Global Third-Party Logistics Market to Generate Revenue of Over US$ 2,349.2 Billion By 2031 | Astute Analytica
Astute Analytica has published a new research report titled “Global Third-Party Logistics Market Report, By Mode of Transport; By Service; By End-User; By Region; Segment Forecast, 2023-2031” in its research database.
New Delhi, Feb. 08, 2023 (GLOBE NEWSWIRE) -- Global third-party logistics market was valued at US$ 1,112.6 Bn in 2022 and is estimated to reach US$ 2,349.2 Bn by 2031. The market is registering a growth at a CAGR of 8.7% during the forecast period 2023-2031. This growth is largely driven by the increased demand for integrated supply chain solutions and services as businesses strive to become more efficient and cost-effective.
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However, the recent outbreak of the Russia-Ukraine war has caused severe disruption to the global economy, and the 3PL industry is not immune to these adverse effects. This conflict has reduced consumer confidence throughout the world, thereby reducing spending, which has in turn affected the demand for 3PL services. Additionally, the travel restrictions imposed due to the conflict have resulted in increased transportation costs and a slowdown in the delivery of goods.
Despite these challenges, the third-party logistics market is still expected to experience steady growth in the near future, as companies continue to realize the value of outsourcing their supply chain operations. This is evidenced by the adoption of advanced technologies such as AI and blockchain, which are being widely used to improve the efficiency and cost-effectiveness of 3PL operations. Companies are also increasingly investing in digital solutions such as warehouse management systems, fleet management systems and order management systems, which are enabling them to better track their shipments and optimize their supply chain operations.
Top 6 Trends in the Global Third-Party Logistics Market
The Third-Party Logistics (3PL) services industry has seen significant growth in recent years as businesses continue to search for cost-effective, reliable logistics solutions. As such, it’s important to stay up-to-date on the latest trends and developments to ensure that your business is making the most of its 3PL services. Here are some of the top trends in 3PL services to watch in 2022 and beyond:
1. Increased Automation: Automation has become increasingly prevalent in the 3PL industry, from warehouse robots to automated order scanning and processing. Automation can reduce costs and improve accuracy and efficiency, so many businesses are now turning to automated 3PL services.
2. Data Analytics: 3PL providers are increasingly harnessing the power of Big Data analytics to gain insight into customer demands, inventory levels, delivery times, and more. This helps them better serve their customers and provide a higher level of service.
3. Sustainable Practices: Sustainability has become an increasingly important factor for many businesses, and this is reflected in the third-party logistics market. 3PL providers are increasingly embracing eco-friendly practices, such as reducing fuel consumption and emissions, and utilizing renewable energy sources.
4. Digitalization: Digitalization has been a major trend across industries in recent years, and the 3PL industry is no different. 3PL providers are increasingly shifting to digital processes and technologies such as digital freight matching and route optimization software to streamline operations.
5. Cloud Computing: Cloud computing is transforming the logistics industry by providing 3PL providers with access to powerful analytics and data storage capabilities. By leveraging cloud technology, 3PL providers are able to better manage data and optimize their services.
6. Artificial Intelligence (AI): AI has become increasingly commonplace in the 3PL industry, with applications such as AI-driven route optimization and predictive shipment forecasting helping companies to improve efficiency and reduce costs.
These are just some of the trends that are shaping the third-party logistics market in 2022 and beyond. As the industry continues to evolve, businesses should stay informed about the latest developments to ensure that they are leveraging the best 3PL services available.
Roadways to Bring in over 44% Revenue of the Global Third-Party Logistics Market
The report states that the transportation and warehousing industry will benefit from more efficient management of its operations. This will be driven by increasing demand for dedicated contract carriage services and airways mode of transport.
The report also highlights that the global market will see a CAGR of 8.2% during the forecast period. This growth is attributed to the growth in global e-commerce, the expansion of cross-border trade activities, and the increased focus on supply chain optimization. Roadways are expected to account for the largest share of the global third-party logistics market due to their long-term sustainability, cost effectiveness, and reliability.
Furthermore, the A&A Top 50 Global Third-Party Logistics Providers (3PLs) list shows that roadways are playing an increasingly important role in the 3PL industry. They are helping businesses reduce costs, improve efficiency, and better manage their supply chains. Companies such as DHL, Kuehne + Nagel, and XPO Logistics are leading the way in the adoption of roadways for 3PL services.
It is evident that roadways are playing a crucial role in the global third-party logistics market. Companies are increasingly turning to them to reduce costs, improve efficiency, and better manage their supply chains. With the use of dedicated contract carriage services and airways mode of transport, the roadways segment is expected to account for over 44% of the total revenue by 2031.
Domestic Transportation Management to Captur Over 36% Revenue Share in Global Third-Party Logistics Market
The market is mainly driven by factors such as the rising demand for efficient transportation solutions, increasing need for cost-effective logistics services and improved customer service. As per the report, domestic transportation management is expected to capture over 36% of the global third-party logistics revenue share in the coming years.
Domestic transportation management involves the coordination of various activities related to the movement of goods within a country's borders. This includes planning, scheduling, tracking, and monitoring shipments from the point of origin to the destination. It also involves managing other logistics processes such as warehousing, inventory management, and order fulfillment. In addition, domestic transportation management enables organizations to improve their supply chain efficiency and reduce costs associated with transportation and logistics.
The increasing adoption of digital technologies such as artificial intelligence (AI), cloud computing and the Internet of Things (IoT), has enabled organizations in the global third-party logistics market to automate their domestic transportation management functions. This has enabled them to optimize their operations and improve customer service. Additionally, the growing demand for cost- Effective solutions, improved customer service and better visibility into transportation operations are driving the demand for domestic transportation management services.
Furthermore, the emergence of autonomous vehicles and drones has made it possible to transport goods more efficiently, which has also increased the adoption of domestic transportation management services. This, coupled with government initiatives to improve the transportation infrastructure across various countries, is expected to drive the growth of the global third-party logistics market during the forecast period.
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Global Third-Party Logistics Market is Highly Competitive: Top 5 Players Holds Less than 23% Market Share
The global third-party logistics (3PL) market is highly competitive, with a large number of players operating in the market. The competition in the market is primarily driven by factors such as price, quality of service, innovation, and customer service. Key players in the market are continuously striving to enhance their market position by implementing various strategies, such as expanding their global presence, entering into strategic partnerships, and investing in research and development activities.
Some of the leading players in the global third-party logistics market include DHL International GmbH, Kuehne+Nagel Inc., DB Schenker, Nippon Express, and FedEx Corporation. These companies have a strong brand image and have established a broad customer base, which provides them with a competitive advantage in the market. In 2022, top five players held over 22% market share.
In addition to established players, the market also has a significant number of regional and local players that operate in specific regions or countries. These players have a strong regional presence and are well-positioned to cater to the needs of local customers.
Overall, the global third-party logistics market is characterized by intense competition, with players constantly vying for market share and seeking to establish themselves as the leading player in the market. In this highly competitive environment, companies are continually seeking new and innovative ways to improve their offerings and better meet the evolving needs of customers.
Prominent Players in Global Third-Party Logistics Market:
DHL INTERNATIONAL GmbH (DEUTSCHE POST DHL GROUP)
DB SCHENKER (DB GROUP)
C.H. ROBINSON WORLDWIDE, INC.
UNION PACIFIC CORPORATION
UNITED PARCEL SERVICE (UPS)
PANALPINA WORLD TRANSPORT LTD.
Other Prominent Players
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