Third-Party Logistics (3PL) Market

Global Third-Party Logistics Market Size:

The global third-party logistics market size reached USD 1,201.4 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 2,218.3 Billion by 2033, exhibiting a growth rate (CAGR) of 7.01% during 2025-2033. The rising popularity of direct-to-consumer channels, on-demand services, and subscription-based models, along with the inflating need for quicker and more flexible delivery services, owing to the expanding e-commerce industry, is primarily driving the market growth. Asia Pacific accounts for the largest third-party logistics market share in the world.

Global Third-Party Logistics Market Analysis:

• Major Market Drivers: The increasing number of complex challenges faced by companies in managing their supply chain efficiently, on account of the rising trend of globalization, is positively influencing the third-party logistics (3PL) industry demand. Additionally, the expanding e-commerce industry is further propelling the need for flexible and quicker delivery services, which is providing significant third-party logistics (3PL) market business opportunities.
• Key Market Trends: According to the third-party logistics industry statistics, various small and medium enterprises (SMEs) that are entering different markets usually need more resources to manage logistics internally. Consequently, there is an emerging trend of outsourcing 3PL services, as they enable these enterprises to compete with large businesses without any extensive investments in logistic infrastructures. Apart from this, the introduction of more cost-effective logistic solutions, such as on-demand services, is also acting as another significant growth-inducing factor.
• Competitive Landscape: Some of the major market players in the global third-party logistics (3PL) industry include C.H. Robinson, CMA CGM, DB Schenker, DHL (The Deutsche Post AG), DSV A/S, Expeditors International of Washington Inc, FedEx Corporation, Hitachi Transport System Ltd., J.B. Hunt Transport Services Inc, Kuehne + Nagel International AG (Kuehne Holding AG), Nippon Express Co. Ltd., Sinotrans, and United Parcel Service, among many others.
• Geographical Trends: North America accounted for the largest region for the third-party logistics (3PL) market, on account of the inflating demand for streamlined logistics services. In line with this, the growing number of trade agreements and governmental regulations within the region is also impelling the third-party logistics market outlook.
• Challenges and Opportunities: The rising demand among clients for transparency and real-time visibility in the supply chain to track their goods in real-time is hindering the growth of the market, as providing such detailed tracking requires advanced systems that can be challenging to implement. However, the increasing emphasis on strategic planning and sustainable business practices will continue to drive the global market in the coming years.
   

Global Third-Party Logistics Market Trends:

The Launch of Favorable Government Policies

Government bodies across the globe are focusing on introducing favorable initiatives to modernize logistics infrastructures by investing in infrastructure development projects. This, in turn, helps in increasing the efficiencies in supply chains and enhancing the connectivity to support logistics players to reach the underexplored markets. For instance, in countries, such as India, relaxed FDI regulations, Goods and Services Tax (GST), and granting of infra status have boosted the core competencies of the Indian logistics industry. In line with this, GST helped 3PL logistics companies to set up large multi-modal logistics parks, coupled with industrial centers, which worked as distribution and freight hubs.

The Rising Trend of Outsourcing Logistics by Drug Manufacturers

With the expanding geriatric population and the elevating prevalence of chronic diseases, the sales of prescription drugs are growing. Consequently, numerous medical organizations are outsourcing third-party (3PL) logistics to prioritize the availability of critical drugs and optimize their distribution networks. This, in turn, is bolstering the market growth. For example, Maersk, one of the world’s largest container carriers, expanded its dedicated cold chain facilities in India. It transformed into an integrated logistics service provider with end-to-end transportation assistance. Moreover, Kool-ex acquired 200 completely built reefer trucks from Tata Motors, which increased its fleet size to 400 and became the largest player in India in pharmaceutical cold chain logistics. In addition, CEVA Logistics announced the development of an expert and innovative installation service for large-scale medical equipment. It hired a team of technicians and engineers in India. The company’s expert team handled the unpacking, installing, and setting up the equipment, such as Cath Labs, MRI Scanners, Digital Radiography machines, CT Scanners, etc., on behalf of several global manufacturers.

Strategic Collaborations and Partnerships

According to the third-party logistics (3PL) industry report, key players are engaging in various strategic collaborations and partnerships to expand their product offerings, strengthen their competitive positions, enhance operational efficiencies, etc. For instance, SEKO Logistics announced its first robotics partnership to scale warehouse operations with GreyOrange's Ranger Assist Bots. SEKO deployed 15 bots in one of its Milton Keynes, UK, during the first stage of the plan. Another 35 robots were installed in the next stage. The logistics company intended to expand the bot initiative beyond the UK, with the Netherlands as the first location. In line with this, AI LOGISTIX, a start-up focused on resolving and identifying logistics and supply chain issues, partnered with SUN Mobility, a provider of battery-swapping services and energy infrastructures for electric vehicles (EVs), to become India's last-mile delivery partner. As a client of Alchemy Mobility LLP, a green mobility service provider for last-mile delivery agencies, the Bengaluru-based start-up utilized SUN Mobility's energy services. With the help of collaboration, the two companies intended to deploy 500 loaders and electric two-wheelers (E2Ws), with each month adding approximately 100 vehicles to the fleet.

The Growing Focus on Data-Driven Decisions

The increasing emphasis of third-party logistics on providing data-driven decisions is propelling the market growth. These analytics insights can be offered by establishing data science capabilities. Moreover, these strategies assist third-party logistics providers in giving shippers with enhanced end-to-end visibility and improved traceability across the supply chain. For example, according to one recent study, 94% of shippers believed that analytics are required to ensure complete and on-time order fulfillment and package visibility.

Global Third-Party Logistics Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2025-2033. Our report has categorized the market based on transport, service type and end use.

Transport Insights:

• Railways 
• Roadways
• Waterways
• Airways
   

Roadways dominates the market

The report has provided a detailed breakup and analysis of the market based on the transport. This includes railways, roadways, waterways, and airways. According to the report, roadways represented the largest segment. The rising need for efficient transportation systems is augmenting the usage of roadways by third-party logistics providers. Apart from this, government bodies across the globe are promoting the adoption of advanced features, which is fueling the growth of the market. For example, the Federal Motor Carrier Safety Administration allowed the usage of cameras as a substitute for rearview mirrors, which offered benefits to truck drivers in terms of safety.

Service Type Insights:

• Dedicated Contract Carriage
• Domestic Transportation Management 
• International Transportation Management
• Warehousing and Distribution
• Value Added Logistics Services
   

Domestic transportation management holds the largest share in the market

The third-party logistics (3PL) market report has provided a detailed breakup and analysis of the market based on the service type. This includes dedicated contract carriage, domestic transportation management, international transportation management, warehousing and distribution, and value-added logistics services. According to the report, domestic transportation management accounted for the largest market share. Domestic transportation management held the largest market segment within the third-party logistics (3PL) market. The growing carrier rates, the increasing number of cross-docking services, the rising fuel prices, etc., are some of the key factors driving this segment.

End-Use Insights:

• Manufacturing
• Retail
• Healthcare
• Automotive
• Others
   

Manufacturing dominates the market

The third-party logistics (3PL) market research report has provided a detailed breakup and analysis of the market based on the end-use. This includes manufacturing, retail, healthcare, automotive, and others. According to the report, manufacturing represented the largest segment. The expanding manufacturing industry is widely increasing the number of outsourcing transportation activities, owing to benefits, such as business process development, enhanced customer services, reduced transportation cost, supply chain visibility, inventory and vendor management, etc., which is one of the key drivers catalyzing the end-use segment. For instance, numerous tax reform policies and other initiatives in India, including 'Make in India', are creating lucrative growth opportunities for the manufacturing sector.

Regional Insights:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share. The increasing number of shippers, who are inclined towards dedicated contract carriage services, is augmenting the regional market. Apart from this, the escalating demand for cold storage in the region is expected to boost the third-party logistics market. Additionally, the wide presence of key players, including XPO Logistics, Inc., C.H. Robinson Worldwide (CHRW) Inc., UPS Supply Chain Solutions Inc., and Expeditors International of Washington, Inc., will continue to bolster the market growth in North America.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the major market players in global third-party logistics (3PL) industry include:

• C.H. Robinson
• CMA CGM
• DB Schenker
• DHL (The Deutsche Post AG)
• DSV A/S
• Expeditors International of Washington Inc
• FedEx Corporation
• Hitachi Transport System Ltd.
• J.B. Hunt Transport Services Inc
• Kuehne + Nagel International AG (Kuehne Holding AG)
• Nippon Express Co. Ltd.
• Sinotrans
• United Parcel Service
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Global Third-Party Logistics Market News:

• September 2023: C.H. Robinson Worldwide, Inc. announced the opening of a new warehouse facility of 400,000 sq. ft. The warehouse was equipped with 154 dock doors and had the capacity to accommodate up to 700 trailers. This expansion enabled the company to extend its presence for trade along the Mexico border and diversify supply chains to ensure efficient transportation and logistics operations along The Port of Laredo.
• December 2023: Yusen Logistics Co. Ltd. entered into a strategic partnership with Pickle Robot Company, a leader in the field of robotic automation and physical Artificial Intelligence (AI). Owing to the collaboration, Yusen Logistics Co. Ltd. was able to minimize the physical workload for its employees and improve service reliability. The partnership reflected Yusen Logistics Co. Ltd.’s dedication to introduce the most advanced robotics automation solutions within its warehouses.
• February 2023: CMA CGM and La Poste Group formed an agreement to build a deeper working partnership between their respective subsidiaries, GeoPost and CEVA Logistics.

Third-Party Logistics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the third-party logistics (3PL) market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global third-party logistics (3PL) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the third-party logistics (3PL) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.