Global Third Party Logistics Market

Third Party Logistics Market Size, Share, Growth Analysis, By Transport(Railways, Roadways, Waterways, Airways), By Service Type(Dedicated Contract Carriage (DCC), Domestic Transportation Management, International Transportation Management, Warehousing & Distribution), By Industry(Technological, Automotive, Retailing, Manufacturing), By Region - Industry Forecast 2024-2031


Report ID: SQMIG20R2029 | Region: Global | Published Date: February, 2024
Pages: 165 |Tables: 98 |Figures: 76

Third Party Logistics Market Insights

Third Party Logistics Market size was valued at USD 936 billion in 2019 and is poised to grow from USD 1034.43 billion in 2023 to USD 2199.08 billion by 2031, growing at a CAGR of 10.7% in the forecast period (2024-2031).

Third-party logistics refers to a company's capacity to outsource logistics and distribution activities. Inventory management, cross-docking, door-to-door delivery, and product packing are all services that third-party logistics companies can provide. Attributing to the e-commerce industry's growth, the third-party logistics services market is predicted to rise significantly. Furthermore, demand for this service is likely to rise in the near future as manufacturers and retailers focus on their core business (referred to as core competencies) and increasing interest in subcontracting activities such as logistics, which require expertise. As a result of the growing competition, manufacturers' focus has turned to promoting each specialization in manufacturing and distribution.

The outbreak of COVID-19 severely impacted the growth of the market. Retailers and brands in North America were experiencing a variety of short-term issues related to supply chain activities through retailers, distributors, and third-party logistics providers as a result of COVID-19. As a result, countries like the United States and Canada have limited the amount of logistics services they provide. The COVID-19's detrimental impact on market growth has been minimized with which lockdown restrictions can be implemented, as well as an emphasis on the effective restoration of food industry-related supply chain operations. However, post-COVID-19, the industry is on its path to recovery.

US Third Party Logistics Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2024-2031

Global Market Size

USD 936 billion

Largest Segment

Domestic Transportation Management

Fastest Growth

Domestic Transportation Management

Growth Rate

10.7% CAGR

Global Third Party Logistics Market, 2021-2028 ($ Bn)
Country Share for North America Region- 2021 (%)
Global Third Party Logistics Market Size by Service Type, 2021-2028 ($ Bn)
Global Third Party Logistics Market Size by Service Type, 2021-2028 (%)

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Third Party Logistics Market Segmental Analysis

The Global Third Party Logistics Market is segmented on the basis of Transport, Service Type, Industry, and Region. Based on Transport, the market is segmented into Railways, Roadways, Waterways, and Airways. Based on Service Type, the market is segmented into Dedicated Contract Carriage (DCC), Domestic Transportation Management, International Transportation Management, Warehousing & Distribution, and Others. Based on the Industry, the market is segmented into Technological, Automotive, Retailing, Manufacturing, Elements, Food & Groceries, Healthcare, and Others. Based on region, the global market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.

Third Party Logistics Market Analysis by Transport

In 2021, the roadways segment of the market is projected to hold the most lucrative share of more than 30% of the market. The segmental growth of the market is attributed to the growing public-private partnerships model and increased emphasis on logistics infrastructure. In addition, the growth of the road transportation industry is aided by a number of government initiatives. The Federal Motor Carrier Safety Administration has issued regulations allowing the use of cameras as a substitute for rearview mirrors, which are intended to help truck drivers in terms of safety. Such aforementioned factor is likely to encourage the roadways transportation, which hence, will contribute to the third-party logistics market growth.

Third Party Logistics Market Analysis by Service Type

In 2021, the domestic transportation management segment of the market is projected to hold the most lucrative share of more than 30% of the market. The segmental growth of the market is attributed to the increased preferences for domestic transportation management over other service types. Domestic transportation management services are provided in collaboration with freight brokers, who handle shipments from point of origin to point of destination. The segmental growth is due to increased trade movement from unloading docks to warehouses, rising carrier costs, an increase in cross-docking services, and rising fuel surcharges. The segment's growth is also aided by rising consumer demand in areas such as retail and healthcare, as well as sustained GDP growth in various countries. The demand for international transportation management services has increased as global economic activity has continued to grow and the e-commerce sector has grown. This thus has contributed to the segmental growth of the global third-party logistics industry.

Global Third Party Logistics Market By Service Type, 2021 (%), 2023 (%)

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Third Party Logistics Market Regional Insights

Based on the geographical viewpoint, the global third party logistics market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2021, the Asia-Pacific region is projected to hold the most substantial share of the market. The regional market is likely to be driven by the presence of numerous third party logistics service providers in the emerging economies of the region such as China and India. Over 10,000 third-party logistics service firms are estimated to be active in China. Many of them are small and mid-sized businesses. China accounts for a sizable portion of the Asia-Pacific third party logistics industry. With a market share of more than 60%, China dominates the third party logistics market in the Asia-Pacific region. India is another important market that is predicted to grow rapidly throughout the projection period. The ongoing development of logistics infrastructure and increasing emphasis on transportation practices, for instance, Logistics Efficiency Enhancement Program (LEEP) are likely to contribute to the market growth in the country.

Global Third Party Logistics Market By Geography, 2021-2028, 2024-2031
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Third Party Logistics Market Dynamics

Third Party Logistics Market Driver

  • The key factor that drives the industry growth includes the increased trade activities across the globe. Globalization is fueled by dynamic market conditions and improvements in the global economy. As a result of increased globalization, various trade-related activities have increased. As a result, manufacturers and retailers struggle to maintain track of these operations promptly. Third party logistics services assist these manufacturers in keeping track and controlling these activities. The market is projected to be driven by this aspect. Furthermore, the expansion of the global market is a major driver driving the third-party logistics sector forward. Third party logistics services are becoming increasingly important for price-conscious customers who demand a larger selection of high-quality products delivered on time. As a result, the expansion of the third-party logistics industry is fueled by an increase in trading activities as a result of globalization.

Third Party Logistics Market Restraint

  • The major factor that hinders the growth of the global third-party logistics market includes infrastructure limitations, shortage of logistics experts, and regulatory issues imposed by the government. In comparison to industrialized countries, the development of logistic services in underdeveloped countries tends to struggle. This development is the result of the industry's scarcity of highly skilled professionals. The absence of experienced logistics experts further restricts the market's growth. Similarly, industrialized countries' infrastructure, including China's, is insufficient to match the demand for advanced logistics services. Some warehouses in different nations still use/operate using outdated equipment. The ground infrastructure does not fulfill the requirements for a reliable connection to the logistic hub, preventing modern intermodal logistics activities from being established; which might hinder the market’s growth during the forecast period.

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Third Party Logistics Market Competitive Landscape

The market is fragmented in nature. The prominent players operating in the market are constantly adopting various growth strategies in order to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D in order to supply industries with the most efficient and cost-effective solutions.

Third Party Logistics Market Top Player’s Company Profiles

  • DHL Group 
  • Ceva Logistics 
  • DB Schenker
  • Kuehne + Nagel
  • C.H. Robinson
  • Nippon Express
  • UPS Supply Chain Solutions
  • DSV Panalpina
  • XPO Logistics
  • Expeditors International
  • Sinotrans
  • Geodis
  • Agility Logistics
  • Bolloré Logistics
  • Yusen Logistics
  • Pantos Logistics
  • Kerry Logistics
  • CHINA POST
  • Rhenus Logistics
  • CJ Logistics

Third Party Logistics Market Recent Developments

  • In May 2022, DHL group announced to add 44 electric trucks in its DHL fright to reduce the carbon footprint and to get the zero-emission norm in the European Union.
  • In May 2022, Zyngo EV Mobility Pvt. Ltd. announced to increase its active fleet size to deploy over 18,000 electric vehicles, which shall consist of around 60% EVs 2Ws and 40% EV 3Ws, for last-mile deliveries across India by the end of the current fiscal, i.e. FY 2022-23.
  • In January 2022, Ceva Logistics expanded eCommerce logistics with a large fashion cosmetic brand ABOUT YOU for the period of five more years and this gave a huge revenue boost to the company.

Third Party Logistics Key Market Trends

  • One of the key trends in the global third party logistics market is the integration of novel technologies. Technology plays an important role for shippers as well as service providers. For pricey and sophisticated technology solutions, shippers are increasingly relying on third-party logistics. Users are increasingly turning to their logistics providers for help with supply chain event management (SCEM), transportation management systems (TMS), international trade logistics systems (ITLS), and warehouse management systems (WMS). Furthermore, third-party service logistics providers can purchase and apply these technologies/software in their operations to maximize productivity. Furthermore, utilizing this cutting-edge technology software aids in achieving significant operational efficiencies.

Third Party Logistics Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates and Analyses the Data collected by means of Primary Exploratory Research backed by the robust Secondary Desk research.

According to our analysis, among the transport, the roadways segment is projected to hold a dominating share during the period. Among the service type, the domestic transport management segment is projected to hold a dominating share during the period. Among the industry, the manufacturing segment is projected to hold a dominating share during the period.

 

Report Metric Details
Market size value in 2023 USD 936 billion
Market size value in 2031 USD 2199.08 billion
Growth Rate 10.7%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Transport
    • Railways, Roadways, Waterways, Airways
  • Service Type
    • Dedicated Contract Carriage (DCC), Domestic Transportation Management, International Transportation Management, Warehousing & Distribution, Others
  • Industry
    • Technological, Automotive, Retailing, Manufacturing, Elements, Food & Groceries, Healthcare, Others
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • DHL Group 
  • Ceva Logistics 
  • DB Schenker
  • Kuehne + Nagel
  • C.H. Robinson
  • Nippon Express
  • UPS Supply Chain Solutions
  • DSV Panalpina
  • XPO Logistics
  • Expeditors International
  • Sinotrans
  • Geodis
  • Agility Logistics
  • Bolloré Logistics
  • Yusen Logistics
  • Pantos Logistics
  • Kerry Logistics
  • CHINA POST
  • Rhenus Logistics
  • CJ Logistics
Customization scope

Free report customization with purchase. Customization includes:-

  • Segments by type, application, etc
  • Company profile
  • Market dynamics & outlook
  • Region

Historical Year 2019

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Third Party Logistics Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Third Party Logistics Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Third Party Logistics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Third Party Logistics Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Third Party Logistics Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Third Party Logistics Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Third Party Logistics Market size was valued at USD 936 billion in 2019 and is poised to grow from USD 1034.43 billion in 2023 to USD 2199.08 billion by 2031, growing at a CAGR of 10.7% in the forecast period (2024-2031).

The market is fragmented in nature. The prominent players operating in the market are constantly adopting various growth strategies in order to stay afloat in the market. Product launches, innovations, mergers, and acquisitions, collaborations and partnerships, and intensive R&D are some of the growth strategies that are adopted by these key players to thrive in the competitive market. The key market players are also constantly focused on R&D in order to supply industries with the most efficient and cost-effective solutions. 'DHL Group ', 'Ceva Logistics ', 'DB Schenker', 'Kuehne + Nagel', 'C.H. Robinson', 'Nippon Express', 'UPS Supply Chain Solutions', 'DSV Panalpina', 'XPO Logistics', 'Expeditors International', 'Sinotrans', 'Geodis', 'Agility Logistics', 'Bolloré Logistics', 'Yusen Logistics', 'Pantos Logistics', 'Kerry Logistics', 'CHINA POST', 'Rhenus Logistics', 'CJ Logistics'

The key factor that drives the industry growth includes the increased trade activities across the globe. Globalization is fueled by dynamic market conditions and improvements in the economy. As a result of increased globalization, various trade-related activities have increased. As a result, manufacturers and retailers struggle to maintain track of these operations promptly. Third party logistics services assist these manufacturers in keeping track and controlling these activities. The market is projected to be driven by this aspect. Furthermore, the expansion of the market is a major driver driving the third-party logistics sector forward. Third party logistics services are becoming increasingly important for price-conscious customers who demand a larger selection of high-quality products delivered on time. As a result, the expansion of the third-party logistics industry is fueled by an increase in trading activities as a result of globalization.

One of the key trends in the third party logistics market is the integration of novel technologies. Technology plays an important role for shippers as well as service providers. For pricey and sophisticated technology solutions, shippers are increasingly relying on third-party logistics. Users are increasingly turning to their logistics providers for help with supply chain event management (SCEM), transportation management systems (TMS), international trade logistics systems (ITLS), and warehouse management systems (WMS). Furthermore, third-party service logistics providers can purchase and apply these technologies/software in their operations to maximize productivity. Furthermore, utilizing this cutting-edge technology software aids in achieving significant operational efficiencies.

Based on the geographical viewpoint, the third party logistics market is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa. In 2021, the Asia-Pacific region is projected to hold the most substantial share of the market. The regional market is likely to be driven by the presence of numerous third party logistics service providers in the emerging economies of the region such as China and India. Over 10,000 third-party logistics service firms are estimated to be active in China. Many of them are small and mid-sized businesses. China accounts for a sizable portion of the Asia-Pacific third party logistics industry. With a market share of more than 60%, China dominates the third party logistics market in the Asia-Pacific region. India is another important market that is predicted to grow rapidly throughout the projection period. The ongoing development of logistics infrastructure and increasing emphasis on transportation practices, for instance, Logistics Efficiency Enhancement Program (LEEP) are likely to contribute to the market growth in the country.

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