Third-party Logistics Industry Overview

The global third-party logistics market size was estimated at USD 1,095.85 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 8.1% from 2024 to 2030. 

The development of transport infrastructure in Asia and Middle East, the thriving growth of the e-commerce sector, and the development of new technologies are expected to significantly contribute to the market growth. Shippers are focusing on outsourcing the transport activity to enhance their operations and cost-effectiveness. The increased working capital and globalization lead to the demand for efficient inventory management services. Moreover, the restructuring of the brick and mortar business model continues to provide dynamic growth to the industry.

Gather more insights about the market drivers, restrains and growth of the Third-party Logistics Market

The changing global supply chain to become more customer-centric enables companies to outsource their supply chain activities to focus on adaptability and responsiveness. Moreover, the volatile international documentation procedure and customs rules & regulations need the expertise to handle the complex supply chain activity. As a result, small and medium-sized businesses are also leveraging third party logistics (3PL) services.

The rise of e-commerce and digital phenomenon, also called 'The Amazon Effect', has changed consumer expectations and buying behavior. End-users are seeking unparalleled expectations in terms of convenience, cost, control, and choice. Omni-channel operation demands reliable, fast, and free shipping services, which has resulted in companies adopting a new business model to provide low-cost and on-demand delivery services. 3PL companies embrace various modifications in supply chain management to address the notable transformations and challenges that e-commerce presents.

The 3PL companies are shifting their focus from long-haul delivery to just-in-time delivery. The suppliers are also transitioning from multiple storage facilities to a single warehouse location. To accommodate an increase in last-mile delivery, 3PL companies invest in smaller trucks and vans, which can support shorter and more frequent deliveries. In the coming years, last-mile delivery is presumed to be one of the key areas of focus for logistics companies.

Fourth-Party Logistics (4PL) is the step ahead that can manage resources, infrastructure, technology, and even external 3PL to provide a holistic supply chain solution. The 4PL companies offer comprehensive consulting services in addition to transport operations. The service includes logistics strategy, inbound and outbound logistics, inventory planning and management, business planning, and analytics. Deloitte, Accenture plc, BDP International, and DB Schenker Logistics are some of the companies that are offering 4PL services. 4PL is a relatively new concept, but it is expected to gain momentum in the coming years from medium and large businesses seeking a complete transportation solution.

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• The global supply chain management market size was valued at USD 23,265.4 million in 2023 and is expected to register a compound annual growth rate (CAGR) of 11.2% from 2024 to 2030.
• The global transportation management system market size was evaluated at USD 13.61 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 17.4% from 2024 to 2030.

Third-party Logistics Market Segmentation

Grand View Research has segmented the global third-party logistics market based on service, end-use, transport, and region:

Third-party Logistics Service Outlook (Revenue, USD Billion, 2017 - 2030)

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

Third-party Logistics Transport Outlook (Revenue, USD Billion, 2017 - 2030)

• Roadways
• Railways
• Waterways
• Airways

Third-party Logistics End-use Outlook (Revenue, USD Billion, 2017 - 2030)

• Manufacturing
• Retail
• Healthcare
• Automotive
• Others

Third-party Logistics Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America
  1. U.S.
  2. Canada
  3. Mexico
• Europe
  1. Germany
  2. U.K.
  3. France
• Asia Pacific
  1. China
  2. India
  3. Japan
  4. South Korea
  5. Australia
• Latin America
  1. Brazil
• Middle East & Africa
  1. KSA
  2. UAE
  3. South Africa

Key Companies profiled:

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

Key Third-party Logistics Company Insights

Some of the key players operating in the market include Burris Logistics, and FedEx among others.

• Burris Logistics is a U.S.-based family-owned and privately held logistics company having expertise in refrigerated warehousing, food-service redistribution, and retail specialty work. The company uses its in-house software for logistical operations, thereby reducing the time and cutting down costs.
• FedEx offers a vast portfolio of e-commerce, transportation, and business services. The company’s operations and activities are categorized under four reportable business segments, namely FedEx Freight, FedEx Express, FedEx Services, and FedEx Ground.

DB Schenker Logistics, and CEVA Logistics. are some of the emerging market participants in the target market.

• DB Schenker Logistics, a German company, is involved in providing integrated service solutions. The company specializes in the exchange of goods in ocean and air freight, land transport, and contract logistics.
• CEVA Logistics is a Dutch logistics company formed by the merger of EGL Global Logistics and TNT Logistics. CEVA is a non-asset-based supply chain management company, which offers several services based on its Contract Logistics and Freight Management expertise, either on a stand-alone basis or in combination.

Recent Developments

• In December 2023, Yusen Logistics Co. Ltd. entered into a strategic partnership with Pickle Robot Company, a leader in the field of physical Artificial Intelligence (AI) and robotic automation. Plans envisaged commencing the collaboration with the implementation of Pickle Unload solutions at Yusen Logistics Co. Ltd.'s Contract Logistics Group trans-loading operation located in Long Beach, California. By integrating the cutting-edge solution, Yusen Logistics Co. Ltd. will be able to reduce the physical workload for its employees and enhance service reliability. The partnership reflected Yusen Logistics Co. Ltd.’s dedication to introducing the most advanced robotics automation solutions within its warehouses, with the ultimate goal of providing superior service to its valued customers.
• In September 2023, C.H. Robinson Worldwide, Inc. announced the opening of a new warehouse facility of 400,000 sq. ft. The warehouse is equipped with 154 dock doors and has the capacity to accommodate up to 700 trailers. This expansion enabled the company to extend its presence for trade along the Mexico border and diversify supply chains to ensure efficient transportation and logistics operations along The Port of Laredo.

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