+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)


United States 3PL Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • ID: 5012730
  • Report
  • March 2020
  • Region: United States
  • 150 Pages
  • Mordor Intelligence


  • C.H. Robinson
  • D.B. Schenker
  • Fedex
  • Hub Group
  • J.B. Hunt
  • Kuehne + Nagel
The United States 3PL market is expected to grow at a CAGR of over 6% during the forecast period of 2022-2027.

Covid-19 has transformed businesses across the world with greater attention being given to supply chain optimization, growth of 3PL’s and meeting essential and non-essential delivery challenges. Building supply chains more resistant to shocks like COVID-19 requires a “blended” approach by shippers to localized and global sourcing. With the implementation of the lockdown, the transportation sector, upon which supply-chain activities are dependent, has remained partially closed. Consequently, there were constraints to the smooth functioning of the supply-chains, and this has had an adverse impact on global business and industrial activities. The shipping industry, which accounts for about 90% of trade activities has been impacted by the pandemic.

The 3PL market in the United States is driven by the increasing level of cross-border trade. In addition, the cost benefits of using 3PL are anticipated to boost the growth of the 3PL market.Consequently, 3PLs are going through a digital transformation and are investing in end-to-end solutions and end-to-end visibility to meet growing customer demand.

However, 3PL operators also face various challenges. Firstly, the development of the e-commerce sector and the consequent increase in the demand for services that manage supply chains around the world are expected to pose issues to the operation of the market.

Manufacturers and retailers are focusing on their core competencies and are now more readily subcontracting functions such as logistics to those with the expertise. Thus, the increase in competition has diverted the focus of manufacturers to promote their respective specializations in production and distribution

Major third-party logistics providers are heavily investing in novel technologies, expanding their service portfolio, and widening their global reach. Software solutions widely being used by the companies for logistics applications.

Key Market Trends

E-commerce Driving the 3PL Market

  • With the increasing penetration of e-commerce in the United States market, consumers are demanding customized shipping along with real-time visibility of the shipments. These demands are driving the 3PL service providers to focus on providing overall network optimization and creating an agile supply chain through innovation and optimization for greater visibility.
  • Even while e-commerce has been a core demand driver for sophisticated and high-end logistics services from 3PLs, the market is disrupting fast.
  • Companies like Amazon, Shopify a leading e-commerce marketplace acquired 6 River Systems. 6 River Systems is a provider of AI-enabled fulfilment automation solutions - focused on effective picking, sorting, quicker turn-around time, and throughput. 6 River Systems lists XPO Logistics and other 3PL companies as clients. Such scenarios indicate the level of sophistication and ongoing disruptions in the fast-changing market.
  • Even while e-commerce is expected to be a core demand driver for 3PL services, retailers, and online marketplaces such as Amazon and Shopify would also require specialized 3PL support (given their scale of business).
  • Hence 3PL companies are expected to upgrade technology and acquire disruptive solution providers - so that outsourcing requirements of large and key customers can be fulfilled and required end-customer satisfaction can be achieved.

Increase in Demand for Warehousing Space

  • The rising demand from key areas such as automotive, manufacturing, retail, technology, healthcare, and construction is expected to create strong demand for the warehousing space in the coming years.
  • The manufacturing companies are demanding for outsourcing warehousing services to aid their production and operational expansions.
  • In addition to this, considering the advantages of outsourcing in terms of enhanced operational efficiency and cost savings, shippers are increasingly outsourcing the logistics portion of their activities to warehouse service suppliers to meet the increasing demand for fast delivery.
  • This also allows them to concentrate on their core competencies. Moreover, with the growing popularity of frozen food, the demand for refrigerated storage and warehousing has also increased.
  • Many logistic service providers and retailers have started establishing dedicated warehousing space for their activities in the market.
  • In 2020, China Manufacturers Alliance L.L.C. (CMA)/Double Coin Tires has opened warehouses in Rancho Cucamonga and Riverside (US) to boost the capacity for truck/bus and OTR tires in the coming years. The addition of these facilities has expanded the company's warehousing footprint to approximately 338,000 sq. feet adding extra capacity for around 225,000 units.

Competitive Landscape

The market is relatively fragmented with a large number of local and international players, including CH Robinson, XPO Logistics, UPS Supply Chain, Expeditors, and JB Hunt as the major players. Fragmentation in the market is expected to decrease with companies in the space actively merging and consolidating to get the benefits of economies of scale.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.


  • C.H. Robinson
  • D.B. Schenker
  • Fedex
  • Hub Group
  • J.B. Hunt
  • Kuehne + Nagel

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2.1 Analysis Methodology
2.2 Research Phases
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Policies and Regulations
4.5 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics Etc.
4.6 Technological Developments in the Logistics Sector
4.7 Industry Attractiveness - Porter's Five Forces Analysis
4.8 General Trends in Warehousing Market
4.9 Impact of COVID - 19 on the Market
5 MARKET SEGMENTATION (Market Size By Value)
5.1 By Services
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By End-User
5.2.1 Aerospace
5.2.2 Automotive
5.2.3 Consumer & Retail
5.2.4 Energy
5.2.5 Healthcare
5.2.6 Manufacturing
5.2.7 Technology
5.2.8 Other End Users
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 C.H. Robinson
6.2.2 XPO Logistics
6.2.3 United Parcel Service
6.2.4 Fedex
6.2.5 J.B. Hunt
6.2.6 DHL Supply Chain Logistics
6.2.7 D.B. Schenker
6.2.8 Kuehne + Nagel
6.2.9 Hub Group
6.2.10 Ryder Supply Chain Solutions
9.1 GDP Distribution, By Activity
9.2 Insights on Capital Flows
9.3 Economic Statistics - Export and Import by Product
9.4 Insights on Key Export Destinations
9.5 Insights on Key Import Origin Countries

A selection of companies mentioned in this report includes:

  • C.H. Robinson
  • XPO Logistics
  • United Parcel Service
  • Fedex
  • J.B. Hunt
  • DHL Supply Chain Logistics
  • D.B. Schenker
  • Kuehne + Nagel
  • Hub Group
  • Ryder Supply Chain Solutions