The third-party logistics (3PL) market refers to the industry that provides outsourced logistics and supply chain management services to businesses. 3PL providers offer a range of services, including transportation, warehousing, inventory management, packaging, freight forwarding, customs brokerage, and value-added services. The 3PL industry has witnessed significant growth in recent years due to various factors. One of the primary drivers is the increasing complexity of supply chains and the need for businesses to focus on their core competencies while outsourcing logistics operations to specialized providers. 3PL companies leverage their expertise, infrastructure, and network to optimize supply chain efficiency, reduce costs, and improve overall operational performance for their clients.
The market for 3PL services is diverse and serves businesses across various sectors, including manufacturing, retail, healthcare, automotive, e-commerce, and consumer goods. 3PL providers cater to companies of all sizes, from small businesses to multinational corporations, offering customized solutions to meet their specific logistics requirements.
The services offered by 3PL providers can be categorized into different segments:
- Transportation: This includes managing the movement of goods through various modes of transportation, such as road, rail, air, and sea. It involves activities like freight forwarding, shipment tracking, carrier selection, and route optimization.
- Warehousing and Distribution: 3PL providers operate warehouses and distribution centers, offering services like inventory management, order fulfillment, cross-docking, pick and pack, and value-added services such as labeling, packaging, and product customization.
- Freight Consolidation and Forwarding: 3PL companies consolidate shipments from multiple clients to achieve economies of scale and optimize transportation costs. They also handle freight forwarding, customs clearance, and international shipping documentation.
- Integrated Logistics Solutions: Some 3PL providers offer end-to-end supply chain solutions, integrating transportation, warehousing, and value-added services. These solutions aim to streamline operations, improve visibility, and enhance customer satisfaction.
The 3PL market is highly competitive, with both global players and regional providers. Key factors that differentiate 3PL providers include their geographic coverage, industry expertise, technological capabilities, service quality, pricing models, and value-added offerings. Strong partnerships and collaborations with carriers, technology vendors, and other supply chain stakeholders are vital for 3PL providers to deliver comprehensive and efficient logistics solutions.
The advent of technology and digitalization has also had a significant impact on the 3PL industry. Many providers have embraced digital platforms, automation, and data analytics to enhance operational efficiency, track shipments in real-time, improve visibility across the supply chain, and provide actionable insights to their clients.
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Key highlights of the market research:
- The size of the global third-party logistics market in 2022 is estimated to be USD 1.31 trillion.
- North America emerges as an opportunistic market, reaching 40% of sales
- APAC will be the fastest growing region with a CAGR of 10% during the forecast period.
- Secure approximately 32% of the domestic transportation management sector market share by 2022
- The manufacturing sector is expected to capture more than 24% of the global revenue share in 2022.
Major Market Segments Covered in the Global Retail Third Party Logistics Market
- End use:
- Automotive Retail Third Party Logistics
- Retail Third Party Logistics Manufacturing
- Medical Retail Third Party Logistics
- Retail Retail Third Party Logistics
- Other Retail Third Party Logistics
- Transportation:
- Prayer Retail Third Party Logistics
- Rail Third-Party Logistics
- Road Retail Third Party Logistics
- Waterway Retail Third Party Logistics
- By service:
- Value Added Logistics Services (VAL)
- Domestic Transportation Management (DTM)
- Warehouse and Distribution (W&D)
- Dedicated Contract Carriage (DCC)/Freight Forwarding
- International Transport Management (ITM)
Competitive landscape
Prominent players in the market adopt various technologies and methods to strengthen their global influence. They invest aggressively in R&D to innovate their products and secure a leading position in the global market. Collaboration, partnerships and acquisitions are also some of the methods adopted to enhance reach in global competition. Some of the major recent developments among players are:
- In January 2022, Microsoft and FedEx unveiled a new cross-platform logistics solution for e-commerce. It focuses on enhancing merchant competition in the ecommerce space by increasing customer engagement and providing better shipping options.
- In January 2022, CEVA Logistics announced plans to expand its business into Asia and Europe. We announced some new services and updated existing ones. Now Turkey is in the company’s network of daily connections with equipment between Duisburg and Hallkali terminals in Germany. We also offer block train solutions linking Vietnam and Germany via China with weekly trips.
- In January 2022, BJ’s wholesale club agreed to acquire the assets and operations of four distribution centers and other private transport vehicles from partner Burris Logistics. According to the contract, the deal allows BJ to insource the perishable supply chain. The terms of the contract were not disclosed.
Key Players:
- Kuehne + Nagel
- Yusen Logistics Co. Ltd.
- Burris Logistics
- CEVA Logistics
- United Parcel Service of America, Inc.
- BDP International
- FedEx
- DSV
- DB Schenker Logistics
- XPO Logistics, Inc.
- C.H. Robinson Worldwide, Inc.
- Nippon Express
- J.B. Hunt Transport, Inc.
Reporting benefits and answers to key questions
- Retail Third Party Logistics Company and Brand Share Analysis : This report provides an in-depth Retail Third Party Logistics Brand Share Analysis to estimate the proportion of the market covered by Tier 1, Tier 2 and Tier 3 companies.
- Third-Party Logistics Historical Volume Analysis : The report provides a comparative analysis between historical sales of Third-Party Logistics and projected sales performance for 2021-2031.
- Third-Party Logistics Category and Sector Level Analysis : In fact, MR provides a comprehensive analysis of the factors enabling revenue growth in key segments. It highlights key drivers of growth and provides valuable information to identify sales prospects at regional and regional levels.
- Third-Party Logistics Consumption by Demographics: To provide informed recommendations, the report studies consumer behavior and consumption patterns. Demographic analysis is intended to help businesses better understand consumer preferences and design product and market strategies around them.
- Post-Corona Consumer Spending on Third-Party Logistics: Facts MR Market Study carefully studies consumer spending behavior post-COVID-19. It measures how dominant tendencies influence their behavior and consequently their spending power.
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