Third-Party Logistics Market Outlook: Size, Share, Trends & Growth Analysis (2024-2029)

The market report offers a detailed analysis segmented by Service (Domestic Transportation Management, International Transportation Management, Value-added Warehousing and Distribution); by Transport (Railways, Roadways, Airways, Waterways); by End User (Automobile, Energy, Manufacturing, Life Science, Healthcare, Retail, Technology); by Geography (North America, South America, Asia Pacific, Europe, the Middle East, Africa).

Outlook 

• The third-party logistics market is estimated to be at USD 1,344.64 Bn in 2024 and is anticipated to reach USD 1,998.22 Bn in 2029. 

• The third-party logistics market is registering a CAGR of 8.24% during the forecast period of 2024-2029. 

• The global third-party logistics (3PL) market growth is driven by increasing globalization, the expansion of e-commerce, and the outsourcing of logistics services by companies seeking to optimize their supply chains. 

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Ecosystem 

• The participants in the global third-party logistics industry lead the market with extensive global networks, advanced technology integration, and a wide range of service offerings. 

• These companies primarily focus on strategic partnerships, collaborations and differentiation to maintain a competitive edge. 

• Several important entities in the third-party logistics market include Agility Holdings, Inc.; CEVA Logistics SA; Schenker AG; DHL International GmbH; Kerry Logistics Network Ltd.; and others. 

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Findings 

Attributes	Values
Historical Period	2018-2022
Base Year	2023
Forecast Period	2024-2029
Market Size (2024)	USD 1,344.64 Bn
Market Size (2029)	USD 1,998.22 Bn
Growth Rate	8.24% CAGR from 2024 to 2029
Key Segments	Service (Domestic Transportation Management, International Transportation Management, Value-added Warehousing and Distribution); Transport (Railways, Roadways, Airways, Waterways); End User (Automobile, Energy, Manufacturing, Life Science, Healthcare, Retail, Technology); Geography (North America, South America, Asia Pacific, Europe, the Middle East, Africa)
Key Vendors	Agility Holdings, Inc.; CEVA Logistics SA; Schenker AG; DHL International GmbH; Kerry Logistics Network Ltd.
Key Countries	The US; Canada; Brazil; China; India; Japan; The UK; Germany; Italy; France; Spain; UAE; Saudi Arabia
Largest Market	Asia Pacific

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Trends  

• Sustainable Logistics Solutions: There is a growing emphasis on sustainability in logistics operations, with third-party logistics (3PL) providers adopting green practices such as electric vehicles, eco-friendly packaging, and carbon-neutral shipping. In 2023, Kuehne + Nagel announced its commitment to achieve net-zero carbon emissions by 2030, investing in sustainable logistics solutions across its operations. 

• Focus on Last-Mile Delivery: As customer expectations for faster delivery rise, 3PL providers are investing in last-mile delivery solutions to ensure timely and efficient service. In 2023, FedEx expanded its same-day delivery services across major cities in the U.S., leveraging its extensive 3PL network. 

• Omni-Channel Logistics: The rise of omni-channel retailing, where consumers shop across multiple platforms (online, in-store, and mobile), is driving demand for integrated logistics solutions that can manage complex supply chains. In 2023, UPS launched a new omni-channel logistics service tailored to retailers, offering seamless integration of online and offline operations. 

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Catalysts 

• Outsourcing of Logistics Services: Companies are increasingly outsourcing their logistics operations to third-party logistics (3PL) providers to focus on their core competencies and reduce operational costs. In 2023, Procter & Gamble announced a strategic partnership with CEVA Logistics to manage its global supply chain, highlighting the trend of large corporations leveraging 3PL services. 

• Expansion of E-commerce Industry: The rapid growth of the e-commerce industry is a significant driver for the third-party logistics (3PL) market, as online retailers rely on third-party logistics providers to manage inventory, distribution, and delivery. In 2023, Amazon expanded its partnership with 3PL providers in India to meet the rising demand for e-commerce deliveries during festive seasons. 

• Trade Expansion: The expansion of international trade is driving the demand for third-party logistics (3PL) services, particularly in emerging markets. In 2023, the signing of the Regional Comprehensive Economic Partnership (RCEP) in Asia-Pacific boosted cross-border trade, leading to higher demand for 3PL providers to manage complex global supply chains. 

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Restraints 

• Complexity of Supply Chains: The complexity of managing global supply chains, including cross-border regulations, tariffs, and trade agreements, poses significant challenges for third-party logistics (3PL) providers. In 2023, geopolitical tensions between the U.S. and China disrupted global supply chains, forcing 3PL providers to navigate a challenging trade environment. 

• Rising Operational Costs: Increasing labor, fuel, and transportation costs are impacting the profitability of third-party logistics (3PL) providers. In 2023, a report by the International Transport Forum highlighted a 10% increase in global freight costs due to rising fuel prices and labor shortages, pressuring 3PL providers to optimize their operations. 

• Environmental Regulations: Stricter environmental regulations are increasing compliance costs for third-party logistics (3PL) providers, particularly in regions with stringent emissions standards. In 2023, the European Union introduced new regulations mandating reduced emissions from logistics operations, prompting 3PL providers to invest in cleaner technologies and sustainable practices. 

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Table of Contents 

1.       Introduction         1.1.    Research Methodology         1.2.    Scope of the Study  2.       Market Overview / Executive Summary         2.1.    Global Third-Party Logistics Market (2018 – 2022)         2.2.    Global Third-Party Logistics Market (2023 – 2029)  3.       Market Segmentation         3.1.    Global Third-Party Logistics Market by Service                3.1.1.    Domestic Transportation Management                3.1.2.    International Transportation Management                3.1.3.    Value-added Warehousing and Distribution         3.2.    Global Third-Party Logistics Market by Transport                3.2.1.    Railways                3.2.2.    Roadways                3.2.3.    Airways                3.2.4.    Waterways         3.3.    Global Third-Party Logistics Market by End User                3.3.1.    Automobile                3.3.2.    Energy                3.3.3.    Manufacturing                3.3.4.    Life Science                3.3.5.    Healthcare                3.3.6.    Retail                3.3.7.    Technology  4.       Regional Segmentation         4.1.    North America                4.1.1.    The US                4.1.2.    Canada                4.1.3.    Mexico         4.2.    South America                4.2.1.    Brazil                4.2.2.    Argentina                4.2.3.    Colombia                4.2.4.    Chile                4.2.5.    Rest of South America         4.3.    Asia Pacific                4.3.1.    China                4.3.2.    India                4.3.3.    Japan                4.3.4.    South Korea                4.3.5.    Rest of Asia Pacific         4.4.    Europe                4.4.1.    The UK                 4.4.2.    Germany                4.4.3.    Italy                4.4.4.    France                4.4.5.    Spain                4.4.6.    Rest of Europe         4.5.    The Middle East                4.5.1.    Turkey                4.5.2.    UAE                4.5.3.    Saudi Arabia                4.5.4.    Rest of the Middle East         4.6.    Africa                4.6.1.    Egypt                4.6.2.    South Africa                4.6.3.    Rest of Africa  5.       Value Chain Analysis of the Global Third-Party Logistics Market  6.       Porter Five Forces Analysis         6.1.    Threats of New Entrants         6.2.    Threats of Substitutes         6.3.    Bargaining Power of Buyers         6.4.    Bargaining Power of Suppliers         6.5.    Competition in the Industry  7.       Trends, Drivers and Challenges Analysis         7.1.    Market Trends         7.1.1.    Market Trend 1         7.1.2.    Market Trend 2         7.1.3.    Market Trend 3         7.2.    Market Drivers         7.2.1.    Market Driver 1         7.2.2.    Market Driver 2         7.2.3.    Market Driver 3         7.3.    Market Challenges         7.3.1.    Market Challenge 1         7.3.2.    Market Challenge 2         7.3.3.    Market Challenge 3  8.       Opportunities Analysis         8.1.    Market Opportunity 1         8.2.    Market Opportunity 2         8.3.    Market Opportunity 3  9.       Competitive Landscape         9.1.    Agility Holdings, Inc.         9.2.    CEVA Logistics SA         9.3.    Schenker AG         9.4.    DHL International GmbH         9.5.    Kerry Logistics Network Ltd.         9.6.    Company 6         9.7.    Company 7         9.8.    Company 8         9.9.    Company 9         9.10.  Company 10

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Third-Party Logistics Market – FAQs 

1.  What is the current size of the third-party logistics market? 

Ans. In 2024, the third-party logistics market size is $1,344,64 Bn. 

2.  Who are the major vendors in the third-party logistics market?  

Ans. The major vendors in the third-party logistics market are Agility Holdings, Inc.; CEVA Logistics SA; Schenker AG; DHL International GmbH; Kerry Logistics Network Ltd. 

3.  Which segments are covered under the third-party logistics market segments analysis?  

Ans. The third-party logistics market report offers in-depth insights into Service, Transport, End User, and Geography.