The 3PL services market is projected to grow at a CAGR of 4.93% between 2025 to 2030.
A Third-Party Logistics (3PL) service provider offers outsourced logistics services to the manufacturers to help them focus on their 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 the company's global set up which necessitates the need for 3PL service providers. Increasing the 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 opportunities in the growth of the market.
The reduction in shipping freight along with the development of e-commerce is expected to drive the market. However, 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, domestic transportation management is expected to hold a significant share in the market due to the 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 labor.
DRIVERS
Growing trading activated due to globalization.
Growing e-commerce industry and need for reverse logistics operations.
RESTRAINTS
High cost and risks during shipment.
INDUSTRY UPDATES
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 its 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.
Segmentation
The 3PL services market has been analyzed through the following segments:
By Transportation Mode
Road
Water
Air
Rail
By Service Type
Domestic
International
By End-User Industry
Retail
Consumer Electronics
Automotive
Metallurgy
Others
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Europe
UK
Germany
France
Italy
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Asia Pacific
Japan
China
India
South Korea
Others