Third-Party Logistics Market Research Report 2024
Third-Party Logistics Market Global Industry Analysis and Forecast (2024-2032) By Services (Domestic Transportation, International Transportation, Value-added Warehousing, Distribution), Mode of Transport (Railways, Roadways, Waterways, Airways), End-User (Automobile, Energy, Manufacturing, Life Science and Healthcare, Retail, And Technology), And Region
Third-Party Logistics Market Synopsis
Third-Party Logistics Market Size Was Valued at USD 1065.46 Billion in 2023 and is Projected to Reach USD 2220.26 Billion by 2032, Growing at a CAGR of 8.5% From 2024-2032.
Third-party logistics is a service system in which a third-party organization assists companies with inventory management and distribution needs.Third-party logistics are involved in the process of storing goods and products in a designated location, these firms offer customizable warehouse spaces to fulfill individual client requirements. They oversee inventory, manage stock rotation, and ensure secure storage for goods.
3PL providers provide logistics services, managing the delivery of products from the storage facility to the consumer or seller. They manage every part of freight management, such as scheduling, routing, and choosing carriers, to guarantee timely and cost-efficient delivery.3PLs oversee the distribution process, which includes handling pick-and-pack operations, order fulfillment, and last-mile delivery. This service is essential for e-commerce companies and retailers who want to optimize their supply chain and enhance customer satisfaction.
3PL is involved in the management of inventory, service providers can oversee inventory levels, track stock movements, and deliver up-to-date information to their customers. This aids in keeping appropriate stock levels, decreasing excess inventory and shortages, and enhancing inventory turnover.3PL providers help with customs clearance to make sure all legal guidelines for importing and exporting items are followed. Their skills in navigating elaborate international trade laws make them essential for businesses that operate across different countries.3PLs are able to provide guidance on supply chain management strategies, assisting companies in pinpointing inefficiencies and opportunities to decrease costs. They can suggest and put into action plans for improving logistical activities, from procurement to shipping.
Top Active Players Involved Are:
“DHL Supply Chain (Germany), Kuehne + Nagel (Switzerland), DB Schenker (Germany), Nippon Express (Japan), C.H. Robinson (USA), XPO Logistics (USA), UPS Supply Chain Solutions (USA), DSV Panalpina (Denmark), Expeditors International (USA), J.B. Hunt Transport Services (USA), Sinotrans (China), CEVA Logistics (Switzerland), Geodis (France), Ryder Supply Chain Solutions (USA), Agility Logistics (Kuwait), Yusen Logistics (Japan), Toll Group (Australia), Rhenus Logistics (Germany), Hellmann Worldwide Logistics (Germany), Penske Logistics (USA), Kintetsu World Express (Japan), Panalpina (Switzerland), Geodis Wilson (France), Bolloré Logistics (France), Mainfreight (New Zealand) and Other Active Players.”
Third-Party Logistics Market Trend Analysis
Expansion of the e-commerce Industry
- The Tremendous expansion of the e-commerce sector has significantly impacted the growth of the Third-Party Logistics market, acting as a key driver for its expansion. With the rise in popularity of online shopping, consumer demands for quick, dependable, and sometimes complimentary delivery have surged.
- 3PL companies provide flexible and scalable logistics solutions that are vital for e-commerce activities. They handle the particulars of storing inventory, fulfilling orders, and delivering packages to customers' doorsteps, frequently utilizing cutting-edge technology and data analysis to guarantee quick and effective operations. This is especially advantageous for online retail businesses that must handle changing demand and oversee large numbers of orders, especially in busy times.
- Third-party logistics providers surpass in managing the reverse logistics process for returns, which is a vital and expensive aspect of e-commerce that can be stimulating from a logistical standpoint. 3PLs reduce inefficiency and improve customer happiness by incorporating the process into their operations.
- The rise of global online shopping has also made it necessary for 3PLs to manage international logistics, including customs clearance and shipping rules. This skill assists e-commerce companies in managing international logistics networks. With the increasing focus on environmental issues, third-party logistics providers are creating eco-friendly logistics plans by improving routes to minimize emissions and using sustainable packaging, in response to the rising need for environmentally friendly practices.
- The increase in e-commerce has not just increased the need for 3PL services but also encouraged advancements in the logistics industry, prompting 3PL companies to constantly adjust and improve their services to cater to the changing requirements of e-commerce companies and their clients. Hence, in this way, the Expansion of the e-commerce Industry acts as a driver in Third-Party Logistics Market.
Adoption of IT solutions in logistics
- The incorporation of advanced IT systems allows 3PL providers to enhance their operations, reaching excellent levels of efficiency, visibility, and responsiveness. By utilizing logistics software, these companies can effectively oversee intricate networks, ensuring punctual delivery, precise tracking, and efficient inventory management.
- IT solutions enable immediate sharing of data, promoting interactive communication among different parties like shippers, carriers, and final consumers. This connection boosts decision-making and encourages transparency, leading to trust and stronger relationships. IT automation decreases manual mistakes and duplications, resulting in cost reductions and enhanced service quality.
- IT innovation, especially in fields like the Internet of Things, Artificial Intelligence, and Blockchain, offers 3PL companies to stand out in a competitive market. IoT devices offer detailed information on shipment status and whereabouts, allowing for proactive handling of possible problems. AI-powered data analysis can foresee trends in demand, improve transportation routes, and recommend economical tactics. Blockchain, with its unchangeable record, guarantees secure and clear transaction records, essential for maintaining the integrity of supply chains.
- Implementing IT solutions enables third-party logistics providers to quickly expand their operations, adjusting to changes in demand while maintaining service quality. It facilitates the creation of adaptable and nimble business models that are more in sync with the ever-changing demands of the worldwide market.
- Incorporating IT into third-party logistics is not just a functional enhancement but a necessary strategic transfer. Enabling 3PL firms to provide added-value services increases client happiness and promotes enduring expansion in a globally connected environment. Hence, in this way, the Adoption of IT solutions in logistics acts as an opportunity in the Third-Party Logistics Market.
Third-Party Logistics Market Segment Analysis:
Third-Party Logistics market is segmented on the basis of Services, Mode of Transport, and End-User.
By Services, Domestic Transportation Segment Is Expected to Dominate the Market During the Forecast Period
- The domestic transportation sector is a significant player in the vast third-party logistics (3PL) industry, setting the industry's direction and impacting its growth path. The main reason for the importance of this sector is the growing need for logistics solutions that are both efficient and affordable within a country's borders, showing the strength of local economies and the intricacies of internal supply networks.
- Domestic transport, including road, rail, and inland waterways, is essential for many companies, enabling the transfer of products from producers to distributors and, eventually, to stores or consumers. The sector's control is strengthened by its capacity to provide specialized services such as delivering goods to their final destination and handling perishable and high-value items with care to ensure they arrive on time and in perfect condition.
- The increase in online shopping has also improved the expansion of local transportation in third-party logistics, due to rising consumer demand for quicker, more dependable shipping choices. This evolution in logistics strategies has prompted 3PL providers to innovate to meet these expectations, incorporating advanced tracking systems, flexible delivery schedules, and integrated multi-modal transportation networks.
- The domestic transportation sector is advantaged by favorable government policies and improvements to infrastructure that boost connections and decrease operational delays. This as a result increases operational efficiency and cost-effectiveness, making domestic transportation an appealing choice for businesses looking to optimize their supply chain processes.
- 3PL companies that focus on local transportation excel at expanding operations, utilizing technology, and enhancing routes to guarantee efficient logistics services. They also have a significant impact on advancing sustainability through the implementation of eco-friendly transportation methods and decreasing carbon emissions. Hence, in this way By Services, the Domestic Transportation Segment Is Expected to Dominate the third-party logistics Market.
By End-User, Manufacturing Segment Held the Largest Share In 2023
- The manufacturing sector's leading position in the third-party logistics (3PL) market is due to a mix of strategic, operational, and economic factors. Manufacturing firms frequently face contests managing complex supply chains, necessitating the organization of various operations like sourcing, manufacturing, stock control, and distribution. This level of complexity requires a high degree of efficiency and optimization, which can be provided by 3PL providers through their specialized logistics services.
- A main factor leading manufacturing companies to choose 3PL services is the cost-benefit. By contracting out logistics tasks, these businesses can decrease their operating expenses, since 3PL providers have the size and knowledge to provide more affordable options. This involves improving transportation routes, combining shipments, and using their networks to bargain for better rates with carriers.
- 3PL providers provide improved visibility and transparency in the supply chain, which is essential for manufacturers. By implementing real-time tracking and monitoring, manufacturers can effectively handle inventory levels, prevent shortages, and enhance delivery punctuality. This level of transparency also helps with predicting demand, enabling manufacturers to make informed choices and alter their production timelines when required.
- The versatility and expandability provided by 3PL providers. Manufacturing activities may change quickly depending on market needs, and 3PLs can easily adjust to these fluctuations by offering extra resources or reducing operations when necessary. This flexibility enables manufacturers to react to market trends and consumer demands without requiring large investments in logistics infrastructure.
- 3PL companies can be seamlessly integrated with a manufacturer's current operations, resulting in more streamlined processes and increased efficiency. This technology can encompass systems for managing warehouses, transportation, and other software solutions that improve the overall efficiency of the supply chain. Hence, in this way By End-User, Manufacturing Segment Held the Largest in Third-Party Logistics Market.
Third-Party Logistics Market Regional Insights:
North America is Expected to Dominate the Market Over the Forecast Period
- North America is the leading position in the third-party logistics (3PL) industry due to a combination of factors restricting the region's strong economic environment and advantageous strategic positioning. North America has a large system of roads, railways, airports, and seaports that allow for easy transport and distribution of goods within the continent and to other locations.
- The area has some of the biggest and most pioneering companies in the globe in different industries, such as manufacturing, retail, and technology. These corporations require logistics services to uphold their intricate supply chains, fueling the expansion of 3PL providers.
- North America's regulatory framework also has a major impact on bolstering the 3PL industry. The regulatory frameworks in the region are typically favorable for business operations, providing clear guidelines and support for the logistics sector. North America excels in technological advancements, with 3PL providers leading the way in adopting advanced technologies for their operations. By implementing automation, robotics, data analytics, and artificial intelligence, 3PL companies can enhance their market position by providing more effective, dependable, and economical services to clients.
- The strategic geographical position of North America establishes it as a central point for global trade. Its close location to key trading partners in the Americas and Europe allows for the easy movement of goods and services, leading to increased economic activity. Hence, in this way, North America is Expected to Dominate the Third-Party Logistics Market.
Third-Party Logistics Market Active Players
- DHL Supply Chain (Germany)
- Kuehne + Nagel (Switzerland)
- Db Schenker (Germany)
- Nippon Express (Japan)
- H. Robinson (USA)
- XPO Logistics (USA)
- Ups Supply Chain Solutions (USA)
- DSV Panalpina (Denmark)
- Expeditors International (USA)
- B. Hunt Transport Services (USA)
- Sinotrans (China)
- CEVA Logistics (Switzerland)
- Geodis (France)
- Ryder Supply Chain Solutions (USA)
- Agility Logistics (Kuwait)
- Yusen Logistics (Japan)
- Toll Group (Australia)
- Rhenus Logistics (Germany)
- Hellmann Worldwide Logistics (Germany)
- Penske Logistics (USA)
- Kintetsu World Express (Japan)
- Panalpina (Switzerland)
- Geodis Wilson (France)
- Bolloré Logistics (France)
- Mainfreight (New Zealand) and Other Active players
Key Industry Developments in the Third-Party Logistics Market:
- In March 2024, EFL 3PL announced the launch of its Flagship Grade, Warehousing facility in the vibrant Bhiwandi Region of Mumbai. The strategic expansion, with an investment of USD 5Mn, marks a significant milestone in the EFL EPL Market. It provides customized contract Logistics solutions, offering a distinct competitive advantage through an optimized and efficient supply chain.
- In May 2023, Holman Logistics, a third-party logistics provider (3PL), said that it has established an investing arm to support start-up businesses in the logistics technology sector. The intelligent warehousing software is the first warehouse management system (WMS) to be constructed from the ground up with location awareness, linked systems orchestration, artificial intelligence (AI), and machine learning (ML) as essential components of its architecture.
|
Third-Party Logistics Market |
|||
|
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
|
Historical Data: |
2017 to 2023 |
Market Size in 2023: |
USD 1065.46 Bn. |
|
Forecast Period 2024-32 CAGR: |
8.5 % |
Market Size in 2032: |
USD 2220.26 Bn. |
|
Segments Covered: |
By Services |
|
|
|
By Mode of Transport |
|
||
|
By End-User |
|
||
|
By Region |
|
||
|
Key Market Drivers: |
|
||
|
Key Market Restraints: |
|
||
|
Key Opportunities: |
|
||
|
Companies Covered in the report: |
|
||
Chapter 1: Introduction
1.1 Scope and Coverage
Chapter 2:Executive Summary
Chapter 3: Market Landscape
3.1 Market Dynamics
3.1.1 Drivers
3.1.2 Restraints
3.1.3 Opportunities
3.1.4 Challenges
3.2 Market Trend Analysis
3.3 PESTLE Analysis
3.4 Porter's Five Forces Analysis
3.5 Industry Value Chain Analysis
3.6 Ecosystem
3.7 Regulatory Landscape
3.8 Price Trend Analysis
3.9 Patent Analysis
3.10 Technology Evolution
3.11 Investment Pockets
3.12 Import-Export Analysis
Chapter 4: Third-Party Logistics Market by By Services
4.1 Third-Party Logistics Market Snapshot and Growth Engine
4.2 Third-Party Logistics Market Overview
4.3 Domestic Transportation
4.3.1 Introduction and Market Overview
4.3.2 Historic and Forecasted Market
Frequently Asked Questions
What would be the forecast period in the Third-Party Logistics Market research report?
The forecast period in the Third-Party Logistics Market research report is 2024-2032.
Who are the key players in the Third-Party Logistics Market?
DHL Supply Chain (Germany), Kuehne + Nagel (Switzerland), DB Schenker (Germany), Nippon Express (Japan), C.H. Robinson (USA), XPO Logistics (USA), UPS Supply Chain Solutions (USA), DSV Panalpina (Denmark), Expeditors International (USA), J.B. Hunt Transport Services (USA), Sinotrans (China), CEVA Logistics (Switzerland), Geodis (France), Ryder Supply Chain Solutions (USA), Agility Logistics (Kuwait), Yusen Logistics (Japan), Toll Group (Australia), Rhenus Logistics (Germany), Hellmann Worldwide Logistics (Germany), Penske Logistics (USA), Kintetsu World Express (Japan), Panalpina (Switzerland), Geodis Wilson (France), Bolloré Logistics (France), Mainfreight (New Zealand) and Other Active Players.
What are the segments of the Third-Party Logistics Market?
The Third-Party Logistics Market is segmented into Services, Mode of Transport, End-User, and Region. By Services, the market is categorized into Domestic Transportation, International Transportation, Value-added Warehousing, and Distribution. By Mode of Transport, the market is categorized into Railways, Roadways, Waterways, and Airways. By End-User, the market is categorized into Automobile, Energy, Manufacturing, Life Science and Healthcare, Retail, And Technology. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
What is the Third-Party Logistics Market?
Third-party logistics is a service system in which a third-party organization assists companies with inventory management and distribution needs.
How big is the Third-Party Logistics Market?
Third-Party Logistics Market Size Was Valued at USD 1065.46 Billion in 2023 and is Projected to Reach USD 2220.26 Billion by 2032, Growing at a CAGR of 8.5% From 2024-2032.
