The third party logistics market was valued at US$ 1273.1 billion in 2022 and is projected to reach US$ 1929.18 billion by 2030; it is expected to register a CAGR of 5.33% during 2022–2030.
The growing proliferation of e-commerce is likely to remain a key trend in the market.
The rise of e-commerce and the desire for same-day or next-day delivery propel demand for last-mile delivery services. For example, Amazon's Prime service has set new standards for fast delivery, prompting 3PLs to adapt their services to meet these expectations. Growing consciousness of environmental issues and sustainability has led to increased demand for eco-friendly logistics solutions. 3PL providers are adopting electric vehicles, optimizing routes to reduce emissions, and implementing sustainable packaging practices to align with consumer and regulatory expectations.
Transportation of manufactured goods from the factories to the warehouses is the first stage in the overall 3PL process. The 3PL business stores the product once it arrives at the warehouse or fulfillment center. The products are stored in accordance with their SKU, with each SKU having its own allocated storage place. Items entering the warehouse are normally entered into the provider's tracking system at this point. Software integration helps in efficient and effective processes.
Third-party logistics firms have expanded resource networks that support prime companies enlarge efficiently in a cost-effective way. In addition, third-party logistics firms can deliver sufficient resources and elasticity in services for seasonal inventory or novel product releases. Many establishments experience seasonal variations in customer inclinations, and it becomes key to manage such swings to maintain effectiveness and meet the demand.
The adoption of RFID-enabled devices is also expected to store data for easy transport that will also simplify tracking and identification of products. Software related to transportation management systems will reduce inefficiency and costs. Furthermore, the usage of speech recognition software in warehouse management system communications will help with order turnaround and inventory records while lowering employee training needs. Along with this, the acceptance of cloud-based technology in third-party logistics organizations will respond to demands by recognizing the need for client access, allowing them to address seasonal trends better.
Key segments that contributed to the derivation of the third party logistics market analysis are mode of transports, services and end users.
The geographic scope of the third party logistics market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The scope of the third party logistics market report encompasses North America (the US, Canada, and Mexico), Europe (Russia, the UK, France, Germany, Italy, and the Rest of Europe), Asia Pacific (South Korea, India, Australia, Japan, China, and the Rest of Asia Pacific), the Middle East & Africa (Saudi Arabia, South Africa, the UAE, and the Rest of Middle East & Africa), and South & Central America (Argentina, Brazil, and the Rest of South & Central America). In terms of revenue, Asia Pacific dominated the third party logistics market share in 2023. Europe is the second-largest contributor to the global third party logistics market, followed by North America.
The regional trends and factors influencing the Third Party Logistics Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Third Party Logistics Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 1273.1 Billion |
| Market Size by 2030 | US$ 1929.18 Billion |
| Global CAGR (2022 - 2030) | 5.33% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2030 |
| Segments Covered |
By Mode of transports
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Third Party Logistics Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Third Party Logistics Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The Third Party Logistics Market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the third party logistics market are listed below:
The “Third Party Logistics Market Size and Forecast (2020–2030)” report provides a detailed analysis of the market covering below areas:
Asia Pacific dominated the third party logistics market in 2022.
The investment in research & development by manufacturers is the future trend of the third party logistics market.
US$ 1929.18 billion estimated value of the third party logistics market by 2030.
6.6% is the expected CAGR of the third party logistics market.
DHL Group, Kuehne + Nagel International AG, DB Schenker, C.H. Robinson Worldwide Inc., DSV AS, Sinotrans Ltd., Giodis SA, United Parcel Service Inc., XPO Inc., Torello Transpoti Srl are some of the leading players in the market.