In terms of revenue, the Global Third Party Logistics Market is expected to reach USD 1494.6 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 8.2% from 2022 to 2028.
The constant increase in trading activities due to globalization and a rise in the e-commerce sector and policy support is anticipated to augment the growth of the market over the forecast period.
Key Highlights from Report:
- The Domestic Transportation Management (DTM) sub-segment accounted for a significant share of the market in 2021. DTM services are carried out in partnership with freight brokers, who handle the origin to destination of shipments. The expansion of the DTM segment is being driven by an increase in commerce movement from unloading docks to warehouses, rising carrier rates, an increase in cross-docking services, and growing fuel surcharges.
- The Roadways sub-segment held a significant share in 2021. Over the projection period, development in the segment of the highway is anticipated to be fueled by growing public-private partnerships and a focus on logistics infrastructure. The development of the road transportation sector is also being fueled by several government programs.
- Asia Pacific is expected to emerge as the fastest-growing region in the market over the forecast period. A significant opportunity for 3PL providers is anticipated to result from the growing trans-regional trade corridors and gateways. Technology, pharmaceuticals, and the automobile industry have all strategically shifted to other nations as a result of China's concentration of manufacturing. A change like this is anticipated to fuel market expansion in nations like Vietnam, South Korea, Japan, and India. Market expansion is anticipated to be fueled by the continued construction of logistics infrastructure and the growing importance of transport practices in emerging nations.
The development of logistics infrastructure in Asia and the Middle East and the rapid growth of global e-commerce are expected to fuel the growth of the market in the years to come. Huge market conditions and improvement in the global economy are the major factors that drive globalization. Many activities related to trade have been witnessed to increase, owing to the rise in globalization. Therefore, manufacturers or retailers find it difficult to keep a track of these activities efficiently third-party logistics companies help these manufacturers to check the track and control these activities. This is one factor that is expected to drive the market. Moreover, development in the overseas market is a vital role and is the main factor that fuels the growth of the market. Third-party logistics services are becoming easy for price-sensitive customers who need a broader choice of high-quality products with timely delivery. Therefore, an increase in trading activity due to globalization fuels the growth of the market. The development of new technologies is also expected to significantly contribute to market growth.
North America accounted for the maximum revenue share in 2021 and is expected to emerge as the largest regional market. Shippers are turning to specialized contract carrying services as a result of the limited truck capacity throughout the United States. The region's increasing need for cold storage is also anticipated to drive growth in the 3PL industry over the next few years. Additionally, the growth of the regional market is also supported by the presence of players like XPO Logistics, Inc., C.H. Robinson Worldwide (CHRW) Inc., UPS Supply Chain Solutions Inc., and Expeditors International of Washington, Inc.