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Global Third-Party Logistics (3PL) market seems to reach USD 2,230.96 billion by 2033, at a CAGR of 7.5% from 2024 to 2033. Global Third-Party Logistics (3PL) market is witnessing a considerable growth owing to the high consumer expectation and penetration of internet services. The growth of the transport infrastructure in emerging countries, a thriving e-commerce sector, and advancements in new technologies are anticipated to yield significant contributions to market development. Shippers prioritize outsourcing transportation activities to optimize their operations while keeping costs low. The higher economic activity and globalization add further pressure on efficient inventory management services that offer increased working capital options. Furthermore, restructuring traditional brick-and-mortar business models helps drive industry dynamism forward at an accelerated pace.
The organization uses third party logistics for outsourcing the part of its warehouse, distribution etc. The organization needed the outsourcing of its inventory, to the desired location or any distribution has to contact Third Party Logistics Company for this purpose. Third-party logistics providers specialize in the operation of transportation and warehousing so that the product could reach at the right place, at the right time and right amount to meet the demand. The services provided by the logistics company could extend beyond logistics by providing value-added services like the integration of parts in the supply chain. Third-party Logistics Company typically deals with warehousing, transportation and the provision of raw materials. Companies outsource their logistics to Third Party Logistics Company so that they can focus on the core competencies of the business. This also could lead to the reduction of capital expenditure and mitigate the risk of transportation, as the logistics company would take care of the products during transportation. The increase in the profit margin of the company, operations team, always keeps in mind to use the inventory and transportation cost in an efficient way. The increase in the awareness about the importance of efficient inventory management and to use the capital in better-organized way are driving the third-party logistics market. The third-party logistics takes care of the lean inventory management, short-time deliveries and shorter lifecycle of the product. The advancement in technologies like in third party logistics like cloud-based platform, transportation management system and the use of RFID for monitoring the proper tracking of the shipment is playing the key role in enhancing the service by the logistics company. This is also could be considered as the difference-maker among the logistics company. The advent of automation in the logistics and the rise in IoT based services are fuelling the third-party logistics market. Also, the rise in the expectation of the consumer and the rapid urbanization is also propelling the third-party logistics market. The growing e-commerce industries, and penetrating of the internet services are boosting the third-party logistics market.
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The consumer expectation has increased. They want the shipment as soon as possible. Also, in some of the deliveries, the product lifecycle is short. Many times the products to be shipped are delicate. This requires fast service, good transportation service and proper warehousing all these factors are driving the third-party logistics market. The advent of internet services has increased the trend of e-commerce companies which requires proper logistics service, also with the internet services, the process of logistics have become more transparent, now one can track its shipment of the product. All these factors are driving the third-party logistics market.
The advancement in technologies in the logistics sector and the increasing trend of IoT facilities are expanding the e-commerce industries globally. This has brought a major shift in manufacturing and retail business models. The timely delivery of the shipment and the good condition of the products delivered are driving the e-commerce industries, which in turn is driving the third-party logistics market. The surge in per capita income of the people and the busy lifestyle of the people have them to buy things using e-commerce websites. The proper transparency provided by the company website, by proper tracking of the shipment, the timely shipment of the product and the good condition of the product is driving the e-commerce industries which in turn drives the third-party logistics market.
The growing infrastructure in the developed and developing countries are helping in the expansion of third party logistics market. But still, there are many places where the infrastructure is not good, the roads, the air service and waterways are not organized, this may result in the lost shipment, tampered items which are delivered and late delivery of the product. These factors discourage logistics market. These lack of infrastructure, with all the formalities that the logistics company has to follow, are acting as a restraint for the market.
The advancement in technologies in the third part logistics is providing a great opportunity for the market in the forecasting period. The new technologies like cloud-based platform, big data, transport management system and the use of RFID to track the shipment is fuelling the market and will drive the market in the forecasting period. The big data enhances the supply chain process; the transportation management services helps in finding the shortest path. The RFID used to give more transparency in the process to both the customer and the logistics company by proper tracking of the vehicle and the shipment. All these factors are helping the logistics company in delivering the product at the right time to the right customer and with the right condition of the product. All these factors are also driving the e-commerce market, which in turn is driving the third-party logistics market.
The global third party logistics market has been segmented based on service, transport, end-user and regions.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, and the Middle East and Africa. The Asia Pacific is accounting for the highest market share in 2023.
Asia Pacific Third-Party Logistics (3PL) Market Share in 2023 - 34.5%
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The big players are now focused in the implementation of strategies like joint venture, product innovations, merger and acquisition and partnerships etc. to gain the market share and to strengthen its position in the global Third-Party Logistics (3PL) industry.
In August 2017, DB Schenker was planning to acquire SB Global Logistics its partner in the supply chain in New Zealand. This acquisition would expand the organization presence in New Zealand to South Island.
In August 2019, FedEx agreed to acquire Cargex. This acquisition would complement the round trip flight announced by FedEx express from Colombia to Miami.
Report Description:
As per The Brainy Insights, the size of the Third Party Logistics (3 PL) market was valued at USD 1,082.45 billion in 2023 and is anticipated to reach USD 2,230.96 billion by 2033.
Global Third Party Logistics (3 PL) market is growing at a CAGR of 7.5% during the forecast period 2024-2033.
The Asia Pacific region emerged as the largest market for the 3 PL.
The high consumer expectation and penetration of internet services is the key driving factors for the Third Party Logistics (3 PL) market.
The lack of infrastructure could hamper the market growth.
The advancement in technologies will provide huge opportunities to the market.
Key players are C.H. Robinson Worldwide, Inc., DB Schenker, DHL INTERNATIONAL GMBH, NIPPON EXPRESS, FedEx.
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. The Brainy Insights has segmented the global third-party logistics (3PL) market based on below-mentioned segments:
Global Third-Party Logistics (3PL) Market by Service:
Global Third-Party Logistics (3PL) Market by Transport:
Global Third-Party Logistics (3PL) Market by End-user:
Global Third-Party Logistics (3PL) Market by Region:
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