Global Third-party Logistics Market Size, Trends & Growth Opportunity, By Service, By Transport, By End-use By Region and Forecast to 2027.

The global Third-party Logistics market was valued at USD 11227 million in 2020 which expected to reach USD 1786.92 million by 2027 at a CAGR 7.2% from 2020-2027.

3PL is the function that allows a manufacturer to outsource logistics and distribution activities. A 3PL company can offer specialized services like inventory management, cross-docking, door-to-door delivery, and product packaging. Because of the growth of the e-commerce industry, the market for 3PL services is expected to grow significantly. Furthermore, demand for this service is expected to rise in the near future as manufacturers and retailers focus more on their core business (known as core competencies) and subcontracting activities, such as logistics, where they have less expertise.

Market Drivers

Globalization has resulted in an increase in trading activity.

The key factors driving globalization are dynamic market conditions and global economic improvement. As a result of the rise in globalization, various trade-related activities have increased. As a result, manufacturers and retailers find it difficult to keep track of and control these activities in an efficient manner. 3PL companies assist these manufacturers in keeping track of and controlling these activities. This factor is anticipated to propel the market.

Market Restraints

The most critical factors restricting this market's growth are the loss of direct control over the logistics service and the potential loss of reputation.

Impact of COVID-19

The global supply chain has been impacted by the Coronavirus pandemic. The crisis put a strain on transportation and logistics resources that had never been seen before. Shippers are experiencing uncertainty in the movement of goods as a result of lockdowns in certain countries. Because of a supply/demand imbalance and a lack of capacity for long-haul and last-mile fulfilment services, logistics networks are being disrupted. The logistics activities are further hampered by a lack of personnel and a reduction in working hours. The COVID-19 outbreak has a cascading effect on the Domestic Transportation Management (DTM) service. Infected areas have seen an imbalance between incoming and outgoing freight, which is lengthening the lead time.

Market Segmentation

The Global Third-party Logistics Market is segmented into Service, Transport, Distribution Channel and Growing System. By Service such as Dedicated Contract Carriage (DCC)/Freight forwarding, Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing &Distribution (W&D), Value Added Logistics Services (VALs). By Transport such as Roadways, Railways, Waterways, Airways. By End-use such as Manufacturing, Retail, Healthcare, Automotive, Others.

Regional Analysis

Global Third-party Logistics Market is segmented into five regions such as North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. During the forecast period, the Third-party Logistics market in APAC is expected to grow at the fastest CAGR. The expansion of trans-regional trade corridors and gateways is expected to create a significant opportunity for 3PL providers. The concentration of manufacturing and sourcing in China has resulted in a strategic shift in other countries' technology, pharmaceutical, and automotive sectors. This shift is expected to drive market growth in countries such as India, South Korea, Japan, and Vietnam. The ongoing development of logistics infrastructure, as well as the increased emphasis on transportation practices in emerging markets, are expected to drive market growth.

Key Players

Various key players are listed in this report such as BDP International, Burris Logistics, C.H. Robinson Worldwide, Inc., CEVA Logistics, DSV, DB Schenker Logistics, FedEx, J.B. Hunt Transport, Inc., Nippon Express

Market Taxonomy

By Service

• Dedicated Contract Carriage (DCC)/Freight forwarding
• Domestic Transportation Management (DTM)
• International Transportation Management (ITM)
• Warehousing &Distribution (W&D)
• Value Added Logistics Services (VALs)

By Transport

• Roadways
• Railways
• Waterways
• Airways

By End-use

• Manufacturing
• Retail
• Healthcare
• Automotive
• Others

By Region

• North America
• Latin America
• Europe
• China
• Asia Pacific
• Middle East & Africa

Key Questions Addressed by the Report

• What are the Key Opportunities in Global Third-party Logistics Market?
• What will be the growth rate from 2020 to 2027?
• Which segment/region will have highest growth?
• What are the factors that will impact/drive the Market?
• What is the competitive Landscape in the Industry?
• What is the role of key players in the value chain?