Third-party logistics (3PL) in the supply chain management of a company is a third-party business used by manufacturers to provide fulfillment services and distribute products of the company. These services consist of warehousing, integrated operations, and transportation services, which can be scaled according to customer needs and market conditions. Logistics service providers are responsible for the delivery of goods from manufacturers to consumers.
At present, the third-party logistics (3PL) market has witnessed significant growth over the years, owing to increase in trading activities due to globalization and the development of the e-commerce industry. Similarly, the continuous effort of contract logistics companies to offer efficient last-mile deliveries is another opportunity expected to fuel the third-party logistics (3PL) market growth in the near future. For instance, in September 2021, United Parcel Service, Inc. (UPS) announced an agreement to acquire Roadie, an on-the-way delivery service provider within the U.S., which reduced the transit times for same-day deliveries as well as last-mile delivery services across the U.S.
In addition, government initiatives such as trade agreements & treaties and public-private partnerships are further bolstering the demand for third-party logistics and management networks worldwide. For instance, in Russia, the positive trend of international trade, positive effects of expansionary monetary policy (QE), and rapid growth in GDP fuel the growth of the third-party logistics market in the country. Furthermore, expansion of private firms to serve a wide range of services in the third-party logistics sector is expected to drive market growth. For instance, in January 2022, Urb-it, a fast-expanding sustainable logistics network, announced the debut of its sustainable delivery services in Spain. This is the following phase of an ambitious expansion plan across Europe of Urb.
For the purpose of analysis, the global third-party logistics (3PL) market is segmented on the basis of mode of transport, service type, industry, and region. On the basis of mode of transport, the market is categorized into railways, roadways, waterways, and airways. On the basis of service type, it is segregated into dedicated contract carriage (DCC), domestic transportation management, international transportation management, warehousing & distribution, and others. On the basis of industry, the market is fragmented into technological, automotive, retailing, elements, food & beverages, healthcare, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global third-party logistics (3PL) market are A.P. Moller - Maersk, C.H. Robinson Worldwide, Inc., DB Schenker, DHL International GmbH, DSV, FedEx Corporation, GEODIS, Kuehne+Nagel Inc., UPS, and XPO Logistics Inc.
At present, the third-party logistics (3PL) market has witnessed significant growth over the years, owing to increase in trading activities due to globalization and the development of the e-commerce industry. Similarly, the continuous effort of contract logistics companies to offer efficient last-mile deliveries is another opportunity expected to fuel the third-party logistics (3PL) market growth in the near future. For instance, in September 2021, United Parcel Service, Inc. (UPS) announced an agreement to acquire Roadie, an on-the-way delivery service provider within the U.S., which reduced the transit times for same-day deliveries as well as last-mile delivery services across the U.S.
In addition, government initiatives such as trade agreements & treaties and public-private partnerships are further bolstering the demand for third-party logistics and management networks worldwide. For instance, in Russia, the positive trend of international trade, positive effects of expansionary monetary policy (QE), and rapid growth in GDP fuel the growth of the third-party logistics market in the country. Furthermore, expansion of private firms to serve a wide range of services in the third-party logistics sector is expected to drive market growth. For instance, in January 2022, Urb-it, a fast-expanding sustainable logistics network, announced the debut of its sustainable delivery services in Spain. This is the following phase of an ambitious expansion plan across Europe of Urb.
For the purpose of analysis, the global third-party logistics (3PL) market is segmented on the basis of mode of transport, service type, industry, and region. On the basis of mode of transport, the market is categorized into railways, roadways, waterways, and airways. On the basis of service type, it is segregated into dedicated contract carriage (DCC), domestic transportation management, international transportation management, warehousing & distribution, and others. On the basis of industry, the market is fragmented into technological, automotive, retailing, elements, food & beverages, healthcare, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global third-party logistics (3PL) market are A.P. Moller - Maersk, C.H. Robinson Worldwide, Inc., DB Schenker, DHL International GmbH, DSV, FedEx Corporation, GEODIS, Kuehne+Nagel Inc., UPS, and XPO Logistics Inc.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the third-party logistics (3pl) market analysis from 2021 to 2031 to identify the prevailing third-party logistics (3pl) market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the third-party logistics (3pl) market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global third-party logistics (3pl) market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Mode of Transport
- Railways
- Roadways
- Waterways
- Airways
By Service Type
- Dedicated Contract Carriage (DCC)
- Domestic Transportation Management
- International Transportation Management
- Warehousing and Transportation
- Others
By Industry
- Technological
- Automotive
- Retailing
- Elements
- Food and Beverages
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- C.H. Robinson Worldwide, Inc.
- db schenker
- DSV
- Geodis
- Kuehne+Nagel Inc.
- FedEx Corporation
- XPO Logistics Inc.
- United Parcel Service of America, Inc.
- a.p. moller - maersk
- DHL International GmbH
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: THIRD-PARTY LOGISTICS (3PL) MARKET, BY MODE OF TRANSPORT
CHAPTER 5: THIRD-PARTY LOGISTICS (3PL) MARKET, BY SERVICE TYPE
CHAPTER 6: THIRD-PARTY LOGISTICS (3PL) MARKET, BY INDUSTRY
CHAPTER 7: THIRD-PARTY LOGISTICS (3PL) MARKET, BY REGION
CHAPTER 8: COMPETITIVE LANDSCAPE
CHAPTER 9: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
The third-party logistics (3PL) market is expected to experience a significant growth rate of 8.8% from 2022-2031 owing to rise in focus of manufacturers and retailers on core competencies and increase in trade activities due to globalization.Third-party logistics (3PL) is the function by which a manufacturer outsources activities related to logistics and distribution. A third-party logistics company can provide specialized services such as inventory management, cross-docking, door-to-door delivery, and packaging of products. Third-party logistics provides greater flexibility by reducing overall costs related to the distribution and warehousing of goods. Moreover, this is the most common business model in the logistics industry, enabling customers to focus on their core businesses. Technology plays an important role for shippers as well as service providers. The shippers are majorly seen depending on third-party logistics for costly & sophisticated technology solutions. Meanwhile, third-party service logistics providers purchase the technologies/software and implement them in their operation to avail the most productivity. For instance, Schneider Logistics uses a Web-based SUMIT system to serve a much broader range of customers in a cost-effective manner.
The key factors that drive the growth of the third-party logistics (3PL) market include rise in trading activities due to globalization and increase in focus of manufacturers & retailers on core competencies which creates lucrative opportunities for the growth of the market across the globe. Moreover, the factors such as the use of IT solutions & software to monitor logistics operation and cost-cutting along with lead time reduction due to adoption of multi-modal system also propels the market toward positive growth across the globe. Moreover, the factors such as increase in reverse logistics operations, continuous development in e-commerce, and increase in collaboration of logistics service companies with transport companies have provided a boost to third-party logistics (3PL) market globally.
The market also offers growth factors to the key players operating in the market due to increase in investment, rapid evolution of regulatory policies, and mega infrastructural railway projects. For instance, in November 2022, the Indian railways arm, Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has planned to develop a multimodal logistics park In Uttar Pradesh (India) for cargo movement. This mega-logistics hub will reduce the rail transportation cost by giving competitive edge to the Indian 3PL sector.
The third-party logistics (3PL) market is segmented into mode of transport, service type, industry, and region. On the basis of mode of transport, the market is categorized into railways, roadways, waterways, and airways. On the basis of service type, it is segregated into dedicated contract carriage (DCC), domestic transportation management, international transportation management, warehousing & distribution, and others. On the basis of industry, it is fragmented into technological, automotive, retailing, elements, food & beverages, healthcare, and others. On the basis of region, it is analyzed across North America (U.S., Canada and Mexico), Europe (UK, Germany, France, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East and Africa).
The key players profiled in the study include A.P. Moller - Maersk, C.H. Robinson Worldwide, Inc., DB Schenker, DHL International GmbH, DSV, FedEx Corporation, GEODIS, Kuehne+Nagel Inc., UPS, and XPO Logistics Inc. The players in the market have been actively engaged in the adoption of various strategies such as have adopted partnerships, investments, and product launches to remain competitive and gain advantage over the competitors in the market. For instance, in February 2022, GEODIS planned to open a new multi-user logistics facility in Coswig, Germany, to offer customers a wide range of services. These include inbound & outbound logistics, value-added services, after-sales, and return logistics, as well as high-tech services. Similarly, many market players are finding lucrative opportunities in emerging economies like China, Japan, and India, where the large populations are coupled with new innovations in numerous industries. For instance, in April 2020, Japanese logistics giant Yamato Holdings and Tokyo-based value chain firm Global Brain raised a $46.5 million fund to promote digital transformation in the logistics industry in Japan. The fund focuses on investing in Japanese & foreign startups with technologies and business models evolving logistics & supply chain management.
Key Market Insights
- On the basis of mode of transport, the roadways segment was the highest revenue contributor to the market and is estimated to reach $899.3 billion by 2031, with a CAGR of 7.8%. However, the airways segment is estimated to be the fastest-growing segment with a CAGR of 9.9% during the forecast period.
- On the basis of service type, the domestic transportation management segment was the highest revenue contributor to the market and is estimated to reach $973.5 billion by 2031, with a CAGR of 8.1%. However, the dedicated contract carriage (DCC) segment is estimated to be the fastest-growing segment with a CAGR of 12.2% during the forecast period.
- On the basis of industry, the technological segment was the highest revenue contributor to the market and is estimated to reach $644.2 billion by 2031, with a CAGR of 6.8%. However, the healthcare segment is estimated to be the fastest-growing segment with a CAGR of 11.3% during the forecast period.
Companies Mentioned
- C.H. Robinson Worldwide, Inc.
- db schenker
- DSV
- Geodis
- Kuehne+Nagel Inc.
- FedEx Corporation
- XPO Logistics Inc.
- United Parcel Service of America, Inc.
- a.p. moller - maersk
- DHL International GmbH
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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