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The third-party logistics (3PL) market size is forecast to increase by USD 590.3 billion, at a CAGR of 8.1% between 2024 and 2028. Market growth hinges on several factors, notably the expansion of e-commerce logistics and the demand for seamless shipping solutions. Additionally, the proliferation of trade agreements between nations further propels third-party logistics market growth. Moreover, the adoption of 3PL facilitates cost reduction, driving market expansion. These interconnected factors underscore the importance of efficient logistics solutions in meeting evolving consumer demands and navigating complex global trade dynamics. As businesses seek to optimize operations and capitalize on emerging opportunities, the market for integrated shipping continues to experience strong growth and innovation. This trend also extends to healthcare logistics, driving growth across healthcare systems globally. Our report examines historical data from 2018 - 2022, besides analyzing the current and forecasted market scenario.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth of the transportation services segment will be significant during the forecast period. The segment in the market encompasses various transportation modes for shipping goods, such as road, rail, air, and sea. The transportation segment in the market is evolving in tandem with technological innovations. The segment is adopting various aspects of advanced vehicle-related IT systems, cloud-based data analytics, automated fleet management, location detection, and autonomous vehicle technologies to induce increased flexibility into their logistics operations, including reverse logistics, and deliver profitable benefits as per the customers' requirements.
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The transportation services segment was valued at USD 381.10 billion in 2018. Various companies are focusing on expanding their vehicle fleets to strengthen their transportation capabilities and increase their market shares. Investments by companies in the market are anticipated to drive the growth of the transportation services segment of the third-party logistics market during the forecast period.
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APAC is estimated to contribute 44% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. A significant growth driver for the 3PL market in APAC is the increasing frequency of imports and exports of raw materials and finished goods worldwide. Although the import and export traffic for China has slowed down in the past few years, the domestic economy of the country continues to grow, which offers tremendous market potential for 3PL service providers in the region. Also, the thriving automobile manufacturing industry in Japan and India offers significant new revenue opportunities to the 3PL service providers.
In the dynamic 3PL market, logistics infrastructure plays a pivotal role in serving diverse shippers across sectors like food and beverage. Fueled by the global shift towards omni-channel operations, 3PL providers embrace new technologies to ensure cost effectiveness and meet demands for medical devices. Their agility and adaptability in handling various supply chain activities enhance responsiveness. Collaborating with e-commerce services, they serve as delivery partners for international shipments, driving digital transformation and offering value to stakeholders through efficient business models.
The growth of e-commerce and the need for integrated shipping services are notably driving 3PL market growth. The emergence of the e-commerce sector is attributable to the rise in domestic consumption of products among the rapidly expanding middle-class population and the increasing adoption of the Internet and mobile services, including digital commerce software. As the global parcel volumes continue to grow at an exponential rate, e-commerce companies have found a reliable logistics partner in 3PL providers for more streamlined and cost-effective supply chain management. Therefore, the growth in the e-commerce industry has emerged as one of the major factors reshaping the market.
Moreover, an efficient supply chain provides an exceptional level of service across all channels. Due to a limited supply and the increase in demand, adopting the right distribution channel to reach out to consumers is also an increasingly difficult task. Therefore, several retailers opt to partner with 3PL service providers that provide integrated shipping services. As the e-commerce market continues to expand, the demand for 3PL is also estimated to grow during the forecast period.
An increase in overseas shopping is the key trend in the market. Online shopping offers access to a wide range of products and services and enables consumers to browse for particular items of interest effortlessly. The ability to compare prices, products, and delivery terms is a clear benefit of shopping online. The major drivers for the increase in cross-border shopping include free shipping, safe payment methods, and the non-availability of items or products locally.
Additionally, the trend of overseas shopping is increasing in developing economies such as India and China, owing to the increasing Internet penetration and consumers having uninterrupted access to several communication devices and payment modes. To adapt to this changing consumer demand, logistics service providers need to be efficient in the supply chain process. The rapidly increasing overseas shopping scenario will boost third-party logistics market growth during the forecast period.
High operational cost and competitive pricing is the major challenge impeding the 3PL market growth. The logistics industry is becoming highly competitive in terms of the pricing of services due to the increase in demand for value-added services (VAS) and specialized professional supply chain solutions in the logistics market. Rising fuel prices are also contributing to the cost of operations. companies in the market are under sustained pressure from customers to keep the prices low. Moreover, the companies seeking 3PL services are demanding additional services at the same price; thus, 3PL companies are facing cost pressures associated with the pricing of their services.
Furthermore, the industry is characterized by its capital-intensive nature. The market requires a capital-intensive infrastructure in terms of a large fleet of vehicles and containers at ports, skilled manpower, and technology-equipped warehouses specialized in storing different kinds of products. The contract logistics service providers must ensure that the operational cost is controlled to compete in the market. Therefore, high operational costs are posing a major challenge to the 3PL service providers in terms of maintaining their profit margins during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BDP International Inc. - The company offers third party logistics solutions such as transportation, export facilitation, warehousing, and distribution. They also offer various services such as 4PL, transportation services, visibility tools, export facilitation, import facilitation, domestic facilitation, project logistics, and other services.
We also have detailed analyses of the market's competitive landscape and offer information on key companies, including:
AP Moller Maersk AS, Baltic Logistics Group, Burris Logistics Co., C H Robinson Worldwide Inc., CMA CGM SA Group, DB Schenker, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., GEODIS, 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 Inc.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
In the realm of logistics, third-party logistics providers play a pivotal role in streamlining operations and ensuring efficiency. Leveraging advanced technology and third-party logistics software, they manage warehouse operations and optimize inbound & outbound logistics. With a focus on sustainability, they offer multi-user logistics facilities to minimize environmental impact. Serving emerging economies and catering to diverse populations, they facilitate global supply chains and cross-border trade activities. Despite challenges like delays and poor infrastructure, 3PL providers offer high-tech services and employ cloud-based B2B solutions to meet rising demands in various sectors, including automotive, retailing, and food & beverages. Through technological advancement and last-mile connectivity, they ensure seamless delivery and contribute to the growth of the logistics sector.
Additionally, 3PL providers stand as key facilitators in managing global supply chains. They collaborate with prominent companies to enhance product capabilities and support business expansion efforts. Offering multi-user logistics facilities, they streamline after-sales and return logistics processes. With a focus on technology adoption and leveraging cloud-based B2B solutions, they optimize freight-management for various stakeholders, including ship-owners, cargo agents, and freight forwarders. Despite challenges like higher logistics costs due to globalization, they cater to rising demands across sectors such as consumer electronics and ensure efficient transportation via railways, roadways, waterways, and airways.
Furthermore, the multi-modal logistics parks policy (MMLPs) seeks to revolutionize the logistics landscape by establishing integrated and digitally managed transportation networks. This policy aims to streamline trading activities through the implementation of advanced IT solutions and software, catering to the rising demand for efficient logistics operations. It encompasses dedicated contract carriage (DCC) services for seamless domestic and international transportation management, along with state-of-the-art warehousing and distribution facilities. These elements work together to enhance the efficiency and effectiveness of supply chain management, facilitating smoother movement of goods and fostering economic growth.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.1% |
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Market growth 2024-2028 |
USD 590.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.3 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Japan, UK, and India |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, market growth analysis, market research and growth, market report, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AP Moller Maersk AS, Baltic Logistics Group, BDP International Inc., Burris Logistics Co., C H Robinson Worldwide Inc., CMA CGM SA Group, DB Schenker, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., GEODIS, 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 Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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