Third-party Logistics Market To Develop At A CAGR Of 8.6% By 2030, Due To The Advent Of New Technologies And The Rapid Growth Of e-Commerce Sector | Grand View Research, Inc.

June 07 07:45 2022
Third-party Logistics Market To Develop At A CAGR Of 8.6% By 2030, Due To The Advent Of New Technologies And The Rapid Growth Of e-Commerce Sector | Grand View Research, Inc.
Grand View Research, Inc. – Market Research And Consulting.
According to a new report published by Grand View Research, the development of logistics infrastructure in the Asia and Middle East regions and the restructuring of the brick-and-mortar business model continue to provide dynamic growth to the industry.

Third-party Logistics Industry Overview

The global third-party logistics market size was valued at USD 956.80 billion in 2021 and is expected to reach USD 1,998.73 billion by 2030, registering a CAGR of 8.6% from 2022 to 2030

The development of logistics infrastructure in the Asia and Middle East regions, the rapid 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 logistics 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, restraints, and growth of the Global Third-party Logistics market

The changing global supply chain to become more customer-centric enables the 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 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.

U.S. Third-Party Logistics market size, by service, 2020 - 2030 (USD Billion)

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, 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 logistics 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 as medium- and large-scale businesses are seeking a complete logistics solution.

 

Third-party Logistics Market Segmentation

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.
  • Trade liberalization policies and cross-border logistics activities have increased international trade, thereby propelling the segment growth.

 

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 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.

 

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 local manufacturing sector in India is growing with several tax reform policies and government initiatives, such as ‘Make in India’ projects.

 

Based on the Regional Insights, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

  • Asia Pacific is expected to emerge as the fastest-growing regional market at a CAGR of 10.3% over the forecast period.
  • North America accounted for the largest revenue share in 2021 with the U.S. spearheading the regional market.

 

Browse through Grand View Research’s Automotive & Transportation Industry Related Reports

  • Pharmaceutical Logistics MarketThe global pharmaceutical logistics market size was valued at USD 78.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2022 to 2030. The short-term impact of the COVID-19 pandemic on the market is a crucial factor for the fast-paced growth of pharmaceutical logistics.
  • Retail Logistics MarketThe global retail logistics market size was valued at USD 205.44 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 11.8% from 2021 to 2028. The demand for retail logistics is witnessing an incremental surge due to the increase in global trade activities, especially in emerging economies.

 

Market Share Insights:

  • November 2019: Universal Logistics Holdings, Inc. announced the acquisition of Roadrunner Intermodal Services, LLC stretching its logistics capabilities across North America.
  • August 2019: DSV acquired PanalpinaWelttransport Holding AG, a Switzerland-based logistics group. The company is leveraging Panalpina’s proficiency in the freight forwarding and brokerage service and giving fierce competition to the leading logistics companies.

 

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.

Some of the prominent players in the Third-party Logistics market include:

  • BDP International
  • Burris Logistics
  • C.H. Robinson Worldwide, Inc.
  • Deutsche Post AG (DHL Group)
  • 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.

 

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 is a full-time market research and consulting company registered in San Francisco, California. The company fully offers market reports, both customized and syndicates, based on intense data analysis. It also offers consulting services to business communities and academic institutions and helps them understand the global and business scenario to a significant extent. The company operates across multitude of domains such as Chemicals, Materials, Food and Beverages, Consumer Goods, Healthcare, and Information Technology to offer consulting services.

 

Web: https://www.grandviewresearch.com

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