceuticals and healthcare saw accelerated growth post-pandemic, accounting for a larger share of specialized warehousing needs.

• By Mode of Transport:Road transport dominates the logistics landscape in Australia due to its vast inland distribution network and flexibility. As of 2023, more than 65% of total freight volume was moved by road, with major corridors between Sydney–Melbourne and Melbourne–Brisbane being the busiest.
  Rail freight is increasingly utilized for bulk goods and long-haul transport, particularly by mining and agriculture sectors. Air freight plays a niche role in high-value or time-sensitive deliveries, while sea freight remains crucial for international trade, especially through ports in Brisbane, Sydney, and Fremantle.

Competitive Landscape in Australia Logistics and Warehousing Market

The Australia logistics and warehousing market is moderately consolidated, with a mix of domestic and global players offering end-to-end supply chain services. Established providers such as Toll Group, Linfox, DB Schenker, DHL Supply Chain, Australia Post, Mainfreight, and Ceva Logistics dominate the landscape, especially in metro and high-demand corridors. The entry of e-commerce-driven fulfillment providers and tech-integrated 3PL startups is further reshaping the competitive dynamics, offering innovative, data-driven services and expanding reach across sectors.

Some of the recent competitor trends and key developments include:

• Toll Group: As one of Australia’s oldest logistics firms, Toll Group launched a new smart warehouse in Brisbane in 2023, featuring AI-based inventory systems and robotics for pick-and-pack. The facility added 60,000 sqm of warehouse space to its national footprint, enhancing capacity for FMCG and retail customers.

• Linfox: Linfox expanded its cold chain logistics network across Queensland and Victoria in 2023, responding to rising demand in pharmaceuticals and food retail. The company also piloted electric truck deployments in metro freight operations, aligning with Australia's decarbonization targets.

• DB Schenker: The company recorded double-digit growth in contract logistics revenue in Australia during 2023. It expanded warehousing capacity in Sydney’s Western Parklands to cater to electronics and consumer goods clients, emphasizing automation and green warehousing.

• DHL Supply Chain: DHL opened a multi-client mega distribution center in Sydney in 2023, featuring solar power, smart sorting systems, and temperature-controlled zones. The facility supports e-commerce and healthcare clients and reflects DHL's focus on sustainability and innovation.

• Australia Post: Leveraging the e-commerce surge, Australia Post invested in automated parcel sorting hubs in Sydney and Melbourne, enhancing last-mile delivery capabilities. In 2023, the logistics arm handled over 500 million parcels, supported by expanded fulfillment partnerships.

• Mainfreight: Known for integrated freight and warehousing services, Mainfreight added new regional distribution centers in South Australia and Tasmania, improving service levels for manufacturing and retail clients.

• Ceva Logistics: Ceva continued its growth in 3PL warehousing, focusing on contract logistics for the automotive and healthcare sectors. In 2023, the company implemented IoT-enabled warehouse management solutions across major sites to improve traceability and throughput.

What Lies Ahead for Australia Logistics and Warehousing Market?

The Australia logistics and warehousing market is projected to grow consistently through 2029, driven by e-commerce expansion, infrastructure modernization, and rising demand for flexible, tech-enabled supply chain solutions. The sector is expected to witness a CAGR of approximately 7–8% during the forecast period, with strong momentum across both transport and warehousing segments.

• Acceleration in Automation and Smart Warehousing: The next phase of industry growth will be marked by widespread deployment of automation, robotics, and AI-powered warehouse management systems. By 2029, it is expected that over 50% of newly built warehouses will include smart automation features such as autonomous forklifts, robotic picking systems, and IoT-based inventory management.

• Sustainable and Green Logistics: Environmental compliance and carbon footprint reduction will become central themes, especially in warehousing and last-mile delivery. More providers are anticipated to invest in green-certified buildings, renewable energy systems (solar, hydrogen), and EV fleets for urban distribution. The government's sustainability roadmap aims for net-zero transport sector emissions by 2050, with intermediate goals influencing procurement and asset development as early as 2027.

• Regional and Tier-2 Expansion: As land costs and congestion rise in major cities, logistics developers will shift focus to tier-2 and regional zones such as Newcastle, Geelong, Toowoomba, and Townsville. These areas are already witnessing a 20% YoY increase in warehousing lease demand, supported by improved freight corridors and local industrial growth.

• Rise of 3PL and Fulfillment-as-a-Service Models: The demand for third-party logistics (3PL) and fulfillment services is expected to grow substantially among SMEs and direct-to-consumer (D2C) brands. Providers offering plug-and-play logistics capabilities, real-time tracking, and flexible warehousing options will dominate this segment, which is expected to contribute over 65% of total warehousing revenues by 2029.

Future Outlook and Projections for Australia Logistics and Warehousing Market on the Basis of Revenues in USD Billion, 2024-2029

Australia Logistics and Warehousing Market Segmentation

• By Market Structure:

  • Organized Sector

  • Unorganized Sector

  • 3PL (Third-Party Logistics Providers)

  • Freight Forwarders

  • Contract Logistics Companies

  • Fulfillment-as-a-Service Providers

  • Postal & Parcel Service Providers

• By End-User Industry:

  • E-commerce and Retail

  • FMCG

  • Food and Beverage

  • Pharmaceuticals and Healthcare

  • Automotive and Industrial Manufacturing

  • Agriculture and Cold Chain

  • Mining and Resources

  • Apparel and Consumer Electronics

• By Mode of Transport:

  • Road Freight

  • Rail Freight

  • Sea Freight

  • Air Freight

  • Multimodal Logistics

• By Type of Warehousing:

  • General Warehousing

  • Cold Storage / Temperature-Controlled Warehousing

  • Bonded Warehouses

  • Automated and Smart Warehousing

  • Distribution and Fulfillment Centers

  • Container Freight Stations (CFS)

  • Cross-Docking Facilities

• By Region:

  • New South Wales

  • Victoria

  • Queensland

  • Western Australia

  • South Australia

  • Tasmania

  • Northern Territory

  • Australian Capital Territory (ACT)

Players Mentioned in the Report:

Freight Forwarding Companies

• Think Global Logistics (TGL)

• Freight Assist Australia

• Freightplus

• Freight Broker

• Transcoast

• CTI Logistics

• MTF Logistics

• Stockwells International

• Orion Shipping

• Cargoconnect

• BR International Logistics

• Australian Logistics Solutions

• BCR Australia

• Diamond Freight Services

• UC Logistics Australia

Warehousing Companies

• Nationwide Cold Storage & Distribution

• G&S Logistics

• Elite Logistics Australia

• One Warehousing

• Australian Logistics Solutions

• E R Warehousing & Distribution Townsville

• CS Logistic Solutions

• Brisbane Logistics

• Crawfords Freightlines

E-Commerce Logistics Companies

• eStore Logistics

• Shippit

• Invenco

• PikPak

• CouriersPlease

• Allied Express

• Australia Post

• UPS E-Commerce Logistics Services

Express Logistics Companies

• Toll Global Express

• Team Global Express

• FedEx Australia

• DHL Express

• Aramex (Fastway)

• StarTrack Express

• Border Express

• CouriersPlease

• Allied Express

Key Target Audience:

• Logistics Service Providers

• Warehousing and Infrastructure Developers

• E-commerce and Retail Companies

• FMCG, Pharma, and Automotive Corporates

• Cold Chain Solution Providers

• Government Agencies and Infrastructure Authorities

• Real Estate Investment Trusts (REITs)

• Technology and Automation Vendors

• Industry Associations (e.g., Australian Logistics Council, Supply Chain & Logistics Association of Australia)

• Financial Institutions and Investors

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029