Global Third-Party Logistics Market was valued at US$ 1,032 Bn in 2021 and is estimated to reach US$ 1,656.7 Bn by 2027. The market is registering growth at a CAGR of 8.2% during the forecast period 2022-2027.
Market Snapshot
Third-party logistics (abbreviated as 3PL, or TPL) in logistics and supply chain management is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services. Third-party logistics providers typically specialize in integrated operations of warehousing and transportation services that can be scaled and customized to customers' needs, based on market conditions, to meet the demands and delivery service requirements for their products. Services often extend beyond logistics to include value-added services related to the production or procurement of goods, such as services that integrate parts of the supply chain. A 3PL company can provide specialized services such as inventory management, cross-docking, door-to-door delivery, and packaging of products.
Market Dynamics
The growing impetus of the third-part logistics market is attributed to factors such as an increase in trade activities due to globalization and the rising focus of manufacturers and retailers on core competencies. The rise in globalization has aided in setting up a worldwide network of manufacturing activities. To maintain it efficiently, the demand for 3PL services is expected to rise. 3PL services are becoming extremely vital for price-sensitive customers who require a wider choice of high-quality products with timely delivery. Furthermore, the 3PL model provides greater asset utilization and asset sharing alliances, which is increasing its demand, thereby contributing toward the growth of the global market. Moreover, pooled warehousing is an emerging opportunity in the market. However, when businesses contract with 3PL services, it creates an issue of over-dependency. This dependency puts the client company in uncomfortable situations.
Key Insights of the Report:
Key Takeaways from the Global Third-Party Logistics Market Report
Competitive Landscape
Segmentation Overview
The following are the different segments of the global third-party logistics market:
By Mode of Transport segment of the global third-party logistics market is sub-segmented into:
By Service segment of the global third-party logistics market is sub-segmented into:
By End User segment of the global third-party logistics market is sub-segmented into:
By Region segment of the global third-party logistics market is sub-segmented into:
Report Attribute | Details |
---|---|
Market Size Value in 2021 | US$ 1,032 Bn |
Expected Revenue in 2027 | US$ 1,656.7 Bn |
Historic Data | 2017-2020 |
Base Year | 2021 |
Forecast Period | 2022-2027 |
Unit | Value (USD Bn) |
CAGR | 8.2% |
Segments covered | By Mode, Service, End User, and Region |
Key Companies | DHL International GmbH, Kuehne+Nagel Inc., DB Schenker, Nippon Express, FedEx Corporation, and other prominent players. |
Customization Scope | Get your customized report as per your preference. Ask for customization |
A 3PL company can provide specialized services such as inventory management, cross-docking, door-to-door delivery, and packaging of products.
Global Third-Party Logistics Market was valued at US$ 1,032 Bn in 2021.
Global Third-Party Logistics Market is estimated to register a CAGR of 8.2% during the forecast period 2022-2027.
Third-party logistics market is driven by factors such as increase in trade activities due to globalization and rising focus of manufacturers and retailers on core competencies.
Over dependency of businesses on 3PL companies hinders the market growth.
Pooled warehousing is an emerging opportunity in the 3PL market.
Roadways segment has the highest share in the third-party logistics market in 2021.
Domestic Transport Management service has the highest share in the 3PL market in 2021.
Technological segment is the highest shareholder of the third-party logistics market in 2021.
Asia Pacific dominates the Global Third-Party Logistics Market.
The key players in the third-party logistics market are DHL, KNL, Nippon, DB Schenker, and C.H. Robinson among others.