Third-Party Logistics (3PL) Market Size, Share, Opportunities, And Trends By Transportation (Land Freight, Ocean Freight, Air Freight), By Service Type (International Transportation Management, Domestic Transportation Management, Warehousing And Distribution, Packaging Service), And By Geography - Forecasts From 2023 To 2028

The third-party logistics market is estimated to grow at a CAGR of 11.36% to reach US$1,689.090 billion in 2028 from US$795.345 billion in 2021.

The expansion of international trade and globalization has led to a rise in the demand for efficient logistics services to handle the movement of goods across borders. One prominent growth factor of the Third-Party Logistics (3PL) market is its capacity to enhance operational efficiency by outsourcing complex order fulfillment processes, warehousing, and transportation operations. 3PL providers possess vast warehouse space, skilled personnel, and established carrier networks, facilitating prompt and cost-effective deliveries. As businesses grow, 3PLs accommodate increased order volumes without additional staffing requirements, optimizing supply chain management.

E-Commerce Growth

Over the past years, there has been a consistent upward trend in eCommerce sales for businesses, which was further accelerated by the COVID-19 pandemic as all transactions shifted to digital platforms, resulting in a significant global increase in sales through eCommerce channels, including websites and online marketplaces, during 2020. The booming e-commerce industry requires reliable and flexible logistics solutions to manage warehousing, order fulfillment, and last-mile delivery, driving the demand for 3PL services.  According to the 26th Annual Study of NTT Group, 3PLs are making investments in Internet of Things (IoT) technology to enhance workforce productivity (63%), enable real-time decision-making (57%), and gain a competitive advantage in the market (57%).

Expanding Transportation Management Services

Booming international and domestic transportation management services are further propelling the market demand for third-party logistics worldwide. For instance, according to the Bureau of Transportation Statistics, in 2021, transportation and warehousing services contributed US$1,330 billion to the overall GDP. Furthermore, the well-established presence of major third-party logistics services providers coupled with new launches of 3PL services is acting as an additional driving factor for the overall market growth.

North America is Expected to Grow Considerably

North America is expected to hold a significant share of the third-party logistics market during the forecast period. The factors attributed to such a share are the growing international and domestic trade coupled with an improved infrastructure of the supply chain. The booming e-commerce activities coupled with the growing warehouse establishments have provided a major scope to the market demand of third-party logistics services in the United States. According to the Department of Commerce, in Q1 of 2023, the retail e-commerce sales of the US stood at US$272.6 billion which signified a 3% increase over Q4 of 2022. Also, according to the US Bureau of Labor Statistics, in 2022, the number of private warehouse establishments stood at 21,294 which represented a 6.5% increase over 2021’s figure.

Key Market Developments

• In January 2023, J.B. Hunt and Uber Freight advocated for the implementation of a standardized scheduling API within the logistics industry. This call reflects a growth factor in the Third-Party Logistics (3PL) market, as it highlights the increasing importance of technology-driven solutions and collaboration among industry leaders to enhance efficiency and streamline scheduling processes.
• In August 2022, Gap Inc. announced the launch of its third-party supply chain platform which would provide logistics and warehouse services to other retailers that are looking to expand their operations. The service enabled Gap Inc. to improve its presence in the supply chain business in the United States.

Third-Party Logistics (3PL) Market Scope:

 

Report Metric	Details
Market Size Value in 2021	US$795.345 billion
Market Size Value in 2028	US$1,689.090 billion
Growth Rate	CAGR of 11.36% from 2021 to 2028
Base Year	2021
Forecast Period	2023 – 2028
Forecast Unit (Value)	USD Billion
Segments Covered	Transportation, Service Type, and Geography
Regions Covered	North America, South America, Europe, Middle East and Africa, Asia Pacific
Companies Covered	United Parcel Service, FedEx Corporation, XPO Logistics, Inc., McLane Company, Deutsche Post, Nippon Express, DB Schenker, C.H. Robinson, UPS Supply Chain Solutions, J.B. Hunt Transport, Inc.
Customization Scope	Free report customization with purchase

 

Segmentation:

• By Transportation
  • Land Freight
  • Ocean Freight
  • Air Freight
• By Service Type
  • International Transportation Management
  • Domestic Transportation Management
  • Warehousing and Distribution
  • Packaging Service
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • Germany
    • France
    • United Kingdom
    • Spain
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Thailand
    • Indonesia
    • Others

---

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Data

2.3. Validation

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. THIRD-PARTY LOGISTICS MARKET, BY TRANSPORTATION 

5.1. Introduction

5.2. Land Freight

5.3. Ocean Freight

5.4. Air Freight

6. THIRD-PARTY LOGISTICS MARKET, BY SERVICE TYPE

6.1. Introduction

6.2. International Transportation Management

6.3. Domestic Transportation Management

6.4. Warehousing and Distribution

6.5. Packaging Service

7. THIRD-PARTY LOGISTICS MARKET, BY GEOGRAPHY

7.1. Introduction

7.2. North America

7.2.1. By Transportation

7.2.2. By Service Type

7.2.3. By Country

7.2.3.1. USA

7.2.3.2. Canada

7.2.3.3. Mexico

7.3. South America

7.3.1. By Transportation

7.3.2. By Service Type

7.3.3. By Country

7.3.3.1. Brazil

7.3.3.2. Argentina

7.3.3.3. Others

7.4. Europe

7.4.1. By Transportation

7.4.2. By Service Type

7.4.3. By Country

7.4.3.1. Germany

7.4.3.2. France

7.4.3.3. United Kingdom

7.4.3.4. Spain

7.4.3.5. Italy

7.4.3.6. Others

7.5. Middle East and Africa

7.5.1. By Transportation

7.5.2. By Service Type

7.5.3. By Country

7.5.3.1. Saudi Arabia

7.5.3.2. UAE

7.5.3.3. Israel

7.5.3.4. Others

7.6. Asia Pacific

7.6.1. By Transportation

7.6.2. By Service Type

7.6.3. By Country

7.6.3.1. China

7.6.3.2. Japan

7.6.3.3. India

7.6.3.4. South Korea

7.6.3.5. Thailand

7.6.3.6. Indonesia

7.6.3.7. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES

9.1. United Parcel Service

9.2. FedEx Corporation

9.3. XPO Logistics, Inc

9.4. McLane Company

9.5. Deutsche Post

9.6. Nippon Express

9.7. DB Schenker

9.8. C.H. Robinson

9.9. UPS Supply Chain Solutions

9.10. J.B. Hunt Transport, Inc.

United Parcel Service

FedEx Corporation

XPO Logistics, Inc

McLane Company

Deutsche Post

Nippon Express

DB Schenker

C.H. Robinson

UPS Supply Chain Solutions

J.B. Hunt Transport, Inc.