3PL Market Research Report: by Service (Domestic Transportation, International Transportation, Value-added Warehousing and Distribution, and Others), by Mode of Transport (Railways, Roadways, Waterways, and Airways), by Application (Manufacturing, Retail, Healthcare, Automotive, and Others), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) – Forecast till 2030

MARKET OVERVIEW

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.

COVID 19 ANALYSIS

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.

COMPETITIVE LANDSCAPE

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

• H. Robinson Worldwide of the United States


• BDP International Inc. of the United States


• CEVA Logistics of Switzerland


• Kerry Logistics of Hong Kong


• FedEx Corporation of the United States


• Nippon Express of Japan


• DSV Panalpina A/S of Denmark


• DHL International Gmbh of Germany and many more.

MARKET DYNAMICS

Drivers

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.

Opportunities

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.

Challenges

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.

Cumulative Growth

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.

Restraints

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.

VALUE CHAIN ANALYSIS

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.

MARKET SEGMENTATION

By type

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.

By technology

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.

REGIONAL ANALYSIS

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.

RECENT DEVELOPMENTS

• During the outbreak of COVID, DB Schenker Logistics induced certain operations to find out the clear spaces in the warehouses. These services helped in identifying 794 locations in 60 different locations for resolving the warehouse’s problems.


• COVID created a huge problem for the nationwide people. CEVA logistics introduced a cargo charter for carrying out the most urgently required material for COVID. Such energy things include PPE lit, gloves, ventilators, sanitizers, masks, oxygen cylinders and respirators, and many more.


• The Indian government has started developing some kind of logistic parks for better transportation on the road. The National Highways Authority has developed highways as per the logistics program of the road and transportation ministry for carrying out better logistic services.


• Universal Logistic Holdings Inc. in 2019, has taken the help of Roadrunner Intermodal Services LLC for enhancing the services and the operations throughout the North American region, this helped in reducing the overhead expenses.

REPORT OVERVIEW