Third-party Logistics Market by Service (Domestic Transportation Management, International Transportation Management, Value-added Warehousing and Distribution), Transport Mode (Airways, Railways, Roadways), End User - Global Forecast 2024-2030

Third-party Logistics Market by Service (Domestic Transportation Management, International Transportation Management, Value-added Warehousing and Distribution), Transport Mode (Airways, Railways, Roadways), End User - Global Forecast 2024-2030

The Third-party Logistics Market size was estimated at USD 761.67 billion in 2023 and expected to reach USD 834.71 billion in 2024, at a CAGR 9.68% to reach USD 1,454.59 billion by 2030.

The third-party logistics (3PL) market is a vital industry that offers essential services, such as warehousing, transportation, integrated operations, and fulfillment solutions to various sectors such as retail, eCommerce, manufacturing, consumer goods, healthcare, and automotive. This market's growth is fueled by globalization, increased trade activities, eCommerce, and technological advancements in data analytics, artificial intelligence (AI), and robotics automation. Emerging opportunities in the 3PL market involve digital transformation through real-time shipment tracking via IoT devices and advanced analytics for data-driven decision-making processes. Integrating blockchain technology can enhance transparency and security across the supply chain. Sustainable practices, such as green logistics solutions and route optimization can reduce carbon emissions and cost savings. However, the industry faces limitations and challenges, including fluctuating fuel costs impacting transportation prices, changing regulations affecting international trade agreements, and security concerns related to theft or cyber-attacks on critical information systems.

Regional Insights

In the Americas, economic growth has driven demand for third-party logistics services in areas including eCommerce and supply chain management. The United States leads this market with companies focusing on technological advancements and automation to increase efficiency. In May 2022, FedEx announced its collaboration with Aurora Innovation to launch autonomous trucking services in Texas. Canada has also observed a surge in demand for logistics services due to its expanding trade relationships worldwide. China remains a dominant country in the APAC region due to its substantial manufacturing base and growing middle-class population, driving increased consumption. Japanese companies have made significant investments in robotics and IoT technologies to improve supply chain capabilities. The European Union's unified regulatory framework created opportunities for cross-border collaborations among third-party logistics providers. Brexit necessitated adjustments from both UK-based and European providers to comply with new rules governing trade between them. Advancements in digitalization have led to innovative solutions, such as blockchain integration for more transparent tracking systems across Europe. Growth in sectors, including eCommerce and infrastructure development, has created opportunities for third-party logistics providers in the Middle East and Africa.

Market Insights

• Market Dynamics
  
  The market dynamics represent an ever-changing landscape of the Third-party Logistics Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.
  • Market Drivers
    • Globalization of Business and Penetration of International Trades
    • Technology Adoption in Logistic and Warehouse Operations
    • Adoption of Third-Party Logistics in Booming E-Commerce Sector
    • Market Restraints
      • Lack of Control over the Delivery Process
      • Market Opportunities
        • Technological Advancements in Third-party Cold Chain Logistics
        • Robotics or Automation Technology Modernizing 3PL
        • Market Challenges
          • Impact of Unstable Economic Conditions on 3PL
          • Market Segmentation Analysis
            • Service: Increasing use of third-party logistics for international transportation management
            • End User: Rapid adoption of third-party logistics in consumer and retail transportation
            • Market Disruption Analysis
            • Porter’s Five Forces Analysis
            • Value Chain & Critical Path Analysis
            • Pricing Analysis
            • Technology Analysis
            • Patent Analysis
            • Trade Analysis
            • Regulatory Framework Analysis
            FPNV Positioning Matrix
            
            The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Third-party Logistics Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).
            
            Market Share Analysis
            
            The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Third-party Logistics Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.
            
            Recent Developments
            • Nippon Express buys European logistics firm Cargo-Partner
              
              Nippon Express, the third-party logistics provider, acquired Cargo-Partner for an estimated USD 1.5 billion. This strategic deal aims to strengthen the Nippon Express Group's European network while also increasing its ocean and air forwarding volume. This partnership between Nippon Express and Cargo-Partner provides expanded office coverage and specialty services and leverages information technology resources and a global scale. Additionally, Cargo-Partner is expected to gain a foothold in the intra-Asia and trans-Pacific markets as a result of this collaboration.
              
              CEVA Logistics, ENGIE and SANEF launch an alliance to decarbonize road freight transport
              
              CEVA Logistics, ENGIE & SANEF joined forces to decarbonize road freight transport through the launch of a concrete solution to decarbonize road freight transport, the European Clean Transport Network Alliance (ECTN Alliance). Mobilizing the expertise of its founding members, ECTN Alliance is building and operating a network of truck terminals with low-carbon energy solutions to transport merchandise along Europe’s motorways.
              
              Softeon Extends its Leading Software Solution Set for Third-Party Logistics Companies
              
              Softeon, a supply chain software provider, continues to add new features to its software solutions for third-party logistics (3PLs) providers, leading to continued new customer partnerships. Softeon's 3PL customer portfolio includes CEVA Logistics, Allen Distribution, DB Schenker, Federation Logistics, G3 Enterprises, KSP Fulfillment, OAI Global, PSS Distribution, Sony DADC, Saddle Creek Logistics Technicolor, UPS Supply Chain Solutions, and more.
            Strategy Analysis & Recommendation
            
            The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Third-party Logistics Market. This critical assessment involves a thorough analysis of the organization’s resources, capabilities, and overall performance to identify its core strengths and areas for improvement.
            
            Key Company Profiles
            
            The report delves into recent significant developments in the Third-party Logistics Market, highlighting leading vendors and their innovative profiles. These include 3PL Central LLC, A.N. Deringer, Inc., A.P. Møller – Mærsk A/S, AmeriCold Logistics, LLC, BDP International, Inc., Burris Logistics, C.H. Robinson Worldwide, Inc., CEVA Logistics AG, CITI Solutions Warehousing & Distribution Pvt. Ltd., Cleo Communications LLC, Dachser Group SE & Co. KG, DCL Logistics, DHL International GmbH by Deutsche Post AG, DSV A/S, FedEx Corporation, IPSCOM Private Limited, Kuehne + Nagel International AG, Nippon Express Co., Ltd., Pactra International Co. Ltd, Pantos Logistics Canada Inc., Schneider National, Inc., Sinotrans, United Parcel Service of America, Inc., Warehousing & Distribution Pte Ltd., and Yusen Logistics Co., Ltd..
            
            Market Segmentation & Coverage
            
            This research report categorizes the Third-party Logistics Market to forecast the revenues and analyze trends in each of the following sub-markets:
            • Service
              • Domestic Transportation Management
              • International Transportation Management
              • Value-added Warehousing and Distribution
              • Warehousing & Distribution
              • Transport Mode
                • Airways
                • Railways
                • Roadways
                • Waterways
                • End User
                  • Automotive
                  • Consumer and Retail
                  • Food & Beverage
                  • Healthcare and Pharmaceuticals
                  • Region
                    • Americas
                      • Argentina
                      • Brazil
                      • Canada
                      • Mexico
                      • United States
                        • California
                        • Florida
                        • Illinois
                        • New York
                        • Ohio
                        • Pennsylvania
                        • Texas
                        • Asia-Pacific
                          • Australia
                          • China
                          • India
                          • Indonesia
                          • Japan
                          • Malaysia
                          • Philippines
                          • Singapore
                          • South Korea
                          • Taiwan
                          • Thailand
                          • Vietnam
                          • Europe, Middle East & Africa
                            • Denmark
                            • Egypt
                            • Finland
                            • France
                            • Germany
                            • Israel
                            • Italy
                            • Netherlands
                            • Nigeria
                            • Norway
                            • Poland
                            • Qatar
                            • Russia
                            • Saudi Arabia
                            • South Africa
                            • Spain
                            • Sweden
                            • Switzerland
                            • Turkey
                            • United Arab Emirates
                            • United Kingdom
                            
                            
                            Please Note: PDF & Excel + Online Access - 1 Year