Ken Research Logo

Australia Logistics Industry

Australia logistics market, worth AUD 158 billion, grows with e-commerce surge to AUD 63.8 billion at 20% CAGR, infrastructure developments, and technological innovations.

Region:Global

Author(s):Shubham

Product Code:KRAA0825

Pages:100

Published On:August 2025

About the Report

Base Year 2024

Australia Logistics Industry Overview

  • The Australia Logistics Industry is valued at approximately AUD 158 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing demand for efficient supply chain solutions, the rapid expansion of e-commerce, and advancements in logistics technology such as real-time tracking, automation, and predictive analytics. The sector has seen significant investments in infrastructure and digitalization, enhancing operational efficiency and customer service .
  • Key cities such as Sydney, Melbourne, and Brisbane dominate the logistics market due to their strategic locations, robust infrastructure, and high population density. These urban centers serve as critical hubs for transportation and distribution, facilitating trade and commerce both domestically and internationally. The concentration of major logistics providers and government policies promoting urban freight logistics further reinforce their market dominance .
  • The Australian government has implemented the National Freight and Supply Chain Strategy, aimed at improving the efficiency and sustainability of the logistics sector. This initiative includes investments in infrastructure, regulatory reforms, and support for innovative technologies to enhance the overall performance of the logistics industry .

Australia Logistics Industry Segmentation

By Service Type:The service type segmentation includes Transportation, Warehousing, Freight Forwarding, Value-Added Services, and Last Mile Delivery. Transportation remains the leading subsegment, driven by the growing need for efficient movement of goods across Australia. The surge in e-commerce and the demand for rapid fulfillment have significantly increased the importance of reliable transportation services, making it a critical component of the logistics industry .

By Mode of Transport:The mode of transport segmentation includes Road, Rail, Air, and Sea. Road transport is the dominant mode, accounting for the largest share of logistics activities due to its flexibility, extensive network coverage, and the increasing demand for fast deliveries in urban and regional areas. The growth of e-commerce and the need for last-mile connectivity have further strengthened road transport's position as the preferred logistics mode .

Australia Logistics Industry Competitive Landscape

The Australia Logistics Industry market is characterized by a dynamic mix of regional and international players. Leading participants such as Toll Group, Linfox, DB Schenker Australia, Qube Holdings, StarTrack (Australia Post), Australia Post, Kuehne + Nagel Australia, Mainfreight Australia, TNT Express (FedEx Express Australia), DHL Supply Chain Australia, FedEx Express Australia, UPS Australia, C.H. Robinson Australia, XPO Logistics Australia, and SCT Logistics contribute to innovation, geographic expansion, and service delivery in this space.

Toll Group

1888

Melbourne, Australia

Linfox

1956

Melbourne, Australia

DB Schenker Australia

1962

Sydney, Australia

Qube Holdings

2006

Sydney, Australia

Australia Post

1809

Melbourne, Australia

Company

Establishment Year

Headquarters

Group Size (Large, Medium, or Small as per industry convention)

Annual Revenue (AUD)

Revenue Growth Rate (%)

EBITDA Margin (%)

Market Share (%)

Fleet Size

Australia Logistics Industry Industry Analysis

Growth Drivers

  • Increased E-commerce Activity:The Australian e-commerce sector is projected to reach AUD 63.8 billion, driven by a 20% annual growth rate. This surge in online shopping is significantly boosting logistics demand, as companies require efficient distribution networks to meet consumer expectations. The rise in e-commerce is also prompting investments in last-mile delivery solutions, which are essential for timely order fulfillment, thereby enhancing the overall logistics landscape in Australia.
  • Infrastructure Development:The Australian government has allocated AUD 120 billion for infrastructure projects, focusing on transport networks and logistics hubs. This investment aims to improve road and rail connectivity, facilitating smoother freight movement across the country. Enhanced infrastructure is expected to reduce transit times, thereby increasing the efficiency of logistics operations and attracting more businesses to the sector, ultimately driving growth in the logistics industry.
  • Technological Advancements:The adoption of advanced technologies, such as AI and IoT, is transforming the logistics industry in Australia. In future, it is estimated that a significant proportion of logistics companies will implement AI-driven solutions to optimize supply chain management. These technologies can enhance operational efficiency by reducing costs by up to AUD 2 billion annually. As companies increasingly leverage data analytics for decision-making, the logistics sector is poised for significant growth and innovation.

Market Challenges

  • Labor Shortages:The logistics industry in Australia is facing a critical labor shortage, with an estimated deficit of approximately 23,000 drivers and warehouse workers. This shortage is exacerbated by an aging workforce and increased demand for logistics services. Companies are struggling to fill positions, leading to operational delays and increased labor costs, which can hinder overall industry growth and efficiency in meeting customer demands.
  • Regulatory Compliance:The logistics sector is grappling with stringent regulatory requirements, particularly concerning environmental standards. In future, compliance costs are expected to rise, impacting profit margins for logistics providers. Companies must invest in sustainable practices and technologies to meet these regulations, which can divert resources from core operations and create additional financial burdens, posing a challenge to growth in the industry.

Australia Logistics Industry Future Outlook

The logistics industry in Australia is set to evolve significantly in the coming years, driven by technological advancements and changing consumer behaviors. As e-commerce continues to expand, logistics providers will increasingly focus on enhancing last-mile delivery solutions and integrating smart technologies into their operations. Additionally, the emphasis on sustainability will push companies to adopt greener practices, aligning with regulatory requirements and consumer expectations. Overall, the industry is poised for transformation, with opportunities for innovation and growth in various segments.

Market Opportunities

  • Last-Mile Delivery Solutions:With the rise of e-commerce, there is a growing demand for efficient last-mile delivery services. Companies that invest in innovative delivery methods, such as drones and autonomous vehicles, can capture a significant market share. This segment is expected to grow by AUD 1 billion, presenting a lucrative opportunity for logistics providers to enhance service offerings and improve customer satisfaction.
  • Green Logistics Initiatives:As sustainability becomes a priority, logistics companies can capitalize on the demand for eco-friendly practices. Implementing green logistics initiatives, such as electric vehicles and optimized routing, can reduce carbon footprints and operational costs. The market for sustainable logistics solutions is projected to grow by AUD 500 million, offering a substantial opportunity for businesses to differentiate themselves and attract environmentally conscious clients.

Scope of the Report

SegmentSub-Segments
By Service Type

Transportation

Warehousing

Freight Forwarding

Value-Added Services

Last Mile Delivery

By Mode of Transport

Road

Rail

Air

Sea

By End-User Industry

Wholesale and Retail Trade

Manufacturing

Healthcare and Pharmaceuticals

Automotive

Food and Beverage

E-commerce

Construction

Others

By Distribution Mode

Domestic

International

By Technology Integration

Real-Time Tracking

Warehouse Automation

Predictive Analytics

Electric/Green Logistics Solutions

Others

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Australian Competition and Consumer Commission, Department of Infrastructure, Transport, Regional Development and Communications)

Manufacturers and Producers

Distributors and Retailers

Logistics Service Providers

Technology Providers

Industry Associations (e.g., Australian Logistics Council, Supply Chain and Logistics Association of Australia)

Financial Institutions

Players Mentioned in the Report:

Toll Group

Linfox

DB Schenker Australia

Qube Holdings

StarTrack (Australia Post)

Australia Post

Kuehne + Nagel Australia

Mainfreight Australia

TNT Express (FedEx Express Australia)

DHL Supply Chain Australia

FedEx Express Australia

UPS Australia

C.H. Robinson Australia

XPO Logistics Australia

SCT Logistics

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Australia Logistics Industry Overview

2.1 Key Insights and Strategic Recommendations

2.2 Australia Logistics Industry Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Australia Logistics Industry Analysis

3.1 Growth Drivers

3.1.1 E-commerce Growth
3.1.2 Infrastructure Development
3.1.3 Technological Advancements
3.1.4 Global Trade Dynamics

3.2 Market Challenges

3.2.1 Rising Operational Costs
3.2.2 Regulatory Compliance
3.2.3 Labor Shortages
3.2.4 Environmental Concerns

3.3 Market Opportunities

3.3.1 Automation and Robotics
3.3.2 Sustainable Logistics Solutions
3.3.3 Last-Mile Delivery Innovations
3.3.4 Digital Supply Chain Management

3.4 Market Trends

3.4.1 Increased Use of AI and Data Analytics
3.4.2 Shift Towards Green Logistics
3.4.3 Growth of Third-Party Logistics (3PL)
3.4.4 Integration of Blockchain Technology

3.5 Government Regulation

3.5.1 Heavy Vehicle National Law (HVNL)
3.5.2 Australian Competition and Consumer Commission (ACCC) Guidelines
3.5.3 Environmental Protection Regulations
3.5.4 Customs and Border Protection Regulations

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Australia Logistics Industry Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Australia Logistics Industry Segmentation

8.1 By Service Type

8.1.1 Transportation
8.1.2 Warehousing
8.1.3 Freight Forwarding
8.1.4 Value-Added Services
8.1.5 Last Mile Delivery

8.2 By Mode of Transport

8.2.1 Road
8.2.2 Rail
8.2.3 Air
8.2.4 Sea

8.3 By End-User Industry

8.3.1 Wholesale and Retail Trade
8.3.2 Manufacturing
8.3.3 Healthcare and Pharmaceuticals
8.3.4 Automotive
8.3.5 Food and Beverage
8.3.6 E-commerce
8.3.7 Construction
8.3.8 Others

8.4 By Distribution Mode

8.4.1 Domestic
8.4.2 International

8.5 By Technology Integration

8.5.1 Real-Time Tracking
8.5.2 Warehouse Automation
8.5.3 Predictive Analytics
8.5.4 Electric/Green Logistics Solutions
8.5.5 Others

9. Australia Logistics Industry Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Large, Medium, or Small as per industry convention)
9.2.3 Annual Revenue (AUD)
9.2.4 Revenue Growth Rate (%)
9.2.5 EBITDA Margin (%)
9.2.6 Market Share (%)
9.2.7 Fleet Size
9.2.8 Number of Warehouses/Distribution Centers
9.2.9 Delivery Accuracy (%)
9.2.10 Average Order Fulfillment Time (hours/days)
9.2.11 Customer Retention Rate (%)
9.2.12 On-Time Delivery Rate (%)
9.2.13 Technology Adoption Level
9.2.14 Sustainability Initiatives (e.g., % of green fleet)
9.2.15 Employee Count

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 Toll Group
9.5.2 Linfox
9.5.3 DB Schenker Australia
9.5.4 Qube Holdings
9.5.5 StarTrack (Australia Post)
9.5.6 Australia Post
9.5.7 Kuehne + Nagel Australia
9.5.8 Mainfreight Australia
9.5.9 TNT Express (FedEx Express Australia)
9.5.10 DHL Supply Chain Australia
9.5.11 FedEx Express Australia
9.5.12 UPS Australia
9.5.13 C.H. Robinson Australia
9.5.14 XPO Logistics Australia
9.5.15 SCT Logistics

10. Australia Logistics Industry End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Government Contracts
10.1.2 Tender Processes
10.1.3 Compliance Requirements

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Investment Trends
10.2.2 Budget Allocations
10.2.3 Infrastructure Projects

10.3 Pain Point Analysis by End-User Category

10.3.1 Delays in Delivery
10.3.2 Cost Overruns
10.3.3 Quality of Service

10.4 User Readiness for Adoption

10.4.1 Technology Adoption Rates
10.4.2 Training and Support Needs
10.4.3 Change Management

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Performance Metrics
10.5.2 Case Studies
10.5.3 Future Expansion Plans

11. Australia Logistics Industry Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Value Proposition Development

1.3 Revenue Streams

1.4 Cost Structure Analysis

1.5 Key Partnerships

1.6 Customer Segments

1.7 Channels


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs

2.3 Target Audience Identification

2.4 Communication Strategies


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-Ups

3.3 Logistics Partnerships


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands Analysis

4.3 Competitive Pricing Strategies


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments

5.3 Emerging Trends


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-Sales Service

6.3 Customer Feedback Mechanisms


7. Value Proposition

7.1 Sustainability Initiatives

7.2 Integrated Supply Chains

7.3 Cost Efficiency


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding Efforts

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 Joint Ventures

10.2 Greenfield Investments

10.3 Mergers & Acquisitions

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-Term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 Joint Ventures

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Milestone Planning
15.2.2 Activity Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of industry reports from the Australian Logistics Council and government publications
  • Review of logistics performance metrics from the Bureau of Infrastructure and Transport Research Economics
  • Examination of market trends and forecasts from logistics industry associations and trade journals

Primary Research

  • Interviews with logistics executives from major Australian freight companies
  • Surveys targeting supply chain analysts and consultants specializing in the Australian market
  • Field interviews with warehouse managers and distribution center operators across key regions

Validation & Triangulation

  • Cross-validation of findings through multiple data sources, including government statistics and industry reports
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks conducted through expert panels comprising industry veterans and academic researchers

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of total logistics expenditure in Australia, segmented by transport mode and service type
  • Analysis of growth rates in e-commerce and its impact on logistics demand
  • Incorporation of government infrastructure investment plans and their implications for logistics capacity

Bottom-up Modeling

  • Collection of operational data from leading logistics firms to establish baseline performance metrics
  • Cost analysis based on service pricing models across different logistics segments
  • Volume and cost calculations for freight movement across various sectors, including retail and manufacturing

Forecasting & Scenario Analysis

  • Development of predictive models using historical data and current market trends
  • Scenario planning based on potential regulatory changes and economic conditions affecting logistics
  • Creation of multiple forecasts (baseline, optimistic, and pessimistic) through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Freight Transport Sector100Logistics Directors, Fleet Managers
Warehousing and Distribution60Warehouse Managers, Operations Supervisors
Last-Mile Delivery Services50Delivery Managers, Customer Experience Leads
Cold Chain Logistics40Supply Chain Managers, Quality Assurance Officers
Logistics Technology Solutions45IT Managers, Technology Officers

Frequently Asked Questions

What is the current value of the Australia Logistics Industry?

The Australia Logistics Industry is valued at approximately AUD 158 billion, driven by the increasing demand for efficient supply chain solutions, the rapid expansion of e-commerce, and advancements in logistics technology such as real-time tracking and automation.

Which cities are key players in the Australia Logistics Industry?

What are the main service types in the Australia Logistics Industry?

What modes of transport dominate the Australia Logistics Industry?

Why Buy From Us?

Refine Robust Result (RRR) Framework
Refine Robust Result (RRR) Framework

What makes us stand out is that our consultants follow Robust, Refine and Result (RRR) methodology. Robust for clear definitions, approaches and sanity checking, Refine for differentiating respondents' facts and opinions, and Result for presenting data with story.

Our Reach Is Unmatched
Our Reach Is Unmatched

We have set a benchmark in the industry by offering our clients with syndicated and customized market research reports featuring coverage of entire market as well as meticulous research and analyst insights.

Shifting the Research Paradigm
Shifting the Research Paradigm

While we don't replace traditional research, we flip the method upside down. Our dual approach of Top Bottom & Bottom Top ensures quality deliverable by not just verifying company fundamentals but also looking at the sector and macroeconomic factors.

More Insights-Better Decisions
More Insights-Better Decisions

With one step in the future, our research team constantly tries to show you the bigger picture. We help with some of the tough questions you may encounter along the way: How is the industry positioned? Best marketing channel? KPI's of competitors? By aligning every element, we help maximize success.

Transparency and Trust
Transparency and Trust

Our report gives you instant access to the answers and sources that other companies might choose to hide. We elaborate each steps of research methodology we have used and showcase you the sample size to earn your trust.

Round the Clock Support
Round the Clock Support

If you need any support, we are here! We pride ourselves on universe strength, data quality, and quick, friendly, and professional service.

Why Clients Choose Us?

400000+
Reports in repository
150+
Consulting projects a year
100+
Analysts
8000+
Client Queries in 2022