The Third-Party Logistics Market is predicted to rise to USD 1,753 Billion by 2028, witnessing 8.2% CAGR during 2021-2028

Introduction of the Third-Party Logistics Market Report

Third-party logistics refer to the use of third-party businesses by an organization for outsourcing some or all aspects of shipping operation, distribution, warehousing, and fulfillment services. A 3PL is commonly used in outsourced logistics and supply-chain management that includes transportation, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding among other services.

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Market Dynamic

Key Drivers and Emerging Trends

The growing number of industries, increased outsourcing of major transportation and logistics service by organizations, and rising focus on timely delivery management and supply chain optimization are some of the major factors expected to drive the growth of the third-party logistics market size. In addition, third-party logistics offer many services including inventory management, shipping, and receiving, freight shipping, kitting and customization, reverse logistics, which are further expected to stimulate the growth of the 3PL market size over the forecast period. Moreover, the rapidly growing e-commerce industry and the rising requirement for outsourcing logistics operations by small and medium scaled enterprises are expected to provide growth opportunities to the market growth. Furthermore, according to UNCTAD, the global e-commerce sales including business-to-business (B2B) and business-to-consumer (B2C) sales reached $26.7 trillion in 2019, with an increase of 4% from 2018. This is expected to support the 3PL market growth over the forecast period.

Restraint in the Third-Party Logistics Market

However, the lack of direct control and monitoring of logistics services by the manufacturer is expected to hamper the growth of the third-party logistics market over the forecast period.

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Service – Segment Analysis

Based on the service, value-added warehousing and distribution is expected to grow at a high rate over the forecast period owing to the increased offering of customizable ways to handle storage, distribution, and product transportation. Additionally, some of the value-added services that include more flexibility in the space, labor, and equipment; kitting; labeling and blister packaging; reverse logistics; cross-docking; and postponement packaging are further contributing to the growth of the market in the coming years.

End-user – Segment Analysis

Based on the end-user, healthcare and pharmaceuticals are expected to hold a notable market share. This can be attributed to the rising healthcare industry globally and the high demand for 3PL for storage, transportation, and logistics of the specialty pharmaceuticals and direct drug distribution. Moreover, According to the U.S. Centres for Medicare & Medicaid Services (CMS), U.S. health care spending grew 4.6% in 2019, reaching $3.8 trillion and the health spending accounted for 17.7% of the nation’s Gross Domestic Product. This is further expected to contribute to the growing demand for 3PL services in the healthcare sector.

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Regional – Segment Analysis:

North America is expected to account for a high share in the market. This is primarily due to the growing e-commerce penetration, increasing emphasis on transportation, and rising inclination towards the development of logistics infrastructure. National health spending of U.S. is projected to reach $6.2 trillion by 2028 growing at an average annual rate of 5.4 percent for 2019-28 as per the U.S. Centres for Medicare & Medicaid Services (CMS). Moreover, the presence of leading companies including FedEx Corporation, XPO Logistics, and C.H. Robinson Worldwide, Inc. is expected to contribute to the market growth.

Top Market Players

Several leading third-party logistics companies operating in the market, include, XPO Logistics, Inc., Agility Public Warehousing Company K.S.C.P., Ceva Logistics, DB Schenker, Nippon Express Co., Ltd., Kerry Logistics Network Limited, C.H. Robinson Worldwide, Inc., AmeriCold Realty Trust, FedEx Corporation, and Kuehne + Nagel International AG among others.

Key Developments:

• • In 2020, XPO Logistics, Inc., one of the leading global providers of transportation and logistics solutions, signed a partnership agreement with Mercedes-Benz Parts Logistics to manage UK parts distribution through an integrated, digitally-managed transportation network.

Segments covered in the Report:

The global Third-Party Logistics market has been segmented on the basis of service, end-user, and key regions. Based on service, the market is segmented into domestic transportation management, international transportation management, and value-added warehousing and distribution. Based on the end-user, the market is segmented into consumer and retail, automotive, healthcare and pharmaceuticals, and others.

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Key questions answered in this research report:

• • At what pace is global Third-Party Logistics market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Third-Party Logistics Market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Third-Party Logistics Market?
  • Which service generated maximum revenues in 2020 and identify the most promising service during the forecast period?
  • What are the various end-users of global Third-Party Logistics Market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Third-Party Logistics Market by Service

• • Domestic Transportation Management
  • International Transportation Management
  • Value-added Warehousing and Distribution

Global Third-Party Logistics Market by Base Oil Type

• • Consumer and Retail
  • Automotive
  • Healthcare and Pharmaceuticals
  • Others

Global Third-Party Logistics Market by Region

• • North America Third-Party Logistics Market (Option 1: As a part of the free 25% customization)
    • By Service
    • By End-user
    • US Market All-Up
    • Canada Market All-Up
  • Europe Third-Party Logistics Market (Option 2: As a part of the free 25% customization)
    • By Service
    • By End-user
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Third-Party Logistics Market (Option 3: As a part of the free 25% customization)
    • By Service
    • By End-user
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Third-Party Logistics Market (Option 4: As a part of the free 25% customization)
    • By Service
    • By End-user
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Third-Party Logistics Market (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • XPO Logistics, Inc.
  • Agility Public Warehousing Company K.S.C.P.
  • Ceva Logistics
  • DB Schenker
  • Nippon Express Co., Ltd.
  • Kerry Logistics Network Limited
  • C.H. Robinson Worldwide, Inc.
  • AmeriCold Realty Trust
  • FedEx Corporation
  • Kuehne + Nagel International AG