Third-Party Logistics (3PL) Global Market Opportunities and Strategies to 2032

This report describes and explains the third-party logistics (3PL) market and covers 2017 to 2022, termed the historic period, and 2022 to 2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global third-party logistics (3PL) market reached a value of nearly $1,008.5 billion in 2022, having increased at a compound annual growth rate (CAGR) of 5.1% since 2017. The market is expected to grow from $1,008.5 billion in 2022 to $1,624.7 billion in 2027 at a rate of 10.0%. The market is then expected to grow at a CAGR of 10.3% from 2027 and reach $2,655.9 billion in 2032.

Growth in the historic period resulted from increase in trade and exports, growth in world population, government initiatives and increasing demand from end-use industries. Factors that negatively affected growth in the historic period were the impact of COVID-19, increasing warehousing costs and impact of natural disasters.

Going forward, rapid growth in e-commerce, increasing retail penetration and growing demand for efficient inventory management will drive the market. Factors that could hinder the growth of the third-party logistics (3PL) market in the future include the Russia-Ukraine war impact, increasing fuel costs, economic instability and skill shortages.

The third-party logistics (3PL) market is segmented by service type into dedicated contract carriage, domestic transportation management, international transportation management, warehousing and distribution and other service types. The domestic transportation management market was the largest segment of the third-party logistics (3PL) market by service type, accounting for $383.8 billion or 38.1% of the total market in 2022. The international transportation management market is expected to be the fastest-growing segment going forward at a CAGR of 10.9%.

The third-party logistics (3PL) market is segmented by mode of transport into railways, roadways, waterways and airways. The roadways market was the largest segment of the third-party logistics (3PL) market by mode of transport, accounting for $403.7 billion or 40.0% of the total market in 2022. The railways market is expected to be the fastest-growing segment going forward at a CAGR of 10.4%.

The third-party logistics (3PL) market is segmented by end-use industry into manufacturing, retail, healthcare, automotive and other end-use industries. The manufacturing market was the largest segment of the third-party logistics (3PL) market by end-use industry, accounting for $250.73 billion or 24.86% of the total market in 2022. The retail market is expected to be the fastest-growing segment going forward at a CAGR of 10.90%.

North America was the largest region in the third-party logistics (3PL) market, accounting for 33.9% of the global market in 2022. It was followed by Asia Pacific, Western Europe and the other regions. Going forward, the fastest growing regions in the third-party logistics (3PL) market will be Asia Pacific and North America, where growth will be at CAGRs of 11.0% and 10.6% respectively from 2022-2027.
 
The global third-party logistics (3PL) market is fairly fragmented, with a large number of players operating in the market. The top ten competitors in the market made up to 18.19% of the total market in 2021. The Kuehne+Nagel International AG was the largest competitor with 3.70% share of the market, followed by DSV A/S with 2.08%, The Deutsche Bahn AG with 1.79%, Deutsche Post DHL Group with 1.76%, C.H. Robinson Worldwide, Inc. with 1.76%, J.B. Hunt Transport, Inc. with 1.25%, SinoTrans Logistics Limited with 1.19%, FedEx Corporation with 1.14%, Nippon Express Co. Ltd. with 0.91% and CEVA Logistics with 0.79%.

The top opportunities in the third-party logistics (3PL) market by service type will arise in the domestic transportation management market, which will gain $226.9 billion of global annual sales by 2027. The top opportunities in the third-party logistics (3PL) market by mode of transport will arise in roadways market, which will gain $254.0 billion of global annual sales by 2027. The top opportunities in the third-party logistics (3PL) market by end-use industry will arise in retail market, which will gain $158.5 billion of global annual sales by 2027. The third-party logistics (3PL) market size will gain the most in the USA at $213.1s billion.

Market-trend-based strategies for the third-party logistics (3PL) market include use of artificial intelligence, advanced logistics management platforms, use of electric vehicles, advanced analytics and data-driven solutions, adoption of cloud-based logistics platforms, last-mile delivery innovations and partnerships and collaborations.

Player-adopted strategies in the third-party logistics (3PL) industry include strengthening business operations through strategic partnerships and collaborations, expanding transport and logistics business through strategic acquisitions, serving small and mid-sized web shops in e-fulfillment and online sales through the acquisitions and exploring autonomous driving technology through collaborations and partnerships.
To take advantage of the opportunities, the analyst recommends the third-party logistics (3PL) companies to focus on adoption of artificial intelligence (AI), focus on use of electric vehicles (EVS), focus on last-mile delivery innovations, focus on advanced analytics and data-driven solutions, focus on fast-growing service types, focus on competitive pricing, expand in emerging markets, focus on partnerships and collaborations, participate in trade shows and events, continue to focus on B2B promotions, focus on online marketing, focus on fast-growing end-use industries and target warehousing companies.