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Locate2u News offers up-to-date logistics and e-commerce insights from across the globe, keeping you informed on industry trends and developments.

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Amazon to invest $10 billion in German logistics network

Amazon to invest $10 billion in German logistics network
Amazon to invest $10 billion in German logistics network

Amazon says it plans to invest $10 billion (€10 billion) in Germany, aiming to drive innovation and expand its logistics network and cloud infrastructure throughout the country. The company first came to Germany 25 years ago. 

Rocco Bräuniger, Amazon Germany country manager, says: “We continue to invest in the country. With our teams continually focused on innovation, we’re helping German customers transform the way they work, live, connect and thrive.”

Amazon is blazing ahead with innovation when it comes to its business operations. In the US, The Federal Aviation Administration (FAA) regulator cleared Amazon’s Prime Air drone program to operate its drones Beyond Visual Line of Sight (BVLOS). This initiative will allow Amazon customers to receive deliveries fast. 

Investment in logistics and research 

As part of the business’ investment in Germany, AWS plans to invest $9.4 billion (€8.8 billion) by 2026 to develop and maintain its cloud infrastructure in the Frankfurt Rhein-Main area. This investment will help meet the growing demand for AWS technologies in Germany, including AI.

Bräuniger adds the german-based teams work hand-in-hand with state-of-the-art technologies to deliver for small businesses and customers, while AWS enables organisations of all sizes in Germany to grow their businesses and innovate using the cloud. 

Industry players in Germany

In October, DHL commissioned its fourth e-commerce warehouse in Germany. Situated in Euskirchen, the warehouse will pick up and store orders for businesses before shipping parcels in Germany and Europe. The warehouse has a storage capacity of 60,000 square feet. 

What is the size of the logistics market? 

Precedence Research reports the global logistics market was valued at $8.96 trillion in 2023. The industry is estimated to grow at an annual compound growth rate of 9.35% in the next nine years – any score above 4% is considered good growth. “One of the key factors positively influencing the market is the booming e-commerce industry, as well as the improving availability of high-speed network connectivity.” 

The report adds that the need for effective logistics services is rising as the e-commerce industry grows. The market is also being driven by a shift in customer preference toward online purchases.

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Photo Credit: Canva

About the author

Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.

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