North America Third Party Logistics (3PL) Market Outlook, 2028

North America has a long history of trade and commerce, with the expansion of railroads and highways contributing to the growth of the logistics industry. This history has cultivated a culture of innovation and adaptability, as the logistics sector continually evolves to meet the changing demands of global trade. North America, particularly the United States, is a major hub for global trade. This region serves as a gateway for imports and exports, leading to a strong emphasis on efficient logistics operations. 3PL providers are essential in ensuring that goods flow smoothly to and from the North American market. North America's 3PL industry is characterized by its diversity. Providers offer a wide range of services, including transportation, warehousing, cross-border logistics, customs brokerage, and e-commerce fulfillment. This diversity reflects the varied needs of businesses operating in North America. The North American 3PL industry places a strong emphasis on technology and innovation. Companies leverage advanced logistics software, GPS tracking, and automation to optimize operations, reduce costs, and provide real-time visibility into the supply chain. 3PL providers in North America prioritize a customer-centric approach. They work closely with their clients to tailor solutions that meet specific needs, from small businesses looking for cost-effective solutions to large enterprises with complex supply chain requirements. A diverse and skilled labor force is essential to the success of 3PL providers. This sector offers a range of job opportunities, from logistics coordinators to truck drivers, contributing to the cultural diversity and work ethic of the industry. Many 3PL providers in North America are actively involved in community and charitable initiatives, reflecting a culture of social responsibility and giving back to the local communities where they operate. The rapid growth of e-commerce in North America has had a significant impact on the 3PL industry. 3PL providers often specialize in e-commerce fulfillment, offering services such as pick-and-pack, same-day delivery, and returns management to support the dynamic online retail sector.

According to the research report "North America Third-Party Logistics (3PL) Market Outlook, 2028," the North America Third-Party Logistics (3PL) market was valued at USD 308.22 Billion in 2022. 3PL providers in North America continued to invest in technology, including transportation management systems (TMS), warehouse management systems (WMS), and real-time tracking solutions. These technologies enhanced supply chain visibility, increased efficiency, and improved customer service. With the rise of e-commerce, consumers began to expect faster delivery options. This led to a surge in demand for same-day and on-demand delivery services provided by 3PL companies, especially in densely populated urban areas. Efficient last-mile delivery solutions became even more critical, with consumers expecting faster and more convenient delivery options. 3PL providers continued to invest in last-mile optimization technologies, such as route optimization software and alternative delivery methods like drones and autonomous vehicles. With the growing use of technology and data in logistics, the protection of sensitive information became a top priority. 3PL providers invested in cybersecurity measures to safeguard their operations and their clients' data. The digital transformation of the 3PL industry continued. Cloud-based solutions, IoT (Internet of Things) devices, and machine learning were employed to enhance visibility, traceability, and efficiency in supply chain operations. Intermodal transportation (using multiple modes like rail, road, and sea) gained renewed attention as a means to reduce transportation costs, improve efficiency, and reduce emissions. A focus on reducing carbon footprints continued to grow. 3PL providers adopted green logistics practices, including the use of electric vehicles, renewable energy sources, and sustainable warehousing solutions.

In terms of Country the market is divided into United States, Canada and Mexico. The United States boasts the largest and most diverse economy in North America. Its economic size and diversity make it an attractive market for 3PL providers. The country's robust GDP, consumer market, and industrial base create a vast demand for logistics services. The U.S. serves as a global trade hub. Its strategic location between the Atlantic and Pacific Oceans, coupled with well-established trade agreements, makes it a gateway for international trade. This position is especially significant for 3PL providers, as they play a pivotal role in managing cross-border logistics and global supply chains. The U.S. has extensive transportation and logistics infrastructure, including a vast network of highways, railroads, airports, and ports. This infrastructure is crucial for efficient transportation and distribution, and it provides 3PL providers with the tools they need to excel. The United States is one of the world's largest e-commerce markets, with a strong presence of major online retailers like Amazon, Walmart, and others. The growth of e-commerce has driven substantial demand for 3PL services, particularly in fulfillment, warehousing, and last-mile delivery. American consumers have high expectations for fast, reliable, and cost-effective delivery services. 3PL providers have been instrumental in meeting these expectations by offering efficient supply chain solutions, including last-mile delivery options. The United States offers a business-friendly environment with favorable regulations, a strong legal framework, and a history of supporting entrepreneurship. This encourages the growth of 3PL providers, many of which have chosen the U.S. as their headquarters.

On the basis of transport, the North America market has been divided into roadways, railways, waterways, and airways.

One of the key drivers for the growth of air transport in the 3PL market is the time-sensitive nature of many products and goods. Air transport is the fastest mode of transport available, making it crucial for industries that rely on rapid delivery, such as e-commerce, pharmaceuticals, and high-tech electronics. In an increasingly globalized world, businesses demand quick turnarounds, and air transport meets this requirement. Many businesses have adopted global supply chain strategies, which involve sourcing materials and products from different parts of the world. Air transport is essential for connecting distant suppliers to manufacturers and consumers. This is especially important for industries that rely on just-in-time inventory systems. Air transport supports lean inventory management strategies. Businesses can maintain lower inventory levels by relying on faster air transport. This can lead to cost savings and reduced warehousing requirements. : The air transport segment in the 3PL market benefits from a high degree of global market integration. Airports in North America have extensive networks and strong connections with airports around the world. This makes air transport a viable option for businesses involved in international trade, as it offers direct access to global markets. The use of air transport enables businesses to reach previously untapped markets and customers. This is crucial for companies looking to expand their customer base and enter new regions, and 3PL providers that offer air transport services facilitate market penetration.

In addition based on services the market is divided into Domestic Transportation Management (DTM), International transportation management (ITM), Dedicated contract carriage (DCC), Warehousing & Distribution (W&D) and Value-Added Logistics by Services (VALs).

North America's supply chains are highly complex, often involving multiple modes of transportation, diverse geographic locations, and various regulatory requirements. DTM services provide a centralized solution for managing these complexities, optimizing domestic transportation, and ensuring efficient cargo movement within the region. North America covers a vast geographical area, including the United States, Canada, and Mexico. Efficient domestic transportation management is crucial for businesses operating in such an expansive region. 3PL providers specializing in DTM offer expertise in navigating these diverse geographic challenges. North America is home to a wide range of industries, including manufacturing, agriculture, consumer goods, and technology. Each industry has unique transportation requirements. DTM services cater to the diverse needs of these sectors, providing customized solutions for specific goods and industries. Effective domestic transportation management is essential for businesses practicing lean inventory management. DTM services help optimize inventory levels by ensuring that goods are delivered precisely when and where they are needed, reducing carrying costs. The DTM segment places a strong emphasis on a customer-centric approach. 3PL providers work closely with their clients to understand their transportation needs, develop customized solutions, and provide exceptional customer service.

The manufacturing segment accounted for the largest revenue share in 2022 based on end user in the North America Third-Party Logistics market.

The manufacturing sector often operates highly complex and extended supply chains, involving multiple suppliers, raw materials, parts, and components. 3PL providers help manufacturers manage this complexity by optimizing transportation, warehousing, and distribution. Many manufacturing companies have expanded their operations to serve global markets. This expansion necessitates a comprehensive supply chain strategy, including international transportation, customs clearance, and cross-border logistics, in which 3PL providers play a vital role. Manufacturers benefit from outsourcing logistics and supply chain management functions to 3PL providers. This allows manufacturers to concentrate on their core competencies designing and producing products while the 3PL experts handle the intricacies of logistics. 3PL providers offer expertise in optimizing manufacturing logistics to enhance efficiency and reduce operational costs. This is particularly crucial in the manufacturing industry, where cost efficiency and timely delivery are essential for profitability. Manufacturing companies often require efficient inventory management solutions to minimize carrying costs and ensure that materials and parts are available just-in-time for production. 3PL providers assist in managing inventory through warehousing, distribution, and inventory tracking.

Companies Covered in this report:

DHL, FedEx Corporation, CH Robinson, Nippon Express , kerry logistics network limited, Maersk Logistics, DB Schenker, UPS Supply Chain Solutions, Kuehne + Nagel, DSV, J.B. Hunt Transport Services, Inc. ,GXO Logistics, Inc. , Geodis, Echo Global Logistics, XPO, Inc

Considered in this report

• Geography: North America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• North America Third-Party Logistics (3PL) market Outlook with its value and forecast along with its segments
• Country-wise Third-Party Logistics (3PL) market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:

• US
• Canada
• Mexico

By Mode of Transport

• Roadways
• Railways
• Waterways
• Airways

By Services

• Domestic Transportation Management (DTM)
• International transportation management (ITM)
• Dedicated contract carriage (DCC)
• Warehousing & Distribution (W&D)
• Value-Added Logistics By Services (VALs)

By End User

• Manufacturing
• Healthcare
• Retailing
• E-commerce
• Automotive
• Food & Groceries
• Technological
• Others

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.