Global Third-party Logistics Market by Services (Dedicated Contract Carriage (DCC), Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution (W&D), And Value-Added Logistics Services (VALs)), Mode of Transport (Airways, Waterways, Roadways And Railways), End-users (Retail, Manufacturing, Healthcare, Automotive, and Others), Regions (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts 2021-2028

The global third-party logistics or 3PL market was valued 889.01 billion in 2020 and is anticipated to reach USD 1691.86 billion by 2028, expanding at a CAGR of 8.5% during the forecasted period, 2021-2028. Third party logistics enables manufacturers to outsource their logistics and distribution activities. Third party logistics company provides specialized services such as inventory management, door to door delivery, cross docking, and product packaging services. 3PL companies provide services such as tracking controlling the transportation activities for retailers and manufacturers.

The COVID-19 pandemic hindered the transportation and logistics due to closedown of manufacturing facilities is estimated to drive the market growth. The pandemic led to domino effect on services such as domestic transportation management (DTM) and created imbalance between import and export from infected areas and to tackle this situation, third party logistics companies have taken a step to start short term storage services which can have positive effect in post COVID recovery time.

Market Trends, Drivers, Restraints, and Opportunities

• Rapid development of the e-commerce industry, rising competition in globalized community, and increased investments in logistics infrastructure in Asia and Middle East are the major factors driving the market growth.
• Improved global economy and rising trading activities due to rapid globalization are the key factors driving the market growth. 
• The increased demand for last minute shipping with convenient is anticipated to spur the market across the globe.
• Increased outsourcing of logistics and transportation services coupled with growing e-commerce penetration are the major factors hindering the market growth of third-party logistical operations.
• Improper communication between shippers, end-users, and carriers is expected to act as major challenge in the industry.
• The changing global supply chain, constant developments in e-commerce industry with customized consumer experience has created enormous opportunities for the market.

Scope of the Report:

The report on global third-party logistics market includes an assessment of the market, size, share, trends, segments, and regional markets. Overview and dynamics have been included in the report.

Third-party Logistics Market Segment Insights

DTM segment to account a major market share

Based on services, the market can be divided into dedicated contract carriage (DCC), domestic transportation management (DTM), international transportation management (ITM), warehousing & distribution (W&D), and value-added logistics services (VALs). The domestic (DTM) segment accounted for more than 30% market share in 2020 and is estimated to dominate the market due to rising trade activities globally. Increased carrier rates and rising fuel charges are the factors driving the DTM segment.

Roadways segment to dominate the market

On modes of transport, the third-party logistics market can be divided into airways, waterways, roadways and railways. The roadways segment held a prominent position with more than 55% market share in 2020. Increased investments in logistics departments and growing-public private partnership models are the factors expected to drive the marker growth. The airways segment is projected to expand at a high CAGR during the forecast period.

Manufacturing segment to hold a significant market share

In terms of end-users, the market can be segregated into automotive, retail, healthcare, manufacturing, and others. The manufacturing segment constituted more than 20% market share in 2020. Increasing retail supplies and manufacturing activities such as procurement of raw materials from parts of the globe is driving the segment growth.

Based on regions, the third-party logistics market can be segmented into North America Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific held a maximum revenue share and anticipated to grow at a healthy rate during the forecast period. Increasing investments in logistics infrastructure and concentration on manufacturing and sourcing led toward the paradigm shift, which in turn, propelled the market growth.

Segments

Segments Covered in Report
By Services

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

By Mode of Transport

• Roadways
• Railways
• Waterways
• Airways

By End-users

• Retail
• Manufacturing
• Healthcare
• Automotive
• Others

By Regions

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

By Key Players

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

Competitive Landscape

The major players in the global third-party logistics market are DSV, DB Schenker Logistics, FedEx, J.B. Hunt Transport, Inc.; BDP International, C.H. Robinson Worldwide, Inc.; CEVA Logistics, Kuehne + Nagel, Nippon Express, and United Parcel Service of America, Inc.

In February 2020, UPS opened a logistics facility in Nankan, Taiwan with USD 1.5 million investment, which offered the increase in UPS’s total storage capacity by more than 30% in Taiwan.

In 2019, Nippon Express USA, Inc. opened an office in n Lexington, Kentucky, aiming to build a logistics network by targeting automotive companies and to provide optimal transport services to customers.