Market Insights ON 2025: The trends shaping European logistics and transport
CargoON has released its latest edition of Market Insights ON, offering an in-depth analysis of the key forces shaping the European logistics sector in 2025. This edition explores economic shifts, digitalization, sustainability regulations, and industry-wide collaboration, providing supply chain managers with critical insights to navigate an increasingly complex landscape.
February 16, 2025
A year of transition: Stability or continued uncertainty?
The European logistics sector is at a crossroads, with market volatility persisting despite signs of stabilization. Inflation has significantly declined - reaching 2.1% by late 2024 - yet supply chains remain exposed to geopolitical risks, shifting trade policies, and uneven economic recovery across Europe.
"Undisputedly, the biggest challenge for the transportation industry, affecting the condition of shippers and carriers alike, is the stagnant European economy and the associated limited consumption. Moreover, the ongoing war in Ukraine, political instability in key European countries, and uncertainty about the effects of the change of administration in the US are not conducive to improving sentiment"- Bartosz Baca, Head of Product at DONE Deliveries, Board Member of Polish Supply Management Leaders.
While some markets show signs of recovery, others are grappling with structural challenges, such as recessionary pressures in Germany, infrastructure inefficiencies in Southern Europe, and rising costs across the continent. The sector’s ability to adapt will determine whether 2025 delivers long-awaited stability or another year of turbulence.
Digitalization and AI: A new standard for logistics
The accelerating pace of digital transformation is reshaping logistics, with AI, automation, and real-time visibility solutions becoming essential to competitiveness. From predictive analytics optimizing transport planning to AI-driven solutions enhancing supply chain transparency, digitalization is no longer an option - it’s a necessity.
"The rapid development of AI in 2025 and the broad availability of digital tools are revolutionizing transport management. The automation of processes such as route planning, load allocation to carriers, transport monitoring, and financial settlements enhances efficiency and helps reduce costs" - Piotr Roczniak, Head of Business Consulting and Data at CargoON.
Companies that fail to invest in data-driven logistics solutions risk losing their competitive edge, as customer expectations for speed, efficiency, and flexibility continue to rise. The key to success in 2025 will be integrating AI-powered optimization and predictive planning into daily operations.
Regulatory shifts: The pressure to adapt
As sustainability and labor regulations tighten across Europe, businesses must rethink their long-term strategies to remain compliant while maintaining cost efficiency. In Italy, new labor agreements are reshaping workforce dynamics, while Spain is intensifying efforts to enforce greener transport policies. However, regulatory compliance alone will not be enough - companies must embrace deeper industry-wide cooperation.
"Perception of the value chain as a whole, with its members aligned and collaborating to achieve the same objectives, makes it possible to build business projects with great differentiating potential, not only in terms of productivity, but also in terms of efficiency and sustainability. In fact, one need only think for a few moments about the current 'winning horses' in any business sector to understand that strategic alliances (horizontal, vertical or transversal) have become a competitive element of the highest order" - Oriol Montanyà, Professor at the UPF Barcelona School of Management.
A more resilient and collaborative future
The logistics sector in 2025 must navigate economic, technological, and regulatory challenges while capitalizing on digitalization opportunities and industry-wide collaboration.
"In the relentless search for strategies to increase supply chain resilience to growing complexities, the adoption of digitized and automated processes and modern technologies (IoT, artificial intelligence, blockchain...) is increasingly a necessity. In addition to offering opportunities for greater efficiency and cost reduction, digital innovation enables better data management and quality to react more flexibly to changes, allows for increased visibility and transparency along the supply chain to meet ESG criteria, and improves communication and collaboration with different actors in supply chains" - Damiano Frosi, Direttore Osservatorio Contract Logistics, Polytechnic of Milan.
With supply chain resilience, technological innovation, and strategic partnerships at the core of logistics transformation, the companies that embrace these trends will turn challenges into competitive advantages.
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About CargoON
CargoON is a leading provider of digital freight solutions, empowering shippers and logistics professionals with tools for optimized transport management, real-time visibility, and data-driven decision-making. For more information, visit www.cargoon.eu
