Global logistics market moves toward $24 trillion: a strategic window for restructuring Europe's supply chain

Logistics Is No Longer a Cost Center, but a New Battlefield for European Competitiveness

When the global logistics market expands from $11.23 trillion in 2025 to $24.36 trillion in 2035 at a compound annual growth rate of 8.05%, what we are witnessing is not merely numerical growth, but a profound transformation involving supply chain logic, geoeconomic centers of gravity, and the way industries are organized. For Europe, this trend is both a source of pressure and a strategic window to redefine its position in the global commercial system.

According to a report released by Precedence Research, the global logistics market is expected to reach $12.68 trillion in 2026 and double to $24.36 trillion by 2035. The main engines of this growth include the continued expansion of e-commerce, AI-driven route optimization, and large-scale infrastructure investment by governments aiming to reduce supply chain costs. However, hidden beneath these seemingly optimistic figures are structural signals that Europe needs to take seriously.

Europe's Shortcomings Under an Asia-Pacific-Dominated Landscape

In 2025, the Asia-Pacific region accounted for 44.59% of the global logistics market. This proportion is hardly surprising—the world's manufacturing center, a rapidly growing middle-class consumer market, and a dense network of ports together constitute the scale advantages of Asia-Pacific logistics. In contrast, although Europe possesses a highly developed internal market and well-established transport infrastructure, its relative position in the global logistics landscape is being squeezed by Asia's economies of scale and speed of digitalization.

More importantly, the growth logic of the logistics market has changed. Over the past decade, the competitive advantages of European logistics companies were built primarily on infrastructure quality and regulatory harmonization; over the next decade, the decisive factors will shift toward data-driven operational efficiency, seamless cross-border connectivity, and the green resilience and strategic autonomy of supply chains. According to the referenced report, road transport accounts for 39.04% of the global logistics market, which means that Europe's road freight system faces the dual pressure of carbon reduction and efficiency improvement.

From Industrial Manufacturing to E-Commerce-Driven Demand: A Quiet Shift in Demand Structure

Among end-user categories, industry and manufacturing contribute 31.78% of demand and remain the largest buyers of logistics services. But e-commerce's reshaping of logistics models is accelerating. Consumer expectations regarding delivery speed, transparency, and low-carbon options are forcing logistics companies to redesign their last-mile networks. European companies have already observed that platform players such as Amazon and Alibaba are influencing logistics rules as standard-setters, while traditional European logistics operators must maintain their bargaining power by building innovation ecosystems.The reference report specifically mentions that manufacturers are seeking green logistics solutions to reduce environmental impact and enhance their corporate green reputation. This is not only a reflection of corporate social responsibility, but also an inevitable strategic business choice. At the EU level, the Green Deal, the Carbon Border Adjustment Mechanism (CBAM), and stricter ESG disclosure requirements are gradually making the hidden taxes and fees of high-carbon logistics models explicit. If European logistics companies do not internalize 'green' as a cost advantage, they will face systemic risks at the regulatory level.

AI and Digital Technology: Europe's Opportunity to Catch Up and Surpass

The report clearly points out that the application of artificial intelligence, the Internet of Things, blockchain, and augmented reality in logistics monitoring systems is accelerating. These technologies are no longer experimental tools, but core variables that determine the limits of operating costs. AI-driven route optimization, smart warehousing, and predictive maintenance can significantly reduce empty running rates and energy consumption, which is particularly important for the European market, where transportation costs are sensitive and carbon emission pressure is immense.

However, Europe's progress in logistics digitalization is uneven. Some leading companies in Northern and Western Europe have already deployed cutting-edge technologies, while SMEs in Southern and Central and Eastern Europe are still in the early stages of automation. If this digital divide is not bridged, it will lead to an efficiency gap in Europe's internal logistics network, thereby weakening the overall competitiveness of the single market. The EU's Digital Decade policy goals and innovation ecosystem building should treat logistics as a key application scenario.

Supply Chain Resilience and Strategic Autonomy: Europe's Core Proposition

The growth of the global logistics market is accompanied by geopolitical uncertainties and the frequent occurrence of extreme climate events. The experience of the past few years has made European policymakers deeply realize that over-reliance on a single trade route or critical infrastructure node may leave the economic lifeline at the mercy of others. Therefore, the strategic implications of logistics investment have transcended mere cost reduction and efficiency improvement, rising to the level of supply chain resilience and European strategic autonomy.

The report mentions that government infrastructure investment is an important driver of market growth. Europe's continued investment in the Trans-European Transport Network (TEN-T), as well as plans to connect logistics corridors with neighboring countries, will help build a more interconnected and resilient internal market. But the real challenge lies in: how to convert infrastructure investment into innovation capacity in the private sector? How to encourage data sharing and multimodal transport collaboration through regulatory frameworks? The answers to these questions will determine whether Europe can evolve from a taker of logistics rules into a maker of them.

Europe's Logistics Strategy Towards 2035

Facing a global logistics market on the order of $24 trillion, Europe should not be satisfied with merely maintaining its existing share. The trends outlined by the reference report's data are: Asian demand will continue to expand, and digitalization and greening will become the main axes of value creation. The response strategy of European companies should be a trinity—

First, reshape the cost structure with green. Embed carbon neutrality goals into every link of logistics operations, from fleet electrification to last-mile delivery, and establish differentiated advantages through green premiums.Second, enhance resilience and efficiency with digital technology. Accelerate the application of AI, IoT, and blockchain in supply chain visibility and predictive capabilities to narrow the digital divide within Europe.

Third, strengthen overall competitiveness through policy coordination. At the EU level, strategic coordination of cross-border logistics infrastructure needs to be improved, while using competition policy and innovation funds to support logistics technology startups and build a complete innovation ecosystem.

Logistics has never been merely the movement of goods; it is the lifeblood of economic vitality and an extension of geopolitical influence. As global markets expand at an astonishing pace, Europe needs to find its own place: it must not fall behind in this race of scale, and it must also play a leading role in rules, technology, and sustainability standards. This is exactly the question that European business strategy must answer over the next decade.