Third-party Logistics Market

Third-party Logistics Market

Growth Factors of Third Party Logistics Market

The third party logistics market size was valued at USD 1,065 billion in 2023, and the market is now projected to grow from USD 1,142.7 billion in 2024 to USD 2,546 billion by 2032, exhibiting a CAGR of 10.5% during the forecast period of 2024-2032.

The outbreak of the COVID-19 pandemic affected the third party logistics market growth through disruption of supply chains and closures of borders which complicated operations. But at the same time, it promoted the digital leap and the advancement of e-commerce logistics. Since more companies shifted their supply chains to be more resilient in the future, third party logistics are in a better place to provide solutions for more flexible and effective supply chains post-COVID.

There is an increasing emphasis on e-commerce and globalization which is fueling the third party logistics market share. The use of third party logistics providers has been an advantage to businesses by simplifying the logistics, reducing delivery periods, and increasing customer satisfaction. Manufacturing and pharma companies are some of the industries that contract third party logistics for their cross-border services. Customers also get value from sustainable solutions, which will increase demand for third party logistics since it plans and reduces emissions on routes. This puts the market on a trajectory for further growth.

Moreover, new technologies including SCEM, TMS, ITLS and WMS are essential in third party logistics provider firms, which enhance operational performance. This is where shippers source third party logistics for better and more advanced logistics software that helps to reduce their costs and supply chain. Such changes are useful in third party logistics which helps small customers in the best way possible. By adopting these technologies, the third party logistics providers can increase their productivity and in turn, expand the market.

Comprehensive Analysis of Third Party Logistics Market

The third party logistics market and automotives industry is growing exponentially because of the market segmentation. With these aspects of market expansion, it offers detailed regional analysis taking into account the supply and demand dynamics that characterise the chassis & body market. All these segmentations are done systematically based on the mode of transportation, service types and by industry. The mode of transportation include, Railways, Airways, Roadways and Seaways. The service types include, Dedicated Contract Carriage (DCC), Domestic Transportation Management, International Transportation Management and Value Added Warehousing & Distribution. The industry include, Technological, Automotive, Retailing, Manufacturing and Logistics.

Asia Pacific region is expected to grow rapidly for the third party logistics market. This expansion is due to e-commerce activity whereby warehousing solutions are being incorporated into supply chain systems. This growth is backed up by synergy between logistics and transport firms within the market. These measures organised by the regional companies help enhance the market and contribute greatly to the healthy growth of the market.

The leading players in the market act strategically to ensure the growth of industrial prospects in the automotivese industry and maintain market benchmarks. These players include, DHL Group (Bonn, Germany), Kuehne + Nagel (Schindellegi, Switzerland), C.H. Robinson (Minnesota, U.S.), Ceva Logistics (Marseille, France), FedEx Corporation (Tennessee, U.S.), Nippon Express (Tokyo, Japan), DB Schenker (Essen, Germany), UPS (Georgia, U.S.), JB Hunt (Arkansas, U.S.), and Panalpina (Basel, Switzerland). These market players offer a level-playing competitive environment.

In February 2024, Dematic was based in Germany and they recently connected with a resale-as-a-service provider, Reflaunt. With Reflaunt, a resale service provider, the company will be providing fulfilment, shipping, and platforming services to the brand clients who want to tap into the secondhand market.

Segmentation Table

Global Third Party Logistics Market Scope

Study Period 2019-2032

Base Year 2023

Forecast Period 2024-2032

Growth Rate CAGR of 10.5% from 2024 to 2032

Historical Period 2019-2022

Unit Value (USD Billion)

Segmentation By Mode of Transportation, Service Type, Industry, and Region

By Mode of Transportation

Railways

• Airways
• Roadways
• Seaways

By Service

Dedicated Contract Carriage (DCC)

• Domestic Transportation Management
• International Transportation Management
• Value added warehousing & distribution

By Industry

Technological

• Automotive
• Retailing
• Manufacturing
• Logistics

By Region

North America (By Service Type, By Mode of Transportation, By Industry)

• U.S. (By Service Type)
• Canada (By Service Type)
• Mexico (By Service Type)
• Europe (By Service Type, By Mode of Transportation, By Industry)
• U.K. (By Service Type)
• Germany (By Service Type)
• France (By Service Type)
• Rest of Europe (By Service Type)
• Asia Pacific (By Service Type, By Mode of Transportation, By Industry)
• China (By Service Type)
• Japan (By Service Type)
• India ( By Service Type)
• South Korea (By Service Type)
• Rest Of Asia Pacific ( By Service Type)
• Rest of the World (By Service Type, By Mode of Transportation, By Industry)

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