Market Research Report
Global Third-Party Logistics Market - 2022-2029
|Global Third-Party Logistics Market - 2022-2029|
Published: May 7, 2022
Content info: 180 Pages
Delivery time: 2 business days
The third-party logistics market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX % during the forecast period (2022-2029).
A third-party logistics provider provides all the supply chain services required to get a product from its raw components to a retail shelf. Transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging and freight forwarding are among the services offered. The goal of third-party logistics companies is to help shippers enhance their efficiency somehow. Whether it's through better operations, saving money, or reducing risk. The demand for efficient inventory management services has risen as working capital has increased and globalization has accelerated.
3PL organizations will rely extensively on technology to communicate, interact and engage with customers. Electronic data will be employed to improve operational flexibility and speed of change and streamline performance and integrity. Vendor-managed inventory will be commonplace via web-based portals in even the smallest 3PLs, ensuring that shippers and 3PLs can operate independently without potentially erroneous information sharing.
Rising sales of e-commerce boost the global third-party logistics market.
Rising sales of e-commerce
There are almost 24 million e-commerce sites globally and the rapid increase in e-commerce is driving the demand for 3PL services globally. Many e-commerce businesses are small and can't afford to hire their own logistics team. As a result, 3PL businesses are hired to handle supply chain management, warehousing, consolidation and order fulfillment.
E-commerce enterprises are exploding in today's digital purchasing and third-party logistics world. Today, renowned 3PLs are being used by e-commerce firms worldwide. From small businesses to Fortune 500 companies, outsourcing e-commerce fulfillment is the industry secret that's sweeping the world by storm. Many brands benefit from increased operational efficiency and seller profitability due to 3PL adoption in e-commerce.
Third-party logistic companies also aid in lowering overall shipping costs and delivery times, improving order accuracy, and ensuring a great customer experience. Combining e-commerce with a modern third-party logistics provider can future-proof the company and be prepared for whatever the next technological wave of brand success and consumer needs brings.
Documentation problems in international logistics
Keeping track of information connected to their shipments is a demanding undertaking for small and mid-sized 3PL companies. In international commerce operations, various sorts of documentation are used. Purchase orders, bills of lading, cargo insurance certificates, air waybills, commercial invoices, packing lists, delivery notes, export licenses, certificates of origin, dock receipts and so on are all examples of these documents.
Due to the administrative process involved, vast volumes of documentation and the transfer of the document and ownership of items from one party to another, managing transport documents is difficult. Most 3PL companies that carry goods to many nations must adhere to the shipping regulations of each country and area. Each country has its set of laws and regulations and these businesses must stay up to speed on all of them to continue dealing without disruption. It is difficult, especially for 3PL companies with no access to a dedicated task force that can keep up with the various requirements.
COVID-19 Impact Analysis
The market for third-party logistics has grown during the COVID-19 outbreak. The COVID-19 pandemic fueled tremendous growth for the major global third-party logistics providers, as it aided in acquiring medicinal items from overseas and supported the stay-at-home shopping boom. However, individual 3PL revenue gains were inconsistent as industrial and manufacturing shutdowns harmed providers with a stronger exposure to those industries.
In 2019, e-commerce generated only $360 million, a 77% rise in e-commerce growth in a single year, compared to previous estimates of 4 to 10 years. As the virus spread, businesses were obliged to go online almost overnight. The growth in e-commerce sales is a major factor in boosting third-party logistics sales during the pandemic.
The third-party logistics market is segmented into automotive, retail, manufacturing, healthcare, and others by end-user.
The need for an efficient automotive supply chain and logistics management will boost the demand for third-party logistics
Consumer demand for cars is rapidly increasing on an international scale. For example, in 2020, the auto industry in the U.S. sold around 14.5 million light vehicle units. Effective logistics are critical to meeting this demand since operations operate smoothly and minimize hazards. As a result, manufacturers frequently seek to strengthen their global operations by partnering with a specialized third-party logistics provider. The impact of the covid on the global automobile industry has increased supply chain issues and complexity in a changing industry. The automotive supply chain and logistics are necessary for efficient automotive supply chain and logistics management.
The companies are collaborating to provide third logistic services to provide and curb the days in the automotive sector. For instance, in 2021, Kenco Logistics has announced deploying Phantom Auto's remotely operated forklift solution. Phantom Auto, a leader in remote operation of all types of vehicles, enables forklifts, trucks, tuggers, robots and more to be remotely operated by operators sitting up to thousands of miles away.
Moreover, in 2020, Penske Logistics announced a new contract with BMW Manufacturing Co. at the South Carolina plant. Penske Logistics and BMW have collaborated to design and implement a customized supply chain and logistics solution to increase efficiencies, control costs further and enables future growth. Penske will also be responsible for managing a variety of full-truckload and less-than-truckload third-party trucking carriers in the process.
Increasing number of trans-regional trade corridors is boosting sales in the Asia-Pacific
With the growth of global trade and international commercial activity in emerging countries, many companies seek to operate abroad and establish a position worldwide. Logistics and transportation play an essential job in assisting such businesses in expanding their operations and forming new business ties. The increasing number of trans-regional trade corridors and gateways is likely to give opportunities for 3PL providers in the region.
In India, logistics expenses account for a greater proportion of total goods value than in other developed economies, at 13-14% in 2015, compared to 7-8% in other developed economies. Furthermore, this share has increased dramatically over the last 15 years, indicating fundamental logistics inefficiencies. Hence countries are coming up with incentives that are expected to boost the region's third-party logistics market. The Indian Ministry of Road Transport & Highways establishes multimodal logistics parks as part of the Government of India's Logistics Efficiency Enhancement Program.
The third-party logistics market is highly competitive and fragmented with the presence of global companies. Numerous large corporations are creating alliances with mid-sized or small-sized companies to utilize their regional logistics skills. The players contributing to the growth are XPO Logistics, Inc, Nippon Express, Agility Logistics, CEVA Logistics, DHL, DB Schenker, FedEx Corporation, Yusen Logistics, Kerry Logistics, AmeriCold Logistics, CH Robinson and others. The strategies used by the company to dominate the market, such as launching new services, acquisitions, collaborations and expansions, contribute to the global growth of the third-party logistics market.
XPO Logistics, Inc
Overview: XPO Logistics, Inc. is a leading global logistics company that provides cutting-edge supply chain solutions to the world's most successful businesses. With 1,506 locations and over 97,000 employees, the corporation functions as an integrated network of people, technology and assets in 30 countries. More than 50,000 customers rely on XPO's network to help them manage their commodities more efficiently throughout their supply chains. The corporate offices of XPO are located in Greenwich, Connecticut and the European headquarters are located in Lyon, France.
Product Portfolio: The company provides third-party transportation and logistics services with an integrated network of people, technology and physical assets.
Key Development: In 2021, XPO Logistics, Inc. was again recognized as a Leader in the Gartner Magic Quadrant for Third-Party Logistics worldwide. XPO has been named a Magic Quadrant Leader six times by Gartner, Inc. worldwide for 2021, 2020 and 2018 and 2021, 2019 and 2017, North America.
Visualize the third-party logistics market segmentation by type, transport, end-user and region, highlighting the key commercial assets and players.
Identify commercial opportunities in third-party logistics by analyzing trends and co-development deals.
Excel data sheet with thousands of data points of third-party logistics market-level 4/5 segmentation.
PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
Product mapping in excel for the key product of all major market players
The global third-party logistics market report would provide an approximate 61 market data table, 56 figures and 180 pages
Industry Investors/Investment Bankers
Military & Defense Professionals
Health Care Suppliers
Education & Research Institutes
LIST NOT EXHAUSTIVE