Third Party Logistics Market to Witness High Growth during the Forecast Period

Introduction

The market of third party logistics (3PL) is anticipated to progress at a decent pace during the forecast year. The third party logistics (3PL) services provide complete control over the meticulous and intricate tasks, such as freight forwarding, fulfillment operations, warehouse management, and inventory forecasting. Additionally, the strong presence of the distribution network of the service providers drives market growth.

The third party logistics also provide management of demand fluctuations and help the manufacturers to make their products available and generate higher demand prospects in a particular period. The service providers also maintain better warehouse management and help the manufacturers maintain inventory stocks, where the company does not possess any infrastructure facility and serves as a warehouse.

Due to the COVID-19 outbreak, manufacturing has taken a serious hit in terms of the production and demand for the products. The demand for third party logistics (3PL) is also expected to decrease in 2020 and 2021. The disruption in the supply chain and value chain, brief periods of lockdown and shutdown, and restrictions on entering the foreign boundaries hamper the market growth. 

Key Highlights

• The third party logistics (3PL) market is expected to grow at a compound annual growth rate (CAGR) of 7.4% during the forecast period
• North America dominates the market on account of the presence of a third party logistics service providers and manufacturers
• Asia-Pacific is projected to procure the fastest pace of growth in the market. China has emerged as a center of product sourcing and a substantial consumer of raw materials. Additionally, the increasing effort made by India and Vietnam to progress in marine transportation and logistics operations drives the market growth

Competitive Players

1. H. Robinson Worldwide (CHRW) Inc.
2. FedEx Corporation
3. Nippon Express Co., Ltd.
4. BDP International
5. XPO LogisticsInc
6. DB Schenker Logistics
7. Burris Logistics
8. CEVA Logistics
9. Kuehne + Nagel International AG
10. DSV Panalpina A/S
11. Yusen Logistics Co. Ltd. (Nippon Yusen)
12. UPS Supply Chain Solutions, Inc.

Recent Developments

Recent Developments

• March 2024 - EFL 3PL has launched a flagship Grade A warehousing facility in Bhiwandi, Mumbai, with a USD 5 million investment. This 175,000-square-foot warehouse features advanced logistics technologies, enhancing EFL 3PL's end-to-end logistics solutions. The expansion underscores EFL's commitment to the Indian market, aiming to improve service efficiency and meet diverse client needs.
• July 2024 - At the Multimodal event in Birmingham, the UK's premier supply chain conference and logistics expo, Maersk was honored as the distinguished "3PL Company of the Year." A valuable recognition for one of the main products from Maersk's Logistics & Services portfolio, this award recognizes excellence in supply chain management and logistics.

Segmentation

1. By Mode of Transport
   1. Ground/Roadways Transport
   2. Waterways/ Maritime Transport
   3. Railways Transport
   4. Air Transport
2. By Industry Vertical
   1. E-commerce and Retail
   2. Healthcare and Pharmaceuticals
   3. Manufacturing
   4. Automotive
3. By Service
   1. Freight forwarding
   2. Warehousing and Distribution (W&D)
   3. Domestic Transportation Management (DTM)
   4. Value-Added Logistics Services (VALs)
   5. International Transportation Management (ITM)