Retail logistics market projected to surpass US$1.25 trillion by 2035

A new market analysis says the global retail logistics sector is poised for significant growth over the next decade, driven by e-commerce expansion and rising demand for faster delivery.

The report says the market was valued at US$360.15 billion in 2025 and is expected to reach US$1.25 trillion by 2035, representing a compound annual growth rate of 13.3 per cent from 2026 to 2035.

Growth is being fuelled by the rapid rise of e-commerce, the adoption of omnichannel retail strategies and increasing consumer expectations for flexible and faster delivery options. Companies are investing in automation, warehouse management systems and real-time tracking technologies to improve efficiency and meet demand.

The U.S. market is identified as a key driver, supported by strong e-commerce growth, expanded last-mile delivery networks and increased investment in analytics and warehouse automation.

The report says the growing complexity of retail supply chains is pushing companies to adopt integrated warehousing, real-time inventory tracking and advanced delivery technologies. Higher order volumes, seasonal peaks and product returns are also increasing reliance on specialized logistics services.

By segment, transportation accounted for the largest share at 38.6 per cent, while reverse logistics is expected to see the fastest growth, with a compound annual growth rate of 18.4 per cent.

Road transport led by mode with a 57.2 per cent share due to its flexibility and global connectivity, while air freight is projected to grow the fastest as demand rises for rapid delivery of high-value and time-sensitive goods.

Online retail represented the largest share by retail type at 49.8 per cent, while omnichannel retail is expected to grow the fastest as companies integrate digital and physical sales channels.

Among end users, grocery and food retail accounted for the largest share at 34.5 per cent, while pharmaceuticals and healthcare are expected to see the fastest growth due to increasing demand for temperature-sensitive and time-critical products.