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The Singapore 3PL market size is forecast to increase by USD 1.62 billion at a CAGR of 6.78% between 2023 and 2028. In the dynamic world of logistics, the market experiences continuous expansion, driven by several key factors. Primarily, the increasing import-export activity on sea lanes fuels market growth. Global trade relies heavily on efficient maritime transportation, and these play a pivotal role in managing this complex process. Moreover, the rise of last-mile delivery services significantly contributes to the market's expansion. With the surge in e-commerce sales, the demand for swift and reliable last-mile delivery solutions has escalated. 3PLs, with their extensive networks and expertise, are well-positioned to cater to this growing need. Lastly, a robust distribution network is essential for market success. 3PLs, with their extensive infrastructure and resources, enable businesses to efficiently manage their supply chains and reach customers effectively. This strong presence of distribution networks further bolsters the growth of the market.
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In the dynamic business landscape of the 21st century, the 3PL (Third-Party Logistics) market plays a pivotal role in facilitating core business operations for various industries, including the automotive and manufacturing sectors. This market encompasses a range of services, from inventory management and cross-docking to packaging, customer experience, and scalability. Technological advancement is a key driver, enabling improvements in areas such as last-mile connectivity, IT solutions, and software infrastructure. Risk mitigation and business growth are essential considerations for companies seeking to expand their market presence. National logistics and partnerships, mergers, and acquisitions are common strategies for achieving economic strength and enhancing asset utilization through asset sharing alliances. In the context of European nations and globalization, the market plays a crucial role in trade facilitation, ensuring efficient inventory management, warehousing space, and mode of transport selection based on service type. Overall, the market is a critical component of the supply chain, driving innovation and growth in the face of increasing trading activities and the need for effective market expansion. Our researchers studied the market research and growth data for years, with 2023 as the base year along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
According to the International Chamber of Shipping, about 11 billion tons of goods are transported on ships every year. Globalization has led to a significant increase in trade around the world. Machinery and transport equipment and petroleum are Singapore's major imports, while refined petroleum products are its largest exports. China, the United States, Indonesia, Malaysia, and Japan are the most important trading partners.
In addition, the dynamic situation is expected to accelerate the growth of the market. Due to market dynamics, it is difficult for manufacturers to monitor supply activities. This is why it is becoming important. In addition, the development of foreign markets can give a further boost to the industry. As manufacturers see 3PL as a low-cost solution for importing and exporting goods, the 3PL usage market will gain significant traction during the forecast period.
Industries are moving to increasingly advanced technology to improve the productivity of their operations. Today, advanced tools include the use of artificial intelligence, machine learning, technology platforms, and robotics across all execution functions, all of which effectively expand the processing capabilities of individual team members.
3PLs face constant supply chain challenges and labor constraints, thereby adopting automation and robotic technologies to streamline operations throughout the lifecycle. At the same time, data-driven ordering, warehousing, and transportation technologies are being used to improve communication and increase visibility for logistics providers, brands, and consumers. Thus, with the increased adoption of technology in logistics, the 3PL market in Singapore is expected to witness high growth during the forecast period.
Logistics companies, including 3PL service providers, are struggling due to rising fuel costs. Because fuel costs are a large part of logistics companies' operating costs, high fuel costs can quickly reduce a company's revenue. The logistics industry has become highly competitive in terms of service pricing due to the growth in demand for Value Added Services (VAS) and specialized professional supply chain solutions in the logistics market.
The rise in fuel prices will increase operating costs. Market providers are under constant pressure from customers to keep prices low. Thus, the high cost associated with 3PL services may hinder the market growth during the forecast period.
The market share growth by the transportation segment will be significant during the forecast period. The category for transportation services in the 3PL market in Singapore includes a variety of ways to carry goods, including road, rail, air, and sea. The processes for transporting cargo and freight are usually outsourced by the businesses because they demand a substantial amount of capital and technical know-how and raise their overhead expenses. Many contract 3PL suppliers offer prompt and effective freight delivery, giving businesses an advantage over rivals in the industry. Freight forwarding, project logistics, network design, cargo insurance, optimization, and customs brokerage are other services provided by the 3PL services industry.
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The transportation segment was valued at USD 1.55 billion in 2018. 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 and deliver profitable services as per customer requirements. Furthermore, the increase in intra-regional trade and the relocation of manufacturing facilities to countries where labor costs are low is spurring the demand for both domestic and international freight services. Therefore, all these factors will offer the tremendous market potential for 3PL providers 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.
Agility Public Warehousing Co. - The company offers third-party logistics with quality and quantity inspections and arranges outbound processes for automotive components.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
Agility Public Warehousing Co. K.S.C.P, Bertschi AG, CEVA Logistics AG, CWT Pte. Ltd., DB Schenker, Deutsche Post AG, GEODIS SA, Kuehne Nagel Management AG, MXHL Pte Ltd., Naigai Nitto Singapore Pte Ltd., Ninja Van Group, Nippon Express Holdings Inc., Rhenus SE and Co. KG, SDR LOGISTICS PTE. LTD., Singapore Post Ltd., Toll Holdings Ltd., United Parcel Service Inc., Whitebox Pte Ltd., XPO Logistics Inc., and Yang Kee Logistics Pte. Ltd.
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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2028, as well as historical data from 2018 to 2022 for the following segments
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Three Party Logistics (3PL) marketing involves partnering with logistics service providers (LSPs) to manage and optimize various aspects of supply chain management for businesses. This includes distribution, inventory, warehousing, and transportation management. The use of 3PL services can help businesses improve their efficiency, reduce costs, and enhance customer service. Cross-docking is a popular 3PL strategy that allows for the rapid transfer of goods from incoming transport to outgoing transport without the need for storage in between. This can help reduce inventory costs and improve delivery times.
The market encompasses a diverse range of services and capabilities crucial to modern supply chains and logistics operations worldwide. Companies specializing in transportation modes and service types offer dedicated contract carriage and manage international deliveries, particularly for e-commerce companies relying on efficient logistics solutions. In-house teams and logistics software enable seamless freight-management and provide cloud-based B2B solutions that streamline shipment management and monitor the delivery process. Key players in the industry include shipowners, cargo agents, and freight forwarders who navigate complex government systems and facilitate cross-border trade. Strategic investments in logistics infrastructure such as Multi-Modal Logistics Parks (MMLPs), National Logistics Portals, and Free Trade Warehousing Zones support the growing demand for efficient logistics operations within the global economy.
Specialized services like cold chain logistics ensure the safe transport of temperature-sensitive goods such as pharmaceuticals, including prescription drugs handled by companies like Kool-ex in locations like Pune. Major logistics hubs and corridors like Nhava Seva, Jhajjar in Haryana, and developments by entities like Groupe ADP, GMR Airports, GMR Infrastructure, and DP World underpin the industry's growth trajectory. The market landscape depends on the Logistics and distribution, Investment in the logistics, National Logistics Portal, Longterm partnership, Parts distribution, Central, Trade activities, Overseas market. Government initiatives such as Sagarmala and SAGAR, alongside regulatory frameworks like GST and FDI regulations, further shape the landscape for logistics providers such as DHL Supply Chain and Future Supply Chain, supporting sectors like healthcare with specialized logistics for MRI scanners, Cath Labs, Digital Radiography, and CT Scanners.
Market Scope |
|
Report Coverage |
Details |
Page number |
132 |
Base year |
2022 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.1% |
Market growth 2023-2027 |
USD 1.36 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.6 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, Bertschi AG, CEVA Logistics AG, CWT Pte. Ltd., DB Schenker, Deutsche Post AG, GEODIS SA, Kuehne Nagel Management AG, MXHL Pte Ltd., Naigai Nitto Singapore Pte Ltd., Ninja Van Group, Nippon Express Holdings Inc., Rhenus SE and Co. KG, SDR LOGISTICS PTE. LTD., Singapore Post Ltd., Toll Holdings Ltd., United Parcel Service Inc., Whitebox Pte Ltd., XPO Logistics Inc., and Yang Kee Logistics Pte. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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 Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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