Globally, it was found that the third-party logistics market occupies a market value of USD 1993.72 billion by the end of the market forecast period. The market registers a CAGR value of about 8.7% throughout the forecast period of 2021-2028. In the year 2020, the third-party logistics market occupied a market value of about USD 921.49 billion.
Due to the presence of all driving forces, the third part industry is found to be phenomenal. Certain factors hugely affect the logistic market growth. It has been marked that this market is the by-product of all the manufacturing industries so present. The growth of the market depends on the advancement of technology, the presence of more distribution channels, and the manufacturing status of the market. The set up of more end-users industries affects the market growth. It has been found that the logistics company evolves at a faster rate and provides cost-effective shipping to different products or some of the service-based end-user industries. The trade movement has been a game-changer for the logistic market. The manufacturing units so present in various locations completely depend on the logistic market growth. The third-party logistic operation is interconnected with each other which brings huge growth in the third-party logistics market.
Like other industries, the logistics market also experienced certain challenges during the COVID situations. The outbreak of the pandemic led to a lockdown in several regions throughout the world. The growth of the logistic market depends on the presence of certain distribution chains and the rise in market demand of the end-users industries. The trade routes have been disrupted due to lockdown and shutdown. An imbalance is created between the demand and the supply chain. This turned out to be rough for the development of the third-party market. During this situation, the absence of warehouses hampered the management of the market. This made the marketing field difficult. A restriction was imposed on the borders of the COVID-infected areas. Unequal transactions of both incoming and outgoing goods are the most important thorns so spread on the path of the logistics market.
Investing much more in trade and e-commerce as per the technology. Cooperating with the services of the end-users, the key players have given certain optimization like real-time shipment tracking and many more. Some of the market players here are
The products manufactured from the logistics market are referred to as subsidiary products. The rise in demand of the market for more consumer goods is one of the driving factors of the third-party logistics market. Delivery on the spot, last-minute shopping, providing quick and convenient services are the key driving forces of the market. Users are shopping more for goods that will suit their comfort zone. New and modern technology is being adopted by the manufacturers for raising their supply. The government of different regions is funding amounts for the development of the logistics companies.
Trade movements have a great advantage for rising the world economy. These continuous developments are bringing growth in the trade industry which in turn are the golden opportunities for the third-party logistics industry. This e-commerce has also created a comfort zone among the population and a good customized experience among them. Behavioral changes among the population have brought positive growth for the company. People are cravings for time to time delivery. Moreover, International Trade activities and building partnership in the e-commerce units has created golden chances for the key players of the company. The rise includes demand among the healthcare and sub-segmented, automotive industries that have brought light to the third-party logistics market.
Some challenging factors in the market affect the growth. The communication facility between the shipping agent, carriers, and the end-users, is the most challenging factor. The new emerging marketing trends tell the importance of partnership and communication between the logistic faculties.
A promising market environment is being created here. Presently, it was found that the third party grows at a high CAGR value of about 7.5% and holds a third-party logistics market value of USD during the market forecast period of 2020-2026. The rise in growth rate tells that the global market will grow at USD 1600 billion by the end of the forecast period. The upsurging of trade movement during the last years is augmenting the rise of market size.
The status of transportation of the product is the primary restraining factor for third-party logistics market growth. Variation in the manufacturing processes of the services affects the third-party logistics market size and its development. A constant focus on the production unit of the market employs the number of people for managing the distribution of the market services. The manufacturer does not directly focus on the services of the company. If the logistic company doesn't fulfill the needs of the end-users, the manufacturing unit surely gets disrupted. This has affected the user’s products and their goods. COVID has led to the disruption in the value chain which is another most important restraining factor for the expansion of market size.
The upgrowth of the industry is based on the presence of valuable networks available in different sectors. The transportation facility from the companies requires a wire having different vehicular support. The suppliers and the distributors depend on the shippers to stock the logistic products present in the warehouse. The carriers so present pick up the product and deliver at the said location of the end-users. The chain of supply is very much available for the industry. It was noted that the success rate of the market depends on the presence of the network and the operation of the market concerning the business units.
Globally, the logistic market is segmented based on type, transportation, region, and applications. They are further sub-segmented based on the services they provide and many more.
An evolution of technology made the distribution channels more sophisticated. It was marked that the new technology needed certain maintenance and innovation. On a global scale, the key players have started adopting these transformations with the help of certain big key players who are trying to invest in different other segments of the third-party logistics industry. Some of the market players are setting up new and innovative market trends for the development of the industry. Advancement of technology is continuously taking place here. The staff members and the workers should update themselves as per the new technology.
Globally, it has been found that the third part market has expanded its business to various regions. The very most famous region is the Asia Pacific region, which has shown wide growth during the market forecast period. Some of the other emerging countries like India, China, Vietnam, South Korean region have shown a fast growth rate during the upcoming years. The presence of a huge consumer base, faster urbanization, and industrialization along with the rise in customized shipment services has propelled up the third-party logistics market growth. The North American market has shown significant improvement and has covered a huge market share. The United States, having more trucking capacity, has dominated the whole of the North American region.
|Market Size||2030: USD 2,137.12 billion|
|CAGR||9.1% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Service, Mode of Transport, Application|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||C.H. Robinson Worldwide (United States), BDP International, Inc. (United States), Burris Logistics (United States), CEVA Logistics (Switzerland), DSV Panalpina A/S (Denmark), DB Schenker Logistics (Germany), FedEx Corporation (United States), J.B. Hunt Transport Services, Inc. (United States), Kerry Logistics (Hong Kong), Nippon Express (Japan), DB Schenker (Germany), DHL (Germany), and Agility Logistics (Kuwait)|
|Key Market Opportunities||Advent of e-commerce portals and services|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
inbound logistics, outbound logistics, and reverse logistics.
A 3PL provider focuses on the day-to-day operations of your supply chain logistics while a 4PL focuses on optimizing your entire supply chain.
The global 3PL market growth is at a CAGR of 9.1% for the forecast period of 2022-2030.
The global third-party logistic (3PL) market share is estimated to be worth USD 2,137.12 billion by 2030.
The Asia-Pacific region is the fastest-growing region for the 3PL market in the world which recorded the largest revenue share in 2021
The transportation part is divided into railways, waterways, roadways, and airways. Moreover, the application segment is classified into manufacturing, retail units, healthcare, automotive sector, and many more. Moreover, based on region, the market has been segmented into North America, Europe, some of the Asia Pacific region, Middle East and African regions, and many more.