Third-party Logistics Market Share by Manufacturers, Types and Current Scenario 2022-2030
- by marketherald
Third-party Logistics Industry Overview
The global third-party logistics market size is expected to reach USD 1,998.73 billion by 2030, registering a CAGR of 8.6% from 2022 to 2030, according to a new report by Grand View Research, Inc. The advent of new technologies is changing the 3PL industry dynamics. The advanced data collection capabilities, warehouse automation, and digitalization of the entire supply chain are enabling companies to adopt a consistent innovative, customer-centric, and agile approach. As a result, 3PL companies are providing technologically driven services by investing in blockchain solutions, mobile technologies, and 3PL software to gain a competitive advantage in a fiercely competitive marketplace.
The Internet of Things (IoT) and cloud-based logistics management solution turn the data into actionable value-added information, which can shape the strategic decision-making process and increase productivity. Some of the capital-intensive organizations are increasing their Information Technology (IT) spending and are using predictive analytics for supply chain enhancement. For instance, C.H. Robinson Worldwide, Inc. is using Artificial Intelligence (AI) technology to analyze customer data and get notified about extreme weather conditions or traffic disruption. Logistics automation is expected to play a vital role in the growth of the market. The use of robots in warehouses and unloading docks helps streamline order fulfillment services.
Third-party Logistics Market Segmentation
Grand View Research has segmented the global third-party logistics market on the basis of service, transport, end use, and region:
Based on the Service Insights, the market is segmented into Dedicated Contract Carriage (DCC)/Freight forwarding, Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution (W&D), and Value-Added Logistics Services (VALs).
- The Domestic Transportation Management (DTM) segment held the largest market share of 32.51% in 2021. DTM services are performed in conjunction with freight brokers, which deal with shipment origin to their destination. The increasing trade movement among the unloading docks to a warehouse, escalating carrier rates, a surge in cross-docking services, and rising fuel surcharge are driving the growth of the DTM segment.
- Trade liberalization policies and cross-border logistics activities have increased international trade, thereby propelling the segment growth. Free Trade Agreements (FTAs) are driving the demand for international transportation. The African Continental Free Trade Area (AfCFTA) and Progressive Trans-Pacific Partnership (CPTPP) are the two recent examples of rising multilateral free-trade agreements.
Based on the Transport Insights, the market is segmented into Roadways, Railways, Waterways, and Airways.
- The roadways segment dominated the market in 2021 with a revenue share of more than 58%. The growing public-private partnerships model and increased emphasis on logistics infrastructure are expected to drive the growth of the roadways segment over the forecast period.
- The airways transport segment is expected to register the fastest growth rate over the forecast period. The recent coronavirus outbreak has put a restriction on the global air freight trade resulting in a massive drop in the air uplift capacity, thereby increasing the carrier rates.
- Some companies, such as CEVA Logistics, have started the medical relief cargo charters for emergency shipments, such as PPE kits, facial masks, gloves, hands sanitizers, disposable gowns, respirators, ventilators, and other COVID-19 relief equipment and supplies.
Based on the End-use Insights, the market is segmented into Manufacturing, Retail, Healthcare, Automotive, and Others.
- The manufacturing segment accounted for the largest revenue share of more than 24.5% in 2021. Manufacturing and logistics go hand in hand as the industry has a complex supply chain process. The manufacturing sector involves the procurement of raw materials and other parts from different resources across the regions.
- The retail sector is expected to emerge as the fastest-growing segment over the forecast period. Logistics is the backbone of the modern retail industry playing a crucial role in same-day delivery and fulfillment capabilities.
Third-party Logistics Regional Outlook
- North America
- Asia Pacific
- Latin America
- Middle East & Africa (MEA)
Key Companies Profile
The companies are stressing on providing technology-driven services, such as route optimization and real-time shipment tracking. The companies are also trying to maintain complete visibility over the entire supply chain without overburdening the clients. The strengthening of shipper-carrier relationships increases information sharing and transparency among both parties, creating a favorable business environment. The market is witnessing strong M&A activities over the last several years. Key companies are also engaging in partnerships, mergers, and acquisitions with small- and medium-sized companies to leverage their regional capabilities.
Some prominent players in the global third-party logistics market include:
- BDP International
- Burris Logistics
- H. Robinson Worldwide, Inc.
- CEVA Logistics
- DB Schenker Logistics
- B. Hunt Transport, Inc.
- Kuehne + Nagel
- Nippon Express
- United Parcel Service of America, Inc.
- XPO Logistics, Inc.
- Yusen Logistics Co. Ltd.
Order a free sample PDF of the Third-party Logistics Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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Third-party Logistics Industry Overview The global third-party logistics market size is expected to reach USD 1,998.73 billion by 2030, registering a CAGR of 8.6% from 2022 to 2030, according to a new report by Grand View Research, Inc. The advent of new technologies is changing the 3PL industry dynamics. The advanced data collection capabilities, warehouse automation, and…
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