The global third-party logistics (3PL) services market was valued at US$888.761 billion in 2018 and is expected to grow at a CAGR of 2.92% over the forecast period to reach a total market size of US$1056.145 billion by 2024. A Third-Party Logistics (3PL) service provider offers outsourced logistics services to the manufacturers to help them focus on its core business. 3PL service is known to provide the optimized cost of transportation services efficiently and timely. The market is expected to grow due to companies global set up which necessitate the need for 3PL service providers. Increasing adoption of IT applications and services, the vendors are enhancing their system of distribution to give quality services to their users is anticipated to create new opportunity in the growth of the market. Due to the reduction in shipping freight along with the development of e-commerce in is expected to drive the market. However, due to inconsistent freight volume along with cost and risks regarding contamination, spillage, and theft, among others, is expected to hinder the market growth. The market is segmented by transport mode, service type, end-user, and geography. Based on service type, the domestic transportation management is expected to hold a significant share in the market due to increasing demand for efficient logistics operations. Geographically, North America is projected to be a substantial shareholder in the market owing to its technological innovation and investment in logistics software along with a reduction in the cost of transportation and labour.
Growing trading activated due to globalization.
Growing e-commerce industry and need for reverse logistics operations.
High cost and risks during shipment.
In July 2019, UPS Supply chain Solution Inc. expanded its express freight delivery services in Russia.
In March 2019, C.H Robinson Worldwide Inc. acquired The Space Cargo group for US$48 million to expand their global presence.
The major players profiled in the 3PL services market are J.B. Hunt Inc., Allcargo Logistics Ltd., UPS Supply Chain Solutions Inc., Container Corporation of India Ltd., PenskeLogistics Inc., C.H Robinson Worldwide Inc., Transportation Corporation of India ltd., FedEx Corporation, DHL, Kuehne+Nagel Inc., Maersk Logistics, NYK Logistics, and DB Schenker.
The 3PL services market has been analyzed through the following segments:
By Transportation Mode
By Service Type
By End-User Industry
Middle East and Africa