Australia Logistics Industry Market Research Report 2025

1. INTRODUCTION

1.1 Purpose and Scope

This report delivers a comprehensive analysis of Australia’s logistics industry, focusing on freight transport, warehousing, distribution, freight forwarding, and value-added logistics services. It explores key growth drivers, challenges, and technological trends shaping the industry in 2025 and beyond.

1.2 Research Methodology

Findings are based on market data, industry reports, government statistics, and expert insights from sources including Mordor Intelligence, IMARC Group, Expert Market Research, Grand View Research, and the Australian Bureau of Statistics.

1.3 Key Definitions

• Logistics Industry: Transport, warehousing, distribution, inventory management, and value-added services.

• Freight Logistics: Movement and management of goods across transport modes.

• 3PL/4PL: Outsourced third- and fourth-party logistics providers offering integrated supply chain solutions.

2. INDUSTRY OVERVIEW

2.1 Market Structure

Australia’s logistics sector comprises:

• Road, rail, air, and sea transport services

• Warehousing and distribution

• Freight forwarding

• Inventory management

• Value-added logistics services

2.2 Economic Significance

The sector underpins domestic and international trade, supporting industries such as mining, agriculture, manufacturing, and retail. Its importance has grown with e-commerce expansion and the push for resilient supply chains.

2.3 Geographic Distribution

• Sydney: Major gateway for international trade and e-commerce fulfillment

• Melbourne: Manufacturing and distribution hub

• Brisbane: Port access and regional distribution

• Perth: Mining and resources logistics

• Adelaide: Agriculture and automotive logistics

3. MARKET SIZE AND GROWTH

3.1 Current Valuation

• AUD 149.48B (2024, Expert Market Research)

• USD 130.4B (2024, TGL)

• USD 99.08B (2025 estimate, Mordor Intelligence)

3.2 Growth Projections

• 5.7% CAGR (2024–2034) → AUD 260.22B (Expert Market Research)

• 4.4% CAGR (2025–2030) → USD 122.7B (Mordor Intelligence)

• 7% CAGR in e-commerce-driven sub-segments

3.3 Historical Performance

• 800B ton-km of goods transported (2020, BITRE)

• 2.4% increase in freight volumes (2019–2020)

• Sustained growth despite global disruptions

3.4 Market Drivers

• E-commerce expansion: Australia ranks 12th globally

• Infrastructure investment: Federal/state commitments to transport projects

• Supply chain optimization: Rising focus on cost reduction and efficiency

• Digital transformation: Widespread adoption of smart logistics solutions

4. KEY SECTORS

4.1 Transportation Services (29.6% of revenue, 2024)

• Road: Dominant mode for domestic freight; crucial for last-mile delivery and interstate corridors

• Rail: Bulk commodities (coal, minerals), intermodal container transport

• Air: High-value, time-sensitive cargo; international trade and express services

• Sea: Container shipping, import/export, bulk commodities

4.2 Warehousing & Distribution

• Growth from e-commerce fulfillment

• Automated storage & retrieval systems

• Temperature-controlled logistics

• Inventory optimization facilities

4.3 Freight Forwarding

• Customs clearance & trade documentation

• Multimodal coordination

• Supply chain visibility platforms

4.4 Value-Added Services

• Packaging & labeling

• Quality control & inspection

• Reverse logistics & returns

• Supply chain consulting

5. WORKFORCE AND JOB MARKETS

5.1 Key Challenges

• Driver shortages: Aging workforce, rising demand from e-commerce

• Skilled worker gaps: Analytics, automation, supply chain tech

5.2 In-Demand Roles (2024–2025)

• Truck & delivery drivers

• Warehouse operatives

• Logistics coordinators

• Supply chain analysts

• Automation/robotics technicians

• Last-mile specialists

5.3 Workforce Development Initiatives

• Industry–education partnerships

• Government training & upskilling programs

• Immigration pathways for logistics workers

• Digital and technology-focused training

6. MAJOR COMPANIES

6.1 Market Leaders

• Aurizon Holdings Ltd: Australia’s largest rail freight operator, focused on bulk commodities.

• DHL Group: Global express logistics leader with strong Australian presence.

• Toll Group: Major logistics provider; formerly owned by Japan Post. In 2021, Toll Global Express was sold to Allegro Funds, while Toll Global Logistics remains Japan Post-owned.

• Linfox Pty Ltd: Leading Australian provider with extensive warehousing/distribution networks.

• Qube Holdings Ltd: Specialist in ports, bulk logistics, and rail infrastructure.

6.2 Emerging Players

• Sendle: E-commerce delivery disruptor

• Startups leveraging automation, AI, and micro-fulfillment solutions

7. EMERGING TRENDS

• Digital Transformation: IoT tracking, AI route optimization, blockchain, cloud-based logistics platforms

• Automation & Robotics: AGVs, robotic picking, smart warehouses

• Sustainability: EV fleets, carbon reduction, sustainable packaging, green certifications

• Last-Mile Innovation: Drone/autonomous vehicle pilots, micro-fulfillment, click-and-collect

• Data & AI: Predictive analytics, machine learning, real-time visibility

8. CHALLENGES

• Workforce: Driver shortages, aging workforce, technology talent gaps

• Operational: Supply chain disruptions, capacity constraints, rising input costs

• Macroeconomic: Inflation, interest rates, consumer spending pressures

• Infrastructure: Port congestion, road bottlenecks, warehouse capacity

• Regulatory: Safety, trade compliance, data standards, workplace laws

9. EDUCATION & SKILLS

9.1 Academic Programs

• Degrees in supply chain, logistics, transport, and operations (RMIT, Curtin, Griffith, UniSA, Swinburne)

9.2 Vocational Training

• TAFE certificates/diplomas in warehousing, distribution, transport, and supply chain operations

9.3 Professional Development

• Certifications: AIM, CILT, SCLAA

• Industry workshops & CPD initiatives

9.4 Industry–Education Partnerships

• Apprenticeships & placements

• Joint R&D programs

• Technology-focused skills initiatives

9.5 Skills Priorities

• Digital literacy

• Data analytics

• Automation & robotics operation

• Sustainability management

• International trade compliance

10. CONCLUSION

Australia’s logistics sector, valued at AUD 149.48B in 2024, is projected to grow at 4.4–7% CAGR, underscoring its resilience amid global and domestic challenges. E-commerce, digital transformation, and infrastructure development are reshaping logistics operations, while workforce shortages—particularly among drivers and warehouse staff—remain a pressing concern.

Established operators like Aurizon, DHL, Toll, Linfox, and Qube continue to dominate, while disruptors such as Sendle highlight the role of technology-driven innovation. The industry is defined by digital transformation, sustainability initiatives, and workforce development, with success hinging on the ability to attract talent, deploy advanced technologies, and maintain operational resilience.

Positioned strategically in the Asia-Pacific, Australia’s logistics industry is set to consolidate its role as a regional hub, driving national competitiveness and economic growth through 2034.