DUBLIN, Nov. 27, 2023 /PRNewswire/ — The “Third-party Logistics (3PL) Market – Global Industry Size, Share, Trends Opportunity, and Forecast, 2028F” report has been added to ResearchAndMarkets.com’s offering.
Global Third-party Logistics (3PL) Market has valued at USD 1.5 Trillion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 9.9% through 2028.
Third-party logistics model delivers greater asset utilization and asset sharing alliances, which increases its demand, and contributes toward the growth of the 3PL market. At present, third-party logistics is commercially available in varying transportation modes and service types, including dedicated contract carriage (DCC), domestic and international transportation management.
Companies that provide international deliveries typically work with two or three dozen delivery partners specializing in different geographic areas. Large e-commerce companies, such as Amazon, have huge in-house teams that act as their third-party logistics. They spend a lot of money and effort managing, controlling, and improving their logistics.
Moreover, Kestraa, a Brazilian logistics startup, raised $2.7 million funding from Canary Ventures and various angel investors for logistics software. Kestraa is a cloud-based B2B solution for freight-management, connecting ship-owners, cargo agents, freight forwarders, government systems, and more. The software allows stakeholders to manage their shipments, anticipate delays, and optimize on delivery time. Customers are also able to monitor the delivery process of their goods.
In addition, growth in automotive industry, technological advancement, surge in last-mile connectivity, and rise in cross-border trade activities also boost the growth of the 3PL market. For instance, the Indian government launched Multi-Modal Logistics Parks Policy (MMLPs) to improve the logistics sector of the country.
Key Market Trends
The importance of last-mile delivery is well-known to logistics service providers. However, many people are unaware that final mile operations will be a game changer in the coming years. Last-mile deliveries have already dethroned price and product as key differentiators in shopper purchasing decisions.
Last-mile delivery is critical for both retaining and acquiring new customers. Simply put, last-mile operations can make or break a company. This has been one of the most important logistics trends for several years, and it shows no signs of abating. More 3PL companies are working to reduce last-mile delivery distances by locating fulfillment hubs in more accessible locations, such as urban centers.
Customer retention is one of the most difficult challenges in a highly competitive market, driving businesses to embrace greater picking efficiency, smart inventory management, and rapid replenishment of hot-selling items. The supply chain and logistics domains are being transformed by fast data and strong network connectivity.
Warehouse management systems (WMS) of today have extensive computing power, large amounts of data storage, and the ability to connect to other critical applications such as enterprise resource planning (ERP) and customer relationship management (CRM). It is no longer enough to simply track shipments; businesses must optimize every step of the process, from raw materials to the production line, marketing, and delivery of the product to the end customer.
Growth in E-commerce Sales Driving the Market
On the fulfillment front, all shippers have a set of performance metrics or key performance indicators (KPIs) to work toward. In today’s fast-paced fulfillment environment, meeting these targets can be difficult, especially if fulfillment is not a core competency for the shipper. Knowing this, the third-party logistics (3PL) industry has stepped up its game, offering a broader portfolio of services to a broader range of customers.
Once the domain of extremely high-volume operations, even small businesses selling clothing online recognize the value of outsourcing some or all of their fulfillment operations to a reputable third party. The e-commerce boom has prompted more businesses to investigate 3PL options.
E-commerce shippers are increasingly turning to 3PL providers to help them meet changing customer expectations and deal with supply chain disruption, labor constraints, transportation issues, inflation, and other challenges that have become the “new normal” in today’s operating environment.
As a result, 3PLs are offering shippers strategic locations, more space to accommodate higher inventory volumes, and a wider range of delivery options. As the volume of returns has increased in the last year, e-commerce shippers want to work with 3PLs that can help customers with the returns process. Omni-channel logistics services are also in high demand, with automation serving as a critical component of e-commerce fulfillment processes.
The larger 3PLs have multiple e-commerce operations, such as Geodis, DHL, Ryder, and JD Logistics (in Asia), to name a few of the larger players. Smaller providers have followed suit and now offer e-commerce fulfillment as well. In most cases, these 3PLs have e-commerce fulfillment operations separate from their traditional business-to-business (B2B) warehousing operations.
More 3PLs will be needed in the future to add value in the last mile of the supply chain, where getting large and bulky items from the final point of distribution to the customer’s location remains a major challenge. Getting furniture, fitness equipment, and other large items to customers’ doors requires extra planning, especially if they require quick delivery.
Scope of the Report
Service Type Insights:
Warehousing and Distribution Segment: Expected to grow due to increased demand for e-commerce and efficient warehousing and distribution.
Global 3PL market encompasses various segments, including transportation management, warehousing and distribution, customs brokerage, freight forwarding, and value-added services.
Transportation management segment dominates the market and continues to grow.
3PL providers assist in globalizing supply chains by offering transportation management services.
Growing global e-commerce drives demand for transportation management services to ensure quick and efficient product delivery.
Regional Insights:
North America Region: Leader in the Global Third-party Logistics (3PL) Market in 2022.
Led by the United States, North America has a large and highly developed economy.
Strong economic foundation results in increased consumer spending, manufacturing activities, and extensive trade networks.
Robust demand for logistics and supply chain services in North America.
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Global Third-party Logistics (3PL) Market.
Geodis
DHL International GmbH
db Schenker
a.p. moller – maersk, Kuehne+Nagel Inc.
XPO Logistics Inc.
C.H. Robinson Worldwide, Inc.
FedEx Corporation
United Parcel Service of America, Inc.
DSV
Report Scope:
Global Third-party Logistics (3PL) Market, By Mode of Transport:
Railways
Roadways
Waterways
Airways
Global Third-party Logistics (3PL) Market, By Service Type:
Dedicated Contract Carriage (DCC)
Domestic Transportation Management
International Transportation Management
Warehousing and Transportation
Others
Global Third-party Logistics (3PL) Market, By Industry:
Technological
Automotive
Retailing
Elements
Food and Beverages
Healthcare
Others
Global Third-party Logistics (3PL) Market, By Region:
North America
United States
Canada
Mexico
Asia-Pacific
China
India
Japan
South Korea
Indonesia
Europe
Germany
United Kingdom
France
Russia
Spain
South America
Brazil
Argentina
Middle East & Africa
Saudi Arabia
South Africa
Egypt
UAE
Israel
For more information about this report visit https://www.researchandmarkets.com/r/ukk6xr
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