Industry snapshot
Key public data points
Get in touch and our analysts will be happy to help with custom market sizing, deeper segmentation, supplier detail or a bespoke study built for you.
Connect to an analyst →Industry Definition and Scope
What does the Third-Party Logistics in European Union industry cover?
Third-party logistics involves outsourcing e-commerce fulfillment, freight forwarding, and inventory distribution to external service operators. Under European statistical standards, this encompasses specialized operations distinct from own-account private transit, focusing instead on commercial fulfillment for hire and reward. Key activities span multiple transportation modes alongside physical warehouse operations and cross-docking infrastructure.
- •Covers NACE Rev. 2 Division 52, which isolates warehousing and support activities for transportation.
- •Includes freight forwarding and transport agency services classified under class 52.29.
- •Distinguishes commercial hire-and-reward operations from internal corporate distribution networks.
Market Structure and Operators
Who operates in the industry and how is it structured?
The structural landscape is defined by extensive SME fragmentation balanced against several large multinational freight forwarders. The road freight subsector remains the predominant model for transit across the single market, handling the vast majority of internal overland cargo volumes. Operations are highly concentrated in central transit hubs, with a notable portion of output driven by the German, French, and Italian economies.
- •Road transport accounts for 49% of total EU freight activity, followed by maritime at 32%.
- •Germany represents the single largest geographical market, holding 22.1% of the sector's value added in 2022.
- •Warehousing and support activities represent 24.1% of total sector employment across the EU.
Demand Drivers
What drives demand in the industry?
Demand is heavily dependent on cross-border retail volumes, manufacturing supply chains, and international maritime import gateways. In step with broader economic movements, labor market vacancies and persistent inflation affect operational input constraints across member nations. Intermodal infrastructure investments also act as a structural anchor to expand commercial throughput capacities.
- •The Trans-European Transport Network (TEN-T) core network requires an estimated €500 billion in investments for 2021-2030.
- •The overall EU services sector recorded a 2.2% job vacancy rate in late 2025, driving automation trends.
- •Hourly non-wage labor costs in EU transport and storage rose by 5.4% in late 2025, elevating the need for operational efficiency.
Competitive Landscape and Notable Public Companies
Who are the notable companies in the industry?
Competition in the European logistics market is high, with global freight forwarders and domestic postal operators expanding service scopes through multi-modal networks. Providers focus heavily on regional distribution, contract logistics, and cold chain capacity to differentiate services. The market features large publicly traded transport networks and strategic state-backed national operators.
- •Deutsche Post AG (operating globally under the DHL brand) represents one of the largest logistics operators in Europe.
- •DSV A/S operates as an extensive global transport and logistics provider headquartered within Denmark.
- •Kuehne + Nagel International AG maintains vast contract logistics and European overland freight distribution operations.
- •Schenker AG operates as a major international provider under the state-owned Deutsche Bahn network.
Recent Trends and Outlook
What are the recent trends and outlook?
The outlook centers around digital transition, warehouse decarbonization, and supply chain localized nearshoring to insulate against macroeconomic instability. Occupier strategies are moving toward quality real estate to capture productivity benefits, even as vacancy rates show regional variations. Grid capacity limits have elevated energy independence and localized solar integration into a vital warehouse development criteria.
- •European warehouse take-up stabilized between 5 and 6 million square meters per quarter during 2025.
- •Prime rental growth across European logistics real estate is projected to slow to a baseline of 1.8% in 2026.
- •Long-term directives push toward a target of reducing total transport greenhouse gas emissions by 90% by 2050.
Regulation and Compliance
How is the industry regulated?
Operators are subject to strict trans-European directives governing transport carbon output, cross-border custom tracking, and truck driver working conditions. The EU's Sustainable and Smart Mobility Strategy mandates specific milestones for multi-modal rail transitions and low-emission fleets. Additionally, safety frameworks dictate strict oversight over transnational freight networks.
- •The EU's Sustainable and Smart Mobility Strategy targets shifting significant road freight over 300 km to rail or waterborne options.
- •The Mobility Package regulates cross-border cabotage restrictions, driver rest periods, and tachograph compliance.
- •The EU Emissions Trading System (ETS) impacts transport emissions tracking and long-term fuel sourcing across commercial fleets.
Sources
Government, statistical and trade sources used for this Claight analysis.
- Eurostat Businesses in the transportation and storage sector 2022 ·
- European Commission Mobility and Transport Report 2024 ·
- European Court of Auditors Transport Landscape Review
Claight analysis of public industry data.