Third-Party Logistics (3PL) Global Market Opportunities And Strategies To 2034

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 segmented by service type, accounting for 37.92% or $458.65 billion of the total in 2024. Going forward, the international transportation management segment is expected to be the fastest growing segment in the third-party logistics (3PL) market segmented by service type, at a CAGR of 11.26% during 2024-2029.

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 segmented by mode of transport, accounting for 40.24% or $486.74 billion of the total in 2024. Going forward, the railways segment is expected to be the fastest growing segment in the third-party logistics (3PL) market segmented by mode of transport, at a CAGR of 10.76% during 2024-2029.

The third-party logistics (3PL) market is segmented by end-use industry into manufacturing, retail, healthcare, automotive and other industries. The manufacturing market was the largest segment of the third-party logistics (3PL) market segmented by end-use industry, accounting for 24.80% or $299.97 billion of the total in 2024. Going forward, the retail segment is expected to be the fastest growing segment in the third-party logistics (3PL) market segmented by end-use industry, at a CAGR of 11.22% during 2024-2029.

North America was the largest region in the third-party logistics (3PL) market, accounting for 34.41% or $416.2 billion of the total in 2024. It was followed by Asia Pacific, Western Europe and then 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 11,24% and 10.79% respectively. These will be followed by Western Europe and Eastern Europe where the markets are expected to grow at CAGRs of 9.61% and 9.59% respectively.

The global third-party logistics (3PL) market is fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 6.11% of the total market in 2023. Amazon.com Inc. was the largest competitor with a 2.02% share of the market, followed by C.H. Robinson Worldwide Inc. with 0.78%, Maersk AS with 0.69%, DHL Supply Chain & Global Forwarding with 0.63%, Kuehne+Nagel International AG with 0.54%, CEVA Logistics SA with 0.49%, Nippon Express Co. Ltd. with 0.41%, United Parcel Service of America Inc. with 0.24%, Sinotrans Ltd. with 0.16% and Uber Technologies Inc. with 0.14%.

The top opportunities in the third-party logistics (3PL) market segmented by service type will arise in the domestic transportation management segment, which will gain $277.8 billion of global annual sales by 2029. The top opportunities in the third-party logistics (3PL) market segmented by mode of transport will arise in the roadways segment, which will gain $314.92 billion of global annual sales by 2029. The top opportunities in the third-party logistics (3PL) market segmented by end-use industry will arise in the retail segment, which will gain $200.18 billion of global annual sales by 2029. The third-party logistics (3PL) market size will gain the most in the USA at $268.63 billion.

To take advantage of the opportunities, the analyst recommends the third-party logistics (3PL) market companies to focus on AI-driven order allocation and optimization, focus on AI-powered platforms for operational and strategic optimization, focus on transportation management system integration to improve efficiency, focus on scalable storage solutions to optimize inventory management, focus on expanding domestic transportation management capabilities, focus on roadways to maximize growth and operational efficiency, expand in emerging markets, focus on strategic expansion and sector-specific partnerships, focus on tiered pricing models linked to service value, focus on value-based messaging across channels, prioritize education-driven promotion to build trust, focus on the retail segment to capture the fastest growth in 3PL.

This report describes and explains the third-party logistics (3PL) market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. 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 $1.2 trillion in 2024, having grown at a compound annual growth rate (CAGR) of 6.04% since 2019. The market is expected to grow from $1.2 trillion in 2024 to $1.97 trillion in 2029 at a rate of 10.34%. The market is then expected to grow at a CAGR of 9.27% from 2029 and reach $3.08 trillion in 2034.

Growth in the historic period resulted from the rising fuel prices and transportation costs, growth in demand for real-time tracking, rising expectations for fast and flexible delivery and rise in investment in small and medium-sized enterprises (SMEs). Factors that negatively affected growth in the historic period were supply chain disruptions and increase in the cybersecurity threats.

Going forward, rise in cross-border trade, expansion of the e-commerce industry, favorable government initiatives and expansion of the retail sector will drive the growth. Factor that could hinder the growth of the third-party logistics (3PL) market in the future include shortage of skilled personnel and drivers and trade wars and geopolitical unrest.

Market-trend-based strategies for the third-party logistics (3PL) market include focus on developing advanced products, such as AI-driven order allocation and optimization, focus on developing technologically advanced products, such as AI-powered platforms, focus on expanding their business to enhance global supply chain networks, focus on innovative logistic management systems, such as transportation management systems (TMS) and developing innovative storage services for sellers to optimize inventory management.

Player-adopted strategies in the third-party logistics (3PL) market include focus on expanding its business capabilities through lunching innovative products to expand its operational capabilities.

To take advantage of the opportunities, the analyst recommends the third-party logistics (3PL) market companies to focus on AI-driven order allocation and optimization, focus on AI-powered platforms for operational and strategic optimization, focus on transportation management system integration to improve efficiency, focus on scalable storage solutions to optimize inventory management, focus on expanding domestic transportation management capabilities, focus on roadways to maximize growth and operational efficiency, expand in emerging markets, focus on strategic expansion and sector-specific partnerships, focus on tiered pricing models linked to service value, focus on value-based messaging across channels, prioritize education-driven promotion to build trust, focus on the retail segment to capture the fastest growth in 3PL.

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