Third-Party Logistics (3PL) Market Size Analysis - Market Share, Forecast Trends and Outlook Report (2025-2034)

The third-party logistics (3PL) market reached a value of nearly USD 1.11 trillion in 2024. The market is assessed to grow at a CAGR of 5.30% during the forecast period of 2025-2034 to attain a value of around USD 1.87 trillion by 2034. The expanding cross-border trade, the increasing volume of shipments, the flourishing e-commerce sector, the rise of omnichannel retailing, and the growing demand for customised logistics services are driving the market.

Global Third-Party Logistics (3PL) Market Overview

The third-party logistics (3PL) market expansion is being aided by the increasing cross-border shipping, customs, and international distribution. In 2022, the value of US international trade reached USD 6.5 trillion, with trade with Canada and Mexico accounting for 24% of total international trade. 3PL providers help businesses manage the entire import-export process, navigate complex customs regulations, duties, and tariffs, and ensure compliance with international trade laws. Providers are also leveraging advanced technologies such as RFID, GPS, data analytics, and tracking platforms to improve transparency to customers, optimise inventory levels, and predict potential delays due to weather or customs.

3PL providers are increasingly shifting towards cloud-based logistics management platforms, enabling businesses to access real-time data, manage inventory, streamline operations, and track shipments. The rise of digital platforms and freight marketplaces that leverage technologies to optimise freight matching and enable shippers to find available transportation options, compare rates, and book shipments is propelling the third-party logistics (3PL) market development.

Global Third-Party Logistics (3PL) Market Growth

Rapid globalisation is shaping the development of the third-party logistics (3PL) market. 3PL providers are expanding their offerings to include customs clearance, import/export documentation, and navigation of different regulations across regions. They are also expanding their transportation capabilities to provide integrated services for air, sea, rail, and road transportation across borders, hence ensuring seamless delivery of goods across the globe.

With businesses increasingly outsourcing their non-core functions like logistics to specialised 3PL providers to focus on their core competencies, the market is witnessing a healthy growth. Moreover, 3PL providers are leveraging IoT-enabled sensors to gain real-time visibility into warehouse inventory, shipments, and vehicle health, improving logistics management, optimising supply chain operations, and lowering delays.

Key Trends and Developments

Robust growth of the e-commerce sector; growing demand for end-to-end supply chain solutions; rising emphasis on sustainability; and technological advancements are favouring the third-party logistics (3PL) market expansion.

October 2024

BroadRange Logistics entered into a strategic consulting agreement with Cascadia Managing Brands (CMB) to offer its warehousing and 3PL expertise to food and beverage manufacturers. Through the partnership, the company aims to enhance its offerings in the food and beverage sector and make warehousing space available for food and beverage companies.

March 2024

magicpin, a hyperlocal e-commerce Indian start-up, forayed into the logistics aggregation vertical with the launch of ‘Velocity’. Through the platform, the company aims to act as an aggregator of its 3PL partners like Dunzo, Shadofax, Zypp, Rapido, OLA, and Porter for backend supply, consolidating all 3PL services under one umbrella for its brands and sellers.

March 2024

EFL 3PL announced the launch of its flagship Grade A warehousing facility in Bhiwandi, Mumbai, expanding its operations in India. Through this, the company aims to solidify its position as a leader in supply chain management and end-to-end logistics solutions.

March 2024

ArcherPoint, Inc. announced a partnership with Boltrics to offer a 3PL-specific solution to the US market. Through the partnership, the companies aim to address issues such as AI-powered optimisation, last-mile delivery, and sustainable practices.

Robust Growth of the E-Commerce Sector

The robust growth of the e-commerce sector is shaping the third-party logistics (3PL) market trends and dynamics. China is the largest e-commerce sector, generating sales of over USD 1.26 trillion in 2023, driven by the presence of online retail giants like JD.com and Alibaba. It was followed by the United States (with sales surpassing USD 1.07 trillion), Japan (sales topping USD 151.03 billion), and the United Kingdom (with sales exceeding USD 118.26 billion). With e-commerce businesses globally scaling, 3PL providers are offering multi-channel fulfilment, ensuring that products are picked, stored, packed, and shipped with accuracy and speed. The increasing demand for next-day or same-day delivery services is prompting retailers and e-commerce companies to outsource fulfilment to 3PLs that can provide localised, regional warehouses near major urban centres, and reduce delivery times and costs. 3PL providers are developing innovative solutions such as drone deliveries, automated vehicles, and crowdsourced delivery to reduce delivery times and improve efficiency.

Growing Demand for End-to-End Supply Chain Solutions

The rising demand for end-to-end supply chain solutions amid complexities in supply chains and growing customer expectations for faster delivery and greater transparency is driving the third-party logistics (3PL) market growth. End-to-end supply chain solutions offer seamless integration across different logistics functions, helping clients reduce costs, streamline operations, and improve efficiency. Such solutions enable highly customised services tailored to the unique needs of specific sectors, including healthcare, e-commerce, automotive, pharmaceuticals, and food and beverage. The integration of services such as inventory management, warehousing, order fulfilment, customs brokerage, and transportation by end-to-end 3PL providers to enable more efficient supply chain management is driving the market.

Rising Emphasis on Sustainability

Growing environmental concerns, stringent regulations, and growing customer demand for greener business practices are boosting the third-party logistics (3PL) market revenue. With supply chains becoming more globalised and complex, 3PL providers are attempting to reduce their environmental impact and deliver efficient logistics services. Hybrid fleets, electric vehicles (EVs), and alternative fuels like hydrogen or compressed natural gas are increasingly integrated by 3PL providers for short-haul deliveries and exploring larger electric trucks for long-distance shipping. For instance, DHL aims to electrify 60% of its last-mile delivery fleet and adopt over 80,000 electric vehicles by 2030. In addition, 3PL providers are investing in energy-efficient buildings that can operate with wind energy, solar panels, and other renewable energy sources to reduce reliance on grid electricity.

Technological Advancements

Technological advancements and innovations are expected to drive the third-party logistics (3PL) market development. Automated guided vehicles (AGVs), drones, and robotic process automation (RPA) are increasingly deployed by 3PL providers to efficiently transport goods within warehouses, handling repetitive tasks like picking items from shelves, sorting goods for shipment, packing them into boxes, tracking inventory in real-time, reducing human errors, and lowering operational costs. For instance, Nimble offers intelligent robotic fulfilment systems that autonomously pick, pack, and ship e-commerce orders while lowering warehouse size by up to 75%. Moreover, the integration of AI and ML in 3PL services to analyse historical data and market trends, optimise inventory management and transportation routes and schedules, lower fuel costs, and predict future demand more accurately is positively influencing the market.

Global Third-Party Logistics (3PL) Market Trends

The rapid growth of the e-commerce sector is significantly impacting the third-party logistics (3PL) market. With major players like JD.com, Alibaba, and Amazon driving sales globally, 3PL providers are focusing on multi-channel fulfilment, ensuring quick and accurate delivery. The increasing demand for next-day or same-day delivery has led to the rise of localised warehouses and innovative solutions like drones, automated vehicles, and crowdsourced delivery. Additionally, growing environmental concerns and regulations are pushing 3PL companies toward sustainability. Providers are integrating hybrid fleets, electric vehicles, and energy-efficient buildings, with DHL targeting 60% electric vehicles for last-mile delivery by 2030. Technological advancements, such as automation through drones, AGVs, and AI, are transforming warehouse operations, improving efficiency, and reducing costs. These innovations help optimise inventory, and routes, and predict demand, further driving the growth of the 3PL market.

Opportunities in the Global Third-Party Logistics (3PL) Market

The Rise of Omnichannel Retailing

The rise of omnichannel retailing that enables seamless integration of physical and digital sales channels is driving the third-party logistics (3PL) market expansion. Retailers are seeking 3PL providers that can manage inventory across different sales channels and provide end-to-end logistics solutions. As customers are increasingly demanding faster delivery, 3PL providers are adopting flexible delivery methods, including crowdsourced delivery models, and local distribution hubs or micro-warehouses to expedite last-mile deliveries to improve delivery times and reduce costs.

Rising Demand for Customised Logistics Services

3PL providers are increasingly offering customised and specialised services to meet the unique needs of businesses across different sectors and optimise their supply chain operations. For instance, 3PL providers are providing temperature-sensitive transportation for pharmaceutical businesses. In addition, 3PL providers are offering value-added services such as kitting, assembly, labelling, packaging, and cross-docking, among others, to improve their service offerings and support businesses to enhance customer experiences, reduce costs, and streamline operations.

Global Third-Party Logistics (3PL) Market Restraints

The growth of the third-party logistics (3PL) industry can be challenged by geopolitical tensions, trade disruptions, natural disasters, and political instability, impacting the cost-effectiveness and reliability of 3PL services. Economic downturns and recessions can reduce the demand for goods, especially in sectors such as electronics, automotive, and luxury goods, lowering the volume of shipments and the demand for logistics services. As 3PL services are highly dependent on skilled workforce such as warehouse workers, truck drivers, and supply chain professionals, the shortage of qualified workers, especially in mature markets, can hinder the market growth. Furthermore, transportation infrastructure in various low-income countries is inadequate, which can slow down logistics operations.

Global Third-Party Logistics (3PL) Industry Segmentation

The Expert Market Research’s report titled “Global Third-Party Logistics (3PL) Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

• Domestic Transportation
• International Transportation

Market Breakup by End Use

• Food and Beverage
• Automotive
• Consumer and Retail
• IT and Telecom
• Healthcare
• Energy
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Third-Party Logistics (3PL) Market Share

By Service Insights

As per the third-party logistics (3PL) market analysis, domestic transportation involves a network of local warehousing, transport services, and fulfilment facilities to facilitate the movement of goods between a country’s borders. Domestic 3PL services are crucial in last-mile delivery and eliminate complexities such as tariffs, customs, and cross-border regulations associated with international logistics.

Meanwhile, international transportation, involving the movement of goods between countries, requires complex logistics and services like international freight forwarding, customs clearance, and compliance with global trade regulations. Increasing cross-border trade activities, globalisation of supply chains, and the expansion of the e-commerce sector are driving the third-party logistics (3PL) market development.

By End Use Insights

In the food and beverage sector, 3PL is essential to improve efficiency and supply chain visibility, lower costs, and save money on overhead costs, such as labour, rent, and utilities. The accessibility of 3PLs to advanced technologies and solutions that track shipments in real-time, manage order fulfilment, and monitor inventory levels is boosting the third-party logistics (3PL) market revenue. Customised solutions, including refrigerated transportation, temperature-controlled storage facilities, and real-time temperature monitoring offered by 3PL ensure the storage and transportation of perishable and temperature-sensitive products under optimal conditions, minimising the risk of damage and spoilage.

Automotive companies outsource spare parts warehousing to 3PLs to minimise inventory handling costs and improve inventory accuracy, reducing the risk of theft or damage to spare parts and optimising supply chain operations. 3PL service providers boast trained staff and professional picking and packing solutions, streamlining processes, reducing lead times, improving customer satisfaction, and reducing lead times. Automotive sellers partner with 3PL providers to optimise transportation routes, lower costs, and reduce transit times. The growing focus of automotive companies on cost savings and optimising workflows is providing lucrative third-party logistics (3PL) market opportunities.

Third-party logistics (3PL) plays a crucial role in the customer and retail sector by providing specialised services that enable companies to improve efficiency, streamline supply chains, and enhance customer satisfaction. Meanwhile, the IT and telecom sector leverages 3PL services to efficiently manage global supply chains for electronic devices and equipment, which require careful handling, packaging, and transportation.

The healthcare sector requires 3PL services due to its unique logistics challenges, due to the need for temperature-sensitive shipments and the urgency of healthcare deliveries. Hence, 3PL providers are offering specialised temperature-controlled facilities and transport systems to ensure the optimal delivery and storage of products. Conversely, the energy sector, especially renewable energy and oil and gas companies, requires the movement of bulky and hazardous materials like drilling equipment, turbines, and rigs. This is prompting 3PL providers to provide specialised heavy-lift and oversized cargo solutions to efficiently and safely transport items.

Global Third-Party Logistics (3PL) Market Regional Insights

North America Third-Party Logistics (3PL) Market Overview

The rapid growth of the e-commerce sector is fuelling the third-party logistics (3PL) market expansion. With the increasing demand for rapid delivery solutions, retailers and manufacturers are partnering with 3PL providers for fast and efficient delivery solutions. In Q3 2024, the retail e-commerce sales in the United States reached USD 1.84 trillion, a 1.3% (±0.2) surge from Q2 2024. The expansion of 3PL facilities in the region is aiding the market development. In November 2023, Innomar Strategies announced the opening of a new, 92,000-square-foot, and GMP-compliant facility third-party logistics (3PL) centre in Halton Hills, Ontario, expanding its capacity to handle and store medical devices and pharmaceutical products.

Europe Third-Party Logistics (3PL) Market Dynamics

The increasing globalisation of trade and surging cross-border trade activities in the region are driving the third-party logistics (3PL) market development. In 2023, trade in goods between EU countries was valued at EUR 4.10 trillion in terms of exports, with Germany (21%) boasting the highest level of intra-EU trade, followed by the Netherlands (15%) and France (12%). Furthermore, the growing focus on sustainability in the region is pushing 3PL providers to provide carbon-neutral transportation solutions, green logistics, and sustainable warehouse management. With the increasing emphasis on carbon-neutral supply chains, European businesses are collaborating with 3PL providers to meet environmental sustainability goals.

Asia Pacific Third-Party Logistics (3PL) Market Outlook

The third-party logistics (3PL) demand forecast in the Asia Pacific is being fuelled by the increasing manufacturing and export activities, especially in countries such as India, Vietnam, and China, surging the demand for international shipping, logistics, and warehousing services. The increasing adoption of advanced solutions by 3PL providers to automate warehouse operations is driving the market. In February 2023, Prozo launched the Mini-Load Automated Storage and Retrieval System (mini-load ASRS), becoming the first Indian 3PL company to automate its warehouses and fulfil B2C and D2C orders in a faster and more efficient manner around the clock.

Opportunities in the Latin America Third-Party Logistics (3PL) Market

As per the third-party logistics (3PL) market regional analysis, the expansion of the online retail sector, especially in countries such as Brazil, Mexico, and Argentina, is surging the demand for efficient logistics solutions such as inventory management, warehousing, and last-mile delivery. Latin America has established its position as a significant trading partner for various economies, particularly in sectors such as automotive, agriculture, and electronics. This is surging the demand for cross-border logistics services. In addition, rapid infrastructure development activities of ports, highways, and airports are creating lucrative opportunities for 3PL providers to integrate into the supply chain by offering efficient transportation, warehousing, and distribution services.

Middle East and Africa Third-Party Logistics (3PL) Market Drivers

The Middle East, especially countries such as Saudi Arabia and the UAE, is strategically positioned as a trade hub connecting Europe, Africa, and Asia. Robust transportation infrastructure, including airports, ports, and rail systems, is boosting the demand for 3PL services. Moreover, the robust growth of the e-commerce sector, buoyed by evolving customer behaviours and high internet penetration, is increasing the demand for last-mile delivery and efficient warehousing solutions. In addition, with companies in the region seeking ways to optimise supply chains to reduce costs, manage inventory, and improve delivery times, 3PL providers are offering advanced technologies such as warehouse automation, IoT, and artificial intelligence.

Competitive Landscape

Key third-party logistics (3PL) market players are heavily investing in automation to enhance operational efficiency, lower costs, and bolster delivery times. Third-party logistics (3PL) companies are also integrating AI and ML into their operations to optimise route planning, facilitate inventory management, and demand forecasting, improving delivery accuracy and minimising supply chain bottlenecks.

DHL Global Forwarding

DHL Global Forwarding, established in 1815 and based in Bonn, North Rhine-Westphalia. is the world’s leading logistics company. The company’s divisions include DHL Express, DHL Global Forwarding, DHL Freight, and others.

Kuehne + Nagel International AG

Kuehne + Nagel International AG, founded in 1890 and based in Schindellegi, Schwyz, is a prominent global air and sea logistics company that holds significant market shares in road and contract logistics.

DB Schenker

DB Schenker, established in 1872 and headquartered in Essen, Germany, operates in various segments, including transport, contract logistics, supply chain solutions, Industry solutions, and digital services hub.

DSV A/S

DSV A/S was founded in 1976 and is headquartered in Copenhagen (Denmark). The solutions provided by the company include air freight, sea freight, road transport, rail freight, courier, logistic solutions, and others.

Other key players in the global third-party logistics (3PL) market are Sinotrans Changhang Group, Panalpina, Nippon Express Co., Ltd., Expeditors, UPS Supply Chain Solutions Inc., Hitachi Transport System, C.H. Robinson, Hellmann Worldwide Logistics SE & Co. KG, Bolloré Logistics, CEVA Logistics, and Yusen Logistics Co., Ltd. among others.

Third-Party Logistics (3PL) Market Report Snapshots

Third-Party Logistics (3PL) Manufacturers