Blueweave
Global Third Party Logistics Market Bwc19307

Global Third Party Logistics Market- Industry Size, Share, Trend Analysis, Outlook, Growth, Opportunity and Forecast, 2017-2027, Segmented By Services (Warehousing, International Transportation, Domestic Transportation, Inventory Management and Others), By Mode of Transport (Railways, Waterways, Roadways, Airways), By End-User (Automotive, Healthcare, Retail, Consumer Goods and Others) By Region (North America, Europe, the Asia-Pacific, the Middle-East & Africa, and Latin America)

  • Published Date: December 2021
  • Report ID: BWC19307
  • Available Format: PDF
  • Page: 195

Report Overview

Global third party logistics market is set to witness a healthy growth. E-commerce has led to an increase in freight transportation, thus creating a number of opportunities for third party logistics companies worldwide

Global Third Party Logistics Market - Industry Trends & Forecast Report 2027

The global third party logistics market has gained momentum in recent years. The market was worth USD 957.3 Billion in 2020 and is anticipated to reach the valuation of USD 1,573.8 Billion in 2027 at a CAGR of 7.9%. Globalization has increased trade-related activities across the world. As a result, it has become increasingly difficult for manufacturers and distributors to keep detailed records of these activities. This is expected to spur the growth of third party logistics businesses. The expansion of the e-commerce business has increased freight transport across multiple countries, opening up new potential for third-party logistics providers. In addition, the rise of globalization has contributed to the establishment of a global network of manufacturing activity. Thus, the growing demand for third party logistics services is driving the growth of the market worldwide.

Third Party Logistics Market

Source: BlueWeave Consulting

Third Party Logistics Market Overview

Third party logistics is the process by which the supplier/manufacturer outsources logistics and distribution-related activities. Third party logistics companies provide various services that are related to supply chain logistics. Logistics services provided by third parties include transportation, picking, packing, stock forecasting, order fulfilment, packaging, and freight forwarding. By outsourcing these logistics services,  end-users can concentrate on other business aspects such as distribution, promotion, and product development.

Third Party Logistics Market Trends

Growth Drivers

Increase in Trading Activities Driving the Market

With the implementation of new technologies that have enabled fast trade between countries and real-time tracking of carriers, trading activities between countries have increased in recent years. According to the latest World Trade Organization (WTO) data, global exports rose by 46% in value terms in Q2 2021. WTO has estimated that the global trade volume of merchandise would go up by 10.8% in 2021 followed by a 4.7% in 2022. The WTO-UNCTAD-ITC estimates that global transport exports grew by around 7.5% in 2019, with Europe recording an increase of about 9%. During the forecast period, as countries move towards self-sufficiency and trade between countries increases, the demand for third party logistics technology is expected to rise and contribute to the growth of the global third-party logistics technology market.

Growth of Seaborne Trade Contributing to the Growth of Market

International seaborne trade continues to grow as shipping contributes significantly to the global economy. Due to industrialization and the liberalization of national economies, iron ore and coal demand have risen, primarily met by seaborne trade. With the increase in import/export of goods and commodities of dry bulk, and the growth of e-commerce and three-dimensional printing, the demand for dry bulk shipping has increased significantly. According to the International Chamber of Shipping, approximately 90% of world trade is carried out by the international shipping industry. The expanding seaborne trade has increased the demand for third-party logistics technology across the globe to facilitate efficient transport of goods from one place to another. Furthermore, the growth of emerging economies is expected to propel the demand for seaborne trading in the coming years, further promoting the need for Third party logistics technology and fueling the growth of the market during the forecast period.

Restraints

Lack of proper IT Infrastructure in the logistics industry slowing the market growth

Warehouses are the heartbeat of the global logistics industry. Poorly architected infrastructure and incorrect implementation of the IT resources at the warehouses are the biggest challenges the companies face in streamlining their supply chains. The lack of adequate information technology infrastructure in the logistics industry and across warehouses has made the implementation of third-party logistics technology quite challenging. Furthermore, there are no standardized solutions for hardware or software, no basic security in systems and operations, and underinvestment issues in global warehouses. These factors are expected to be a major restraint for the growth of the third-party logistics market during the forecast period.

Impact of COVID-19 on Third Party Logistics Market

The shock supply chains around the world had to receive due to COVID-19 was unprecedented. There have been several problems for the supply chain management due to unpredicted demand for several products, restrictions on travel, and production issues. In order to cope with disruptions in delivery networks, many companies adopted robotic process automation and turned to drone delivery. Supply chain strategies are being adopted in the aftermath of the pandemic to make organizations more resilient, collaborative, and strengthen their relationships with customers and suppliers.

Third-Party Logistics Market- By Services

The global third-party logistic industry is fragmented into warehousing, domestic transportation, international transportation, inventory management, and others, based on the services offered. Among these, the domestic transportation services segment dominates the market. With the growth of globalization, clients require efficient logistics operations that can meet their urgent delivery requirements. Therefore, the domestic transportation services segment is expected to see the fastest growth in the third party logistics market in the forecast period. However, the international transportation services segment is also catching up as the demand for international transportation management services has increased globally.

Third Party Logistics Market Share

Third-Party Logistics Market- By Mode of Transportation

Based on transport modes, the global third-party logistic market is bifurcated into railways, waterways, roadways, and airways. Amongst these, the roadways transport mode is projected to dominate the Global Third-Party Logistics market during the forecast period. A greater focus on creating a logistics network and a public-private highway construction partnership model is helping to stimulate the growth of third-party logistics services via road transport. Government programs and investments to build road transport networks have resulted in an increased number of vendors embracing road transportation modes. However, the airways segment will likely emerge as the fastest-growing segment over the forecast period.

Third-Party Logistics Market- Regional Insights

The global third-party logistics market is spread across North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Among these regions, the Asia Pacific accounted for the maximum revenue share in 2020 and is expected to emerge as the fastest-growing regional market during the forecast period. On the other hand, the growth of the market in North America is projected to continue, driven by current economic policies, enhanced rail, road, sea, and air infrastructure, and significant logistics enterprises established in the region. The market in North America is expected to grow as both traditional logistics companies and new e-commerce enterprises invest in this industry. Furthermore, the region's emerging economies are likely to boost warehousing and logistics demand with continued investment in trains, bridges, and airways over the projected period.

Regional Insights

Source: BlueWeave Consulting

Third-Party Logistics Market - Competitive Landscape

The third-party logistics market is highly competitive due to the presence of various global players. The key players dominating the market are C.H. Robinson Worldwide, Inc., DHL International GMBH, DB Schenker, FedEx Corporation, KUEHNE+NAGEL Inc., Maersk, Nippon Express, Panalpina World Transport Ltd., Union Pacific Railroad, United Parcel Service, and other prominent players. Enterprises are developing strategic alliances, mergers, and acquisitions with small and medium-sized firms to utilize their regional capabilities better. In addition, many e-commerce companies are growing their logistics operations through strategic acquisitions or partnerships with Third party logistics service providers to increase profit margins and reduce overhead expenses.

 

Recent Developments

  • In November 2021, UPS Capital Insurance Agency, Inc., a UPS affiliate, announced that AscendTMS, a product of InMotion Global, will provide additional shipping insurance coverage alternatives to small and mid-size businesses. This upgrade will allow AscendTMS users to customize coverage based on their individual needs.

 

  • In October 2021, DHL Express, the world's largest international express services provider, inaugurated a new international hub at Paris-Charles de Gaulle airport. The new site, which is ten times bigger than the old one, cost DHL €170 million to build. Among the most significant investments DHL Express has made in Europe in recent years, it is also its largest investment in France since it was founded in 1976. DHL's presence in France will be boosted by the facility, which has already spent €80 million on its infrastructure in France over the last six years with a reliable network and cutting-edge technology.

 

Scope of the Report:

 

Attribute Details
Years Considered Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Facts Covered Revenue in USD Billion
Market Coverage United States, Canada, Germany, United Kingdom, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, United Arab Emirates, South Africa.
Product/Service Segmentation By Services, By Mode of Transport, By End-User and By Region
Key Players Key market players include C.H. Robinson Worldwide, Inc., DB Schenker, FedEx Corporation, KUEHNE+NAGEL Inc., Maersk, DHL International GMBH, Nippon Express Panalpina World Transport Ltd., Union Pacific Railroad, and other prominent players.

 

By Services

  • Warehousing
  • International Transportation
  • Domestic Transportation
  • Inventory Management
  • Others

By Mode of Transport

  • Railways
  • Waterways
  • Roadways
  • Airways

By End-User

  • Automotive
  • Healthcare
  • Retail
  • Consumer Goods
  • Others

By Region

  • North America
  • Europe
  • The Asia-Pacific
  • Latin America
  • The Middle-East & Africa
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Market Segmentation
  2. Research Methodology
    1. Qualitative Research
      1. Primary & Secondary Research
    2. Quantitative Research
    3. Market Breakdown & Data Triangulation
      1. Primary & Secondary Research End-use Vendors
      2. Secondary Research
      3. Primary Research
    4. Breakdown of Primary Research Respondents, By Region
    5. Assumption & Limitation
  3. Executive Summary
  4. Global Third-Party Logistics Market Insights
    1. DROC Analysis
      1. Growth Drivers
      2. Restraints
      3. Opportunities
      4. Challenges
    2. Porter’s Five Forces Analysis
      1. Bargaining End-use Industry of Suppliers
      2. Bargaining End-use Industry of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
    3. Recent Development/ Technological Advancement
    4. Regulatory Insights
  5. Global Third-Party Logistics Market Overview
    1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Services
        1. Warehousing
        2. International Transportation
        3. Domestic Transportation
        4. Inventory Management
        5. Others

 

      1. By Mode of Transport
        1. Railways
        2. Waterways
        3. Roadways
        4. Airways

 

      1. By End-User
        1. Automotive
        2. Healthcare
        3. Retail
        4. Consumer Goods
        5. Others

 

      1. By Region
        1. North America
        2. Europe
        3. Asia-Pacific
        4. Latin America
        5. Middle East and Africa
  1. North Third-Party Logistics Market
    1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Services
      2. By Mode of Transport
      3. By End-User
      4. By Country
        1. U.S.
        2. Canada
  2. Europe Third Party Logistics Market
    1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Services
      2. By Mode of Transport
      3. By End-User
      4. By Country
        1. Germany
        2. United Kingdom
        3. France
        4. Italy
        5. Spain
        6. Rest of Europe
  3. The Asia-Pacific (APAC) Third Party Logistics Market
    1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Services
      2. By Mode of Transport
      3. By End-User
      4. By Country
        1. Japan
        2. China
        3. India
        4. South Korea
        5. Rest of APAC
  4. Latin America Third Party Logistics Market
    1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Services
      2. By Mode of Transport
      3. By End-User
      4. By Country
        1. Brazil
        2. Argentina
        3. Mexico
        4. Rest of Latin America
  5. The Middle East & Africa (MEA) Third Party Logistics Market
    1. Market Size & Forecast by Value, 2017-2027
      1. By Value (USD Billion)
    2. Market Share & Forecast
      1. By Services
      2. By Mode of Transport
      3. By End-User
      4. By Country
        1. South Africa
        2. Saudi Arabia
        3. U.A.E.
        4. Turkey
        5. Rest of MEA
  6. Competitive Landscape
    1. List of Key Players and their Offerings
    2. Company Market Share Analysis, 2020
    3. Competitive Benchmarking, By Operating Parameters
    4. Competitive Benchmarking, By Products Offerings
  7. Impact of Covid-19 across Global Third Party Logistics Market
  8. Company Profile (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *

 

    1. BNSF Railway Company
    2. DHL International Gmbh (Deutsche Post Dhl Group)
    3. DB Schenker (DB Group)
    4. Kuehne+Nagel Inc.
    5. FedEx Corporation
    6. Panalpina World Transport Ltd.
    7. MAERSK
    8. United Parcel Service
    9. Union Pacific Corporation
    10. Yusen Logistic
    11. Damco
    12. XPO Logistics Inc.
    13. Penske Corporation
    14. UPS Supply Chain Solutions Inc.
    15. Other Prominent Players.
  1. Key Strategic Recommendations

 

*Financial details of unlisted companies will be available as per data availability in the final deliverable

**The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable

 

List of figures

 

  1. Global Third Party Logistics Segmentation
  2. Global Third Party Logistics Market Value Chain Analysis
  3. Company Market Share Analysis, 2020
  4. Global Third Party Logistics Market Size, By Value (USD Billion), 2017-2027
  5. Global Third Party Logistics Market Share (%), By Services, By Value, 2017-2027
  6. Global Third Party Logistics Market Share (%), By Mode of Transport, By Value, 2017-2027
  7. Global Third Party Logistics Market Share (%), By End-User, By Value, 2017-2027
  8. Global Third Party Logistics Market Share (%), By Country, By Value, 2017-2027
  9. North America Third Party Logistics Market Size, By Value (USD Billion), 2017-2027
  10. North America Third Party Logistics Market Share (%), By Services, By Value, 2017-2027
  11. North America Third Party Logistics Market Share (%), By Mode of Transport, By Value, 2017-2027
  12. North America Third Party Logistics Market Share (%), By End-User, By Value, 2017-2027
  13. North America Third Party Logistics Market Share (%), By Country, By Value, 2017-2027
  14. Europe Third Party Logistics Market Size, By Value (USD Billion), 2017-2027
  15. Europe Third Party Logistics Market Share (%), By Services, By Value, 2017-2027
  16. Europe Third Party Logistics Market Share (%), By Mode of Transport, By Value, 2017-2027
  17. Europe Third Party Logistics Market Share (%), By End-User, By Value, 2017-2027
  18. Europe Third Party Logistics Market Share (%), By Country, By Value, 2017-2027
  19. Asia-Pacific Third Party Logistics Market Size, By Value (USD Billion), 2017-2027
  20. Asia-Pacific Third Party Logistics Market Share (%), By Services, By Value, 2017-2027
  21. Asia-Pacific Third Party Logistics Market Share (%), By Mode of Transport, By Value, 2017-2027
  22. Asia-Pacific Third Party Logistics Market Share (%), By End-User, By Value, 2017-2027
  23. Asia-Pacific Third Party Logistics Market Share (%), By Country, By Value, 2017-2027
  24. Latin America Third Party Logistics Market Size, By Value (USD Billion), 2017-2027
  25. Latin America Third Party Logistics Market Share (%), By Services, By Value, 2017-2027
  26. Latin America Third Party Logistics Market Share (%), By Mode of Transport, By Value, 2017-2027
  27. Latin America Third Party Logistics Market Share (%), By End-User, By Value, 2017-2027
  28. Latin America Third Party Logistics Market Share (%), By Country, By Value, 2017-2027
  29. Middle East & Africa Third Party Logistics Market Size, By Value (USD Billion), 2017-2027
  30. Middle East & Africa Third Party Logistics Market Share (%), By Services, By Value, 2017-2027
  31. Middle East & Africa Third Party Logistics Market Share (%), By Mode of Transport, By Value, 2017-2027
  32. Middle East & Africa Third Party Logistics Market Share (%), By End-User, By Value, 2017-2027
  33. Middle East & Africa Third Party Logistics Market Share (%), By Country, By Value, 2017-2027

 

List of Tables

 

  1. Global Third Party Logistics  Market Size, By Services, By Value, 2017-2027
  2. Global Third Party Logistics Market Size, By Mode of Transport, By Value, 2017-2027
  3. Global Third Party Logistics Market Size, By End-User, By Value, 2017-2027
  4. Global Third Party Logistics Market Size, By Region, By Value, 2017-2027
  5. North America Third Party Logistics Market Size, By Services, By Value, 2017-2027
  6. North America Third Party Logistics Market Size, By Mode of Transport, By Value, 2017-2027
  7. North America Third Party Logistics Market Size, By End-User, By Value, 2017-2027
  8. North America Third Party Logistics Market Size, By Country, By Value, 2017-2027
  9. Europe Third Party Logistics Market Size, By Services, By Value, 2017-2027
  10. Europe Third Party Logistics Market Size, By Mode of Transport, By Value, 2017-2027
  11. Europe Third Party Logistics Market Size, By End-User, By Value, 2017-2027
  12. Europe Third Party Logistics Market Size, By Country, By Value, 2017-2027
  13. Asia-Pacific Third Party Logistics Market Size, By Services, By Value, 2017-2027
  14. Asia-Pacific Third Party Logistics Market Size, By Mode of Transport, By Value, 2017-2027
  15. Asia-Pacific Third Party Logistics Market Size, By End-User, By Value, 2017-2027
  16. Asia-Pacific Third Party Logistics Market Size, By Country, By Value, 2017-2027
  17. Latin America Third Party Logistics Market Size, By Services, By Value, 2017-2027
  18. Latin America Third Party Logistics Market Size, By Mode of Transport, By Value, 2017-2027
  19. Latin America Third Party Logistics Market Size, By End-User, By Value, 2017-2027
  20. Latin America Third Party Logistics Market Size, By Country, By Value, 2017-2027
  21. Middle East & Africa Third Party Logistics Market Size, By Services, By Value, 2017-2027
  22. Middle East & Africa Third Party Logistics Market Size, By Mode of Transport, By Value, 2017-2027
  23. Middle East & Africa Third Party Logistics Market Size, By End-User, By Value, 2017-2027
  24. Middle East & Africa Third Party Logistics Market Size, By Country, By Value, 2017-2027
  25. BNSF Railway Company Financial Analysis
  26. BNSF Railway Company Business Overview
  27. DHL International Gmbh (Deutsche Post Dhl Group) Financial Analysis
  28. DHL International Gmbh (Deutsche Post Dhl Group) Business Overview
  29. DB Schenker (DB Group) Financial Analysis
  30. DB Schenker (DB Group) Business Overview
  31. Kuehne+Nagel Inc.Financial Analysis
  32. Kuehne+Nagel Inc.Business Overview
  33. FedEx Corporation Financial Analysis
  34. FedEx Corporation Business Overview
  35. Panalpina World Transport Ltd. Financial Analysis
  36. Panalpina World Transport Ltd. Business Overview
  37. MAERSK Financial Analysis
  38. MAERSK Business Overview
  39. United Parcel Service Financial Analysis
  40. United Parcel Service Business Overview
  41. Union Pacific Corporation Financial Analysis
  42. Union Pacific Corporation Business Overview

 

Market Segmentation

By Services

  • Warehousing
  • International Transportation
  • Domestic Transportation
  • Inventory Management
  • Others

By Mode of Transport

  • Railways
  • Waterways
  • Roadways
  • Airways

By End-User

  • Automotive
  • Healthcare
  • Retail
  • Consumer Goods
  • Others

By Region

  • North America
  • Europe
  • The Asia-Pacific
  • Latin America
  • The Middle-East & Africa
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Frequently Asked Questions (FAQs):

Ans: The global third party logistics market reached USD 957.3 Billion in 2020 across the globe.
Ans: Some of the key market drivers for the growth of the global third party Logistics market are the increase in trading activities and the growth of the e-commerce industry.
Ans: The key players in the global third party logistics market are C.H. Robinson Worldwide, Inc., DB Schenker, FedEx Corporation, DHL International GMBH, KUEHNE+NAGEL Inc., Maersk, Nippon Express, Panalpina World Transport Ltd., United Parcel Service, Union Pacific Railroad, United Parcel Service, and other prominent players.
Ans: The Roadways transport segment accounted for the largest share in the global third party logistics market.
Ans: Asia-Pacific region is growing at a higher rate in the the global third party logistics market.