The Third-Party Logistics Market is set to grow from its current market value of more than $1 trillion to over $1.8 trillion by 2026; as reported in the latest study by Global Market Insights, Inc. Rapid globalisation, increasing consumerism and expanding e-commerce sector are some of the key factors driving the third-party logistics market outlook.
In a bid to cater to the heavy product demand from consumers, various companies are outsourcing their logistics activities to third-party suppliers. Third-party logistics services aid e-commerce businesses to ensure timely deliveries and handle issues of warehousing, trucking, shipping, packaging, delivery and inventory. Additionally, one of the prime advantages of outsourcing logistics services from a third-party vendor is that it helps enterprises to focus on core business activities.
Several logistics firms have stepped in the market to offer solutions & services, primarily to the e-commerce industry. For instance, Orio Logistics is offering third-party logistics services for the e-commerce industry, ensuring flexible, fast distribution, as well as efficient returns management.
Third-party logistics market players are extensively focusing on delivering advanced value-added services and offering better services to secure customer loyalty. These service providers are offering cost-effective services and technically advanced solutions to expand their customer base globally.
The rise in globalisation and increasing trade activities globally are driving the 3PL market growth. The adoption of various software solutions including SCMs and cloud ERP for logistics applications are being witnessed. Features provided by these software solutions such as warehouse management, real-time data, online documentation for international freight, and inventory tracking are gaining the attraction from manufacturers across the globe.
Region-wise, Europe third-party logistics market is expected to witness major growth over the projected timeframe. Rapid internet penetration, improved economic conditions, and steady development of the manufacturing sector across the region are favouring industry growth. For instance, in 2019, the United Kingdom became the 9th largest manufacturing nation in the world with an annual output revenue of around US$192 billion. European free trade agreements with major countries across the globe are further contributing to industry expansion.
Major market players include FedEx, UPS Supply Chain Solutions, DHL, DB Schenker, Nippon Express, C.H. Robinson, XPO Logistics, UPS, JB Hunt, Expeditors International, Kuehne + Nagel, Expeditors International, Dachser, CEVA Logistics, Sinotrans, Panalpina, SNCF Geodis, Gefco, Kintetsu World Express, and Deutsche Post DHL (Exel)