Third-party Logistics Market Size, Share, & Trends Analysis growing at a CAGR of 8.1% from 2024 to 2030
The global third-party logistics market size was estimated at USD 1,095.85 billion in 2023 and is projected to reach USD 1,877.51 billion by 2030, growing at a CAGR of 8.1% from 2024 to 2030. The development of transport infrastructure in Asia and Middle East, the thriving growth of the e-commerce sector, and the development of new technologies are expected to significantly contribute to the market growth.
Key Market Trends & Insights
- Asia Pacific accounted for the largest revenue share of 42.44% in 2023, and is expected to emerge as the fastest-growing segment over the forecast period.
- North America held a significant market share in 2023, with the U.S. spearheading the regional market growth.
- Based on service, the domestic transportation management (DTM) segment held the largest market share of 32.4 % in 2023.
- Based on transport, the roadways segment dominated the 3PL market with a share of over 58.2% in 2023.
- Based on end-use, the manufacturing sector held the largest revenue share of 24.8% in 2023.
Market Size & Forecast
- 2023 Market Size: USD 1,095.85 Billion
- 2030 Projected Market Size: USD 1,877.51 Billion
- CAGR (2024-2030): 8.1%
- Asia Pacific: Largest market in 2023
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Shippers are focusing on outsourcing the transport 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. The changing global supply chain to become more customer-centric enables 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 third party logistics (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. 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, 3PL 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.
