According to this report, the Canada 3PL market size reached around USD 20.85 billion in 2024. Aided by the robust growth of e-commerce and technological advancements, the market is projected to grow at a CAGR of 6.90% between 2025 and 2034, reaching almost USD 40.7 billion by 2034.
The Canada 3PL market expansion is primarily driven by the need for businesses to optimise their supply chains and enhance the efficiency of their logistics operations. As companies look for ways to reduce costs and improve service delivery, the demand for third-party logistics services, including warehousing, transportation, and inventory management, has grown significantly. By outsourcing these functions to 3PL providers, businesses can focus on their core operations while benefiting from the expertise, infrastructure, and technology that logistics companies offer.
Technological advancements have played a pivotal role in the Canada 3PL market development. With the increasing adoption of digital tools, automation, and data analytics, 3PL providers have been able to offer more advanced and integrated solutions to their clients. For instance, the implementation of warehouse management systems (WMS) and transportation management systems (TMS) has allowed businesses to gain real-time visibility into their supply chains, making it easier to track inventory, optimise routes, and improve overall efficiency. Additionally, the growing use of robotics and artificial intelligence (AI) in warehouses has led to faster and more accurate order fulfilment, which is crucial in meeting the demands of customers who expect quicker delivery times.
The rise of e-commerce has also been a key factor propelling the Canada 3PL market growth. As more consumers shop online, the demand for efficient order fulfilment and last-mile delivery solutions has increased significantly. E-commerce companies, both large and small, are increasingly relying on 3PL providers to handle their logistics operations, from warehousing to transportation and delivery.
This shift has led to the development of specialised 3PL services tailored to the needs of e-commerce businesses, such as same-day delivery, returns management, and packaging solutions. As a result, the 3PL market has become a critical enabler of the e-commerce boom in Canada, with companies seeking logistics partners that can handle the complexity and scale of modern retail.
Furthermore, the growing trend of global trade and international sourcing has boosted the Canada 3PL market revenue. As businesses expand their operations to international markets, the need for logistics providers with global capabilities has become more pronounced. 3PL providers that offer a comprehensive range of international services, including customs brokerage, freight forwarding, and cross-border transportation, have become essential for companies seeking to optimise their global supply chains. Canada’s strategic location, with its proximity to the United States and access to international shipping routes, positions it as an attractive hub for businesses looking to streamline their global logistics operations.
As per the Canada 3PL market analysis, the Canadian government’s focus on improving trade relations and infrastructure has also contributed to the growth of the market. Trade agreements such as the Canada- United States- Mexico Agreement (CUSMA) have facilitated cross-border trade, making it easier for businesses to source and distribute goods. Additionally, the ongoing development of transportation and logistics infrastructure, such as the expansion of ports and rail networks, has created more opportunities for 3PL providers to offer efficient and cost-effective solutions for their clients.
Despite the positive growth trajectory, there are challenges that the Canada 3PL market must navigate. One of the primary challenges is the rising cost of transportation, driven by factors such as fuel prices, driver shortages, and regulatory changes. With transportation costs accounting for a significant portion of logistics expenses, 3PL providers must find innovative ways to reduce these costs while maintaining high levels of service. Additionally, the increasing complexity of supply chains, driven by the growth of e-commerce and global trade, requires 3PL providers to invest continuously in technology and infrastructure to stay competitive.
Another challenge facing the Canada 3PL market is the growing demand for sustainable and environmentally friendly logistics solutions. As businesses and consumers become more conscious of the environmental impact of their supply chains, there is increasing pressure on 3PL providers to adopt green practices, such as using electric vehicles for last-mile delivery and optimising supply chains to reduce carbon emissions. This shift towards sustainability presents both opportunities and challenges for 3PL providers, who must balance the demand for environmentally friendly solutions with the need to maintain profitability.
The Canada 3PL market has experienced significant growth and transformation over the past few years, driven by the increasing demand for efficient and cost-effective supply chain solutions. With businesses continually looking to streamline their operations, reduce costs, and focus on their core competencies, 3PL providers have become an integral part of the Canadian logistics landscape. The market is expected to continue expanding in the forecast period, with several factors contributing to this trend, including advancements in technology, the rise of e-commerce, and an increasing demand for global trade solutions.
The Canada 3PL market expansion is primarily driven by the need for businesses to optimise their supply chains and enhance the efficiency of their logistics operations. As companies look for ways to reduce costs and improve service delivery, the demand for third-party logistics services, including warehousing, transportation, and inventory management, has grown significantly. By outsourcing these functions to 3PL providers, businesses can focus on their core operations while benefiting from the expertise, infrastructure, and technology that logistics companies offer.
Technological advancements have played a pivotal role in the Canada 3PL market development. With the increasing adoption of digital tools, automation, and data analytics, 3PL providers have been able to offer more advanced and integrated solutions to their clients. For instance, the implementation of warehouse management systems (WMS) and transportation management systems (TMS) has allowed businesses to gain real-time visibility into their supply chains, making it easier to track inventory, optimise routes, and improve overall efficiency. Additionally, the growing use of robotics and artificial intelligence (AI) in warehouses has led to faster and more accurate order fulfilment, which is crucial in meeting the demands of customers who expect quicker delivery times.
The rise of e-commerce has also been a key factor propelling the Canada 3PL market growth. As more consumers shop online, the demand for efficient order fulfilment and last-mile delivery solutions has increased significantly. E-commerce companies, both large and small, are increasingly relying on 3PL providers to handle their logistics operations, from warehousing to transportation and delivery.
This shift has led to the development of specialised 3PL services tailored to the needs of e-commerce businesses, such as same-day delivery, returns management, and packaging solutions. As a result, the 3PL market has become a critical enabler of the e-commerce boom in Canada, with companies seeking logistics partners that can handle the complexity and scale of modern retail.
Furthermore, the growing trend of global trade and international sourcing has boosted the Canada 3PL market revenue. As businesses expand their operations to international markets, the need for logistics providers with global capabilities has become more pronounced. 3PL providers that offer a comprehensive range of international services, including customs brokerage, freight forwarding, and cross-border transportation, have become essential for companies seeking to optimise their global supply chains. Canada’s strategic location, with its proximity to the United States and access to international shipping routes, positions it as an attractive hub for businesses looking to streamline their global logistics operations.
As per the Canada 3PL market analysis, the Canadian government’s focus on improving trade relations and infrastructure has also contributed to the growth of the market. Trade agreements such as the Canada- United States- Mexico Agreement (CUSMA) have facilitated cross-border trade, making it easier for businesses to source and distribute goods. Additionally, the ongoing development of transportation and logistics infrastructure, such as the expansion of ports and rail networks, has created more opportunities for 3PL providers to offer efficient and cost-effective solutions for their clients.
Despite the positive growth trajectory, there are challenges that the Canada 3PL market must navigate. One of the primary challenges is the rising cost of transportation, driven by factors such as fuel prices, driver shortages, and regulatory changes. With transportation costs accounting for a significant portion of logistics expenses, 3PL providers must find innovative ways to reduce these costs while maintaining high levels of service. Additionally, the increasing complexity of supply chains, driven by the growth of e-commerce and global trade, requires 3PL providers to invest continuously in technology and infrastructure to stay competitive.
Another challenge facing the Canada 3PL market is the growing demand for sustainable and environmentally friendly logistics solutions. As businesses and consumers become more conscious of the environmental impact of their supply chains, there is increasing pressure on 3PL providers to adopt green practices, such as using electric vehicles for last-mile delivery and optimising supply chains to reduce carbon emissions. This shift towards sustainability presents both opportunities and challenges for 3PL providers, who must balance the demand for environmentally friendly solutions with the need to maintain profitability.
The Canada 3PL market has experienced significant growth and transformation over the past few years, driven by the increasing demand for efficient and cost-effective supply chain solutions. With businesses continually looking to streamline their operations, reduce costs, and focus on their core competencies, 3PL providers have become an integral part of the Canadian logistics landscape. The market is expected to continue expanding in the forecast period, with several factors contributing to this trend, including advancements in technology, the rise of e-commerce, and an increasing demand for global trade solutions.
Market Segmentation
The market can be divided based on mode, services, end use, and region.Market Breakup by Mode
- Roadways
- Railways
- Waterways
- Airways
Market Breakup by Services
- Dedicated Contract Carriage (DCC) / Freight Forwarding
- Domestic Transportation Management (DTM)
- International Transportation Management (ITM)
- Warehousing and Distribution
- Value Added Logistics Services (VALs)
Market Breakup by End Use
- Automotive
- Manufacturing
- Chemical
- Retail
- Healthcare and Pharmaceuticals
- Construction
- Others
Market Breakup by Region
- Northern Canada
- British Columbia
- Alberta
- The Prairies
- Central Canada
- Atlantic Canada
Competitive Landscape
The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Canada 3PL market.Some of the major players explored in the report are as follows:
- CMA CGM Group (CEVA Logistics SA)
- Schenker AG
- C.H. Robinson Worldwide Inc.
- Deutsche Post AG
- DSV A/S
- Kuehne + Nagel International AG
- Nippon Express Co., Ltd.
- Expeditors International of Washington, Inc.
- Kintetsu World Express Inc.
- TSI Group Inc.
- Others
Table of Contents
1 Executive Summary
2 Market Overview and Stakeholder Insights
3 Economic Summary
4 Country Risk Profiles
5 North America 3PL Market Overview
6 Canada 3PL Market Overview
7 Canada 3PL Market by Mode
8 Canada 3PL Market by Services
9 Canada 3PL Market by End Use
10 Canada 3PL Market by Region
11 Market Dynamics
12 Competitive Landscape
Companies Mentioned
- Schenker AG
- C.H. Robinson Worldwide Inc.
- Deutsche Post AG
- DSV A/S
- Kuehne + Nagel International AG
- Nippon Express Co., Ltd.
- Expeditors International of Washington, Inc.
- Kintetsu World Express Inc.
- TSI Group Inc.
- Others
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 122 |
| Published | May 2025 |
| Forecast Period | 2025 - 2034 |
| Estimated Market Value ( USD | $ 22.33 Billion |
| Forecasted Market Value ( USD | $ 40.7 Billion |
| Compound Annual Growth Rate | 6.9% |
| Regions Covered | Canada |
| No. of Companies Mentioned | 10 |
