Global Third Party Logistics (3PL) Market to Reach $1.3 Trillion by 2026

News provided by

Mar 03, 2022, 10:15 ET

SAN FRANCISCO, March 3, 2022 /PRNewswire/ -- A new market study published by Global Industry Analysts Inc., (GIA) the premier market research company, today released its report titled "Third Party Logistics (3PL) - Global Market Trajectory & Analytics". The report presents fresh perspectives on opportunities and challenges in a significantly transformed post COVID-19 marketplace.

FACTS AT A GLANCE
What's New for 2022?

Third Party Logistics (3PL) - FEB 2022 Report

Global competitiveness and key competitor percentage market shares
Market presence across multiple geographies - Strong/Active/Niche/Trivial
Online interactive peer-to-peer collaborative bespoke updates
Access to our digital archives and MarketGlass Research Platform
Complimentary updates for one year

Edition: 18; Released: February 2022
Executive Pool: 8368
Companies: 477 - Players covered include C. H. Robinson; CEVA Logistics; Damco; DB Schenker; DSV A/S; Expeditors International of Washington Inc.; FedEx Corporation; GEODIS; J.B. Hunt Transport Services Inc.; Kerry Logistics Network Ltd.; Kintetsu World Express Inc.; Kuehne + Nagel International AG; Nippon Express Co. Ltd.; NYK Line; Panalpina World Transport (Holding) Ltd.; Penske Corporation; Sinotrans (HK) Logistics Limited; UPS Supply Chain Solutions Inc.; XPO Logistics Inc. and Others.
Coverage: All major geographies and key segments
Segments: Service Type (DTM, ITM, DCC/FF, W&D, and VALs); Transport Type (Roadways, Railways, Waterways, and Airways); and End-Use (Manufacturing, Retail, Healthcare, Automotive, and Other End-Uses)
Geographies: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Complimentary Project Preview - This is an ongoing global program. Preview our research program before you make a purchase decision. We are offering a complimentary access to qualified executives driving strategy, business development, sales & marketing, and product management roles at featured companies. Previews provide deep insider access to business trends; competitive brands; domain expert profiles; and market data templates and much more. You may also build your own bespoke report using our MarketGlass™ Platform which offers thousands of data bytes without an obligation to purchase our report. Preview Registry

ABSTRACT-

Global Third Party Logistics (3PL) Market to Reach $1.3 Trillion by 2026
Third party logistics (3PL), also known as TPL, refers to the outsourcing of logistics operations, which could include using of transportation carrier, third party freight manager, or a warehouse, for carrying out a part of all of the production distribution operations of a company. Providers of third party logistics (3PL) services are engaged in managing freight organizations. 3PL service providers generally specialize in integrated transportation, warehousing, freight forwarding, packaging, inventory management, and cross-docking services, which can be customized or scaled as per customer requirement on the basis of demand and delivery requirement, and market conditions. The most commonly outsourced logistical activities include functions that are repetitive and transactional. Customers tend to retain in-house strategic, IT-centric, and customer-centric operations. 3PL providers offer a wide range of services that can be broadly categorized into domestic transportation management (DTM), international transportation management (ITM), warehousing and distribution, and dedicated contract carriage.

Amid the COVID-19 crisis, the global market for Third Party Logistics (3PL) estimated at US$974.6 Billion in the year 2022, is projected to reach a revised size of US$1.3 Trillion by 2026, growing at a CAGR of 8% over the analysis period. DTM, one of the segments analyzed in the report, is projected to grow at a 8.3% CAGR to reach US$503.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the ITM segment is readjusted to a revised 7.6% CAGR for the next 7-year period. This segment currently accounts for a 30.8% share of the global Third Party Logistics (3PL) market.

The U.S. Market is Estimated at $237.6 Billion in 2022, China is Forecast to Reach $328.4 Billion by 2026
The Third Party Logistics (3PL) market in the U.S. is estimated at US$237.6 Billion in the year 2022. The country currently accounts for a 24.68% share in the global market. China, the world's second largest economy, is forecast to reach an estimated market size of US$328.4 Billion in the year 2026 trailing a CAGR of 9.9% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 5.5% and 6.2% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 6% CAGR while Rest of European market (as defined in the study) will reach US$358.9 Billion by the end of the analysis period.

Globalization of trade and liberalization of national economies along with steep expansion in demand for manufactured goods due to various socio-economic factors influenced significant growth in the global manufacturing sector. Escalation in manufacturing activity subsequently resulted in need for well-organized supply chain logistics, while generating substantial opportunities for 3PL services. A growing number of enterprises are showing higher reliance towards outsourcing various logistics functions including transportation, warehousing, and distribution, thus fueling growth in the 3PL market. On the other hand, availability of industry-specific, tailor-made 3PL services from established logistics services vendors is steering market momentum in a major way. Established 3PL vendors equip themselves with full-fledged road/ground, rail, air, and sea/ocean transportation infrastructure to perform numerous logistics functions including dry van freight, truckload freight, less-than-truckload (LTL) freight, flatbed & heavy freight, bulk freight, refrigerated freight, and intermodal shipments etc., on behalf of client enterprise.

Market momentum is also being funnelled from growing awareness among enterprises about the benefits offered by full-fledged 3PL service. By deploying 3PL in their SCM strategy, enterprises can typically gain access to established resource network and industry expertise of 3PL partners, and benefit from optimal cargo turnover, distribution efficiency, superior inventory management, reduced inventory and overall cost economies. Since the 3PL model invalidates the need for maintaining in-house workforce, machinery, vehicles, and warehousing capabilities, enterprises can free up their financial and human resources to maintain rigid focus on improving business competencies. In general, 3PL fully understands and acknowledges logistics and distribution needs of modern enterprises and induces flexibility, agility and scalability into supply chain processes to enhance market competitiveness of client enterprise.

DCC/FF Segment Corners to Reach $161 Billion by 2026
Dedicated Contract Carriage (DCC) basically involves supply of trucks, tractors, trailers and drivers and also involves management of various elements across a supply chain. The DCC service typically invalidates the need for maintaining in-house trucking/carriage fleets to carryout logistics operations, while delivering truck capacity utilization and cost efficiencies in the process. In the global DCC/FF segment, USA, Canada, Japan, China and Europe will drive the 8.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$69.3 Billion will reach a projected size of US$125.1 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$19.9 Billion by the year 2026, while Latin America will expand at a 10.4% CAGR through the analysis period. More

MarketGlass™ Platform
Our MarketGlass™ Platform is a free full-stack knowledge center that is custom configurable to today`s busy business executive`s intelligence needs! This influencer driven interactive research platform is at the core of our primary research engagements and draws from unique perspectives of participating executives worldwide. Features include - enterprise-wide peer-to-peer collaborations; research program previews relevant to your company; 3.4 million domain expert profiles; competitive company profiles; interactive research modules; bespoke report generation; monitor market trends; competitive brands; create & publish blogs & podcasts using our primary and secondary content; track domain events worldwide; and much more. Client companies will have complete insider access to the project data stacks. Currently in use by 67,000+ domain experts worldwide.

Our platform is free for qualified executives and is accessible from our website www.StrategyR.com or via our just released mobile application on iOS or Android

About Global Industry Analysts, Inc. & StrategyR™
Global Industry Analysts, Inc., (www.strategyr.com) is a renowned market research publisher the world`s only influencer driven market research company. Proudly serving more than 42,000 clients from 36 countries, GIA is recognized for accurate forecasting of markets and industries for over 33 years.

CONTACTS:
Zak Ali
Director, Corporate Communications
Global Industry Analysts, Inc.
Phone: 1-408-528-9966
www.StrategyR.com
Email: [email protected]

LINKS
Join Our Expert Panel https://www.strategyr.com/Panelist.asp

Connect With Us on LinkedIn https://www.linkedin.com/company/global-industry-analysts-inc./

Follow Us on Twitter https://twitter.com/marketbytes

Journalists & Media [email protected]

SOURCE Global Industry Analysts, Inc.