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US Third Party Logistics 3PL Market

ID: MRFR/PCM/14933-HCR
111 Pages
Snehal Singh
October 2025

US Third Party Logistics 3PL Market Research Report By Service (Domestic Transportation, International Transportation, Value-Added Warehousing, Distribution, Others), By Mode of Transport (Railways, Roadways, Waterways, Airways) and By Application (Manufacturing, Retail, Healthcare, Automotive, Others) - Forecast to 2035.

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US Third Party Logistics 3PL Market Summary

As per analysis, the US Third Party Logistics 3PL Market is projected to grow from USD 176.77 Billion in 2024 to USD 410.86 Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.97% during the forecast period (2025 - 2035).

Key Market Trends & Highlights

The US Third Party Logistics (3PL) market is currently experiencing robust growth driven by technological advancements and evolving consumer demands.

  • Technological integration is reshaping logistics operations, enhancing efficiency and visibility across the supply chain.
  • Sustainability initiatives are becoming increasingly critical as companies strive to reduce their carbon footprint and meet regulatory standards.
  • E-commerce growth continues to drive demand for logistics services, particularly in the retail segment, which remains the largest in the market.
  • The increased demand for last-mile delivery and technological advancements in logistics are key drivers propelling the market forward.

Market Size & Forecast

2024 Market Size 176.77 (USD Billion)
2035 Market Size 410.86 (USD Billion)
CAGR (2025 - 2035) 7.97%

Major Players

XPO Logistics (US), C.H. Robinson (US), J.B. Hunt Transport Services (US), DHL Supply Chain (US), UPS Supply Chain Solutions (US), Ryder Supply Chain Solutions (US), Kuehne + Nagel (US), Expeditors International (US), NFI Industries (US)

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US Third Party Logistics 3PL Market Trends

The US Third Party Logistics 3PL Market is currently experiencing a transformative phase, driven by evolving consumer expectations and technological advancements. As e-commerce continues to flourish, businesses are increasingly relying on third-party logistics providers to enhance their supply chain efficiency. This reliance appears to stem from the need for flexibility and scalability, allowing companies to adapt to fluctuating market demands. Moreover, the integration of advanced technologies such as artificial intelligence and automation is reshaping operational processes, enabling logistics firms to optimize their services and reduce costs. In addition, sustainability has emerged as a pivotal concern within the US Third Party Logistics 3PL Market. Companies are increasingly prioritizing eco-friendly practices, which may include optimizing transportation routes and utilizing energy-efficient warehousing solutions. This shift towards sustainability not only addresses environmental concerns but also aligns with consumer preferences for responsible business practices. As the market evolves, it seems likely that these trends will continue to shape the landscape of logistics services in the United States, fostering innovation and enhancing customer satisfaction.

Technological Integration

The US Third Party Logistics 3PL Market is witnessing a surge in the adoption of advanced technologies. This trend encompasses the use of artificial intelligence, machine learning, and automation to streamline operations. By leveraging these technologies, logistics providers can enhance efficiency, improve accuracy, and reduce operational costs. The integration of technology appears to be a crucial factor in meeting the demands of a rapidly changing market.

Sustainability Initiatives

Sustainability has become a focal point for many players in the US Third Party Logistics 3PL Market. Companies are increasingly implementing eco-friendly practices, such as optimizing transportation routes and utilizing renewable energy sources. This trend reflects a growing awareness of environmental issues and a commitment to reducing carbon footprints. As consumer preferences shift towards sustainable options, logistics providers are likely to prioritize green initiatives.

E-commerce Growth

The rise of e-commerce is significantly influencing the US Third Party Logistics 3PL Market. As online shopping continues to expand, logistics providers are adapting their services to meet the demands of this sector. This trend includes the development of last-mile delivery solutions and enhanced inventory management systems. The focus on e-commerce logistics suggests a need for flexibility and responsiveness in supply chain operations.

US Third Party Logistics 3PL Market Drivers

Growth of Omnichannel Retailing

The growth of omnichannel retailing is a significant driver in the US Third Party Logistics 3PL Market. Retailers are increasingly adopting omnichannel strategies to provide a seamless shopping experience across various platforms, including online and brick-and-mortar stores. This shift necessitates a robust logistics framework capable of supporting diverse fulfillment methods, such as click-and-collect and ship-from-store. According to market analysis, omnichannel consumers tend to spend 30% more than single-channel shoppers, underscoring the financial incentive for retailers to invest in comprehensive logistics solutions. Consequently, 3PL providers are tasked with developing flexible and efficient logistics networks that can accommodate the complexities of omnichannel fulfillment, thereby enhancing their value proposition to retail partners.

Increased Demand for Last-Mile Delivery

The US Third Party Logistics 3PL Market is experiencing a notable surge in demand for last-mile delivery services. This trend is primarily driven by the rapid growth of e-commerce, which has transformed consumer expectations regarding delivery speed and convenience. According to recent data, last-mile delivery accounts for approximately 53% of total logistics costs, highlighting its critical role in the supply chain. As consumers increasingly favor same-day or next-day delivery options, 3PL providers are compelled to enhance their last-mile capabilities. This includes investing in technology and infrastructure to optimize delivery routes and improve efficiency. Consequently, the demand for innovative last-mile solutions is likely to continue rising, positioning 3PL providers as essential partners for retailers aiming to meet evolving consumer preferences.

Technological Advancements in Logistics

Technological advancements are significantly shaping the US Third Party Logistics 3PL Market. The integration of technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) is enhancing operational efficiency and visibility across supply chains. For instance, AI-driven analytics can optimize inventory management, while IoT devices facilitate real-time tracking of shipments. According to industry reports, companies that adopt advanced technologies can reduce logistics costs by up to 15%. Furthermore, automation in warehousing and transportation is streamlining processes, allowing 3PL providers to respond swiftly to market demands. As technology continues to evolve, it is anticipated that 3PL providers will increasingly leverage these innovations to gain a competitive edge and improve service offerings.

Regulatory Compliance and Safety Standards

Regulatory compliance and safety standards are pivotal drivers in the US Third Party Logistics 3PL Market. The logistics sector is subject to a myriad of regulations, including those related to transportation safety, environmental impact, and labor practices. Compliance with these regulations is not only essential for legal operation but also for maintaining customer trust and brand reputation. For example, adherence to the Federal Motor Carrier Safety Administration (FMCSA) regulations is crucial for 3PL providers involved in freight transportation. Non-compliance can result in significant penalties and operational disruptions. As regulations evolve, 3PL providers must remain vigilant and adaptable, ensuring that they meet all necessary standards while also implementing best practices for safety and sustainability.

Focus on Sustainability and Green Logistics

The focus on sustainability and green logistics is increasingly influencing the US Third Party Logistics 3PL Market. As environmental concerns gain prominence, both consumers and businesses are prioritizing sustainable practices within their supply chains. 3PL providers are responding by implementing eco-friendly initiatives, such as optimizing transportation routes to reduce carbon emissions and utilizing energy-efficient warehousing solutions. According to recent surveys, over 70% of consumers are willing to pay more for sustainable products, indicating a market shift towards environmentally responsible logistics. Furthermore, regulatory pressures are prompting companies to adopt greener practices, making sustainability not just a trend but a necessity. As a result, 3PL providers that embrace sustainability are likely to enhance their competitive advantage and appeal to environmentally conscious clients.

Market Segment Insights

By Service Type: Transportation (Largest) vs. Freight Forwarding (Fastest-Growing)

In the US Third Party Logistics (3PL) market, the service type segment is characterized by diverse offerings including Transportation, Warehousing, Value Added Services, and Freight Forwarding. Transportation dominates the market, holding the largest share among these service categories. This is driven by the ever-increasing need for efficient logistics solutions. On the other hand, Freight Forwarding is witnessing significant growth, reflecting rising international trade and globalization.

Transportation (Dominant) vs. Freight Forwarding (Emerging)

Transportation services remain the dominant force in the US 3PL market. This segment encompasses a range of services such as road, rail, air, and ocean transportation, catering to the vast logistics needs of various industries. The consistent demand for quick and reliable transportation solutions underpins its strength. In contrast, Freight Forwarding is an emerging segment characterized by the coordination and shipment of goods on behalf of shippers. Its rapid growth is fueled by increasing cross-border e-commerce activities and the need for optimized supply chains, positioning it as a crucial player in the evolving logistics landscape.

By End Use Industry: Retail (Largest) vs. Healthcare (Fastest-Growing)

In the US Third Party Logistics (3PL) market, the end use industry segment exhibits significant variation in market share distribution. Retail stands out as the largest segment, reflecting the increasing demand for efficient and flexible logistics solutions that can cater to fast-moving consumer goods. Conversely, healthcare is emerging as a fast-growing segment, driven by the rising need for specialized logistics services that ensure timely and accurate delivery of medical supplies and pharmaceuticals. Growth trends in the end use industry segment are influenced by several factors. The retail sector is benefitting from the surge in e-commerce, which calls for advanced logistics capabilities to manage inventory and distribution effectively. Meanwhile, the healthcare sector’s expansion is largely attributed to the ongoing need for improved supply chain management in response to the aging population and increased health care expenditures. This dynamic environment presents opportunities for 3PL providers to innovate and cater to the unique requirements of each sector.

Retail: Dominant vs. Healthcare: Emerging

The retail segment in the US Third Party Logistics market is characterized by its scale and maturity, encompassing a vast array of products from consumer electronics to groceries. Retailers often rely on 3PL providers to enhance operational efficiency and improve delivery speed, leveraging advanced technologies like automated warehousing and real-time tracking. On the other hand, the healthcare segment, though currently smaller, is rapidly emerging as a critical area of growth. This segment requires stringent compliance with regulations and a higher level of service, as it deals with sensitive medical products. Healthcare logistics involves temperature control, specialized packaging, and precise inventory management, making it a complex but rewarding field for 3PL companies that can meet these demands.

By Operational Model: Asset-Based (Largest) vs. Non-Asset-Based (Fastest-Growing)

In the U.S. Third Party Logistics (3PL) market, the operational model segment showcases significant diversity. The Asset-Based model holds the largest share of the market, appealing to businesses looking for reliable and extensive resources, including owned warehouses and transportation fleets. In contrast, the Non-Asset-Based model, where 3PL providers operate without physical assets, is rapidly gaining traction among companies seeking flexibility and scalability in their logistics operations. This shift is indicative of evolving consumer demands and technological advancements that emphasize efficiency and adaptability. Growth trends in the operational model segment are heavily influenced by the increasing need for responsive and cost-effective logistics solutions. The rise of e-commerce has propelled the Non-Asset-Based model to the forefront, as companies favor providers that can quickly adjust to fluctuating market demands without the burden of fixed assets. Additionally, advancements in technology, such as AI and data analytics, are enabling Non-Asset-Based providers to optimize logistics operations, making them an attractive option for businesses looking to enhance their supply chain effectiveness.

Asset-Based (Dominant) vs. Hybrid (Emerging)

The Asset-Based operational model remains dominant in the U.S. Third Party Logistics market, characterized by companies that own their transportation and storage facilities. This model is favored for its reliability and control over logistics processes, allowing providers to offer consistent service levels. In contrast, the Hybrid model, which combines asset ownership with a network of external partners, is emerging as a flexible alternative. This approach allows logistics firms to adapt to changing demands and operational challenges while leveraging both owned and outsourced resources. The Hybrid model is particularly appealing to businesses that require both stability and responsiveness, as it combines the strengths of both Asset-Based and Non-Asset-Based approaches.

By Technology Adoption: Data Analytics (Largest) vs. Automation (Fastest-Growing)

In the US Third Party Logistics (3PL) market, the Technology Adoption segment is becoming increasingly vital for operational efficiency and competitive advantage. Data Analytics currently stands as the largest segment, providing companies with valuable insights that enhance decision-making and optimize supply chain processes. Meanwhile, Automation is rapidly gaining traction, ensuring faster turnaround times and reduced labor costs, making it the fastest-growing value within the segment.

Technology: Data Analytics (Dominant) vs. Automation (Emerging)

Data Analytics has established itself as the dominant technology within the US 3PL market, equipped with tools that facilitate real-time insights and predictive modeling, thereby improving efficiency and customer satisfaction. In comparison, Automation, although classified as an emerging technology, is revolutionizing processes by integrating robotics and AI to streamline logistics operations. As businesses recognize the need for agility and efficiency in their processes, Automation is increasingly being adopted for warehouse management and order fulfillment, positioning itself as a critical player in the ongoing digital transformation of logistics.

By Customer Type: E-commerce (Largest) vs. Small and Medium Enterprises (Fastest-Growing)

In the US Third Party Logistics 3PL Market, the distribution of market share among different customer types reveals a clear dominance of the E-commerce segment. This segment not only leads in market size but also represents a significant driver of logistics demand. Meanwhile, Small and Medium Enterprises (SMEs) are rapidly expanding, contributing to a vibrant and competitive landscape that challenges established norms in logistics practices. The growth trends within the customer segments are markedly influenced by shifts in consumer behavior and technological advancements. E-commerce is experiencing a robust expansion, with a consistent increase in online shopping leading to heightened logistics requirements. Simultaneously, SMEs, fueled by increased digitalization and a focus on supply chain efficiency, are emerging as a vital participant in the 3PL market, demonstrating resilience despite their smaller market share.

E-commerce (Dominant) vs. Small and Medium Enterprises (Emerging)

E-commerce stands as the dominant customer type in the US Third Party Logistics 3PL Market, characterized by its high shipping volumes and rapid turnover rates. This segment relies heavily on efficient logistics solutions to meet fast delivery demands and handle inventory management effectively. On the other hand, Small and Medium Enterprises (SMEs) are labeled as the emerging force within this landscape, leveraging innovative logistics services to enhance their competitive edge. SMEs are increasingly recognizing the importance of agility and customized logistics solutions to cater to a growing customer base. Their entry into the market is also facilitated by technological advancements, allowing them to compete more effectively against larger players while also exploring niche offerings.

Get more detailed insights about US Third Party Logistics 3PL Market

Key Players and Competitive Insights

The Third Party Logistics (3PL) Market in the US is characterized by a dynamic competitive landscape, driven by the increasing demand for efficient supply chain solutions and the growing complexity of logistics operations. Key players such as XPO Logistics (US), C.H. Robinson (US), and J.B. Hunt Transport Services (US) are strategically positioning themselves through innovation and digital transformation. XPO Logistics (US) focuses on leveraging technology to enhance operational efficiency, while C.H. Robinson (US) emphasizes its extensive network and data analytics capabilities to optimize supply chain management. J.B. Hunt Transport Services (US) is also investing in technology to improve service delivery, indicating a collective shift towards tech-driven solutions that shape the competitive environment.

The market structure appears moderately fragmented, with numerous players vying for market share. Key business tactics include localizing manufacturing and optimizing supply chains to enhance responsiveness to customer needs. The influence of major players is significant, as they set benchmarks for service quality and operational efficiency, thereby impacting the overall market dynamics.

In December 2025, XPO Logistics (US) announced a partnership with a leading technology firm to develop an AI-driven platform aimed at streamlining last-mile delivery operations. This strategic move is likely to enhance XPO's service offerings and improve customer satisfaction by reducing delivery times and costs. The integration of AI into logistics operations may also provide XPO with a competitive edge in a rapidly evolving market.

In November 2025, C.H. Robinson (US) expanded its global reach by acquiring a regional logistics provider in Europe. This acquisition is expected to bolster C.H. Robinson's capabilities in international shipping and enhance its service portfolio. By strengthening its presence in Europe, the company positions itself to better serve its clients with comprehensive logistics solutions, thereby increasing its competitiveness in the global market.

In October 2025, J.B. Hunt Transport Services (US) launched a new sustainability initiative aimed at reducing carbon emissions across its fleet. This initiative reflects a growing trend towards sustainability in logistics, as companies seek to meet regulatory requirements and consumer expectations. By prioritizing environmental responsibility, J.B. Hunt not only enhances its brand image but also aligns itself with the increasing demand for sustainable practices in the logistics sector.

As of January 2026, current trends in the 3PL market include a strong emphasis on digitalization, sustainability, and the integration of AI technologies. Strategic alliances are becoming increasingly important, as companies collaborate to enhance service offerings and operational efficiencies. The competitive landscape is shifting from price-based competition to a focus on innovation, technology, and supply chain reliability. This evolution suggests that companies that prioritize these aspects will likely emerge as leaders in the market.

Key Companies in the US Third Party Logistics 3PL Market include

Industry Developments

The US Third Party Logistics (3PL) Market has experienced significant developments in recent months. In October 2023, FedEx Logistics announced enhancements to its supply chain management solutions, focusing on automation and digital tools to increase efficiency. Similarly, DHL Supply Chain has expanded its capabilities in sustainable logistics, launching new green initiatives to reduce carbon emissions across its operations. In September 2023, Ryder Supply Chain Solutions revealed a strategic partnership with a technology firm to bolster last-mile delivery efficiency. Notably, NFI Industries completed the acquisition of a regional logistics firm, enhancing its service offerings and geographic reach.

In August 2023, UPS Supply Chain Solutions reported increased revenue attributed to the growing demand for e-commerce logistics services. Meanwhile, C.H. Robinson's valuation saw significant growth, as reflected in its stock price surge in response to robust contract logistics performance, further emphasizing the vital role of technology in adapting to supply chain challenges. In recent years, Kuehne + Nagel has also expanded its footprint through various acquisitions, continually reshaping its presence in the US logistics landscape. These trends illustrate the dynamism and competitive nature of the US 3PL market.

Future Outlook

US Third Party Logistics 3PL Market Future Outlook

The US Third Party Logistics market is projected to grow at a 7.97% CAGR from 2025 to 2035, driven by e-commerce expansion, technological advancements, and demand for supply chain efficiency.

New opportunities lie in:

  • Integration of AI-driven inventory management systems
  • Expansion of last-mile delivery solutions
  • Development of sustainable logistics practices and green supply chains

By 2035, the market is expected to be robust, reflecting significant growth and innovation.

Market Segmentation

US Third Party Logistics 3PL Market Service Type Outlook

  • Transportation
  • Warehousing
  • Value Added Services
  • Freight Forwarding

US Third Party Logistics 3PL Market Customer Type Outlook

  • Small and Medium Enterprises
  • Large Enterprises
  • E-commerce

US Third Party Logistics 3PL Market End Use Industry Outlook

  • Retail
  • Manufacturing
  • Healthcare
  • Automotive

US Third Party Logistics 3PL Market Operational Model Outlook

  • Asset-Based
  • Non-Asset-Based
  • Hybrid

US Third Party Logistics 3PL Market Technology Adoption Outlook

  • Automation
  • Data Analytics
  • Internet of Things
  • Blockchain

Report Scope

MARKET SIZE 2024176.77(USD Billion)
MARKET SIZE 2025230886.34(USD Billion)
MARKET SIZE 2035410.86(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)7.97% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies ProfiledXPO Logistics (US), C.H. Robinson (US), J.B. Hunt Transport Services (US), DHL Supply Chain (US), UPS Supply Chain Solutions (US), Ryder Supply Chain Solutions (US), Kuehne + Nagel (US), Expeditors International (US), NFI Industries (US)
Segments CoveredService Type, End Use Industry, Operational Model, Technology Adoption, Customer Type
Key Market OpportunitiesIntegration of advanced automation and artificial intelligence in logistics operations enhances efficiency in the US Third Party Logistics 3Pl Market.
Key Market DynamicsRising demand for integrated logistics solutions drives competition among US Third Party Logistics providers.
Countries CoveredUS
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FAQs

What is the current valuation of the US Third Party Logistics (3PL) Market?

As of 2024, the US Third Party Logistics Market was valued at 176.77 USD Billion.

What is the projected market size for the US 3PL Market by 2035?

The US 3PL Market is projected to reach 410.86 USD Billion by 2035.

What is the expected CAGR for the US Third Party Logistics Market during the forecast period?

The expected CAGR for the US Third Party Logistics Market from 2025 to 2035 is 7.97%.

Which service type segment holds the largest market share in the US 3PL Market?

The Transportation segment, valued between 70.0 and 160.0 USD Billion, appears to hold the largest market share.

How does the Automotive sector perform within the US 3PL Market?

The Automotive sector is projected to generate between 56.77 and 120.86 USD Billion, indicating robust performance.

What are the key operational models in the US 3PL Market?

The market includes Asset-Based, Non-Asset-Based, and Hybrid models, with Asset-Based valued between 70.0 and 160.0 USD Billion.

Which technology adoption segment is expected to grow significantly in the US 3PL Market?

The Blockchain segment, with a projected valuation between 56.77 and 115.86 USD Billion, is expected to grow significantly.

What role do large enterprises play in the US 3PL Market?

Large enterprises are projected to contribute between 70.0 and 160.0 USD Billion, highlighting their crucial role.

Who are the leading players in the US Third Party Logistics Market?

Key players include XPO Logistics, C.H. Robinson, J.B. Hunt Transport Services, and UPS Supply Chain Solutions.

What is the expected performance of the E-commerce sector in the US 3PL Market?

The E-commerce sector is projected to generate between 71.77 and 165.86 USD Billion, indicating strong growth potential.

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