Home > Automotive & Transportation > Third-Party Logistics (3PL) Market
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.
Get more details on this report - Request Free Sample PDF
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.
Report Coverage | Details |
---|---|
Base Year: | 2019 |
Market Size in 2019: | 1 trillion (USD) |
Forecast Period: | 2020 to 2026 |
Forecast Period 2020 to 2026 CAGR: | 9% |
2026 Value Projection: | 1.8 trillion (USD) |
Historical Data for: | 2016 to 2019 |
No. of Pages: | 200 |
Tables, Charts & Figures: | 189 |
Segments covered: | Solution and Mode |
Growth Drivers: |
|
Pitfalls & Challenges: |
|
Get more details on this report - Request Free Sample PDF
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.
Get more details on this report - Request Free Sample PDF
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.
Get more details on this report - Request Free Sample PDF
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.
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).
Market by Solution
Market by Mode
The above information has been provided on a regional and country-level basis for the following: