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The Europe third-party logistics (3PL) market size is forecast to increase by USD 96.42 billion at a CAGR of 8.13% between 2023 and 2028. The market in Europe is experiencing significant growth, driven by the increasing complexity of in-house logistics operations for businesses. This trend is particularly prominent in industries such as retail, consumer goods, and manufacturing, where the need for efficient and cost-effective logistics solutions is paramount. Another key trend is the emergence of big data, which is transforming the logistics industry by enabling real-time tracking, predictive analytics, and optimized supply chain management. However, the limited use of Information Technology (IT) and regulatory barriers remain challenges for market growth. As businesses continue to seek ways to streamline their operations and improve their competitive position, the demand for advanced 3PL services is expected to increase in the coming years.
The market is experiencing significant growth due to the rise in e-commerce sales and the increasing demand for efficient inventory management, warehousing, and last-mile deliveries. Outsourcing logistics operations to 3PL providers has become a popular trend among businesses seeking to reduce costs and improve operational efficiency. Advancements in technologies such as blockchain, artificial intelligence, and the Internet of Things are transforming the logistics landscape in Europe. These technologies enable real-time inventory tracking, route optimization, and automation, leading to improved supply chain management and reduced emissions. The logistics network in Europe is becoming more interconnected, facilitating cross-border trade and omni-channel retailing.
However, the geopolitical environment and cyberattacks pose challenges to the market's growth. Last mile delivery is a critical aspect of the 3PL market, with the focus on reducing delivery times and costs. Road transportation remains the dominant mode, but air transportation is gaining popularity for time-sensitive shipments. The adoption of green logistics solutions is becoming increasingly important, with businesses seeking to reduce their carbon footprint and comply with regulations. Big data analytics is also playing a crucial role in optimizing logistics operations and improving overall efficiency. Despite these opportunities, the European 3PL market faces challenges such as increasing competition, regulatory compliance, and the need for cybersecurity. The market is expected to continue its growth trajectory, driven by the e-commerce sector and the increasing demand for efficient and sustainable logistics solutions.
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 Manufacturing segment is estimated to witness significant growth during the forecast period. The European logistics market, particularly in the e-commerce sector, is witnessing significant growth due to the increasing trend of outsourcing inventory management, warehousing, and last mile deliveries. The adoption of advanced technologies such as artificial intelligence, blockchain, and the Internet of Things in logistics networks is revolutionizing the industry. Green logistics solutions are gaining traction as there is a growing focus on reducing carbon emissions in road transportation, which is the dominant mode of transport for last mile deliveries. However, challenges such as cyberattacks, compliance management, and cross border trade complexities persist. The logistics industry is essential for the retailing and technological industries, facilitating the acquisition and distribution of raw materials and finished goods through various modes of transportation, including roadways, railways, waterways, and airways.
Furthermore, dedicated contract carriage, warehousing and distribution, and value-added services are key areas of focus for logistics operations. Route optimization and green transportation choices are crucial for reducing costs and minimizing environmental impact. The European Commission aims to increase the manufacturing industry's contribution to the EU economy to 20% by 2023, and the logistics sector plays a vital role in facilitating this growth by ensuring efficient supply chain management and last mile connections.
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The manufacturing segment was valued at USD 26.03 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data 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.
The growing complexity of in-house logistics operations is the key driver of the market. The market is experiencing significant growth due to the increasing complexities in supply chain management (SCM) within the manufacturing sector. E-commerce sector growth and the subsequent rise in inventory, warehousing, and last mile deliveries have put immense pressure on companies to outsource their logistics operations. Challenges such as fleet management, a shortage of skilled drivers, and a lack of IT infrastructure for tracking management systems necessitate the need for outsourcing. Manufacturers, particularly those expanding their production capabilities and operations, require efficient logistics solutions for raw material acquisition and finished goods distribution. Outsourcing logistics responsibilities to 3PL providers allows these firms to focus on their core business areas.
Furthermore, the integration of advanced technologies like blockchain, artificial intelligence, and the Internet of Things into logistics networks is transforming the industry, offering green logistics solutions, route optimization, and cross-border trade facilitation. However, cyberattacks and compliance management remain significant concerns in the logistics sector. The transportation management of road, rail, waterways, airways, and dedicated contract carriage, as well as value-added services like distribution and fulfillment, are essential components of a comprehensive 3PL solution. The retailing and technological industries are key consumers of these services, ensuring a seamless last mile connection for consumers.
The emergence of big data is the upcoming trend in the market. The European third-party logistics market is witnessing significant growth due to the increasing adoption of advanced technologies such as big data, artificial intelligence, and the Internet of Things (IoT) in the e-commerce sector. These technologies enable logistics companies and shippers to optimize inventory, warehousing, and last mile deliveries through real-time data analysis and route optimization. Big data also facilitates compliance management and cross-border trade in the retailing and technological industries by providing valuable market information and enabling new business models based on agility. Moreover, the integration of blockchain technology enhances security and transparency in the logistics network, ensuring the safe transportation of raw materials and finished goods through road, rail, waterways, and airways.
Furthermore, green logistics solutions are gaining popularity due to the increasing focus on reducing carbon emissions and minimizing environmental impact. Last-mile delivery, a critical component of the supply chain, is being revolutionized through the use of dedicated contract carriage and value-added services. However, cyberattacks pose a significant threat to the logistics industry, necessitating strong security measures. Logistics operations must ensure the secure transfer of data and goods while adhering to international trade regulations. In conclusion, the market is undergoing a digital transformation, with technological advancements streamlining operational efficiency, enhancing customer experience, and enabling new business models.
The limited use of Information technology (IT) and regulatory barriers is a key challenge affecting market growth. The European Third-Party Logistics (3PL) market is witnessing significant growth due to the increasing outsourcing of logistics operations by various industries, particularly in the e-commerce sector. This trend is driven by the need for efficient inventory management, warehousing, and last mile deliveries. The implementation of advanced technologies such as blockchain, artificial intelligence, and the Internet of Things (IoT) in logistics networks is revolutionizing the industry. However, the compatibility of IT systems between shippers and 3PL service providers remains a challenge, leading to communication gaps and delays in service delivery. Moreover, the European logistics industry is subject to increasing government regulations, particularly in countries like Germany, France, the UK, Spain, and Italy.
Furthermore, these regulations, aimed at ensuring compliance with environmental and safety standards, have resulted in increased operational costs. The logistics industry caters to a diverse range of sectors, including retailing and the technological industry, and handles the transportation of raw materials and finished goods through various modes such as road, rail, waterways, and airways. Dedicated contract carriage, warehousing and distribution, transportation management, distribution and fulfilment, value-added services, and compliance management are some of the key services offered by 3PL providers. The market is also witnessing the adoption of green logistics solutions and the integration of cross-border trade and omni-channel retailing into logistics operations. Despite these challenges, the market is expected to grow due to the increasing demand for efficient and cost-effective logistics solutions.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
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.
AP Moller Maersk AS - The company offers third-party logistics such as road freight, sea freight, air freight and customs.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand from the e-commerce sector for inventory warehousing, distribution and fulfillment, and last mile deliveries. Outsourcing logistics operations to 3PL providers enables businesses to focus on their core competencies while reducing costs and improving efficiency. Advancements in technologies such as blockchain, artificial intelligence, and the Internet of Things are transforming the logistics network. These technologies enable real-time tracking, inventory management, and route optimization, leading to green transportation choices and improved supply chain visibility. The logistics industry in Europe is adopting green logistics solutions to reduce carbon emissions and comply with international trade regulations.
However, the increasing reliance on technology also exposes the sector to cyberattacks, requiring strong compliance management and security measures. The market caters to various industries, including retailing and the technological industry, and handles the transportation of raw materials and finished goods via road transportation, air transportation, ocean transportation, inland waterways, and dedicated contract carriage. The market also offers value-added services such as warehousing and distribution, and cross-border trade facilitation. Last mile delivery is a critical component of logistics operations, with the use of roadways, railways, waterways, and airways ensuring timely and efficient delivery. The market's growth is further driven by the trend towards omni-channel retailing and the increasing importance of last-mile connection in the customer experience.
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Market Scope |
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Report Coverage |
Details |
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Page number |
174 |
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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 8.13% |
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Market growth 2024-2028 |
USD 96.42 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.65 |
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Key companies profiled |
AP Moller Maersk AS, Baltic Logistic Solutions, C H Robinson Worldwide Inc., CMA CGM SA Group, DB Schenker, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., FedEx Corp., FM LOGISTIC CORP, GEODIS, Ital Logistics Ltd., Kintetsu World Express Inc., Sanmina Corp., United Parcel Service Inc., XPO Inc., ACP Freight Services Ltd., FourKites Inc., H. P. Therkelsen AS, Huktra UK Ltd., Imperial Logistics Ltd, Jordon Freight Ltd., hansa express logistics GmbH, and NTG Nordic Transport Group AS |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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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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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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