According to a research report by the India-based analysis and consulting firm, the global third-party logistics (3PL) market was valued at US$1.1 trillion in 2022 and is projected to exceed US$2.3 trillion by 2031. Smart analyticsbased on its research database.
The report, titled “Global Third-Party Logistics Market Report, By Mode of Transport; after service; By End User; By region; Segment Forecast, 2023-2031” predicts that the market will grow at a CAGR of 8.7% over the forecast period 2023-2031, largely driven by increased demand for integrated supply chain solutions and services as companies are striving to become more efficient and cost-effective. Effective.
The third party logistics market is expected to witness steady growth in the near future as companies continue to realize the value of outsourcing their supply chain operations. This is evidenced by the adoption of advanced technologies such as AI and blockchain, which are widely used to improve the efficiency and cost-effectiveness of 3PL operations, say the report’s authors. Businesses are also increasingly investing in digital solutions such as warehouse management systems, fleet management systems, and order management systems that allow them to better track their shipments and streamline their supply chains.
The top six trends in the global 3PL market identified in the report are:
• Increased automation
• Increased acceptance of data analysis
• Sustainable Practices
• Digitalization
• Cloud Computing
• Artificial Intelligence (AI)
These are just some of the trends shaping the route logistics market in 2022 and beyond. As the industry continues to evolve, businesses should stay up to date with the latest developments to ensure they are utilizing the best 3PL services available.
Roadways is expected to capture over 44% of the global 3PL market
The report also notes that roadways are playing an increasingly important role in the 3PL industry. Companies like DHL, Kuehne + Nagel and XPO Logistics are leading the way in road adoption for 3PL services. With the use of dedicated contract transportation services and air transport as modes of transport, the road segment is expected to account for over 44% of total revenue by 2031.
Domestic transportation management to capture more than 36% revenue share in global 3PL market
Domestic transportation management is expected to account for over 36% of global 3PL revenue share in the coming years. This includes planning, scheduling, tracking and monitoring shipments from point of origin to destination. It also includes managing other logistics processes such as warehousing, inventory management and order processing.
In addition, the report notes that the advent of autonomous vehicles and drones has enabled more efficient transportation of goods, which has also increased the adoption of domestic transportation management services.
This, along with government initiatives to improve transportation infrastructure in various countries, is expected to drive the growth of the global third-party logistics market over the forecast period.
The top five 3PL players hold less than 23% market share
The global 3PL market is highly competitive with a large number of players operating in the market. The competition in the market is mainly driven by factors such as price, quality of service, innovation and customer service. Major market players are constantly striving to improve their market positions by implementing various strategies such as: B. expanding its global presence, entering into strategic partnerships and investing in research and development activities.
The leading players in the global third-party logistics market include DHL International GmbH, Kuehne+Nagel Inc., DB Schenker, Nippon Express and FedEx Corporation. In 2022, these five top players held a market share of over 22%.
Additionally, there are also a significant number of regional and local players operating in specific regions or countries in the market. These players have a strong regional presence and are well positioned to serve local customers’ needs.
Overall, the report states, the global third-party logistics market is highly competitive, with players constantly battling for market share and trying to establish themselves as the leading players in the market.
