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Third-Party Logistics Market Size
Third-Party Logistics Market size exceeded USD 1 Trillion in 2022 and is projected to expand at more than 5% CAGR from 2023 to 2032.
Changing consumer buying patterns have fostered the expansion of the global e-commerce industry. International e-commerce has enabled organizations to expand into foreign markets, shortened B2B sales cycles, and made it easier to find the right product-market fit. To operate such businesses, companies require logistic operators specializing in inventory management, packaging, fulfillment, and returns, creating growth opportunities for the 3PL industry.
However, a lack of logistic control may hamper the market growth to some extent. Manufacturing companies must depend on the competency, reliability, and honesty of third-party logistics service providers, limiting their control over operational efficiency. Organizations are unable to track warehouse activities, creating legitimate concerns concerning product quality. These logistical disruptions may impact the planning, predictability, and consumer satisfaction for the organizations, inhibiting the industry progress.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 1 Trillion |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 5% |
| 2032 Value Projection: | USD 3 Trillion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 327 |
| Tables, Charts & Figures: | 388 |
| Segments covered: | Solution, Mode, Application, and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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Third-Party Logistics Market Analysis
Third-Party Logistics (3PL) Market from the dedicated contract carriage (DCC) solution segment is expected to depict over 5% growth rate between 2023 and 2032. Third-party DCC solutions dedicate drivers and vehicles for a customer to use exclusively on a contractual basis. This solution can fulfill responsibilities such as front-door delivery, direct store delivery, customer interaction, and cross-docking.
The DDC solution offers a way for shippers to increase truck capacity, reduce costs, and transfer liability. Additionally, the increasing demand for efficient and safer fleets that can be regulated, tracked, and measured is further fueling the use of third-party logistics solutions such as DCC in fleet management.
The 3PL market value from air mode segment is anticipated to reach nearly USD 1,100 billion by 2032. Technological advancements have facilitated a rise in consumer preference for same-day deliveries. Same-day delivery combines the speediness of physical stores with the convenience of online retail. Many 3PL providers are also collaborating with airlines to offer speedier transportation of medical goods such as vaccines, and ventilators across the world. This shift in consumer trends toward faster deliveries over long distances will create substantial demand for third-party logistics solutions in air freight applications.
The food & beverage application segment accounted for more than 15% of the third-party logistics market share in 2022. This growth is attributed to the rising disposable income, growing demand for processed foods, and expanding consumer awareness regarding the advantages of consuming nutritious foods. Many F&B brands also began investing in direct-to-consumer (D2C) logistics and e-commerce services during the pandemic restrictions.
This has helped companies to personalize their consumer experience without much assistance from physical stores. In addition, e-commerce providers across the globe are focusing on delivering fresh vegetables and fruits to address the increasing consumer demand for healthier foods, further fostering the usage of third-party logistics in food & beverage applications.
Asia Pacific 3PL market size is estimated to exhibit over 10% gains through 2032. This growth is credited to the steady expansion of the e-commerce sector in the region. 3PL companies provide additional services such as door-to-door services, cross-docking, packaging, and inventory management, which are essential for efficient e-commerce operations. There has also been a growing shift towards client-facing technology to increase customer involvement in tracking and instant decision-making, creating strong demand for third-party logistics across the e-commerce sector in the region.
Third-Party Logistics Market Share
Top manufacturers operating in the third-party logistics market are
- AmeriCold Logistics LLC
- BDP International
- Burris Logistics
- C.H. Robinson Worldwide
- DB Schenker Logistics
- DHL Supply Chain
- DSV A/S (UTi Worldwide, Inc.)
- Echo Global Logistics
- Expeditors International of Washington
- FedEx
- GEODIS
- J. B. Hunt
- Kintetsu World Express, Inc.
- Kuehne + Nagel International AG
- Landstar System, Inc.
- Nippon Express Co., Ltd
- Penske Logistics, Inc.
- Ryder Supply Chain Solutions
- Schneider National, Inc.
- SinoTrans (HK) Logistics Limited
- Total Quality Logistics, Inc.
- Transplace Texas LP (Uber Freight)
- UPS Supply Chain Solutions
- XPO Logistics, Inc.
These leaders are signing strategic agreements to expand their business operations and reinforce their market position.
Citing an instance, in October 2022, Cromwell Tools inked a major freight distribution agreement with XPO logistics. The company will utilize XPO to transport goods from its 40 locations, collect from suppliers, and move goods between satellite sites. Strategic deals such as these from other industry participants will further stimulate the growth of the 3PL industry over the forthcoming years.
COVID-19 Impact
Since its onset, logistics companies, which are involved in the storage, movement, and flow of various products, have been directly impacted by the COVID-19 pandemic. Logistics companies represent a crucial part of value chains, both across domestic and international borders, facilitating commerce and trade, and aiding businesses in getting their products to consumers. The supply chain disruptions caused by the outbreak could, therefore, affect third-party logistics demand, creating roadblocks to industry progression to a certain extent.
The gradual ease of travel restrictions, rise in e-commerce purchases, and a strong emphasis on the development of automated distribution and warehouse facilities may, however, fuel the development of the industry in the coming years.
The 3PL market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue in USD from 2018 to 2032 for the following segments:
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Market Overview, By Solution
- Dedicated Contract Carriage (DCC)
- Dedicated Transportation Management (DTM)
- International Transportation Management (ITM)
- Warehousing & Distribution
- Logistics Software
Market Trends, By Mode
- Air
- Sea
- Rail & Road
Market Insights, By Application
- Food & beverages
- Healthcare
- Retail
- Automotive
- Manufacturing
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Switzerland
- Sweden
- Russia
- Asia Pacific
- China
- India
- Japan
- South Korea
- Indonesia
- Australia
- South America
- Brazil
- Argentina
- Chile
- Colombia
- MEA
- Saudi Arabia
- Turkey
- UAE
- South Africa
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