Third-Party Logistics (3PL) Market Size By Solution (Dedicated Contract Carriage (DCC), Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution, Logistics Software), By Mode (Air, Sea, Rail & Road), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Jan 2020  |  Report ID: GMI132  |  Authors: Preeti Wadhwani, Saloni Gankar

Report Format: PDF   |   Pages: 200   |   Base Year: 2019




Summary Table of Contents Industry Coverage Methodology

Industry Trends

Third-Party Logistics (3PL) Market size exceeded USD 1 trillion in 2019 and is estimated to grow at 9% CAGR between 2020 and 2026. Rising trend of globalization, encouraging several companies to outsource their logistics activities to third-party suppliers, which is boosting the industry growth.
 

Third-Party Logistics (3PL) Market

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The growing trend of e-commerce in the market has resulted in the increased freight transportation and has created several industry opportunities for 3PL providers. E-commerce sector sales are continuously increasing and fueling customer demands. Moreover, last minute deliveries in the market are becoming more complicated as customers are expecting fast shipping and have become more specific regarding their delivery demands. As a result, the supply chain has become an important part of the business, encouraging shippers to turn to 3PL providers to fulfill last-mile requirements to meet customer demands.
 

The growing demand for international & domestic trade is propelling the U.S. third party logistics market growth

The DTM and ITM solutions held around 70% of the U.S. 3PL market share owing to rise in globalization which has resulted in increasing domestic & international trade. With the growing trade activities, customers are demanding efficient operations and timely delivery of products.
 

3PL providers are opting for DTM solutions to reduce the costs and complexity of their business operations. For effective & efficient management of the transportation process, various companies are adopting these systems. The participants are collaborating with local players to use their regional capabilities in logistics.
 

Increasing international e-commerce activities are fostering the usage of rail & road modes

Global 3PL market by mode

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In 2019, the rail & road mode captured more than 25% of the third-party logistics market share. These modes provide companies cost saving opportunities, environment friendly surface transportation mode and high capacity, encouraging government administrations to provide support to encourage the 3PL providers to adopt these modes.
 

For instance, launch of rail freight carrier service from London to Beijing has allowed the use of rail for international transport and trade between Asia Pacific and Europe. Such initiatives are providing several opportunities to industry players.
 

The rail & road mode is being widely used for domestic transportation in third-party logistics services. Freight transport by road helps in making efficient deliveries 24/7 irrespective of airport, port, and railway operating schedules. Flexible routing systems and cargo tracing by using modern GPS navigation systems are being implemented in 3PL rail & road transportation modes.
 

Moreover, for short-distance goods delivery, the transportation by road minimizes transportation cost. Increasing investments to develop road transportation networks and government initiatives are spurring the market demand.
 

Government initiatives in Asia Pacific has led to export-oriented industrialization

Asia Pacific 3PL market

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Asia Pacific third-party logistics market size is forecast to register growth rate of over 10% through 2026 on account of strong roadways in the region, enabling the transit of a high volume of goods. The rapid increase in the number of start-ups led by steady economic growth is also contributing to the market revenue. APAC has become the manufacturing hub for various countries accross the world driving the demand for third-party logistics services. However, the demand for faster product delivery and tailored transportation from international players for ensuring coordinated movement of goods will augment the market value.
 

Furthermore, due to U.S.-China trade war in 2019, tariffs increased by 25% (from 10%) on China-based products. The tariffs are impacting a wide variety of consumer goods compelling the regional industry players in China to focus on domestic operations instead of international operations.
 

Strategic mergers and acquisition remain key growth strategies for the market players

Companies are focusing on strategic alliances such as collaborations and mergers & acquisitions to deliver enhanced service capabilities to their customers. Some key players operating in the 3PL market include FedEx, UPS Supply Chain Solutions, DHL, DB Schenker, Nippon Express, C.H. Robinson, XPO Logistics, UPS, JB Hunt, Expeditors International, Kuehne+Nagel, Expeditors International, Dachser, CEVA Logistics, Sinotrans, Panalpina, SNCF Geodis, Gefco, Kintetsu World Express, and Deutsche Post DHL (Exel).
 

The third-party logistics (3PL) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:

Market by Solution

  • Dedicated Contract Carriage (DCC)
  • Domestic Transportation Management (DTM)
  • International Transportation Management (ITM)
  • Warehousing & distribution
  • Logistics software

Market by Mode

  • Air
  • Sea
  • Rail & Road

The above information has been provided on a regional and country-level basis for the following:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Russia
    • Spain
    • Netherlands
    • Switzerland
  • Asia Pacific
    • China
    • Japan
    • India
    • Indonesia
    • South Korea
    • Australia
  • South America
    • Brazil
    • Argentina
    • Colombia
    • Chile
  • MEA
    • Saudi Arabia
    • Turkey
    • UAE
    • South Africa

 

Frequently Asked Questions (FAQ) :

The APAC 3PL market will expand at over 10% CAGR till 2026 led by strong roadways in the region, enabling the transit of a high volume of goods.
In 2019, the rail & road mode accounted for around 25% of the global market as these modes provide cost saving opportunities, environment friendly surface transportation mode and high capacity.
Key industry players include FedEx, UPS Supply Chain Solutions, DHL, DB Schenker, Nippon Express, C.H. Robinson, XPO Logistics, UPS, JB Hunt, Expeditors International, Kuehne+Nagel, Expeditors International, Dachser, CEVA Logistics, Sinotrans, Panalpina, SNCF Geodis, Gefco, Kintetsu World Express, and Deutsche Post DHL (Exel).

Premium Report Details

  • Published Date: Jan 2020
  • Pages: 200
  • Tables: 153
  • Charts / Figures: 36
  • Companies covered: 25
  • Countries covered: 25

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