NEW
YORK, July 15, 2024 /PRNewswire/ -- The
global third-party logistics market size is estimated to grow
by USD 532.65 billion from 2023-2027,
according to Technavio. The market is estimated to grow at a CAGR
of almost 7.87% during the forecast
period. Growth of e-commerce and the need for integrated
shipping services is driving market growth, with a trend
towards emergence of big data analytics. However, high
operational cost and competitive pricing poses a challenge.
Key market players include AP Moller Maersk AS, Baltic Logistics
Group, BDP International Inc., Burris Logistics Co., C H Robinson
Worldwide Inc., CMA CGM SA, DB Schenker, Deutsche Bahn AG, Deutsche
Post AG, DSV AS, FedEx Corp., GEODIS SA, Hub Group Inc., J.B. Hunt
Transport Services Inc., Kintetsu Group Holdings Co. Ltd., Kuehne
Nagel Management AG, Nippon Express Holdings Inc., Sinotrans Ltd.,
United Parcel Service Inc., and XPO Logistics Inc..
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Forecast
period
|
2023-2027
|
Base Year
|
2022
|
Historic
Data
|
2017 - 2021
|
Segment
Covered
|
Application
(Transportation services, Warehousing and distribution services,
and Other services), End-user (Manufacturing, Retail, Consumer
goods, Healthcare, and Others), and Geography (APAC, North America,
Europe, South America, and Middle East and Africa)
|
Region
Covered
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
AP Moller Maersk AS,
Baltic Logistics Group, BDP International Inc., Burris Logistics
Co., C H Robinson Worldwide Inc., CMA CGM SA, DB Schenker, Deutsche
Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., GEODIS SA, Hub
Group Inc., J.B. Hunt Transport Services Inc., Kintetsu Group
Holdings Co. Ltd., Kuehne Nagel Management AG, Nippon Express
Holdings Inc., Sinotrans Ltd., United Parcel Service Inc., and XPO
Logistics Inc.
|
Key Market Trends Fueling Growth
Logistics companies and shippers are utilizing big data
analytics to extract valuable insights from extensive data sets,
providing a competitive edge in the third-party logistics market.
Big data analytics solutions enable companies to optimize
operations, enhance customer experience, and explore new business
models. In operational efficiency, real-time processing and
predictive techniques improve capacity forecasting and resource
control. Customer experience benefits from analyzing consumer
sentiment and product quality data. Collaboration with supply chain
partners using shared data leads to new services, demand pattern
discovery, and enhanced forecasting accuracy. Real-time analytics
and end-to-end supply chain visibility enable quick action against
potential revenue losses. Big data analytics empowers logistics
companies to optimize resources, increase asset uptime, and conduct
near-real-time supply planning using IoT data feeds.
The 3PL market in the logistics sector is experiencing
significant growth due to increasing cross-border trade activities.
Mergers and acquisitions are common as companies look to expand
their reach and reduce costs. Poor infrastructure in some regions
drives up logistics costs, leading to the adoption of IT solutions
and software. Rising demand for consumer electronics, retailing,
healthcare, and food and beverage products fuels growth. Railways,
roadways, waterways, airways, and domestic/international
transportation management are key areas of focus. Warehousing and
distribution are essential elements in the 3PL market, with
technological advancements streamlining operations. New trends
include omni-channel operations, e-commerce sector growth, and the
global shift towards new technologies. Shippers in industries like
consumer goods, medical equipment, food, dairy, nutrition,
beverage, and confectionery benefit from 3PL services. Despite
challenges, the future looks bright for the 3PL market as it
continues to adapt and innovate.
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Market Challenges
- In the logistics industry, competition is intensifying due to
the growing demand for value-added services and specialized
solutions. Customers are pushing for lower prices when renewing
contracts, while also requesting additional services. This puts
significant pressure on third-party logistics (3PL) providers to
reduce their costs. The industry's capital-intensive nature,
requiring large fleets, skilled labor, and advanced technology,
increases operational expenses. Controlling these costs is crucial
for 3PLs to remain competitive and maintain profitability amidst
volatile fuel prices and customer demands.
- Third-party logistics (3PL) plays a crucial role in the global
supply chain, particularly for industries like toy retailing and
e-commerce services. Sustainability is a significant challenge,
requiring 3PLs to adopt advanced technology and high-tech services
for efficient warehouse management and reduced carbon footprint.
Adaptability and responsiveness are essential in today's dynamic
business environment, with 3PLs providing multi-user logistics
facilities for inbound and outbound logistics, after-sales, and
return logistics. Emerging economies and growing populations
present new opportunities, but also complexities. Digital
transformation and technology adoption are vital for 3PLs to meet
the demands of the food & groceries industry and the e-commerce
market. Benchmarking, international deliveries, and delivery
partners are key considerations for businesses seeking
cost-effective and efficient logistics solutions. Challenges
include freight-management, shipping services, and last-mile
connectivity. Collaborating with ship-owners, cargo agents, and
freight forwarders can help mitigate delays and improve delivery
time. In-house teams and logistics software are essential for
effective freight management, while after-sales and return
logistics require a customer-centric approach. Ultimately, the
success of a 3PL business model depends on money and effort
invested in logistics, freight-management, and digital
transformation.
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challenges - Download a Sample Report
Segment Overview
This third-party logistics market report extensively covers
market segmentation by
- Application
- 1.1 Transportation services
- 1.2 Warehousing and distribution services
- 1.3 Other services
- End-user
- 2.1 Manufacturing
- 2.2 Retail
- 2.3 Consumer goods
- 2.4 Healthcare
- 2.5 Others
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Transportation services- The transportation services
segment in the global Third-Party Logistics (3PL) market provides
various modes of shipping goods, including road, rail, air, and
sea. Companies often outsource cargo and freight transportation due
to the significant investment and expertise required. Contract 3PL
providers offer efficient and timely transportation, providing a
competitive edge. Services include freight forwarding, project
logistics, network planning, cargo insurance, optimization, and
customs brokerage. Technological innovations, such as IT systems,
data analytics, fleet management, location detection, and
autonomous vehicles, enhance flexibility and profitability.
Intra-regional trade growth and manufacturing relocation increase
demand for freight services, driving market potential. Vendors
expand fleets and invest to strengthen capabilities and increase
market shares, fueling the transportation services segment's growth
in the 3PL market.
For more information on market segmentation with
geographical analysis including forecast (2023-2027) and historic
data (2017 - 2021) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global Spare Parts Logistics Market is driven by the
increasing need for efficient supply chain management and the
growth of the automotive and aerospace industries. The global
Chemical Logistics Market is expanding due to rising demand for
chemical products and the need for specialized handling and
transportation solutions. The global Connected Logistics Market is
growing rapidly, fueled by advancements in IoT and AI technologies,
which enhance real-time tracking, inventory management, and overall
supply chain efficiency, meeting the increasing demand for seamless
logistics operations across industries.
Research Analysis
The Third-party Logistics (3PL) market is witnessing significant
growth due to the increasing demand for efficient and
cost-effective logistics solutions. With the global shift towards
e-commerce and omni-channel operations, shippers in various
industries such as consumer goods, food and beverage, medical
equipment, and toy retailers are turning to 3PL providers for their
logistics infrastructure needs. New technologies like digital
transformation, benchmarking, and adaptability are driving
operational excellence and responsiveness in the market. 3PLs offer
shipping services, e-commerce services, and warehousing solutions,
making them indispensable partners for businesses looking to
streamline their supply chain activities. International deliveries
and prompt response to consumer demands are key factors driving the
market's growth. Prominent vendors are investing in new
technologies and business models to stay competitive and meet the
evolving needs of their clients. Funds are also pouring in to
support the digital transformation of the 3PL industry.
Market Research Overview
The Third-Party Logistics (3PL) market is a dynamic and evolving
sector that plays a crucial role in the global supply chain. It
caters to various industries, including food and beverage, consumer
goods, medical equipment, and more. The market is experiencing a
significant global shift due to the rise of omni-channel operations
and the e-commerce sector. New technologies, such as advanced
logistics software and freight-management systems, are transforming
operations, making them more adaptable and responsive. Shippers
benefit from 3PL services by outsourcing their logistics
activities, including inbound and outbound logistics, after-sales,
and return logistics. The food and groceries industry, in
particular, is seeing a surge in demand for 3PL services due to the
e-commerce market's growth. Emerging economies and populations with
increasing purchasing power are driving the demand for 3PL
services. Digital transformation and technology adoption are also
key trends in the market, with high-tech services becoming
increasingly important. The 3PL market encompasses various players,
from logistics infrastructure providers to shipping services,
freight-forwarders, and cargo agents. Cost reduction, mergers, and
acquisitions are prominent in the 3PL market, with trading
activities and poor infrastructure leading to higher logistics
costs. IT solutions and software are essential for improving
efficiency and reducing delays in international deliveries.
Last-mile connectivity and cross-border trade activities are also
critical areas of focus for 3PL providers. In conclusion, the 3PL
market is a vital component of the logistics sector, providing
essential services to various industries and sectors, including
food and beverage, consumer goods, medical equipment, and
e-commerce. The market is undergoing significant changes due to
technological advancements, digital transformation, and the rise of
e-commerce. 3PL providers must adapt to these changes to remain
competitive and meet the evolving needs of their customers.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Transportation Services
- Warehousing And Distribution Services
- Other Services
- End-user
-
- Manufacturing
- Retail
- Consumer Goods
- Healthcare
- Others
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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