3PL Market size is set to surpass USD 1.8 trillion by 2026, according to a new research report by Global Market Insights Inc.
Rapid development of the e-commerce sector has driven importance of speedy and last-mile delivery systems. Manufacturers’ interest to focus on core business and subcontracting their supply chain activities are driving the market demand.
Air-based logistics services accounted for around 40% of the global 3PL market in 2019. The growing demand for shorter shipping time, economic development, and rising trade activities between several countries are fostering the usage of air-based logistics services.
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Reduction in operating costs by DCC service providers is fueling the market growth
Dedicated Contract Carriage (DCC) solutions allow manufacturing companies to reduce supply chain operations costs and the burden of managing a personal fleet & team. Increasing service & product demands owing to change in consumer buying behavior has encouraged businesses/companies to implement these services, which further boosting the market expansion. Companies such as Target Logistics (Pvt) Ltd., The Kroger Co. and Walmart Inc. use 3PL services to reduce their operational costs and to increase transfer liability.
Browse key industry insights spread across 200 pages with 153 market data tables and 36 figures & charts from the report, “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” in detail along with the table of contents:
Delivery of goods at through sea mode is gaining popularity
Several government administrations are increasing the investments in port infrastructure. Long distance movement of goods by companies with limited financial resources are augmenting the market growth. Most businesses seeking 3PL services demand contract logistics that are solely devoted on the provision of multiple modes and are solely developed for these businesses.
North America captured more than 25% of the 3PL market revenue share in 2019. The industry is experiencing high demand for low-cost logistics services led by the rapidly increasing e-commerce sector. The demand for tailored transportation and faster product delivery for ensuring coordinated movement of goods is being witnessed. Strong trade relations of the U.S., Canada and Mexico with other countries will also contribute towards the air freight services market growth.
Industry players are collaborating with regional and local companies to sustain in the market
Prominent 3PL market players include C.H. Robinson, DB Schenker, DHL, Nippon Express, FedEx, UPS Supply Chain Solutions, JB Hunt, UPS, XPO Logistics, Kuehne + Nagel, Expeditors International, Gefco, Kintetsu World Express, Dachser, SNCF Geodis, Deutsche Post DHL (Exel), Sinotrans, CEVA Logistics, and Panalpina, among others. These firms are focusing on strategic alliances to sustain in a highly competitive market.
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