US Third-Party Logistics (3PL) Market Analysis - Size and Forecast 2025-2029

US Third-Party Logistics (3Pl) Market Size 2025-2029

The us third-party logistics (3pl) market size is forecast to increase by USD 132.3 billion at a CAGR of 8.2% between 2024 and 2029.

• The Third-Party Logistics (3PL) market in the US is experiencing significant growth, driven by the increasing trend of cross-border trade. As globalization continues to expand, businesses are increasingly turning to 3PL providers to manage their international logistics needs. Another key trend shaping the market is the emergence of advanced technologies such as blockchain and Radio Frequency Identification (RFID) in logistics. These technologies offer enhanced supply chain visibility, security, and efficiency, making them valuable tools for 3PLs to offer their clients. However, the market is not without challenges. The ongoing trade war between major economies poses a significant risk to the market, with potential tariffs and trade restrictions impacting logistics costs and operations.
• Additionally, the increasing complexity of global supply chains and customer expectations for faster delivery times require 3PLs to continually innovate and adapt to remain competitive. Companies seeking to capitalize on market opportunities and navigate challenges effectively must focus on leveraging technology, building resilient supply chains, and providing exceptional customer service.

What will be the size of the US Third-Party Logistics (3Pl) Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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• The 3PL market in the US is witnessing significant advancements, driven by the integration of digital twin technology and blockchain in logistics operations. Order accuracy and customer satisfaction are prioritized through value-added services, network optimization, and demand forecasting. Green logistics and data-driven decisions are essential for competitive advantage, with automation technologies streamlining contract logistics and delivery speed. Damage prevention and inventory control are enhanced through supply chain transparency and warehousing optimization. Capacity planning and transportation mode selection are crucial for cost-effective solutions, while emerging technologies such as sustainability initiatives and supply chain visibility continue to shape the industry. Network planning and competitive advantage are intertwined, as companies leverage digital transformation to mitigate supply chain disruptions and offer dedicated logistics services.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

• End-user
  • Retail
  • Manufacturing
  • Automotive
  • Food and beverages
  • Others
• Service
  • Transportation
  • Warehousing and distribution
  • Others
• Geography
  • North America
    • US

By End-user Insights

The retail segment is estimated to witness significant growth during the forecast period.

In the dynamic retail industry, both organized retail and consumer goods sectors experience significant growth. Fast-moving consumer goods (FMCGs) and slow-moving consumer goods (SMCGs) are distinct categories. FMCGs, with a shelf life under a year, consist of household and cleaning products, personal care items, tobacco, apparel and footwear, and pet food/pet care. These goods are bought frequently due to recurring expenditures. SMCGs, characterized by a longer shelf life, include home improvement products, furniture, and household appliances. To stay competitive, industry players invest substantially in product innovation. Data analytics and predictive analytics are crucial tools for understanding consumer behavior and market trends.

Last-mile delivery solutions enhance customer satisfaction, while pick-and-pack services ensure efficient order fulfillment. Freight forwarding streamlines transportation management, and robotics and automation improve efficiency. Cloud-based logistics software, business intelligence, and real-time visibility enable cost optimization and supply chain resilience. Reverse logistics, compliance, and regulations are essential for managing returns and maintaining inventory. E-commerce integration, packaging, and labeling, and delivery network design are vital for seamless omni-channel fulfillment. Risk management, route optimization, security and safety, and mobile technology are integral components of modern logistics. Artificial intelligence and machine learning enable advanced sorting, sequencing, and load planning. Fleet management, big data, and customer service are critical for maintaining a competitive edge.

In this evolving landscape, players must adapt to meet the changing demands of consumers and the market.

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The Retail segment was valued at USD 56.50 billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 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.

What are the US Third-Party Logistics (3Pl) Market market drivers leading to the rise in adoption of the Industry?

• Cross-border trade is a significant and essential driver for market growth, as it fosters economic interdependence and the exchange of goods and services between nations.

• The third-party logistics (3PL) market in the US is experiencing significant growth due to the increasing trend of cross-border trade. This expansion allows businesses to reach new markets and customer bases, contributing to economic growth through increased tax revenue and GDP. In response to this demand, there is a growing focus on advanced logistics solutions to support cross-border commerce. One area of innovation is omni-channel fulfillment, which enables businesses to offer seamless shopping experiences across multiple channels. Customer service is also a key priority, with 3PLs utilizing fleet management and real-time visibility to ensure timely and accurate delivery.
• Big data and artificial intelligence (AI) are being leveraged to optimize delivery network design and improve overall efficiency. Packaging and labeling are also critical components of the 3PL value proposition. Advanced solutions in these areas can help reduce costs, minimize damage during transportation, and ensure compliance with various regulations. Overall, the 3PL market is poised for continued growth as businesses seek to streamline their supply chains and expand their reach in an increasingly interconnected global economy.

What are the US Third-Party Logistics (3Pl) Market market trends shaping the Industry?

• The integration of blockchain technology and RFID in logistics is an emerging market trend. This innovative combination is set to revolutionize supply chain management through enhanced security, transparency, and efficiency.

• In the dynamic landscape of third-party logistics (3PL) in the US, technology plays a pivotal role in driving efficiency and enhancing service quality. Providers are increasingly adopting advanced technologies such as predictive analytics, data analytics, and robotics and automation to optimize operations and meet evolving customer demands. One of the most significant trends is the integration of blockchain technology into logistics processes. Blockchain enhances transparency and security by creating a decentralized, immutable record of transactions. This technology is particularly beneficial for last-mile delivery, pick and pack, freight forwarding, business continuity planning, distribution centers, and order fulfillment.
• By using blockchain, stakeholders can track products in real-time, ensuring greater visibility and accountability throughout the supply chain. Moreover, transportation management systems (TMS) are becoming increasingly sophisticated, enabling real-time tracking, route optimization, and freight rate benchmarking. The adoption of these technologies is expected to continue, as businesses seek to streamline their logistics processes and improve overall supply chain performance. In conclusion, the US 3PL market is witnessing significant innovation, with a focus on leveraging technology to enhance operational efficiency, improve visibility, and deliver superior customer service. By investing in advanced technologies like predictive analytics, data analytics, robotics and automation, and blockchain, 3PL providers are well-positioned to meet the evolving needs of their clients and stay competitive in the market.

How does US Third-Party Logistics (3Pl) Market market faces challenges face during its growth?

• The trade war's significant impact poses a major challenge to the industry's growth trajectory.

• The Third-Party Logistics (3PL) market in the US is experiencing significant growth due to the increasing demand for efficiency improvements and cost optimization. Businesses are turning to cloud-based logistics solutions to streamline operations and enhance business intelligence. Reverse logistics is another key area of focus, as companies seek to minimize waste and maximize the value of returned goods. Compliance and regulations continue to be a critical concern, with logistics software providing essential tools for ensuring adherence to complex rules. E-commerce integration is a major driver of growth in the 3PL market, as businesses strive to meet the demands of online shoppers for fast and reliable shipping and handling.
• Logistics software plays a crucial role in managing inventory, ensuring accurate tracking and reducing the risk of stockouts or overstocks. Cost optimization is a key priority, with 3PLs leveraging advanced analytics and automation to reduce transportation costs and improve supply chain visibility. In summary, the 3PL market in the US is characterized by a focus on efficiency, innovation, and compliance. Cloud-based solutions, business intelligence, inventory management, e-commerce integration, and shipping and handling are key areas of investment, as businesses seek to optimize their logistics operations and stay competitive in a rapidly changing marketplace.

Exclusive US Third-Party Logistics (3Pl) Market Customer Landscape

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

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Americold Realty Trust Inc.
• Blu Logistics
• Burris Logistics Co.
• C H Robinson Worldwide Inc.
• Crete Carrier Corp.
• Deutsche Post AG
• Expeditors International of Washington Inc.
• FedEx Corp.
• Hub Group Inc.
• J B Hunt Transport Services Inc.
• Kenco Group Inc.
• Kuehne Nagel Management AG
• M and W Logistics Group Inc.
• NFI Industries Inc.
• Ryder System Inc.
• Taylor Logistics Inc.
• Total Quality Logistics LLC
• United Parcel Service Inc.
• Wagner Logistics Inc.
• XPO Inc.

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.

Recent Development and News in Third-Party Logistics (3PL) Market In US

• In March 2024, DHL Supply Chain, a leading 3PL provider, announced the launch of its new Robotic Picking Solution, revolutionizing order fulfillment processes for e-commerce businesses. This innovative technology uses robots to pick and pack orders more efficiently and accurately, reducing human intervention and errors (DHL Press Release).
• In June 2025, UPS entered into a strategic partnership with Microsoft to integrate UPS's logistics data and services into Microsoft's Azure platform. This collaboration aims to provide real-time visibility and predictive analytics for customers, enhancing supply chain efficiency and responsiveness (UPS Press Release).
• In October 2024, XPO Logistics completed the acquisition of BDP International's Contract Logistics business, expanding its global network and adding significant capacity to its European and Asian operations. This acquisition strengthened XPO's position as a major player in the 3PL market (XPO Logistics SEC Filing).
• In January 2025, the Biden Administration announced the Bipartisan Infrastructure Law, which includes USD17 billion for ports and waterways infrastructure improvements. This investment is expected to boost demand for 3PL services, as companies seek to optimize their supply chains and adapt to increased shipping volumes (White House Press Release).

Research Analyst Overview

The third-party logistics (3PL) market in the US continues to evolve, with dynamic market activities shaping the industry's landscape. Seamlessly integrated solutions, such as predictive analytics and data analytics, are revolutionizing operations in various sectors. Last mile delivery, pick and pack, freight forwarding, business continuity planning, and distribution centers are no longer standalone functions but essential components of a cohesive logistics strategy. Efficiency improvements through cloud-based solutions, reverse logistics, and business intelligence are driving growth. Compliance and regulations, inventory management, e-commerce integration, and shipping and handling are also critical areas of focus. Robotics and automation are transforming order fulfillment, transportation management, and warehouse operations.

Logistics software, cost optimization, and fulfillment centers are essential for supply chain resilience. Load planning, risk management, and supply chain optimization are key elements of a comprehensive logistics strategy. Sorting and sequencing, route optimization, security and safety, mobile technology, tracking and tracing, omni-channel fulfillment, customer service, fleet management, big data, real-time visibility, packaging and labeling, and delivery network design are all interconnected components of the evolving 3PL market. Incorporating artificial intelligence (AI) and real-time data analysis is becoming increasingly important for staying competitive. The integration of these technologies is revolutionizing operations, from warehouse management to transportation and delivery.

The market's continuous dynamism is a testament to the industry's ability to adapt and innovate, ensuring it remains a vital component of the global business landscape.

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Third-Party Logistics (3PL) Market in US insights. See full methodology.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across US
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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