Third-Party Logistics (3PL) Market Report 2025

The third-party logistics (3PL) market size has grown strongly in recent years. It will grow from $1.2 trillion in 2024 to $1.32 trillion in 2025 at a compound annual growth rate (CAGR) of 10%. The growth in the historic period can be attributed to increase in trade and exports, growth in world population, government initiatives and increasing demand from end-use industries.

The third-party logistics (3PL) market size is expected to see rapid growth in the next few years. It will grow to $1.97 trillion in 2029 at a compound annual growth rate (CAGR) of 10.4%. The growth in the forecast period can be attributed to rapid growth in e-commerce, increasing retail penetration and growing demand for efficient inventory management. Major trends in the forecast period include use of artificial intelligence, advanced logistics management platforms, use of electric vehicles, advanced analytics and data-driven solutions, adoption of cloud-based logistics platforms, last-mile delivery innovations and partnerships and collaborations.

The growth of the e-commerce industry is expected to drive the expansion of the third-party logistics (3PL) market. E-commerce encompasses businesses and individuals buying and selling goods and services online, and many e-commerce companies rely on 3PL providers to manage their supply chains. For instance, in August 2024, data from the United States Census Bureau revealed that e-commerce sales reached $282.3 billion during this period, reflecting a 5.3% increase compared to the first quarter of 2023. Additionally, e-commerce sales accounted for 16% of total retail sales in the second quarter of 2024. Therefore, the growth of the e-commerce sector is propelling the third-party logistics market.

A major driver for the 3PL market is the increasing penetration of organized retail, particularly in developing economies. Organized retailing involves systematic retail operations conducted by licensed retailers, and its growth is attributed to factors such as rising disposable incomes, evolving consumer preferences, economic growth, and demographic changes. The organized retail sector benefits from growing internet penetration and the entry of international retailers into various countries and regions. 3PL providers play a crucial role in the retail industry, offering services such as freight transportation, warehousing, inventory management, pick and pack, and final mile delivery. A 2022 survey by Knight Frank, a UK-based estate agency and property consultancy, indicates a manifold growth in India's organized retail sales over the next six years. Consequently, the increasing penetration of organized retail is expected to drive the third-party logistics (3PL) market in the forecast period.

Artificial intelligence (AI) is increasingly playing a pivotal role in the operations of wholesalers and third-party logistics (3PL) providers, particularly in optimizing routes and managing fleets. An example of this integration is evident in Verte, a US-based e-commerce service company that launched an AI-enabled omnichannel supply chain platform in January 2022. Verte's technology-driven solutions offer real-time insight into the supply chain, centralizing information for transparency. The platform leverages AI to address industry concerns related to inventory and customer fulfillment, providing retailers, shippers, 3PLs, and carriers with the tools to operate more efficiently. Verte's unified data-first approach, coupled with AI inventory management solutions, enhances decision-making by assessing consumer fulfillment choices and buying behaviors, ultimately optimizing e-commerce and store inventory levels.

Innovation is a key trend in the third-party logistics market, with a focus on product advancements. Notably, Nippon Express Co. Ltd., a Japan-based logistics company, introduced a logistics service in June 2022 capable of handling goods requiring ultra-low temperatures (-20°C to -85°C) for the pharmaceutical industry. The platform provides a pharmaceutical distribution solution with strict temperature control, covering refrigerated (2°C to 8°C) and constant-temperature (15°C to 25°C) ranges. This innovation extends to handling goods requiring ultra-low temperatures in the -20°C to -85°C range, allowing for storage and transport of pharmaceutical products during the research and development stage and in the formulation process. Nippon Express aims to offer temperature-controlled logistics services globally, catering to a wide range of pharmaceutical commodities, including raw materials, intermediates, active pharmaceutical ingredients, and finished products. The company is committed to expanding and developing its services to meet the growing demand for sophisticated and diversified end-to-end pharmaceutical logistics solutions.

In October 2022, Red Arts Capital, a U.S.-based investment firm specializing in North American-based supply chain and industrial businesses, completed the acquisition of FLEX Logistics for an undisclosed amount. This strategic move allows Red Arts Capital to expand its portfolio with a focus on premier supply chain and logistics companies. The acquisition provides Red Arts Capital with access to FLEX Logistics' extensive expertise in warehouse management across diverse industries. FLEX Logistics is a U.S.-based third-party logistics (3PL) company.

Major companies operating in the third-party logistics (3PL) market include Kuehne+Nagel International AG, DSV A/S, The Deutsche Bahn AG, Deutsche Post DHL Group, C.H Robinson Worldwide Inc., J.B. Hunt Transport Inc, SinoTrans Logistics Limited, FedEx Corporation, Nippon Express Co. Ltd, CEVA Logistics, Aegis Logistics Ltd, Allcargo Logistics Ltd, AWL India Pvt. Ltd, Blue Dart Express Ltd, Delhivery Pvt. Ltd, Gati Ltd, Mahindra Logistics Ltd, Safexpress Pvt Ltd, TVS Supply Chain Solutions, Fulfillment Bridge Inc, DocShipper Group, The Rhenus Group, DB Schenker Logistics, Gebruder Weiss, Geodis, Bolloré Logistics, Huboo, Sas Grup, Max Loads, Agexim Spedition, Sc Oprean Srl, Vectra Logistic, Rzd Logistics Eurosib, Omnipack, Union Pacific Corporation, Weber Logistics, XPO Logistics Inc, TA Services Yusen Logistics Co. Ltd, BDP International Inc, Burris Logistics, ShipMonk, Expeditors International, Pronto Cargo Logistics & Supply Chain, Imexlog Logistica Aduaneira Perfect Solutions, Maxitrans Brazil Logistics Company, Norte brasil logistica, Novatrade Brasil, Leo de Juda Logistics Company, Kuwait logistics & freight co, Move One Logistics, Glaube Logistics, Shorages E-Commerce Fulfillment, SLR Shipping Services LLC, Camel Logistics Group LLC, Flow Progressive Logistics, Crown logistics Company, Maersk, Imperial Logistics, APG Logistics, Value Logistics, Transnova Africa, Monteagle Logistics, Megafreight Services, Logistica SA, Eurotrans Maroc, Laser Group.

Asia-Pacific was the largest region in the third-party logistics market in 2024. The regions covered in the third-party logistics (3PL) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the third-party logistics (3PL) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Third-party logistics (3PL) involves outsourcing e-commerce logistics processes to external service providers, encompassing tasks such as inventory management, warehousing, and fulfillment. 3PL providers offer e-commerce merchants the means to streamline retail order fulfillment through automation.

The primary types of third-party logistics include dedicated contract carriage, domestic transportation management, international transportation management, warehousing and distribution, and other service types. Dedicated contract carriage allows shippers to pay a flat rate per truck and select the duration for which they secure vehicles, catering to their specific needs. Modes of transport encompass railways, roadways, waterways, and airways. Industries utilizing 3PL services span technology, automotive, retailing, manufacturing, and others.

The third-party logistics market research report is one of a series of new reports that provides third-party logistics market statistics, including third-party logistics industry global market size, regional shares, competitors with a third-party logistics market share, detailed third-party logistics market segments, market trends and opportunities, and any further data you may need to thrive in the third-party logistics industry. This third-party logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The third-party logistics market includes revenues earned by entities by providing services such as warehousing, purchasing supplies, inventory control, customs brokerage, freight audit, payments, and shipment monitoring. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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