Australia Logistics Market Size, Share, Growth Analysis Report and Forecast Trends (2025-2034)

Australia Logistics Market Trends

The Australia logistics market benefits from the country's strategic location within the Asia-Pacific region, positioning it as a crucial trade hub between Asia and Europe. Its well-developed infrastructure, including state-of-the-art ports, roads, railways, and airports, enables efficient logistics operations. The integration of automation, AI, and IoT further enhances supply chain efficiency. Additionally, free trade agreements and a stable economy foster growth within the sector. In March 2023, Qantas Freight expanded its air cargo services by introducing a new fleet of temperature-controlled containers, designed for transporting pharmaceuticals and perishable goods across major Australian cities, ensuring safe, fast, and reliable delivery for sensitive products.

The growth of the Australia logistics market is further supported by a highly skilled workforce that drives innovation and maintains high service standards. The industry is increasingly focused on sustainability, with the adoption of eco-friendly practices helping to reduce emissions. A robust transport network ensures the efficient, cost-effective movement of goods, and the government continues to support the sector. Australia’s global connectivity strengthens its position in international trade. In March 2024, DHL Express partnered with Australian tech firm SITA to implement advanced digital tracking systems at key airports, improving customs clearance and accelerating the processing of international shipments, thereby boosting operational efficiency in Australia.

Australia Logistics Market Growth

The growth of e-commerce is driving the expansion of Australia logistics market, increasing the demand for efficient logistics solutions, especially for last-mile delivery. With strong consumer demand, Australia has become a key market for logistics. Streamlined customs procedures and digital systems simplify cross-border shipments, while innovative transport solutions like drones enhance efficiency. Australia’s ports are recognised for their high efficiency. In May 2024, Kuehne + Nagel announced the expansion of its warehousing network with a new, automated facility in Melbourne, designed to serve both local businesses and international trade. This will help optimise operations for e-commerce and manufacturing sectors.

The Australia logistics market serves a broad range of industries, from retail to manufacturing, offering diverse business opportunities. Continuous investment in research and development drives technological and sustainability innovations within the sector. The logistics industry supports regional economic growth and demonstrates resilience to global disruptions. The growing use of digital platforms enhances collaboration and decision-making across logistics operations. In October 2023, Linfox launched a new carbon-neutral freight service in Melbourne, utilising electric trucks and optimised logistics planning to reduce emissions. This initiative is part of Linfox's broader strategy to provide green logistics solutions across the region, supporting Australia’s sustainability goals.

Australia Logistics Market Insights

• According to the Australian Logistics Council's 2023 Australian Logistics Industry Report, the logistics sector has continued to make a significant contribution to Australia's GDP, maintaining an annual growth rate of approximately 3.4% over the past five years.
• The 2022 National Freight and Supply Chain Strategy Annual Report provides key insights, including that Australia’s freight sector handled around 900 million tonnes of goods in the 2020-2021 period.
• In 2022, a government-supported growth fund invested in a tech startup specialising in last-mile delivery logistics, marking a strategic move to support innovation in the sector.
• The railways segment in logistics is projected to grow at a CAGR of 6.0% from 2024 to 2032.
• The courier, express, and parcel segment in logistics is anticipated to grow at a CAGR of 6.3% from 2024 to 2032.
• The logistics market in Western Australia is forecast to grow significantly, with a projected CAGR of 15.7% from 2024 to 2032.
• The Australian Capital Territory and Victoria are expected to grow at CAGRs of 6.3% and 5.6% respectively from 2024 to 2032.

Industry News

May 2024

DB Schenker introduced a new carbon-neutral logistics service for Australian businesses in Brisbane. This initiative integrates sustainable transport solutions with carbon offset programs, aiming to reduce greenhouse gas emissions in supply chains and promote environmentally friendly logistics practices for Australian enterprises.

June 2023

Vicinity Centres has deployed an AI-powered inventory management system across its logistics operations in Melbourne. The system leverages machine learning to optimise stock levels and enhance warehouse efficiency, enabling the company to meet rising demand for quick retail deliveries while also lowering operational costs.

Australia Logistics Market Drivers

E-commerce Growth and Last-Mile Delivery

The rapid expansion of e-commerce has become a key trend of Australia logistics market, driving a significant increase in demand for efficient logistics, particularly in last-mile delivery. As more consumers shop online, retailers are seeking faster and more reliable delivery options. This shift has spurred innovations such as parcel lockers, drones, and autonomous vehicles to reduce delivery times and costs. Companies are also enhancing supply chain visibility by leveraging advanced technologies like IoT and AI, which enable real-time tracking of parcels. To meet growing consumer expectations for speed and convenience, the logistics industry is adapting by offering more flexible and quicker solutions. In March 2024, CouriersPlease, a major Australian courier service, launched a suite of AI-powered route optimisation tools to improve its last-mile delivery operations. This technology is designed to boost delivery efficiency, reduce costs, and meet the increasing demand for faster e-commerce shipments in major Australian cities.

Sustainability and Green Logistics

Sustainability is becoming an increasingly important focus within the Australia logistics market, with companies adopting eco-friendly practices to reduce their carbon emissions and environmental impact. The sector is progressively turning to electric vehicles (EVs) for transport, using sustainable packaging, and investing in renewable energy for warehouses and distribution centres. Green logistics strategies are also encouraging the use of energy-efficient technologies, such as electric forklifts and solar-powered facilities. Government policies, alongside consumer demand for more sustainable practices, are driving the industry towards greener solutions, making sustainability a significant trend influencing the future of logistics. In February 2024, Woolworths partnered with a local logistics provider to create a more sustainable supply chain for its supermarket operations. The initiative includes using electric trucks for regional deliveries and sustainable packaging materials, helping the company meet its target of reducing its carbon footprint by 25% by 2025.

Opportunities in the Australia Logistics Market

Automation and AI in Logistics

Automation and artificial intelligence (AI) are significantly shaping the Australia logistics market dynamics and trends. The integration of robotics, autonomous vehicles, and automated sorting systems is enhancing efficiency and reducing costs in warehouses and distribution centres. AI-driven technologies are improving demand forecasting, predictive analytics, and route optimisation, resulting in faster, more precise deliveries. Drones are also being utilised for small parcel deliveries in remote areas, improving logistics in underserved regions. These technological innovations are not only streamlining operations but also enabling companies to meet the growing demand for quick and reliable deliveries while remaining cost-effective. In January 2024, Kmart Australia implemented AI-powered predictive analytics in its distribution centres to optimise order fulfilment. This new system improves demand forecasting, ensuring efficient stock allocation and quicker delivery times for online orders, aligning with Kmart's broader strategy to enhance logistics operations with advanced technology.

Market Restraints

The Australia logistics market faces a range of significant challenges. Labour shortages and skill gaps, particularly in warehousing and transport, are impacting operational efficiency and driving up costs. Rising fuel prices further contribute to increased transportation expenses and environmental concerns, pushing the sector towards more sustainable solutions. Congestion in key infrastructure, especially in major cities, causes delays and inefficiencies, limiting growth opportunities.

The fragmented regulatory landscape across states adds complexity to compliance, raising operational costs, while stringent environmental regulations create additional pressures. Additionally, global supply chain disruptions, driven by factors like natural disasters or pandemics, expose vulnerabilities, causing delays, higher costs, and inventory shortages, making it harder for the sector to scale and remain competitive.

Australia Logistics Market Share

By Shipping Mode Insights

According to the Australia logistics market analysis, airways play a vital role in the sector by enabling fast and efficient transportation of goods both domestically and internationally. They provide quick delivery times, particularly for time-sensitive products such as pharmaceuticals and perishables. With major airports in key cities, air freight strengthens Australia’s robust trade links, especially within the Asia-Pacific region. In February 2024, Aurizon, Australia's largest rail freight operator, announced an expansion of its rail network across Queensland. This project aims to boost capacity for transporting bulk goods, particularly in agriculture and mining, ensuring more efficient and reliable supply chains for both domestic and international markets.

The growth of the Australia logistics market is also driven by roadways, which serve as the backbone of the country’s domestic logistics infrastructure, providing flexible, door-to-door delivery services across both urban and remote areas. The segment is expected to grow at a CAGR of 6.4% from 2024 to 2032. The state is embracing innovative farming techniques and sustainable practices, along with ongoing trials of small-scale production. The well-established road network supports both long-haul freight and local deliveries, facilitating the efficient movement of goods. Road transport also links major ports, airports, and warehouses, improving overall supply chain efficiency. In March 2024, Amazon revealed plans to recruit "a few" entrepreneurs to expand its delivery network in Australia's top three cities. The US retailer announced the launch of its Delivery Service Partner initiative, partnering with small businesses that operate between 20 and 40 vehicles and employ several local drivers.

By Function Analysis

The growth of the Australia logistics market is supported by freight forwarding, which simplifies international trade by managing the entire shipping process, including customs clearance and transportation. This reduces delays, enhances delivery times, and ensures regulatory compliance. The sector's expertise helps optimise costs, improve supply chain visibility, and reinforces Australia’s role as a key global trade hub. In February 2024, DHL Express introduced new freight forwarding services for Australian businesses, with a focus on enhanced e-commerce solutions. The service includes integrated tracking systems and improved shipping routes, offering faster, more cost-effective export solutions to meet the growing demand for reliable logistics in the expanding online retail sector.

Opportunities within the Australia logistics market are strengthened by warehousing and storage solutions, which provide efficient inventory management and distribution, helping businesses lower storage costs and improve order fulfilment. Warehousing and storage are projected to grow at a CAGR of 6.5% from 2024 to 2032. With the use of advanced technologies like automation and AI, these facilities enable faster processing and real-time stock tracking, supporting the growing demand for e-commerce logistics and just-in-time delivery models. In February 2023, E-Com Logistics launched a state-of-the-art e-commerce warehouse in Melbourne, featuring advanced automation technology to streamline order fulfilment, significantly reducing delivery times, and boosting customer satisfaction for online retailers.

By End Use Insights

According to the Australia logistics market report, the industry is primarily driven by automotive logistics, which streamlines the transportation and distribution of vehicles and parts, thereby improving supply chain efficiency. It helps reduce delivery times, optimises inventory management, and ensures timely deliveries to dealerships and manufacturers. Additionally, the sector contributes to local job creation and enhances Australia’s global competitiveness in the automotive industry. In August 2024, Qube Logistics announced the launch of an advanced multi-modal transportation system for automotive components, utilising rail, and road networks to reduce both delivery times and costs for Australian automotive manufacturers.

Demand of Australia logistics market is further boosted by healthcare logistics, which ensures the timely and safe delivery of medical supplies, pharmaceuticals, and equipment. Efficient logistics help prevent stockouts, maintain quality standards, and ensure that critical healthcare products reach hospitals and clinics promptly. This improves patient care, minimises disruptions in healthcare services, and strengthens the resilience of Australia’s healthcare sector. In November 2023, Biomed Logistics introduced an AI-powered inventory management system in Melbourne to optimise the storage and distribution of medical supplies, improving efficiency and reducing delays in delivering essential healthcare products.

Australia Logistics Market Regional Insights

New South Wales Logistics Market Overview

According to the Australia logistics industry analysis, New South Wales (NSW) serves as Australia’s logistics hub, boasting robust transport connections to ports, airports, and rail networks. Growth is driven by infrastructure projects, rising e-commerce demand, and expanding international trade, according to the NSW Government (2024). Key developments, such as the Western Sydney Airport, are enhancing international trade, while strong rail, road, and air links reinforce the state’s leadership in logistics.

Queensland Logistics Market Trends

Queensland’s logistics market is experiencing increasing demand in the agriculture, mining, and e-commerce sectors. Infrastructure improvements, such as the expansion of Brisbane Airport, are boosting transport efficiency. Additionally, sustainable logistics practices are emerging as a significant trend, as noted by the Queensland Government (2024). Major projects like the USD 4.4 billion Brisbane International Cruise Terminal are strengthening the sector, with a focus on multimodal transport to improve trade efficiency and sustainability.

Western Australia Logistics Market Dynamics

Western Australia is expected to grow at a CAGR of 6.1% from 2024 to 2032. The state is embracing innovative farming techniques and sustainable practices, along with ongoing trials of small-scale production. The state benefits from key port facilities and growing demand for bulk transport, particularly in resources and energy, according to the WA Government (2024). Significant upgrades to port infrastructure and transport networks are enhancing the sector, with a focus on improving supply chain efficiency for bulk goods and energy exports.

Competitive Landscape

The Australia logistics market key players deliver integrated supply chain solutions across various sectors, including retail, automotive, healthcare, resources, and fast-moving consumer goods (FMCG). These companies offer a broad range of services such as road transport, warehousing, freight forwarding, and distribution management. With a strong focus on innovation, they employ advanced technologies like AI and automation to optimise operations, increase efficiency, and improve customer service. Additionally, these companies are committed to sustainability, focusing on reducing their carbon footprint and promoting environmentally friendly practices within their logistics operations.

Key Industry Players

FedEx Corp.: Established in 1971 and headquartered in Memphis, Tennessee, FedEx Corp. is a global leader in logistics, offering a wide range of services including express transportation, e-commerce solutions, and freight forwarding. The company operates in more than 220 countries and territories, known for its fast, reliable shipping and logistics expertise.

Deutsche Post AG: Founded in 1995 and headquartered in Bonn, Germany, Deutsche Post AG is a global logistics and mail delivery giant. It operates under the DHL brand for international express and logistics services. The company is a key player in global supply chain management, with a strong focus on sustainable logistics solutions.

DSV A/S: Established in 1976 and headquartered in Hedehusene, Denmark, DSV A/S is a global transport and logistics company offering road, air, sea, and rail freight services. DSV operates in over 80 countries and provides end-to-end logistics solutions, with a focus on efficiency and customer-centric services.

Schenker AG: Founded in 1872 and headquartered in Essen, Germany, Schenker AG is a leading global logistics provider, specialising in supply chain management, air, ocean, and land transport. As a subsidiary of Deutsche Bahn, Schenker operates worldwide, providing integrated logistics solutions that improve supply chain efficiency and reduce costs for businesses.

Other key players in the Australia logistics market report are Keuhne + Nagel International AG, Centurion Transport Pty Ltd., Aurizon Holdings Ltd., K&S Corporation Ltd, Linfox Pty Ltd. and Qube Holdings Ltd., among others.

Recent Developments

April 2024

StarTrack, a subsidiary of Australia Post, unveiled a fully automated sorting facility in Sydney, incorporating advanced robotics and AI technology. The facility aims to accelerate parcel processing, minimise human error, and enhance overall delivery efficiency, driven by the rapid expansion of e-commerce in Australia.

July 2023

Toll Group revealed its collaboration with local drone delivery startup DroneCloud to pilot autonomous drone deliveries for e-commerce retailers in Melbourne. This initiative is designed to reduce delivery times for online orders, improve customer satisfaction, and decrease the environmental impact in urban areas.