3PL Market size worth over $3 Tn by 2032

Third-Party Logistics Market size is set to surpass USD 3 trillion by 2032, according to a new research report by Global Market Insights Inc.
 

Rapid technological advancements in logistics have increased the deployment of 3PL services. Emerging companies can easily track shipments for their consumers using smartphone apps, instead of using expensive or complex freight tracking systems.
 

Third-party logistics companies are also heavily investing in load-tracking technology that provides access to data points throughout the supply chain. This offers clients complete transparency in transportation while using real-time insights to reroute trucks flexibly, provide supply chain updates, and improve efficiency. The integration of artificial intelligence and the development of cloud-based logistics solutions for real-time supply chain monitoring will further influence industry trends.
 

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Focus on retail supply chain management to increase use of DTM solutions

The 3PL market value from domestic transportation management (DTM) solution segment accounted for USD 450 billion in 2022. The heavy inflow of foreign direct investment (FDI) has boosted the retail sector in emerging economies such as India. As per the Retailers Association of India (RAI), the country’s retail sector attained close to 96% of its pre-COVID-19 sales by September 2021.
 

With such rapid growth, retail businesses are focusing on ways to streamline their supply chain and shipping methods, as well as ensure faster delivery. 3PL tools such as DTM provide effective movement of goods to warehouses for distribution, from manufacturers to shops, and direct to customers, increasing service acceptance for retail logistics applications.
 

Rising import-export activities via sea routes to bolster service demand

The sea mode segment in the 3PL market is anticipated to register nearly 5% growth rate between 2023 and 2032. This growth is credited to the increasing import and export of raw materials, affordable foods, and mass-produced goods. According to the International Chamber of Shipping, around 11 billion tons of goods are transported via ships every year. Furthermore, ship transportation has the lowest impact on the environment on a per-ton basis. Since manufacturers consider shipping an affordable solution for importing and exporting goods, the use of 3PL solutions for sea transport will gain significant traction in the coming years.
 

Browse key industry insights spread across 327 pages with 347 market data tables & 41 figures & charts from the report, “Third-Party Logistics (3PL) Market Size By Solution (Dedicated Contract Carriage (DCC), Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution, Logistics Software), By Mode (Air, Sea, Rail & Road), By Application (Healthcare, Food & Beverages, Retail, Automotive, Manufacturing), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032”, in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/third-party-logistics-3pl-market-size
 

Consumer preference for faster delivery to increase 3PL service demand in retail applications

3PL market from the retail application segment held over USD 400 billion in 2022. Many businesses are collaborating with third-party logistics service providers to ensure faster deliveries to consumers. Consumers are showing an increasing inclination toward same-day or one-day delivery, encouraging retailers to opt for 3PL services. Third-party logistics providers have the expertise and resources to support various business goals. The wide network of 3PL firms also provides them the ability to support consumer needs while reducing shipping costs, further bolstering service demand in retail management.
 

High demand for cold storage facilities to influence industry dynamics across North America

North America 3PL market hold more than USD 300 billion in 2022. Growing demand for cold storage warehouses has increased the deployment of 3PL services in the region. Major organizations are integrating cold storage systems to streamline their supply chain. Citing an instance, in November 2020, Moderna and Pfizer deployed cold storage facilities for the storage of their COVID-19 vaccines, which require ultra-cold conditions to maintain their stability. The increasing requirement for cold storage facilities for such purposes will thus create lucrative growth opportunities for the regional market.
 

Strategic technological upgrades by industry players to define industry landscape

Top companies operating in the 3PL 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.), FedEx, GEODIS, J. B. Hunt, Kintetsu World Express, Inc., Kuehne + Nagel International AG, and Penske Logistics, Inc. These leaders are focusing on strategies such as new technology launches to expand their offerings.
 

For instance, in April 2021, UPS Supply Chain Solutions unveiled its Warehouse Execution System (WES), aimed at making distribution centers effective and smart. This warehouse network technology was designed to enable faster order intake and fulfillment to ensure that consumers receive on-time product deliveries. Similar efforts from other industry participants are also expected to influence market dynamics over the forthcoming years.