The global Third-party Logistics market size is expected to be worth around US$ 1.55 trillion by 2028, according to a new report by Vision Research Reports.
The global Third-party Logistics market size was valued at US$ 830.97 billion in 2020 and is anticipated to grow at a CAGR of 8.4% during forecast period 2021 to 2028.
The advent of new technologies is changing the Third-party Logistics (3PL) industry dynamics. The advanced data collection capabilities, warehouse automation, and digitalization of the entire supply chain are enabling companies to adopt a consistent innovative, customer-centric, and agile approach. As a result, 3PL companies are providing technologically driven services by investing in block-chain solutions, mobile technologies, and 3PL software to gain a competitive advantage in a fiercely competitive marketplace.
The internet of things (IoT) and cloud-based logistics management solution turn the data into actionable value-added information, which can shape the strategic decision-making process and increase productivity. Some of the capital-intensive organizations are increasing their Information Technology (IT) spending and are using predictive analytics for supply chain enhancement. For instance, C.H. Robinson Worldwide (CHRW) Inc. is using artificial intelligence (AI) technology to analyze the customer data and get notified about extreme weather conditions or traffic disruption.
Logistics automation is expected to play a vital role in the growth of the third-party logistics market. The use of robots in warehouses and unloading docks help to streamline order fulfillment services. The use of automated guided vehicle (AGV) can help to lessen the human errors, resolve material handling issues, ensure movement of high-volume goods, and increase accuracy and repeatability. In order to deliver immediate value and long-term returns, companies are widely accepting logistics automation.
The Domestic Transportation Management (DTM) segment held the largest market share of about 31% in 2019. DTM services are performed in conjunction with freight brokers, which deal with shipment origin to their destination. The increasing trade movement among the unloading dock to a warehouse, escalating carrier rates, a surge in cross-docking services, and rising fuel surcharge are driving the growth of the DTM segment. The growing consumer demand in sectors such as retail, healthcare, and the steady GDP growth of various countries is further aiding the segment growth.
The roadways segment dominated the 3PL market with a value of over USD 490 billion in 2019. The growing public-private partnerships model and increased emphasis on logistics infrastructure are expected to drive the growth of roadways over the forecast period. Besides, several government initiatives are fueling the growth of the road transportation segment. The recent regulations imposed by the Federal Motor Carrier Safety Administration that allow the use of the cameras as a substitute for rearview mirrors are expected to benefit the truck drivers in terms of safety.
The manufacturing sector held the largest revenue share of 24.3% in 2019. Manufacturing and logistics go hand in hand as the industry has a complex supply chain process. The manufacturing sector involves the procurement of raw materials and other parts from different resources across the regions. The involvement of various suppliers and distributors makes the logistics activity a tedious job. Thereby, the manufacturing sector is outsourcing the logistics activities owing to the benefits offered in terms of reduced transportation cost, supply chain visibility, inventory and vendor management, business process development, and improved customer services. The buoyant manufacturing sector in the U.S., Mexico, China, and India has witnessed an increase in outsourced logistics activities. The local manufacturing sector in India is growing with several tax reform policies and government initiatives such as 'Made in the USA' and 'Make in India' projects.
North America held the largest market share of over 24.01% in 2019, with the U.S. spearheading the regional market growth. The tight truck capacity across the U.S. has led the shippers to move towards dedicated contract carriage services. Besides, the rising demand for cold storage in the region is expected to boost the third-party logistics market. Moreover, the presence of key players, including C.H. Robinson Worldwide (CHRW) Inc., XPO Logistics, Inc., UPS Supply Chain Solutions Inc, and Expeditors International of Washington, Inc. aid aiding the regional market growth.
The ongoing development of logistics infrastructure and increasing emphasis on transportation practices in the emerging countries are expected to propel the market growth. For instance, the National Highways Authority of India (NHAI) and the National Highways Development Project (NHDP) have taken several initiatives for highway development. Under the Logistics Efficiency Enhancement Program (LEEP) set by the Government of India, the Ministry of Road Transport & Highways (MoRTH) is developing the multi-modal logistics parks. Vietnam government proposed Vietnam Sea Transport Development Plan, vision to 2030 to escalate the maritime freight transportation. Under this plan, the government planned to invest in developing the deepwater port, transit port, and international gateway ports.
C.H. Robinson Worldwide (CHRW) Inc.
DSV Panalpina A/S
DB Schenker Logistics
J.B. Hunt Transport Services, Inc.
Kuehne + Nagel International AG
Nippon Express Co., Ltd.
UPS Supply Chain Solutions, Inc.
XPO Logistics, Inc
Yusen Logistics Co. Ltd. (Nippon Yusen)
Dedicated Contract Carriage (DCC)/ Freight forwarding
Domestic Transportation Management (DTM)
International Transportation Management (ITM)
Warehousing & Distribution (W&D)
Value-Added Logistics Services (VALs)
Middle East & Africa
The Third-party Logistics market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Third-party Logistics market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Third-party Logistics market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Third-party Logistics market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Third-party Logistics market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Third-party Logistics capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Third-party Logistics by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Third-party Logistics market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2028. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Third-party Logistics market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Third-party Logistics market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Third-party Logistics industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Third-party Logistics market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Third-party Logistics market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Third-party Logistics market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Third-party Logistics market. These factors have benefited the growth of the global market for Third-party Logistics. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Third-party Logistics. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Third-party Logistics are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
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