Third-party Logistics Market (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) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook 2022 – 2030

The global third-party logistics market size was valued at USD 955.80 billion in 2021, and is predicted to be worth around USD 1,997.73 billion by 2030, registering a CAGR of 8.5% during the forecast period 2022 to 2030.

Growth Factors:

The development of logistics infrastructure in the Asia and Middle East regions, the rapid growth of the e-commerce sector, and the development of new technologies are expected to significantly contribute to the market growth. Shippers are focusing on outsourcing the logistics activity to enhance their operations and cost-effectiveness. The increased working capital and globalization lead to the demand for efficient inventory management services. Moreover, the restructuring of the brick-and-mortar business model continues to provide dynamic growth to the industry.

The changing global supply chain to become more customer-centric enables the companies to outsource their supply chain activities to focus on adaptability and responsiveness. Moreover, the volatile international documentation procedure and customs rules & regulations need the expertise to handle the complex supply chain activity.

The Internet of Things (IoT) and cloud-based logistics management solution turn the data into actionable value-added information, which can shape the strategic decision-making process and increase productivity. Some of the capital-intensive organizations are increasing their Information Technology (IT) spending and are using predictive analytics for supply chain enhancement.

Report Coverage

Report Scope Details
Market Size USD 1,997.73 billion by 2030
Growth Rate CAGR of 8.5% From 2022 to 2030
Base Year 2021
Forecast Period 2022 to 2030
Report coverage Growth Factors, Revenue Status, Competitive Landscape,  and Future Trends
Segments Covered Service, End use, Transport, region
Regional Scope North America, Europe, Asia Pacific, Latin America, Middle East & Africa (MEA)
Companies Mentioned BDP International; Burris Logistics; C.H. Robinson Worldwide, Inc.; Deutsche Post AG (DHL Group); CEVA Logistics; DSV; DB Schenker Logistics; FedEx; J.B. Hunt Transport, Inc; Kuehne + Nagel; Nippon Express; United Parcel Service of America, Inc.; XPO Logistics, Inc.; Yusen Logistics Co. Ltd.

By Service Analysis

The Domestic Transportation Management (DTM) segment held the largest market share of 32.51% in 2021. DTM services are performed in conjunction with freight brokers, which deal with shipment origin to their destination.

The increasing trade movement among the unloading docks to a warehouse, escalating carrier rates, a surge in cross-docking services, and rising fuel surcharge are driving the growth of the DTM segment.

The growing consumer demand in sectors, such as retail, and healthcare, and the steady GDP growth of various countries is further aiding the segment growth. The continued growth in global economic activities and a rise in the e-commerce sector have led to a rise in demand for international transportation management services.

Trade liberalization policies and cross-border logistics activities have increased international trade, thereby propelling the segment growth. Free Trade Agreements (FTAs) are driving the demand for international transportation.

The African Continental Free Trade Area (AfCFTA) and Progressive Trans-Pacific Partnership (CPTPP) are the two recent examples of rising multilateral free-trade agreements.

By Transport Analysis

On the basis of transport, the global market has been divided into roadways, railways, waterways, and airways. The roadways segment dominated the market in 2021 with a revenue share of more than 58%.

The growing public-private partnerships model and increased emphasis on logistics infrastructure are expected to drive the growth of the roadways segment over the forecast period. 

The airways transport segment is expected to register the fastest growth rate over the forecast period. The recent coronavirus outbreak has put a restriction on the global air freight trade resulting in a massive drop in the air uplift capacity, thereby increasing the carrier rates.

By End-use Analysis

The manufacturing segment accounted for the largest revenue share of more than 24.5% in 2021. Manufacturing and logistics go hand in hand as the industry has a complex supply chain process. The manufacturing sector involves the procurement of raw materials and other parts from different resources across the regions.

The involvement of various suppliers and distributors makes the logistics activity a tedious job. Thereby, the manufacturing sector is outsourcing the logistics activities owing to the benefits offered, in terms of reduced transportation cost, supply chain visibility, inventory and vendor management, business process development, and improved customer services.

The local manufacturing sector in India is growing with several tax reform policies and government initiatives, such as ‘Make in India’ projects. The retail sector is expected to emerge as the fastest-growing segment over the forecast period.

Logistics is the backbone of the modern retail industry playing a crucial role in same-day delivery and fulfillment capabilities. E-retailing and dedicated logistics services have paved the way for medium-scale companies to enter the 3PL market, thereby helping retail companies to expand their operations and offerings in semi-urban areas.

By Regional Analysis

Asia Pacific is expected to emerge as the fastest-growing regional market at a CAGR of 10.3% over the forecast period. The growing trans-regional trade corridors and gateways are expected to create a huge opportunity for the 3PL providers. 

The concentration of manufacturing and sourcing in China has led to the strategic shift of technology, pharmaceuticals, and the automotive sector in other countries. Such a shift is expected to propel market growth in countries, including India, South Korea, Japan, and Vietnam. 

North America accounted for the largest revenue share in 2021 with the U.S. spearheading the regional market. The tight truck capacity across the U.S. has led shippers to move towards dedicated contract carriage services. In addition, the rising demand for cold storage in the region is expected to boost the 3PL market over the coming years. 

Competitive Rivalry

Foremost players in the market are attentive on adopting corporation strategies to enhance their market share. Some of the prominent tactics undertaken by leading market participants in order to sustain the fierce market completion include collaborations, acquisitions, substantial spending in R&D and the improvement of new-fangled products or reforms among others.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

  • Company Overview
  • Company Market Share/Positioning Analysis
  • Product Offerings
  • Financial Performance
  • Recent Initiatives
  • Key Strategies Adopted by Players
  • Vendor Landscape
  • List of Suppliers
  • List of Buyers

Some of the prominent players in the Third-party Logistics Market include:

  • BDP International
  • Burris Logistics
  • C.H. Robinson Worldwide, Inc.
  • CEVA Logistics
  • DSV
  • DB Schenker Logistics
  • FedEx
  • J.B. Hunt Transport, Inc.
  • Kuehne + Nagel
  • Nippon Express
  • United Parcel Service of America, Inc.
  • XPO Logistics, Inc.
  • Yusen Logistics Co. Ltd.

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

  • 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 Geography

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • United Kingdom
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

Latin America

  • Brazil
  • Rest of Latin America

Middle East & Africa (MEA)

  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa

Highlights of the Report:

  • Market Penetration: Comprehensive information on the product portfolios of the top players in the market.
  • Product Development/Innovation: Detailed insights on the upcoming technologies, R&D activities, and product launches in the market
  • Competitive Assessment: In-depth assessment of the market strategies, geographic and business segments of the leading players in the market
  • Market Development: Comprehensive information about emerging markets. This report analyzes the market for various segments across geographies
  • Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the market

Research Methodology

In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Third-party Logistics market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.

Secondary resources referred to by analysts during the production of the Third-party Logistics market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Third-party Logistics markets more accurate and reliable.

Secondary Research

It involves company databases such as Hoover's: This assists us recognize financial information, structure of the market participants and industry competitive landscape.

The secondary research sources referred in the process are as follows:

  • Governmental bodies, and organizations creating economic policies
  • National and international social welfare institutions
  • Company websites, financial reports and SEC filings, broker and investor reports
  • Related patent and regulatory databases
  • Statistical databases and market reports
  • Corporate Presentations, news, press release, and specification sheet of Manufacturers

Primary Research

Primary research includes face-to face interviews, online surveys, and telephonic interviews.

  • Means of primary research: Email interactions, telephonic discussions and Questionnaire based research etc.
  • In order to validate our research findings and analysis we conduct primary interviews of key industry participants. Insights from primary respondents help in validating the secondary research findings. It also develops Research Team’s expertise and market understanding.

Industry participants involved in this research study include:

  • CEOs, VPs, market intelligence managers
  • Procuring and national sales managers technical personnel, distributors and resellers
  • Research analysts and key opinion leaders from various domains

Key Points Covered in Third-party Logistics Market Study:

  • Growth of Third-party Logistics in 2022
  • Market Estimates and Forecasts (2017-2030)
  •  Brand Share and Market Share Analysis
  •  Key Drivers and Restraints Shaping Market Growth
  •  Segment-wise, Country-wise, and Region-wise Analysis
  •  Competition Mapping and Benchmarking
  •  Recommendation on Key Winning Strategies
  •  COVID-19 Impact on Demand for Third-party Logistics and How to Navigate
  •  Key Product Innovations and Regulatory Climate
  •  Third-party Logistics Consumption Analysis
  •  Third-party Logistics Production Analysis
  •  Third-party Logistics and Management

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