DUBLIN, Sept. 29, 2022 /PRNewswire/ — The “Third Party Logistics (3PL) – Global Market Trajectory & Analytics” report has been added to ResearchAndMarkets.com’s offering.
The global market for Third Party Logistics (3PL) estimated at US$974.6 Billion in the year 2022, is projected to reach a revised size of US$1.3 Trillion by 2026, growing at a CAGR of 8% over the analysis period.
DTM, one of the segments analyzed in the report, is projected to grow at a 8.3% CAGR to reach US$503.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the ITM segment is readjusted to a revised 7.6% CAGR for the next 7-year period. This segment currently accounts for a 30.8% share of the global Third Party Logistics (3PL) market.
The U.S. Market is Estimated at $237.6 Billion in 2022, China is Forecast to Reach $328.4 Billion by 2026
The Third Party Logistics (3PL) market in the U.S. is estimated at US$237.6 Billion in the year 2022. The country currently accounts for a 24.68% share in the global market. China, the world’s second largest economy, is forecast to reach an estimated market size of US$328.4 Billion in the year 2026 trailing a CAGR of 9.9% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.5% and 6.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6% CAGR while Rest of European market (as defined in the study) will reach US$358.9 Billion by the end of the analysis period.
Globalization of trade and liberalization of national economies along with steep expansion in demand for manufactured goods due to various socio-economic factors influenced significant growth in the global manufacturing sector. Escalation in manufacturing activity subsequently resulted in need for well-organized supply chain logistics, while generating substantial opportunities for 3PL services. A growing number of enterprises are showing higher reliance towards outsourcing various logistics functions including transportation, warehousing, and distribution, thus fueling growth in the 3PL market.
On the other hand, availability of industry-specific, tailor-made 3PL services from established logistics services vendors is steering market momentum in a major way. Established 3PL vendors equip themselves with full-fledged road/ground, rail, air, and sea/ocean transportation infrastructure to perform numerous logistics functions including dry van freight, truckload freight, less-than-truckload (LTL) freight, flatbed & heavy freight, bulk freight, refrigerated freight, and intermodal shipments etc., on behalf of client enterprise.
Market momentum is also being funnelled from growing awareness among enterprises about the benefits offered by full-fledged 3PL service. By deploying 3PL in their SCM strategy, enterprises can typically gain access to established resource network and industry expertise of 3PL partners, and benefit from optimal cargo turnover, distribution efficiency, superior inventory management, reduced inventory and overall cost economies.
Since the 3PL model invalidates the need for maintaining in-house workforce, machinery, vehicles, and warehousing capabilities, enterprises can free up their financial and human resources to maintain rigid focus on improving business competencies. In general, 3PL fully understands and acknowledges logistics and distribution needs of modern enterprises and induces flexibility, agility and scalability into supply chain processes to enhance market competitiveness of client enterprise.
DCC/FF Segment Corners to Reach $161 Billion by 2026
Dedicated Contract Carriage (DCC) basically involves supply of trucks, tractors, trailers and drivers and also involves management of various elements across a supply chain. The DCC service typically invalidates the need for maintaining in-house trucking/carriage fleets to carryout logistics operations, while delivering truck capacity utilization and cost efficiencies in the process. In the global DCC/FF segment, USA, Canada, Japan, China and Europe will drive the 8.8% CAGR estimated for this segment.
These regional markets accounting for a combined market size of US$69.3 Billion will reach a projected size of US$125.1 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$19.9 Billion by the year 2026, while Latin America will expand at a 10.4% CAGR through the analysis period.
Select Competitors (Total 477 Featured):
- C.H. Robinson Worldwide, Inc.
- CEVA Logistics
- DACHSER SE
- DB Schenker Logistics
- DHL
- DSV
- Expeditors International of Washington, Inc.
- FedEx Corporation
- FM Logistic
- GEODIS
- Hitachi Transport System, Ltd.
- J.B. Hunt Transport, Inc.
- Kuehne + Nagel International AG
- Nippon Express
- Sinotrans (HK) Logistics Limited
- United Parcel Service of America, Inc.
- Volga-Dnepr Airlines, LLC
- XPO Logistics, Inc
- Yusen Logistics Co., Ltd.
Key Topics Covered:
I. METHODOLOGY
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
- Impact of COVID-19 Pandemic and Looming Global Recession: 2020 Marked as a Year of Disruption & Transformation
- World Economic Growth Projections (Real GDP, Annual % Change) for 2020 through 2022
- Focus on Automation Rises among 3PL Providers During Pandemic
- 3PL Partners to the Rescue During the Coronavirus Pandemic
- 3PLs Prove to be Advantageous During Crisis Periods
- Surge in Online Shopping: A Saving Grace for the US 3PL Market
- COVID-19 Impact on Key End-Use Industries
- Automotive
- Global Automotive Market Reset & Trajectory – Growth Outlook (In %) For Years 2019 Through 2025
- Manufacturing & Machinery
- Global Machine Tools Market Reset & Trajectory – Growth Outlook (In %) For Years 2019 Through 2025
- Global Manufacturing Automation Market Reset & Trajectory – Growth Outlook (In %) For Years 2019 Through 2025
- Transportation & Logistics
- Global Transportation Market Reset & Trajectory – Growth Outlook (In %) For Years 2019 Through 2025
- A Prelude to Supply Chain Management
- Concept of Logistics
- Transportation Modes in Logistics
- Different Fields of Logistics
- Third Party Logistics (3PL): A Conceptual Definition
- 3PL Market: Services Overview
- Advantages and Drawbacks of 3PL
- Types of 3PL Providers
- Categories of 3PL Providers
- 3PL Service Segments
- Fourth Party Logistics (4PL): An Overview
- Fifth Party Logistic (5PL)
- Third Party Logistics (3PL): A Brief Industry Overview
- The Pandemic Temporarily Pours Troubles for 3PL Providers
- The 3PL Space Post the Pandemic
- Technology-enabled 3PL Providers Sail through the Pandemic
- Complexity in Supply Chain Management Builds Fertile Environment for 3PL
- Increasing Outsourcing of Logistics Operations Helps 3PL Market to Progress at Impressive Rate
- The Rising Tide of B2B & B2C eCommerce Lifts One Boat Higher than the Others Third Party Logistics (3PL)
- Global B2C & B2B Market for 2018-2024 (In US$ Billion)
- Key Benefits Offered Drive Wider Adoption of 3PL
- Access to Established Resource Network
- Benefit from Proven Industry Expertise
- Supply Chain Scalability & Flexibility
- Better Cargo Turnover & Superior Distribution Efficiency
- Better Inventory Management & Reduced Inventory
- Cost Benefits
- Focus on Core Business Operations
- Domestic Transportation Management (DTM) Leads Service Segment
- Roadways Remains Primary Transportation Mode
- Global 3PL Market by Transport Type (2021E): Percentage Breakdown of Revenues for Airways, Railways, Roadways, and Waterways
- Manufacturing Commands Major Value Share of 3PL Market
- Global 3PL Market by End-Use Sector (2021E): Percentage Breakdown of Revenues for Manufacturing, Retail, Healthcare, Automotive, and Other End-Uses
- Developing Regions Drive Future Growth of 3PL Market
- World Third Party Logistics (3PL) Market: Geographic Regions Ranked by Value CAGR for 2020-2027
- World Third Party Logistics (3PL) Market (2021 & 2027): Percentage Breakdown of Revenues for Developed and Developing Regions
- Asia Pacific (incl. China) Remains Leading Revenue Contributor
- Third Party Logistics (3PL) – Global Key Competitors Percentage Market Share in 2022 (E)
- 3PL Providers Exploit Advanced Technology for Efficient Warehousing
- M&A Activity Gathers Steam
- Recent Market Activity
- Select Merger & Acquisition (M&A) Deals in the Global Logistics Market (2018-2019)
- Globally Leading 3PL Providers: Customer Vertical and No. of Customer Relationships
- Ocean Freight Forwarding Volume Share of Top 10 Freight Forwarders (Global): 2020E
- Air Freight Forwarding Volume Share of Top 10 Freight Forwarders (Global): 2020E
- US 3PL Competitor Revenue Share (in %): 2020E
- Select Global Brands
- Competitive Market Presence – Strong/Active/Niche/Trivial for Players Worldwide in 2022 (E)
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
- Manufacturing Sector: Driving Force behind 3PL Market Growth
- 3PL Assumes Critical Importance in Manufacturing Domain
- Expanding Retail Industry Generates Significant Opportunities
- Select Leading Retail Enterprises by Country: A Snapshot
- Global Retail Sector by Product Category (2021E): Percentage Breakdown of Revenues for Clothing & Accessories, Diversified, FMCG, and Leisure Goods
- eCommerce Emerge as New Growth Driver
- Global B2C E-Commerce Sales in US$ Trillion for the Years 2017, 2019, 2021 and 2023
- Leading Retail E-Commerce Countries Worldwide: Ranked by Sales in US$ Billion for 2019
- Global E-Commerce Market as a % of Retail Sales for the Period 2017-2023
- E-commerce Challenges for 3PLs
- Omni Channel Retailing Underpins Volume Growth for 3PL Services
- Global Retail Omni-Channel Commerce Platform Market in US$ Million by Region/Country: 2019 & 2025
- Automotive Logistics: A Lucrative End-Use Vertical
- Global Automobile Production in Million Units: 2008-2022
- Transportation Services Drive Momentum
- Procurement Logistics Resolve Inbound Transportation Needs
- Distribution Logistics Simplify Outbound Movement of Products
- Production Logistics for Diverse Logistics Needs of Modern Production Lines
- Value Added Services Widen the Scope & Span of 3PL Market
- Reverse Logistics: A High-Utility Value-Added Service
- Multi Modal Transportation Finds Favor
- Key Drivers of the 3PL Market
- Globalization and Rising Trade
- Expansion of eCommerce Industry
- Increasing Focus on Core Competencies
- Focus on Embracing Advanced Technology
- Market Restraints
- Lack of Manufacturer Control on Logistics Service
- Manufacturer Reputation at Stake
- 3PL Providers Invest in IT Capabilities to Differentiate from Competition
- Key Opportunities for Warehouse Operators to Leverage Technology
- Warehouse Expansion vis-a-vis Labor Shortage
- Mounting Pressure to Push Bottom Lines
- eCommerce & Omni Channel Opportunity
- Improving Customer Experience
- Intense Competition from Amazon
- Technology Tools Seek Wider Role in 3PL Domain
- TMS Makes Its Way into 3PL Domain
- WMS Gaining Traction in Warehouse Management
- Cloud Technology Seeks to Expand Share in 3PL Technology Mix
- BI Systems Take Center Stage
- Big Data Emerges as New Focus Area
- Global Adoption Rates (in %) of Big Data Technologies by Industry (2021E)
4. GLOBAL MARKET PERSPECTIVE
III. MARKET ANALYSIS
IV. COMPETITION
For more information about this report visit https://www.researchandmarkets.com/r/eapy2h
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