The overall sales of third-party logistics (3PL) market are estimated to reach a market valuation of US$2.14 trillion, at a compounded annual growth rate (CAGR) of 7.6 percent between 2022 and 2032. Penetration of smart technologies and growing awareness regarding e-commerce is projected to increase the sales.
On account of this, the global 3PL market is projected to surpass a valuation of US$1.03 trillion in 2022. Surging industrial activities and improving domestic and foreign trade for efficient transport and storage systems is likely to create the growth opportunities for the market, according to report by Fact.MR.
In addition to this, requirement of essential medicines, vaccines coupled with rising focus on outsourcing logistics activities is projected to boost the sales of 3PL in the healthcare industry.
For instance, the ‘Made in India’ project initiated by the government of India in is pushing the adoption of third-party applications and online retailers. This is predicted to boost the demand for third party logistics over the next few years.
Additionally, third party logistics services are extensively used among the small & medium enterprises (SMEs) owing customs rules & regulations for efficient handling of supply chain activities. This will, in turn, offer new growth prospects for the market.
Moreover, the growing importance of cold storage systems during the transportation of perishable foods and drugs & chemicals is anticipated to create prolific growth opportunities for the market.
Asia Pacific 3PL market is projected to exhibit growth at 10 percent CAGR owing to the growing focus on transportation and logistics infrastructure.
North America is expected to account for 40 percent of the overall market share in 2022, with the US leading the growth.
Based on service, the domestic transportation management (DTM) segment is anticipated to hold 32 percent share through 2032.
In terms of end-use, the manufacturing segment is anticipated to account for 24 percent of the revenue share in 2022.
Integration of advanced technologies such as machine learning, artificial intelligence, and internet of things in the 3PL will increase the sales in the market.
Rising focus on the reduction of shipping cost, management during seasonal variations, reducing dependency on company assets, and timely delivery management will drive the market.
Lack of control of the manufacturers on logistics and monitoring operations at the warehouse is likely to impede the growth of market.
Disruption of transportations and delays in customs clearance might inhibit the sales of 3PL.
Stringent government rules and regulations associated with the shipping activities is projected to hamper the adoption of 3PL in the coming years.
As per Fact.MR, the market is moderately fragmented. Tier-1 players including Atlas Copco, Edwards, and Gardner Denver will hold majority of market share through 2022.
Key players are focusing on adopting various strategies including mergers & acquisitions, partnerships, collaborations, and joint ventures to strengthen their global presence. Furthermore, to secure their position in the market, leading manufacturers are advancing their product lines through establishing manufacturing facilities.
January 2022: CEVA Logistics planned to expand its business in Asia and Europe to launch new services and advance their existing services. The company is eyeing Turkey as it is already connecting Halkali Terminal and Duisburg in Germany using its own equipment. Similarly, the organization also provides a block train solution to connect Vietnam and Germany via China with weekly trips.
January 2022: BJ’s Wholesale Club partnered with Burris Logistics. This agreement supports procurement of the operations & assets of four distribution facilities and other private transportation fleets from the latter. The transactions made during the agreement still remain confidential and it is likely to help BJ’s to acquire its own perishable supply chain.
January 2022: Microsoft and FedEx launched a novel cross-platform logistics solution for e-commerce. This new plan is projected to strengthen the merchant competition in the e-commerce space through the enhancement of customer engagement and better shipping options.
Fact.MR, in its report, offers a market analysis on the global 3PL market providing analysis for the forecast period of 2022 to 2032. This survey also reveals the growth of technology in the 3PL market with detailed segmentation.