Why Investors are Paying Closer Attention to Supply Chain & Logistics

Executive Summary

Supply chain and logistics have moved from back office to boardroom. Investors now see the sector as central to business resilience, growth and sustainability. This article explores:

• Why supply chains have become an investment priority

• How growth, M&A and digital transformation are driving activity

• Where private equity and venture capital are focusing

• The role of sustainability, infrastructure and policy in shaping the sector

From Operational Backbone to Strategic Priority

Over the past five years supply chain has shifted from being an operational concern to a board-level risk and opportunity. Covid, geopolitical tensions and climate disruption have all exposed how fragile global networks can be. Directors we speak to say their board conversations changed almost overnight in 2020. What was once a quarterly update became a standing agenda item.

The investment community has noticed the same shift. Supply chains are no longer seen as cost centres but as strategic levers. A smooth-running network can underpin growth and profitability. A weak one can derail both.

Growth in Demand

The global logistics market was valued at close to $9 trillion in 2023 and is projected to grow at 4 to 6 percent annually through 2030¹. Some analysts forecast the sector could surpass $15 trillion by 2027². That growth is driven by e-commerce, consumer expectations of speed and reliability, and a need for better resilience.

For investors the attraction is not just scale but durability. Demand for logistics and supply chain services is tied to the fundamental flow of goods and materials. Even as cycles shift, the long-term trajectory is upward.

M&A Momentum

Mergers and acquisitions have become a primary mechanism for companies to acquire supply chain capability. In Q2 2024, supply chain-related deals totalled $39 billion, making it the largest single theme among the top 200 global deals³.

That activity reflects both the need for scale and the desire to bring in new technology. Post-merger integration almost always demands significant investment in systems, processes and people. Investors see this as both a challenge and an opportunity to unlock value.

Digital Transformation and E-commerce

Few forces have reshaped supply chain more than digital commerce. Amazon, Alibaba and others have reset consumer expectations. The bar is now delivery in hours, not days. To compete, businesses need real-time visibility, automation and data-driven decision-making.

Investors are watching closely. Venture capital is flowing into startups working on warehouse robotics, AI-powered planning and last-mile solutions. A recent report found that nearly two-thirds of supply chain leaders see AI as the key to lowering costs and building resilience, but only 1 percent say they have fully automated processes⁴. That gap between ambition and execution is precisely what makes the space attractive for capital.

Private Equity and Venture Capital Interest

Private equity firms are increasingly active in the sector. They see opportunities to professionalise operations, consolidate fragmented markets and drive digital adoption in portfolio companies. One emerging trend is the appointment of chief supply chain officers into PE-backed firms, reflecting the belief that supply chain capability is now a driver of enterprise value, not just an enabler.

Venture capital interest is also growing, particularly in Europe. Christy McCaig of Nine Realms has pointed out that over half of large supply chain companies are headquartered in Europe, yet Europe remains underfunded in venture terms by more than 2x compared to the US⁵. The European Investment Fund makes a similar observation: Europe accounts for just 5 percent of logistics venture funding globally despite representing 13 percent of overall venture funding in a €7 trillion market⁶. For many investors that gap signals untapped potential.

Sustainability and Green Logistics

Sustainability is no longer optional. Governments are legislating carbon reduction targets, while consumers are scrutinising environmental credentials. Supply chains are central to both the problem and the solution.

Investment is flowing into electric and autonomous vehicles, carbon-neutral logistics, green warehouses and circular packaging. Companies that can show progress on these fronts are not just ticking compliance boxes but differentiating themselves with customers and investors.

Infrastructure and Policy Support

Governments are also playing their part. Infrastructure projects in ports, rail, highways and smart hubs are attracting public and private capital. Policy frameworks, such as the EU’s Green Deal and US infrastructure funding, are designed to modernise logistics networks and accelerate adoption of cleaner technologies. These initiatives create long-term opportunities for investors who want exposure to stable, asset-backed projects alongside higher-risk tech bets.

Why It Matters for Investors

The message is consistent across conversations with supply chain leaders and investors: a resilient, efficient supply chain is now a precondition for growth. It directly affects customer satisfaction, cost control and the ability to meet strategic objectives.

For private equity firms this means supply chain cannot be an afterthought in due diligence. For venture capitalists it means opportunity in the tools and technologies that enable visibility, automation and sustainability.

Conclusion

The supply chain sector has become an investment priority because it sits at the intersection of stability, growth and innovation. E-commerce expansion, digital transformation, sustainability and policy support are reshaping the landscape. Investors who understand the operational realities and focus on capital-efficient innovation will be best placed to capture the opportunity.

Sources

1. Grand View Research, Logistics Market Size, Share & Trends, 2023.
2. IMARC Group, Logistics Market Report 2024–2027.
3. PwC, Global M&A Industry Trends: Q2 2024.
4. World Economic Forum, From Disruption to Opportunity: Strategies for Rewiring Global Value Chains, 2023.
5. Christy McCaig, General Partner, Nine Realms, EU.VC podcast, 2025.
6. European Investment Fund, VentureEU and Logistics Venture Funding Data, 2023.