Third-party Logistics Market Growth & Trends
The global third-party logistics market size is expected to reach USD 1,998.73 billion by 2030, registering a CAGR of 8.6% from 2022 to 2030, according to a new report by Grand View Research, Inc. The advent of new technologies is changing the 3PL industry dynamics. The advanced data collection capabilities, warehouse automation, and digitalization of the entire supply chain are enabling companies to adopt a consistent innovative, customer-centric, and agile approach. As a result, 3PL companies are providing technologically driven services by investing in blockchain solutions, mobile technologies, and 3PL software to gain a competitive advantage in a fiercely competitive marketplace.
The Internet of Things (IoT) and cloud-based logistics management solution turn the data into actionable value-added information, which can shape the strategic decision-making process and increase productivity. Some of the capital-intensive organizations are increasing their Information Technology (IT) spending and are using predictive analytics for supply chain enhancement. For instance, C.H. Robinson Worldwide, Inc. is using Artificial Intelligence (AI) technology to analyze customer data and get notified about extreme weather conditions or traffic disruption. Logistics automation is expected to play a vital role in the growth of the market. The use of robots in warehouses and unloading docks helps streamline order fulfillment services.
The use of Automated Guided Vehicle (AGV) can help lessen human errors, resolve material handling issues, ensure movement of high-volume goods, and increase accuracy & repeatability. To deliver immediate value and long-term returns, companies are widely accepting logistics automation. The value-added logistics services are expected to witness the highest CAGR over the forecast period. Key companies are offering comprehensive logistics services to ensure the competitiveness of their businesses. Shippers are reducing operational costs by shifting their focus from transportation and back-office functions, such as warehousing, order taking & picking process, kitting & final assembly, product localization, and labeling. Thus, the value-added logistics services are becoming a boon for shippers to mitigate inventory & transportation costs.
Third-party Logistics Market Report Highlights
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