Third-Party Logistics (3PL) Market

Market Overview:

The global third-party logistics (3PL) market size reached US$ 1,034 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 1,675 Billion by 2028, exhibiting a growth rate (CAGR) of 8.2% during 2023-2028.

Third-party logistics (3PL) refers to a business process that enables manufacturers to recruit different organizations for outsourcing activities related to supply chain management, including distribution and logistics. It assists in cross-docking, door-to-door delivery, transporting, orders fulfilling, freight forwarding, picking, packing, and inventory forecasting at reduced costs. This, in turn, aids enterprises in providing a better customer experience, ensuring scalability, mitigating the risks of product damages, promoting business growth and market expansion, and enabling the completion of core business operations. At present, 3PL is commercially available in varying transportation modes and service types, including dedicated contract carriage (DCC), domestic and international transportation management. 

Third-Party Logistics (3PL) Market Trends:

The widespread adoption of third-party logistics across, retail, automotive, hospitality, construction, telecommunication, e-commerce, manufacturing, and food and beverage (F&B) sectors can be attributed to the increasing need for outsourcing major transportation and logistics services to reduce shipping costs and manage delivery time. This, in turn, is currently driving the market toward growth. In line with this, significant technological advancements, such as the introduction of supply chain management (SCM), cloud, enterprise resource planning (ERP), transportation management systems (TMS), international trade logistics systems (ITLS) and web-based solutions that helps in mitigating energy consumption and optimizing operational efficiencies is acting as another growth-inducing factor. Moreover, the large-scale integration of radio-frequency identification (RFID) chips to enable manufacturers and consumers to track the product location, orders, and freight shipment with the support of various electronic gadgets are also propelling the market growth. Additionally, the sudden outbreak of coronavirus disease (COVID-19) pandemic and the consequent implementation of mandatory lockdowns across the globe has facilitated the rise in the demand for third-party logistics services across various e-commerce and online platforms for inventory management and performing the delivery of products within stipulated time phrase. Other factors, such as the escalating trading activities due to globalization and the extensive utilization of installed mobile apps are further creating a positive outlook for the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global third-party logistics (3PL) market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on transport, service type and end use.

Breakup by Transport:

• Railways 
• Roadways
• Waterways
• Airways
   

Breakup by Service Type:

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

Breakup by End Use:

• Manufacturing
• Retail
• Healthcare
• Automotive
• Others
   

Breakup by Region:

• 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
   

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being 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 and United Parcel Service.

Report Coverage: