Industry research
Scope
Europe
Companies
83
Table of contents
What does the Logistics Technology market landscape look like in Europe?
Overall, the European logistics technology market remains fragmented, mainly due to logistics regional character and preference for local providers among end-users. Large international players lead in more mature segments, like transport management software and logistics ERP, while local champions and niche specialists are more prevalent in fleet telematics and parcel delivery markets. Consolidation has been picking up in recent years as scale becomes increasingly important in the winner-takes-most market. In the long run, the anticipation is that non-differentiated mid-market players will be pushed out of business, while at-scale incumbents and niche specialists will prevail (interview by Gain.pro).
What is the level of investor activity in the European Logistics Technology industry?
Investor-led interest has been significant, with >70% of identified European assets backed by financial sponsors (January 2025). Investors are attracted to the industry’s strong top-line growth prospects, resulting from increased e-commerce adoption, growing supply chain complexities and buy-and-build opportunities. On the other hand, disintermediation risks from logistics giants and competition from open-source alternatives act as potential detractors.
What are the key ESG considerations in the European Logistics Technology industry?
ESG topics in the logistics technology industry mostly relate to environmental and social issues. Environmental topics primarily revolve around the positive impact on supply chain emissions via optimal routing and load management. Social issues related to the increased supply chain traceability and transparency. Logistics technology provides clear visibility into the origins and journey of products, ensuring fair labour standards and promoting ethical sourcing practices.
According to Technavio (May 2024), the global transportation management software market was worth ~$5.8bn in 2023 and is expected to reach ~$10.2bn by 2028 (+11.9% CAGR 2023-2028)
The number of active fleet management units deployed by the European commercial fleet operators was ~16.3m at the end of 2023 and is predicted to reach ~27.6m by 2028 (+11.1% CAGR; Berg Insights, December 2024)
The growing complexity of supply chains, the rise of advanced technologies (e.g. AI, IoT) and the increasing digitisation of supply chains drive demand for logistics technologies. With e-commerce and multi-channel retail further complicating supply chains, companies need to optimise costs and enhance operational efficiency to manage their logistics needs (Transport Topics, November 2024; Wezom, July 2023)
Ongoing global shift from offline to online retail paired with significant growth in B2B e-commerce (interview by Gain.pro, Forbes, May 2024). To facilitate these developments, increasing process automation through logistics software is key to lower the reliance on expensive human resources and alleviate pressure on cost structures (ORO Commerce, May 2022)
The demand for value chain transparency driven by regulations (e.g. EU CSRD) and increased environmental consciousness will benefit logistics technology vendors. As such, they can optimise the environmental footprint of businesses, as well as increase their supply chain visibility (interview by Gain.pro; Gartner, March 2024; IBM, December 2024)
The high pace of technological innovation requires continuous iterations of software offerings. Vendors lacking sufficient in-house R&D talent and budget may be pushed out of the market, with customers gradually switching to more innovative alternatives (interview by Gain.pro)
Disintermediation threats from deep-pocketed logistics and technology incumbents. FedEx and Amazon are developing comprehensive, integrated software suites, whereas telematics specialists are threatened by the likes of Verizon or Scania who capitalise on existing infrastructure and customer bases to offer integrated telematics systems (Amazon, January 2025; Berg Insights, December 2024)
The emergence of open-source logistics software undermines the position of identified players offering more expensive customer-tailored products. Open-source alternatives are particularly popular among SMEs, which represents the market segment with the highest growth potential (interview by Gain.pro)
With the full report, you’ll gain access to:
Detailed assessments of the market outlook
Insights from c-suite industry executives
A clear overview of all active investors in the industry
An in-depth look into 83 private companies, incl. financials, ownership details and more.
A view on all 311 deals in the industry
ESG assessments with highlighted ESG outperformers
