Global Third-Party Logistics (3PL) Market Analysis, Drivers, Restraints, Opportunities, Threats, Trends, Applications, and Growth Forecast to 2023

Global Third-Party Logistics (3PL) Market: Overview:

“The Global Third-Party Logistics (3PL) Market size is expected to be worth around US$ 1130.5 Billion by 2023 To reach US$ 2603.6 Billion in 2033, growing at a CAGR of 8.70% during the forecast period 2023 to 2033.”

Third-party logistics (abbreviated as 3PL or TPL) in logistics and supply chain management is a company’s use of third-party businesses for outsourcing the components of warehousing, distribution, and fulfillment services.

Third-party logistics service providers are specialized in the unified operation of transportation and warehousing services that can be customized according to the needs of consumers depending upon market conditions and to fulfill the demands as well as delivery service requirements for their goods.

Global Third-Party Logistics (3PL) Market: Dynamics

Rapidly growing cross-boundary trade activities is one of the major factor projected to drive the growth of the global market. Growing demand for effective inventory management and the adoption of new technologies in order to improve the efficiency of the supply chain are some other factors expected to propel the target market growth.

The growing popularity of IoT-based services and automation of logistics services are some factors creating lucrative opportunities for the growth of the global market.

Global Third-Party Logistics (3PL) Market: Segmental Analysis

Among the service type segments, the domestic transportation management (DTM) segment is expected to account for significant revenue shares of the global market.

Among the mode of transport segments, the roadways segment is projected to register significant growth, owing to rapidly growing infrastructure development activities by the governments that include roadways construction and increasing investments in order to develop road transport networks.

Among the end-use industry segments, the retail segment is expected to contribute significant shares of the global market, in terms of revenue, which can be attributed to the increasing inclination of retailers towards adopting 3PL services for data-driven analytical solutions for predictive analytics in order to manage their fleet, distribution strategies and minimize the cost of inventory management.

Global Third-Party Logistics (3PL) Market: Regional Analysis

The third-party logistics (3PL) market in the Asia Pacific is expected to register significant growth, owing to the rapid growth of the e-commerce industry. In addition, the economic growth of developing countries such as India and China is another factor expected to propel the target market growth.

Furthermore, increasing investment by government authorities in roads, railways, and airways in order to develop the overall infrastructure for effective transportation is a factor expected to support the revenue growth of the target market in the region.

North America is expected to account for significant shares in the third-party logistics (3PL) market, which can be attributed to the increasing demand for logistics software. In addition, increasing investments in order to improve optimization of route and visibility are some other factors expected to fuel the demand for third-party logistics services.

Moreover, the growing need for customized supply chain and transportation services for making the organized movement of goods is a factor fueling the growth of the target market. Furthermore, growing product tracking requirements along with the rising necessity of cold chains are some additional factors propelling the growth of the target market in the region.

Global Third-Party Logistics (3PL) Market Segmentation:

Segmentation by Service Type:

• Domestic Transportation Management (DTM)
• Dedicated Contract Carriage (DCC)/Freight forwarding
• Value-Added Logistics Services (Vous)
• Warehousing & Distribution (W&D)
• International Transportation Management (ITM)

Segmentation by Mode of Transport:

• Railways
• Roadways
• Airways
• Waterways

Segmentation by End-Use Industry:

• Healthcare
• Retail
• Manufacturing
• Automotive

Segmentation by Region:

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