ID: MRFR/PNT/8518-HCR | May 2021 | Region: Global | 190 pages
Third-Party Logistics Market is projected to be worth USD 1,993.72 billion by 2028, registering a CAGR of 8.7% during the forecast period (2021 - 2028), The market was valued at USD 921.49 billion in 2020.
By all projections the expansion of the market is phenomenal. Several market factors affect the third-party logistic market. The third-party market is a by-product of the core manufacturing industries. This market almost entirely depends on the technology, distribution channels, and the status of the manufacturing market.
The recent growth in the end-user industries shows a notable effect on the third-party logistics (3PL) market. The third-party logistic companies provide faster and cost-efficient shipping to various product or service-oriented industries. The e-commerce revolution has been a game-changer for the 3PL market. Now and then the advancement in technology brings more sophistication in the distribution channels. The manufacturing units rely a lot on the 3PL providers. The interconnected system of operations helps the consumer market to achieve gigantic growth.
Larger investments in e-commerce technologies and solutions have enhanced the third-party logistics companies too. To cope up with the customized demand from the end-users, the service providers have employed real-time shipment tracking, route optimization, etc. The latest technologies require constant maintenance and innovation. The global market for 3PL services is adopting these changes with help of several big corporations who are investing in various segments of the third-party logistics market. The local players of individual countries are setting important trends for the industry.
Major key players of the market are –
Not unlike every other industry, the 3PL market has been exposed to severe challenges due to the COVID-19 pandemic. Since the emergence of the disease there had been multiple series of lockdowns in different countries of the world. The third-party logistic (3PL) market growth entirely depends on the availability of the transport chains and the market demand of the end-users. The delivery routes have been disrupted due to the lockdowns. Also, the pandemic has hit the per capita economy of major consumer countries.
The imbalance between demand and supply turns out to be rough on the third-party logistic market. Lack of storage warehouses creates management in the market extremely difficult. The restrictions on borders of infected areas and unequal transactions of incoming and outgoing goods are primary obstacles to the growth of the 3PL market share.
The third-party logistics market is a subsidiary product that stems from the manufacturing industry. The growing market demand for consumer goods is one of the primary driving forces for the third-party logistic market. The rise in the demand for on-location deliveries, last-minute shipping, fast and convenient services are key drivers for the market cap third-party logistic companies. Consumers are getting used to the comfort of shopping from home.
The manufactures are adopting new technologies to increase the supply of their products. The third-party logistic (3PL) market trends show several Governments of different countries are promoting FDIs generously to support the local economy and employment for the youth. That has been another driving factor for the market to grow.
The advent of e-commerce portals and services has opened a new world of growth before the third-party logistic companies. The continuous development process in the e-commerce industry is bringing the end-users the freedom of customized experience with the utmost amount of comfort. This shift in consumer behavior has introduced tremendous opportunities before the 3PL companies. The third-party logistic (3PL) market share is increasing following the shift of the consumers.
People want on-time deliveries in their local regions. Also, international trading and collaborations in the e-commerce sector have opened golden opportunities for the 3PL companies in the future. Increasing demand in the healthcare and automotive industries is showing light to the third-party market greatly.
One of the key restraints of the logistics industry is the status of the transportation systems. Even before the pandemic, the restricting factor for the third-party logistic (3PL) market growth was the difference in the operation of the manufactures and the 3PL services. The manufacturer focuses on the production units of the business and employs a 3PL service to manage the distribution. Being a separate entity, the manufacturer has no direct control over the operations of the logistic company.
Although, if the logistic company fails to meet the demands and expectations of the end-user, the goodwill of the manufacturer gets hampered. That way it affects the demand for that consumer good. Therefore, the 3PL market gets hampered too. After the pandemic, the disruption in the supply chain and multiple other restraints have affected the growth of the market.
The third-party logistics market goes through some challenges. One of the prime challenges for the market is the communication between shippers, carriers, and end-users. The latest third-party logistic (3PL) industry trends suggest the importance of proper communication and collaboration between all faculties of the logistic operation. There is constant advancement in the technologies in various stages of the operations. The staff and workers who execute the logistic procedures must upgrade themselves to the new technologies also.
The third-party logistic market expert -opinions show a promising rise of the market in the coming years. At present, the market is growing at a CAGR of 7.5% for the forecast period of 2020-2026. This growth rate suggests that the global 3PL industry will reach a valuation of USD 1600 billion by the end of 2026. The advent of the e-commerce industry over the last ten years has bombarded the growth of 3PL services. The net valuation of third-party logistics was USD 1,027.71 billion in 2019.
The 3PL industry is entirely based on the valuable network of different units. The transportation model of logistic companies needs a wire of different vehicular support. The distributors rely on the shippers to stock the products in warehouses. The carriers then pick up the product and execute the deliveries to the on-demand location of the end-users. The chain of operations is highly valuable to the market. The third-party logistic (3PL) market analysis suggests the success of the market heavily relies on the valuable networks and mode of operation in the business.
The global third-party logistics market is divided into various segments. The segments consist of several subsegments depending on the service they offer, the modes of transportation, application, and regions.
By Mode of Transportation
The global third-party logistics market is distributed into several potential regions of business. The Asia-Pacific region is showing promising records in the global market for the last couple of years. The countries like China, India, South Korea, Vietnam, etc are growing fast in the global market of 3PL services. The Asia-Pacific region has contributed the largest share of revenue in 2020. The huge consumer base, fast urbanization, and demand for customized shipments have encouraged the prosperity of 3PL companies in these regions.
The presence of North America is significant in the global market where the U.S. leads. The U.S. has an enormous trucking capacity that fuels the growth of 3PL services.
This report deeply studies the backdrop and market situations of 3PL services. To give a better understanding of the market, this report covers 3PL industry statistics, competitive landscapes, regional overviews, and recent developments, and much more. It will be useful for Government and research organizations, corporations, investors, etc.
|Market Size||2028: USD 1,993.72 billion|
|CAGR||8.7% CAGR (2021-2028)|
|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 8.7% for the forecast period of 2021-2028.
The global third-party logistic (3PL) market share is estimated to be worth USD 1,993.72 billion by 2028.
The Asia-Pacific region is the fastest-growing region for the 3PL market in the world which recorded the largest revenue share in 2020