Third-Party Logistics Market Size

Third-Party Logistics Market Size

The third-party logistics market size was valued at USD 1.5 trillion in 2024 and is estimated to register a CAGR of 10.1% between 2025 and 2034. The rapid growth of retail and e-commerce industry is driving market growth. As online retail continues to expand globally, businesses face increased demand for fast, reliable, and efficient logistics services to handle high volumes of orders.

3PL providers are instrumental in managing warehousing, order fulfillment, and last-mile delivery, enabling e-commerce companies to streamline operations and offer better customer experiences. The need for fast, on-demand delivery services, particularly with the rise of same-day and next-day shipping, has also fueled demand for 3PL solutions.

In February 2024, the National Retail Federation reported a significant uptick in e-commerce logistics services to manage inbound flows due to heightened online shopping trends. The rise in e-commerce has increased the need for efficient inbound logistics to handle the high volume of goods. With consumers demanding faster delivery times, companies are optimizing their supply chains to ensure timely restocking and inventory management.
 

Third-party logistics (3PL) market growth is driven its potential for significant cost savings. By outsourcing logistics functions, companies can avoid the capital expenditures associated with maintaining warehouses, fleets, and other infrastructure. 3PL providers can leverage economies of scale, offering lower per-unit transportation, warehousing, and inventory management costs. Furthermore, they possess specialized expertise, which allows for more efficient supply chain operations, reducing waste, improving route optimization, and ensuring faster delivery times. This operational efficiency enables businesses to focus on core competencies while leaving the complex and resource-intensive logistics operations to external providers.