Third Party Logistics Market

Market Synopsis:

The Global Third Party Logistics Market was valued at USD 931.5 Billion in 2021 and is projected to reach a value of USD 1494.6 Billion by 2028. The Global Third Party Logistics Market is anticipated to grow to exhibit a Compound Annual Growth Rate (CAGR) of 8.2% over the forecast period.

Joining services, warehousing, transportation, and freight & forwarding are just a few examples of the operations that can be handled by third-party logistics service providers who are actively involved in and experts in handling logistics for businesses. Greater flexibility is made possible by third-party logistics' ability to lower total distribution and storage expenses. Additionally, this is the logistics industry's most popular business model, allowing clients to concentrate on their primary operations. Some logistics firms provide value-added services such as door-to-door delivery, cross-docking, product production and procurement, packaging, and inventory management in response to rising customer demand. Furthermore, one of the main drivers of expanding the global market is the availability of specialized, industry-specific third-party services from reputable logistics service providers.

Moreover, in some areas, the epidemic has resulted in a sharp increase in the e-commerce industry. Customers' demands changed as a result of on-time delivery. Customers prefer same-day and one-day deliveries more often. Major retailers, therefore, began investing in logistics services to match client expectations. However, comparing developing countries to industrialized ones, the development of logistical services continues to lag. The industry's dearth of highly skilled workers is to blame for this trend. The absence of qualified logistics professionals further restricts this market's expansion.

Market Segmentation:

The Third Party Logistics is segmented based on Service, Transport, End-Use, and Region. Based on the Service segment, the market is sub-segmented as Dedicated Contract Carriage (DCC)/Freight Forwarding, Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution (W&D), and Value-Added Logistics Services (VALs). Furthermore, based on the segment of Transport, the market is sub-segmented as Roadways, Railways, Waterways, and Airways. Finally, based on the segment End-Use, the market is sub-segmented into Manufacturing, Retail, Healthcare, Automotive, and Other End-Uses.

Based on Transport:

Based on the segment of Transport, the market is sub-segmented into Roadways, Railways, Waterways, and Airways. The Roadways sub-segment currently holds the highest share and is anticipated to maintain its market position in the coming years. Due to improved road infrastructure and growth in cross-border trade between landlocked nations worldwide, the necessity for Roadways as a medium of transportation in 3PL industries has risen significantly. In addition, 3PL service providers use cutting-edge IT tools like transport management systems (TMS) and WMS to provide first-party businesses with creative delivery solutions.

Based on Service:

Based on the segment Service, the market is sub-segmented into Dedicated Contract Carriage (DCC). The adoption of Dedicated Contract Carrier Service is facilitated by DCC service providers who help their clients focus on their primary business challenges and end-users by integrating transportation management and enabling greater capital use. The management of domestic transportation refers to the movement of products within the same country's states. Businesses are also actively working to grow their home market.

Asia Pacific is Forecast to Expand at the fastest CAGR during the forecast period

Asia Pacific is forecast to grow at the fastest Compound Annual Growth Rate (CAGR) during the forecast period. In this industry, it is predicted that the Asia Pacific region will expand at the highest rate. The E-Commerce industry's endeavors to include warehouse projects and its solution in the supply chain by local enterprises have helped the region experience a robust expansion. Additionally, the growth of the Asia Pacific Third Party Logistics market is being driven by partnerships between logistics service providers and transport firms. Fast-moving consumer goods for everyday use, personal autos, household goods, and luxury items have seen an increase in domestic consumption due to rapid urbanization, robust economic growth, and an increase in the middle-class population. As a result, retail sales rise, elevating Asia-Pacific to the top market for logistics service consumers. The 3PL companies' services provide the manufacturing businesses with a significant return on investment. These businesses assist various companies in eliminating weak points that could result in a loss of sales or earnings and further assist in ensuring maximum profitability.

Competitive Landscape:

The key players in the Global Third Party Logistics Market include- BDP International, Burris Logistics, C.H. Robinson Worldwide Inc., CEVA Logistics, DSV, DB Schenker Logistics, FedEx, J.B. Hunt Transport Inc., Kuehne + Nagel, Nippon Express, United Parcel Service of America Inc., XPO Logistics Inc., Yusen Logistics Co. Ltd. and others.

Segmentation of the Global Third Party Logistics Market: