Australia Third-Party (3PL) Market Size and Growth Forecast (2018-2028)

Australia Third-Party (3PL) Market Size and Growth Forecast (2018-2028)

Executive Summary

The third-party logistics (3PL) industry in Australia plays a crucial role in facilitating the movement of goods within the country and across international borders. 3PL providers offer a range of services that include transportation, warehousing, distribution, inventory management, freight forwarding, and more.

E-commerce Boom: The rise of e-commerce has significantly impacted the logistics sector. 3PL companies have had to adapt to the changing demands of online retail, such as managing last-mile delivery and handling returns efficiently.

According to Makreo research the year-on-year growth in 2022 was remarkable, market revenue increased by 33.4%. This significant surge in market revenue underscores a rapid and expansive evolution of the 3PL market. The driving forces behind this exponential increase are the escalating trend in online shopping, the continuous advancement of technology, and the specific dynamics inherent to various industries.

Moreover, increasing numbers of companies are adopting an outsourcing strategy to optimize their operations. By entrusting their logistics functions to specialized 3PL providers, businesses can focus on their core competencies and reduce operational complexities.

Key Developments

• Since January 2023, Australian enterprises have been acknowledging the growing surge in online retail and are proactively channeling investments into their logistics infrastructure to harness this potential. A notable instance of this trend is exemplified by Woolworths, which has unveiled intentions to establish an automated distribution center in Western Sydney. This strategic facility is geared to accommodate as many as 50,000 weekly online deliveries, positioning itself to contend with the increasing influence of Amazon in the Australian market. Having commenced its construction in 2021, Woolworths anticipates that this facility will commence operations by 2024.
• Toll Group, a prominent participant in the third-party logistics sector, has undertaken substantial investments to augment its warehousing capabilities. Evidencing this commitment, Toll Group inaugurated a state-of-the-art warehouse spanning 53,000 square meters within Sydney's Moore Bank Logistics Park. This facility stands as a testament to modern automation and advanced technology, serving as a catalyst for streamlined inventory oversight and the efficient execution of order fulfillment processes.
• Aramex is poised to establish a new expansive warehouse at Brisbane Airport, taking shape within the Airport Industrial Park. Encompassing an impressive 26,120 square meters, the construction of this facility is slated for completion during the second quarter of 2024. This expansion of Aramex's warehouse presence underscores Brisbane Airport's rising prominence as a pivotal hub within the logistics landscape.

Future Outlook

The prospective outlook for the third-party logistics (3PL) sector in Australia is highly favorable, underpinned by factors including economic diversification, robust infrastructure development, the continued surge of e-commerce, global trade dynamics, operational efficiency enhancements, and technological strides. 3PL providers that demonstrate adaptability to these evolving demands, offer specialized solutions, and harness technological innovations are positioned for substantial growth within Australia's dynamic 3PL landscape.

According to Makreo's projections, the Australia Third-Party Logistics Market is anticipated to expand significantly, reaching an estimated value exceeding AUD 30 Billion by the year 2028. This growth trajectory is expected to be fueled by a compound annual growth rate (CAGR) of 3.8% from 2023 through 2028. As Australian enterprises increasingly seek avenues to refine their logistics operations, the demand for proficient 3PL services is poised to experience notable escalation.

Makreo research has published study on Third Party Logistics Market titled, “Australia Third Party Logistics Forecast (2018-2028)”. Market assessment has been carried out using qualitative and quantitative methods and have combined the impact of macroeconomic and micro economic scenario. The market has witnessed many shifts in recent past years. Future outlook has been assessed keeping various influencing factors into consideration and also to assess the expected opportunities in the market.

Companies Covered

• Pro Prep and Fulfillment Australia
• Sourci
• 365 Freight and Customs PTY LTD
• 1800 We Store It
• Stockwell International
• Mondiale VGL PTY Ltd

Key Questions Answered

1. How has the Australia 3PL market evolved in terms of market size and growth rate over the past decade?

2. What were the key drivers behind the market's growth during this period?

3. What is the current size of the Australia 3PL market, and how has its growth rate evolved compared to the past?

4. What are the Benefits of Working with Third-Party Logistics Provider in Australia

5. What are the projected growth rates for the third-party logistics market in Australia over the next 3 to 5 years?

6. What factors are driving this growth, and how do they align with broader economic and industry trends?

7. Who are the key players in the market and what is their present state of performance?

8. What is the investment scenario?