+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

PRINTER FRIENDLY

Third Party Logistics (3PL) - Global Market Trajectory & Analytics

  • ID: 2255360
  • Report
  • September 2020
  • Region: Global
  • 1593 pages
  • Global Industry Analysts, Inc
The global market for Third Party Logistics (3PL) is projected to reach US$1.3 trillion by 2025, driven by the rise of e-commerce and m-commerce as the future of shopping. Few of the advantages of e-commerce over traditional retail include eliminates the cost and time associated with travelling to the store; ability to find required products quickly; enables easy comparison of multiple brands; availability of lower prices, better deals, offers, discounts and coupons; access to complete information about the product; ability to shop 24/7/365; even niche products have higher visibility and can be easily accessed. For merchants, e-commerce offers the advantage of low financial costs, investments, overheads; ability to scale target markets internationally without investing in physical offices and assets; easy to showcase products and brands; ability to provide personalized shopping experiences; easy to encourage impulse purchases and retarget or remarket to the customer; ability to process higher volumes of orders; and access to rich and valuable customer big data. A key requirement for running successful e-commerce businesses is nevertheless the ability to efficiently handle distribution, warehousing, and fulfillment operations. A key challenge in this regard however is the complexity of supply chain management against the backdrop of a scenario where maintaining profitability in an inherently tough business/economic environment requires the ability to augment logistics efficiency. This juxtaposed with the fact that logistics is the largest cost component of an online business, adoption of third party logistics (3PL) services are gaining in prominence in the e-commerce sector. Also pushing up the competitive pressure on logistics efficiency are competitive service claims such as easy and fast delivery and same day delivery.

With easy returns being the prime advantage and unique selling proposition (USP) of e-commerce, reverse logistics is emerging into a critical part of logistics. Reverse logistics complicates an already complex logistics chain. Reverse logistics process includes physical shipping of the returned product; quality testing of the returned product; and documenting quality issues with the returned product. The scenario is driving adoption of 3PL services given the unrivalled cost benefits involved in outsourcing these operations to third party service providers. Expanding breadth of 3PL service capabilities such as custom brokerage, warehousing operations, product labeling/packaging, cross-docking, order fulfillment, reverse logistics etc. is additionally encouraging service adoption rates. Availability of industry-specific, tailor-made 3PL services from established 3PL vendors will contribute towards market growth. Another factor driving growth in the market include liberalization of economies, globalization of trade, recovery in global trade and the resulting increase in imports and exports of cross-border shipment agreements with international suppliers. Other noteworthy factors include rise of the on-demand society and a parallel need for faster delivery services; skills shortage and financial burden of maintaining in-house logistics management departments, growing awareness over the benefits of 3PL such as optimal cargo turnover, distribution efficiency, superior inventory management and holistic cost economies; an increasingly connected world, digitalization boom and rising capex on logistics. The United States, China and Europe represent large markets worldwide with a combined share of 67% of the market. China ranks as the fastest growing market with a CAGR of 9.2% over the analysis period supported by the steady expansion of the manufacturing sector, rising standard of living, growing disposable income, increased consumption of manufactured goods and a parallel increase in retail and wholesale distribution activities; and continuous improvement in the expertise of 3PL service providers in terms of quality of service provided and contract fulfillment.

Competitors identified in this market include, among others:
  • C. H. Robinson
  • CEVA Logistics
  • Damco
  • DB Schenker
  • DSV A/S
  • Expeditors International of Washington Inc.
  • FedEx Corporation
  • GEODIS
  • J. B. Hunt Transport Services Inc.
  • Kerry Logistics Network Ltd.
  • Kintetsu World Express Inc.
  • Kuehne + Nagel International AG
  • Nippon Express Co. Ltd.
  • NYK Line
  • Panalpina World Transport (Holding) Ltd.
  • Penske Corporation
  • Sinotrans (HK) Logistics Limited
  • UPS Supply Chain Solutions Inc.
  • XPO Logistics Inc.
Note: Product cover images may vary from those shown
I. INTRODUCTION, METHODOLOGY & REPORT SCOPE

II. EXECUTIVE SUMMARY

1. MARKET OVERVIEW
  • An 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
  • Global 3PL Market by End-Use Sector (2020): Percentage Breakdown of Revenues for Manufacturing, Retail, Healthcare, Automotive, and Other End-Uses
  • Global 3PL Market by Mode of Transport (2020): Percentage Breakdown of Revenues for Airways, Railways, Roadways, and Waterways
  • 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
  • Manufacturing Commands Major Value Share of 3PL Market
  • Developing Regions Drive Future Growth of 3PL Market
  • World Third Party Logistics (3PL) Market: Geographic Regions Ranked by Value CAGR for 2018-2025
  • World Third Party Logistics (3PL) Market (2019 & 2025): Percentage Breakdown of Revenues for Developed and Developing Regions
  • Asia Pacific (incl. China) Remains Leading Revenue Contributor
  • Global Economic Outlook: GDP Growth and 3PL Industry
  • Real GDP Growth Rates in % by Country/Region for the Years 2018 through 2020
  • Competitive Landscape
  • 3PL Providers Exploit Advanced Technology for Efficient Warehousing
  • M&A Activity Gathers Steam
  • Select Merger & Acquisition (M&A) Deals in the Global Logistics Market (2018-2019)
  • Globally Leading 3PL Providers: Customer Vertical and No. of Customer Relationships
  • Third Party Logistics (3PL) Competitor Market Share Scenario Worldwide (in %): 2019
  • Ocean Freight Forwarding Volume Share of Top 10 Freight Forwarders (Global): 2019
  • Air Freight Forwarding Volume Share of Top 10 Freight Forwarders (Global): 2019
  • US 3PL Competitor Revenue Share (in %): 2019
  • Impact of Covid-19 and a Looming Global Recession
2. FOCUS ON SELECT PLAYERS
  • CEVA Logistics (The Netherlands)
  • C. H. Robinson (USA)
  • DACHSER SE (Germany)
  • DB Schenker (Germany)
  • DHL INTERNATIONAL GMBH (Germany)
  • DSV Panalpina A/S (Denmark)
  • Expeditors International of Washington, Inc. (USA)
  • FedEx Corporation (USA)
  • FM Logistic (France)
  • GEODIS (France)
  • Hitachi Transport System, Ltd. (Japan)
  • J.B. Hunt Transport Services, Inc. (USA)
  • Kuehne + Nagel International AG (Switzerland)
  • Nippon Express Co., Ltd. (Japan)
  • Sinotrans (HK) Logistics Limited (Hong Kong)
  • UPS Supply Chain Solutions Inc (USA)
  • XPO Logistics, Inc. (USA)
  • Yusen Logistics Co., Ltd. (Japan)
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 (2019): Percentage Breakdown of Revenues for Clothing & Accessories, Diversified, FMCG, and Leisure Goods
  • eCommerce Emerge as New Growth Driver
  • 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
  • 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 Passenger Car Sales (In Million Units) for the Years 2010 to 2024
  • Global Commercial Vehicles Sales in Thousand Units for 2010 to 2018
  • 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 (2019)
4. GLOBAL MARKET PERSPECTIVE

III. MARKET ANALYSIS

GEOGRAPHIC MARKET ANALYSIS

UNITED STATES
  • Market Overview
  • Market Analytics
CANADA

JAPAN
  • Market Overview
  • Market Analytics
CHINA
  • Chinese Logistics Scenario: A Brief Overview
  • 3PL Market in China Evolves Over the Years
  • Chinese 3PL Market by Segment (2019): Percentage Breakdown of Revenues for Freight Forwarding, Value Added Warehousing & Distribution, and Others
  • Chinese Value Added Logistics Market by Segment (2019): Percentage Breakdown of Revenues for Delivery & Postal, Retail & Wholesale Distribution, Transportation, and Warehousing
  • eCommerce Instigates High Potential Opportunities
  • Market Analytics
EUROPE
  • Europe Remains a Key Market for 3PL
  • Market Analytics
FRANCE

GERMANY

ITALY

UNITED KINGDOM

SPAIN

RUSSIA

REST OF EUROPE

ASIA-PACIFIC
  • Market Overview
  • Market Analytics
AUSTRALIA

INDIA
  • Market Overview
  • Competitive Scenario
  • Market Analytics
SOUTH KOREA

REST OF ASIA-PACIFIC

LATIN AMERICA

ARGENTINA

BRAZIL
  • Brazil: Important Market in Latin America
  • Market Analytics
MEXICO

REST OF LATIN AMERICA

MIDDLE EAST

IRAN

ISRAEL

SAUDI ARABIA

UNITED ARAB EMIRATES

REST OF MIDDLE EAST

AFRICA

IV. COMPETITION
  • Total Companies Profiled: 389
Note: Product cover images may vary from those shown
Adroll
adroll