Third-Party Logistics (3PL) Market Analysis

Third-Party Logistics Market Analysis

Third-Party Logistics (3PL) Market from the dedicated contract carriage (DCC) solution segment is expected to depict over 5% growth rate between 2023 and 2032. Third-party DCC solutions dedicate drivers and vehicles for a customer to use exclusively on a contractual basis. This solution can fulfill responsibilities such as front-door delivery, direct store delivery, customer interaction, and cross-docking.

The DDC solution offers a way for shippers to increase truck capacity, reduce costs, and transfer liability. Additionally, the increasing demand for efficient and safer fleets that can be regulated, tracked, and measured is further fueling the use of third-party logistics solutions such as DCC in fleet management.

The 3PL market value from air mode segment is anticipated to reach nearly USD 1,100 billion by 2032. Technological advancements have facilitated a rise in consumer preference for same-day deliveries. Same-day delivery combines the speediness of physical stores with the convenience of online retail. Many 3PL providers are also collaborating with airlines to offer speedier transportation of medical goods such as vaccines, and ventilators across the world. This shift in consumer trends toward faster deliveries over long distances will create substantial demand for third-party logistics solutions in air freight applications.

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The food & beverage application segment accounted for more than 15% of the third-party logistics market share in 2022. This growth is attributed to the rising disposable income, growing demand for processed foods, and expanding consumer awareness regarding the advantages of consuming nutritious foods. Many F&B brands also began investing in direct-to-consumer (D2C) logistics and e-commerce services during the pandemic restrictions.

This has helped companies to personalize their consumer experience without much assistance from physical stores. In addition, e-commerce providers across the globe are focusing on delivering fresh vegetables and fruits to address the increasing consumer demand for healthier foods, further fostering the usage of third-party logistics in food & beverage applications.

Asia Pacific 3PL market size is estimated to exhibit over 10% gains through 2032. This growth is credited to the steady expansion of the e-commerce sector in the region. 3PL companies provide additional services such as door-to-door services, cross-docking, packaging, and inventory management, which are essential for efficient e-commerce operations. There has also been a growing shift towards client-facing technology to increase customer involvement in tracking and instant decision-making, creating strong demand for third-party logistics across the e-commerce sector in the region.