Third-Party Logistics (3PL) Market

Third-Party Logistics (3PL) Market Size and Share:

The global third-party logistics (3PL) market size was valued at USD 1,201.4 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 2,218.3 Billion by 2033, exhibiting a CAGR of 7.01% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of over 42.4% in 2024. The rising popularity of direct-to-consumer channels, on-demand services, and subscription-based models, along with the inflating need for quicker and more flexible delivery services, attributed to the expanding e-commerce industry, is primarily driving the market growth. Asia Pacific accounts for the largest third-party logistics market share in the world.

The global market is expanding due to globalization, increasing the need for efficient cross-border supply chain solutions. The rise of omni-channel retailing has significantly boosted the demand for scalable logistics services. A case study in the 3PL logistics sector demonstrated a 75% improvement in process cycle efficiency, increasing from 40% to 70% after implementing a Lean Six Sigma DMAIC framework. This highlights the significant potential of process optimization tools to enhance productivity and streamline warehouse operations in the growing 3PL logistics market. Businesses are adopting 3PL to access advanced technologies like data analytics and route optimization for improved efficiency. Growing emphasis on sustainability is encouraging the adoption of eco-friendly logistics practices offered by specialized providers. Additionally, rise in cost pressures and the focus on enhancing customer experience are prompting companies to outsource logistics, allowing for strategic resource allocation and operational improvements.

The United States is emerging as a key regional market and is expanding primarily due to the increasing complexity of supply chain networks, encouraging businesses to seek specialized expertise. In line with this, the rise of e-commerce and consumer demand for fast, reliable deliveries are driving growth in last-mile logistics. International collaborations, such as the leading US-based 3PL platform, MODE Global’s partnership with Transporeon, announced on April 11, 2024, that leverages AI and automation to optimize freight tendering and expand global networks, benefiting over 150,000 carriers. Continual advancements in automation technologies, including warehouse robotics and cloud-based management systems, are transforming logistics operations. Additionally, favorable government initiatives aimed at enhancing infrastructure and resolving transportation bottlenecks are creating a conducive environment for 3PL services.

Third-Party Logistics (3PL) Market Trends:

The Launch of Favorable Government Policies

Government bodies across the globe are focusing on introducing favorable initiatives to modernize logistics infrastructures by investing in infrastructure development projects. For instance, on 17th September 2023 India marked the first anniversary of the National Logistics Policy (NLP), achieving rapid progress in logistics improvements. The NLP aims to reduce logistics costs, improve the logistics performance index ranking to the top 25 by 2030, and enhance efficiency through digitalization, third-party logistics, and skilled manpower. This, in turn, helps in increasing the efficiencies in supply chains and enhancing the connectivity to support logistics players to reach the underexplored markets. For instance, in countries, such as India, relaxed FDI regulations, Goods and Services Tax (GST), and granting of infra status have augmented the core competencies of the Indian logistics industry. In line with this, GST helped 3PL logistics companies to set up large multi-modal logistics parks, coupled with industrial centers, which worked as distribution and freight hubs.

The Rising Trend of Outsourcing Logistics by Drug Manufacturers

With the expanding geriatric population and the elevating prevalence of chronic diseases, the sales of prescription drugs are growing. Consequently, numerous medical organizations are outsourcing third-party (3PL) logistics to prioritize the availability of critical drugs and optimize their distribution networks. This, in turn, is bolstering the market growth. For example, Maersk, one of the world’s largest container carriers, expanded its dedicated cold chain facilities in India. It transformed into an integrated logistics service provider with end-to-end transportation assistance. Moreover, Kool-ex acquired 200 completely built reefer trucks from Tata Motors, which increased its fleet size to 400 and became the largest player in India in pharmaceutical cold chain logistics. In addition to this, CEVA Logistics announced the development of an expert and innovative installation service for large-scale medical equipment. It hired a team of technicians and engineers in India. The company’s expert team handled the unpacking, installing, and setting up the equipment, such as Cath Labs, MRI Scanners, Digital Radiography machines, CT Scanners, etc., on behalf of several global manufacturers.

Strategic Collaborations and Partnerships

According to the third-party logistics (3PL) industry report, key players are engaging in various strategic collaborations and partnerships to expand their product offerings, strengthen their competitive positions, enhance operational efficiencies, etc. For instance, SEKO Logistics announced its first robotics partnership to scale warehouse operations with GreyOrange's Ranger Assist Bots. SEKO deployed 15 bots in one of its Milton Keynes, UK, during the first stage of the plan. Another 35 robots were installed in the next stage. The logistics company intended to expand the bot initiative beyond the UK, with the Netherlands as the first location. In line with this, AI LOGISTIX, a start-up focused on resolving and identifying logistics and supply chain issues, partnered with SUN Mobility, a provider of battery-swapping services and energy infrastructures for electric vehicles (EVs), to become India's last-mile delivery partner. For instance, Annual Third-Party Logistics Study, 2025, reveals that 82% of shippers experience improved customer service through 3PL partnerships, with 66% benefiting from cost reduction and 68% citing logistics performance innovation. Despite slight declines in relationship success, 89% of shippers and 94% of 3PLs still report positive outcomes. As a client of Alchemy Mobility LLP, a green mobility service provider for last-mile delivery agencies, the Bengaluru-based start-up utilized SUN Mobility's energy services. With the help of collaboration, the two companies intended to deploy 500 loaders and electric two-wheelers (E2Ws), with each month adding approximately 100 vehicles to the fleet.

The Growing Focus on Data-Driven Decisions

The increasing emphasis of third-party logistics on providing data-driven decisions is propelling the market growth. These analytics insights can be offered by establishing data science capabilities. For instance, the growing focus on data-driven decisions is transforming third-party logistics, with 65% of organizations set to be fully data-driven by 2026, according to Gartner. Despite this, only 29% can evaluate data quickly enough, even though 84% of CX leaders rely on customer analytics for key insights. Moreover, these strategies assist third-party logistics providers in giving shippers with enhanced end-to-end visibility and improved traceability across the supply chain. For example, according to one recent study, 94% of shippers believed that analytics are required to ensure complete and on-time order fulfillment and package visibility.

Third-Party Logistics (3PL) Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global third-party logistics (3PL) market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on transport, service type, and end use.

Analysis by Transport:

• Railways 
• Roadways
• Waterways
• Airways

Roadways stand as the largest component in 2024, holding around 58.2% of the market. The rising need for efficient transportation systems is augmenting the usage of roadways by third-party logistics providers. Apart from this, government bodies across the globe are promoting the adoption of advanced features, which is fueling the growth of the market. For example, the Federal Motor Carrier Safety Administration allowed the usage of cameras as a substitute for rearview mirrors, which offered benefits to truck drivers in terms of safety.

Analysis by Service Type:

• Dedicated Contract Carriage
• Domestic Transportation Management 
• International Transportation Management
• Warehousing and Distribution
• Value Added Logistics Services

Domestic transportation management leads the market with around 32.4% of market share in 2024. They dominate the market due to its critical role in streamlining logistics within national boundaries, ensuring cost efficiency and timely delivery. The growing demand for e-commerce, coupled with advancements in technology, drives the need for effective transportation solutions. With a focus on optimizing routes, reducing costs, and enhancing overall service reliability, domestic transportation services cater to diverse industries, making them indispensable for efficient supply chain operations.

Analysis by End Use:

• Manufacturing
• Retail
• Healthcare
• Automotive
• Others

Manufacturing leads the market with around 24.8% of market share in 2024. The expanding manufacturing industry is widely increasing the number of outsourcing transportation activities, attributed to benefits, such as business process development, enhanced customer services, reduced transportation cost, supply chain visibility, inventory and vendor management, etc., which is one of the key drivers that are catalyzing growth in the end-use segment. For instance, numerous tax reform policies and other initiatives in India, including 'Make in India', are creating lucrative growth opportunities for the manufacturing sector.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, Asia-Pacific accounted for the largest market share of over 42.4%. The increasing number of shippers, who are inclined towards dedicated contract carriage services, is augmenting the regional market. Apart from this, the escalating demand for cold storage in the region is expanding the third-party logistics market in Asia-Pacific. Enhanced route optimization, cost reduction, and improved service reliability render domestic transportation indispensable for various industries across the region. Additionally, advancements in technology, increasing e-commerce adoption, and expanding international trade fuel demand across various sectors. Asia Pacific's strategic position as a global trade hub and its cost-effective workforce further solidify its leadership in driving market growth and innovation.

Key Regional Takeaways:

United States Third-Party Logistics (3PL) Market Analysis

In 2024, US accounted for around 82.40% of the total North America third-party logistics (3PL) market. The third-party logistics (3PL) adoption is reshaping supply chain efficiency across the United States, fostering growth in states like California, Texas, and Illinois. By outsourcing logistics services, companies streamline operations, reduce costs, and enhance customer satisfaction. For instance, the United States 3PL sector is capitalizing on e-commerce growth, with warehouses averaging 78% capacity and 20% operating above 100%, according to industry reports. Despite challenges like space constraints and labour shortages, this capacity crunch fosters innovation and strategic partnerships, offering a competitive advantage for 3PL providers in adapting to market demands. For example, e-commerce giants in New York and Florida rely on 3PL providers to optimize inventory management, improve last-mile delivery, and scale their operations. Key industries, including retail and manufacturing, leverage 3PL solutions in states like Ohio and Pennsylvania to navigate complex transportation networks and meet increasing demand. Additionally, businesses in major ports such as Los Angeles and Savannah benefit from specialized freight handling and warehousing services. This strategic integration of logistics expertise is augmenting competitiveness and operational agility nationwide. With the increasing complexity of global supply chains, 3PL adoption ensures seamless connectivity, enabling businesses in diverse sectors and regions to flourish in the dynamic U.S. marketplace.

Europe Third-Party Logistics (3PL) Market Analysis

The Europe's strategic position, spanning across diverse countries such as Germany, France, and the Netherlands, renders it a hub for global trade and commerce. With advanced infrastructure and cross-border connections, the region's adoption of third-party logistics (3PL) solutions is revolutionizing supply chain efficiency. Germany exemplifies this by leveraging 3PL to optimize automotive exports, ensuring timely deliveries to international markets. For instance, In Germany, where over 1,000 specialized 3PL providers operate as of 2023, outsourcing logistics can reduce costs by up to 50% due to economies of scale and operational efficiency, offering a strategic advantage for merchants navigating high-volume eCommerce and retail demands. Similarly, France utilizes 3PL in its expanding wine industry, streamlining distribution to global buyers and reducing logistics costs. The Netherlands, home to the Port of Rotterdam, Europe's largest maritime port, integrates 3PL services for seamless freight forwarding and warehousing, fostering its position as a logistical gateway. These examples highlight how 3PL adoption enhances inventory management, reduces transportation complexities, and improves last-mile delivery across Europe. By outsourcing logistics to specialized providers, businesses in the region gain scalability, cost efficiency, and agility, driving their competitiveness in an increasingly interconnected global economy.

Asia Pacific Third-Party Logistics (3PL) Market Analysis

The adoption of third-party logistics (3PL) in Asia-Pacific is transforming supply chain operations across diverse regions, including India, China, and Japan. These countries are leveraging 3PL solutions to optimize inventory management, enhance transportation networks, and streamline distribution channels. In India, the rapid growth of e-commerce increased reliance on 3PL providers to ensure timely delivery to both urban and rural areas. According to IBEF, India's logistics sector, valued at USD 250 Billion in 2021 with the market predicted to increase to an astounding USD 380 Billion by 2025, offering significant growth opportunities for third-party logistics (3PL) providers to enhance efficiency and reduce costs. China, with its expansive manufacturing sector, benefits from 3PL expertise in handling complex logistics for domestic and international markets. Japan, known for its advanced technology infrastructure, integrates 3PL services with smart logistics systems to maintain efficiency and precision. Across Asia-Pacific, 3PL adoption is addressing regional challenges, improving operational efficiency, and supporting businesses in meeting customer demands within competitive markets.

Latin America Third-Party Logistics (3PL) Market Analysis

Latin America, encompassing diverse countries such as Brazil, Mexico, Argentina, and Chile, is experiencing significant growth in the adoption of third-party logistics (3PL) solutions. Key urban hubs like São Paulo, Mexico City, and Buenos Aires serve as central nodes for supply chain optimization. 3PL providers are addressing challenges of cross-border trade, especially within Mercosur and Pacific Alliance nations, streamlining transportation, warehousing, and distribution. For instance, according to ITA, Brazil is the largest economy in Latin America and continues to experience rapid e-commerce growth of 14.3%, highlighting the critical role of third-party logistics (3PL). Strategic investments in optimizing logistics and understanding consumer buying journeys have given leading companies a significant competitive edge. For example, in Mexico, 3PL is enhancing automotive supply chains, while in Brazil, agriculture exports benefit from efficient logistics networks. These advancements support regional economic integration and improve operational efficiency for businesses across Latin America.

Middle East and Africa Third-Party Logistics (3PL) Market Analysis

The Middle East and Africa region, encompassing countries like Saudi Arabia, UAE, South Africa, and Kenya, is witnessing accelerated adoption of third-party logistics (3PL) solutions. Key hubs such as Dubai and Johannesburg are leveraging 3PL services to enhance supply chain efficiency in sectors like retail, healthcare, and e-commerce. The UAE government employs several strategies to support the third-party logistics (3PL) and logistics market, aiming to enhance the country's role as a global trade and logistics hub. One such initiative is the "Digital Silk Road" program, introduced by the Dubai Free Zones Council. This program is designed to strengthen international e-commerce by integrating digital technologies with logistics operations, facilitating smoother cross-border trade. The robust growth highlights the UAE's strategic position as a logistics hub, offering significant advantages for 3PL providers in regional and global supply chain management. For instance, in Saudi Arabia, 3PL providers streamline operations for growing e-commerce platforms, while in South Africa, they improve cold chain logistics for pharmaceutical distribution. By addressing infrastructure challenges and optimizing logistics costs, 3PL is enabling businesses across the region to meet rising demand and expand market reach effectively.

Competitive Landscape:

Continual technological advancements are transforming the third-party logistics (3PL) market by enhancing efficiency, visibility, and customer satisfaction. Integration of advanced tools like artificial intelligence (AI), machine learning, and predictive analytics enables precise demand forecasting, route optimization, and inventory management. The rapid adoption of Internet of Things (IoT) devices offers real-time tracking of shipments, improving transparency and reliability. Cloud-based platforms facilitate seamless communication and collaboration among supply chain stakeholders. Automation technologies, such as robotics and automated warehouses, streamline operations and reduce labor costs. Blockchain is emerging as a key technology, ensuring data security, and reducing fraud in logistics processes. These innovations are reshaping 3PL services, enabling providers to meet evolving customer demands and maintain a competitive edge in the market.

The report provides a comprehensive analysis of the competitive landscape in the third-party logistics (3PL) market with detailed profiles of all major companies, including:

• C.H. Robinson
• CMA CGM
• DB Schenker
• DHL (The Deutsche Post AG)
• DSV A/S
• Expeditors International of Washington Inc
• FedEx Corporation
• Hitachi Transport System Ltd.
• J.B. Hunt Transport Services Inc
• Kuehne + Nagel International AG (Kuehne Holding AG)
• Nippon Express Co. Ltd.
• Sinotrans
• United Parcel Servic

Latest News and Developments:

• July 2024: At the Multimodal event in Birmingham, the UK's top supply chain conference and logistics expo, Maersk was named "3PL Company of the Year." This award highlights Maersk's strong performance in supply chain management and logistics, recognizing one of the key products in its Logistics & Services portfolio.
• March 2024: EFL 3PL has opened a new, state-of-the-art 175,000-square-foot warehouse in Bhiwandi, Mumbai, with an investment of USD 5 Million. This facility includes advanced logistics technology to improve EFL 3PL's complete logistics services. The expansion highlights EFL's dedication to growing its presence in India, aiming to enhance service efficiency and better serve a wide range of clients.
• September 2023: C.H. Robinson Worldwide, Inc. announced the opening of a new warehouse facility of 400,000 sq. ft. The warehouse was equipped with 154 dock doors and had the capacity to accommodate up to 700 trailers. This expansion enabled the company to extend its presence for trade along the Mexico border and diversify supply chains to ensure efficient transportation and logistics operations along The Port of Laredo.
• December 2023: Yusen Logistics Co. Ltd. entered into a strategic partnership with Pickle Robot Company, a leader in the field of robotic automation and physical Artificial Intelligence (AI). Owing to the collaboration, Yusen Logistics Co. Ltd. was able to minimize the physical workload for its employees and improve service reliability. The partnership reflected Yusen Logistics Co. Ltd.’s dedication to introduce the most advanced robotics automation solutions within its warehouses.
• February 2023: CMA CGM and La Poste Group announced a strategic agreement to strengthen collaboration between their subsidiaries, GeoPost and CEVA Logistics. This partnership aims to optimize their logistics and e-commerce services by leveraging each other's expertise. The initiative focuses on enhancing global supply chain operations and supporting sustainability goals. The agreement represents a step toward integrated solutions for efficient delivery and distribution networks.

Third-Party Logistics (3PL) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the third-party logistics (3PL) market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global third-party logistics (3PL) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the third-party logistics (3PL) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.