United States Logistics and Warehousing Market Outlook to 2029

The report titled “United States Logistics and Warehousing Market Outlook to 2029 – By Market Structure, By Mode of Transport, By End-User Industry, By Warehousing Type, By Ownership, and By Region” provides a comprehensive analysis of the logistics and warehousing market in the United States. 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 market. The report concludes with future market projections based on sales revenue, by market, service segments, region, cause-and-effect relationship, and success case studies highlighting the major opportunities and cautions.

United States Logistics and Warehousing Market Overview and Size

The U.S. logistics and warehousing market reached a valuation of USD 1.6 Trillion in 2023, driven by the surge in e-commerce, supply chain restructuring post-COVID, infrastructure investments, and increasing demand for last-mile delivery and cold storage. The market is characterized by the presence of major players such as FedEx, UPS, XPO Logistics, DHL Supply Chain, Amazon Logistics, and Lineage Logistics, offering an integrated suite of freight, warehousing, and fulfillment services.

In 2023, Amazon announced the expansion of its fulfillment network with more than 250 new facilities and micro-fulfillment centers across the U.S., particularly in suburban areas, to enhance delivery speeds and reduce last-mile costs. California, Texas, Florida, and Illinois are key logistics hubs due to their robust transportation infrastructure, port access, and high concentration of retail and manufacturing activity.

What Factors are Leading to the Growth of the U.S. Logistics and Warehousing Market:

• E-commerce Boom: The exponential growth in online retail has significantly driven the demand for warehousing, last-mile delivery, and integrated logistics services. In 2023, e-commerce accounted for over 20% of total retail sales in the U.S., pushing logistics providers to expand their warehousing footprint and invest in automation and robotics to meet same-day and next-day delivery expectations.

• Reshoring and Supply Chain Diversification: In response to global supply chain disruptions and geopolitical tensions, U.S. companies are increasingly reshoring operations and diversifying suppliers. This has increased domestic freight volumes and heightened the need for regional and urban warehousing solutions.

• Cold Chain Expansion: With rising demand for pharmaceuticals, fresh food, and perishable goods, the U.S. cold storage segment grew at over 10% CAGR between 2020 and 2023. Players like Lineage Logistics and Americold are aggressively expanding cold chain infrastructure to meet demand from the food and healthcare sectors.

Which Industry Challenges Have Impacted the Growth of the U.S. Logistics and Warehousing Market

• Labor Shortages and High Turnover: A persistent shortage of skilled labor, especially truck drivers and warehouse operators, has strained logistics operations across the U.S. In 2023, the American Trucking Associations estimated a shortage of over 80,000 drivers, leading to delayed deliveries and increased labor costs. Warehousing also experiences high turnover rates, with some regions reporting annual turnover exceeding 45%, impacting service consistency and productivity.

• Rising Operational Costs: Inflationary pressures have significantly increased fuel prices, real estate costs, and labor wages. In 2023, diesel prices surged by over 18% year-on-year, while industrial warehouse rents rose by nearly 12%, especially in Tier-1 markets like Los Angeles, New York, and Chicago. These rising costs have squeezed margins for third-party logistics providers and shippers.

• Infrastructure Bottlenecks: Despite federal investment efforts, many logistics hubs still face infrastructure-related issues such as port congestion, limited intermodal connectivity, and aging roads. For example, average dwell times at major ports like Los Angeles/Long Beach exceeded 4.5 days during peak months in 2023, leading to delays in supply chains and higher demurrage costs.

What are the Regulations and Initiatives which have Governed the Market

• Infrastructure Investment and Jobs Act (IIJA): Passed in 2021, the IIJA has earmarked over USD 110 Billion for freight, road, and bridge improvements over a 5-year period. By 2023, around 28% of the allocated funds had been disbursed, enabling upgrades in key logistics corridors and reducing bottlenecks in strategic regions.

• FMCSA Hours-of-Service (HOS) Reforms: The Federal Motor Carrier Safety Administration (FMCSA) has relaxed some HOS regulations to provide more flexibility for drivers, aiming to improve delivery timelines without compromising road safety. These reforms, introduced in 2020 and expanded in 2023, have been welcomed by logistics companies operating on tight schedules.

• Incentives for Green Logistics: Both federal and state governments are promoting green logistics through tax credits and grants for electric trucks, solar-powered warehouses, and low-emission technologies. In 2023, the U.S. Department of Energy launched a $1.5 Billion Clean Logistics Grant Program, encouraging adoption of EV trucks and energy-efficient warehouse systems. California, for instance, mandates that all new drayage trucks sold by 2035 must be zero-emission.

United States Logistics and Warehousing Market Segmentation

• By Market Structure: The organized sector dominates the U.S. logistics market due to the presence of established 3PL and 4PL service providers offering end-to-end integrated solutions. These players leverage advanced technologies such as WMS (Warehouse Management Systems), TMS (Transportation Management Systems), and automation for optimized operations. The unorganized sector, while still relevant in specific local or rural geographies, primarily includes small carriers and independent warehousing providers lacking scale and digital capabilities.

• By Mode of Transport: Road transport accounts for the largest share of freight movement in the U.S., owing to its extensive interstate highway network and flexibility in last-mile connectivity. Rail remains vital for heavy cargo and long-distance inland freight, especially in the Midwest. Air freight is gaining traction for high-value or time-sensitive goods, particularly in pharma and electronics, while inland waterways serve niche segments like bulk commodities and agricultural produce.

• By End-User Industry: Retail and e-commerce dominate logistics demand, driven by high-frequency shipments and rising expectations for fast delivery. The manufacturing sector—especially automotive, chemicals, and consumer goods—also contributes significantly to warehousing and transport demand. Healthcare and pharmaceuticals are driving specialized logistics requirements such as cold chain and real-time visibility. The food and beverage sector continues to grow steadily with the need for both ambient and temperature-controlled logistics.

Competitive Landscape in United States Logistics and Warehousing Market

The U.S. logistics and warehousing market is moderately consolidated, with a mix of global logistics giants, national 3PL providers, and specialized warehousing firms. The presence of digital-first platforms and e-commerce-led fulfillment networks has further transformed the competitive dynamics. Major players include FedEx, UPS, DHL Supply Chain, XPO Logistics, Amazon Logistics, Lineage Logistics, Ryder System, and C.H. Robinson, among others.

Some of the recent competitor trends and key information about major players include:

• FedEx Corporation: In 2023, FedEx expanded its warehousing capacity by over 8 million square feet, with a focus on e-commerce fulfillment and healthcare logistics. The company also deployed AI-driven routing technology to reduce last-mile costs by 12% across key metros.

• UPS: UPS launched new regional sortation hubs in the Midwest and Northeast to enhance delivery speeds and reduce delivery windows to 1-day for over 80% of the U.S. population. Its continued investment in electric delivery vehicles aligns with its commitment to carbon neutrality by 2050.

• DHL Supply Chain: DHL invested over USD 400 million in warehouse automation in 2023 alone, introducing autonomous mobile robots and AI-powered inventory systems across its U.S. facilities. The company also strengthened its contract logistics services for healthcare and life sciences sectors.

• XPO Logistics: XPO enhanced its LTL (Less-than-Truckload) network by adding ten new terminals in high-demand corridors. The company reported a 17% increase in shipment volumes in 2023, driven by retail and industrial sector demand.

• Amazon Logistics: Amazon continues to dominate e-commerce logistics with a network of over 1,000 U.S. fulfillment centers. In 2023, it introduced predictive shipping algorithms and drone delivery pilots in select suburban zones, reducing fulfillment time by up to 35%.

• Lineage Logistics: As the largest cold storage provider in North America, Lineage added over 100 million cubic feet of refrigerated space in 2023. It also launched AI-based energy optimization systems that cut energy usage in its facilities by 11%.

• Ryder System: Ryder expanded its e-fulfillment capabilities through the acquisition of multiple last-mile delivery startups and now serves over 95% of ZIP codes in the continental U.S. Its “RyderShare” platform has gained traction for real-time visibility across supply chains.

• C.H. Robinson: Known for its tech-forward approach, C.H. Robinson processed more than 20 million shipments in 2023 through its Navisphere platform. The company also rolled out AI-based pricing tools to enhance freight cost accuracy and bidding efficiency.

What Lies Ahead for United States Logistics and Warehousing Market?

The U.S. logistics and warehousing market is projected to witness sustained growth through 2029, driven by the rapid expansion of e-commerce, digital transformation, infrastructure development, and the reshoring of manufacturing. The market is expected to grow at a robust CAGR, with increasing demand from retail, healthcare, and food industries, alongside technological advancements reshaping operations across the value chain.

• Acceleration of Automation and Robotics: The adoption of warehouse automation, including autonomous mobile robots (AMRs), automated storage and retrieval systems (AS/RS), and AI-driven inventory management, is expected to surge. By 2029, it is estimated that over 50% of U.S. warehouses will implement some form of automation to reduce labor dependency and enhance productivity.

• Expansion of Last-Mile Delivery Ecosystems: With urbanization and changing consumer behavior, last-mile logistics will continue to evolve, driven by micro-fulfillment centers, delivery drones, and electric delivery fleets. Companies will increasingly invest in hyperlocal distribution models to meet same-day or next-hour delivery expectations, particularly in dense urban markets.

• Rise in Green and Sustainable Logistics: Environmental sustainability will become a central theme, with increasing pressure on logistics providers to reduce emissions and carbon footprints. By 2029, EV adoption for freight is expected to significantly rise, supported by federal incentives, while green warehousing practices—such as solar-powered facilities and energy-efficient HVAC systems—will become standard.

• Growth in Cold Chain Logistics: With the rise of pharmaceuticals, meal delivery, and fresh grocery demand, the U.S. cold storage and temperature-controlled logistics sector is projected to grow rapidly. Investment in smart cold chain monitoring, real-time tracking, and compliance tools will enhance service reliability and compliance with FDA and USDA standards.

United States Logistics and Warehousing Market Segmentation

• By Market Structure:

  • Third-Party Logistics (3PL)

  • Fourth-Party Logistics (4PL)

  • In-House Logistics Providers

  • Asset-Light Logistics Providers

  • Fulfillment Service Providers

  • Public Warehousing

  • Private Warehousing

• By Mode of Transport:

  • Road

  • Rail

  • Air

  • Waterways

  • Intermodal

• By End-User Industry:

  • Retail & E-commerce

  • Manufacturing

  • Food & Beverage

  • Automotive

  • Healthcare & Pharmaceuticals

  • Chemicals

  • Electronics

  • Agriculture

• By Warehouse Type:

  • Distribution Centers

  • Fulfillment Centers

  • Cold Storage Warehouses

  • Bonded Warehouses

  • Cross-Docking Facilities

  • Automated Warehouses

• By Ownership:

  • Third-Party Owned Warehouses

  • Company-Owned/In-House Warehouses

  • Leased Warehouses

  • On-Demand Warehousing Platforms

• By Region:

  • Northeast (e.g., New York, New Jersey)

  • Midwest (e.g., Illinois, Ohio)

  • South (e.g., Texas, Florida, Georgia)

  • West (e.g., California, Arizona, Washington)

Players Mentioned in the Report:

• FedEx Corporation

• UPS (United Parcel Service)

• DHL Supply Chain

• XPO Logistics

• Amazon Logistics

• Lineage Logistics

• Ryder System, Inc.

• C.H. Robinson

• J.B. Hunt Transport Services

• Penske Logistics

• Maersk Logistics USA

Key Target Audience:

• Third-Party Logistics (3PL) Companies

• Warehousing and Fulfillment Providers

• Transportation and Fleet Management Firms

• E-commerce and Retail Enterprises

• Food and Pharma Supply Chain Companies

• State and Federal Regulatory Bodies (e.g., FMCSA, DOT, CBP)

• Infrastructure and Industrial REITs

• Supply Chain Technology Providers

• Research & Policy Institutions

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029