The Global Market for Third Party Logistics (3PL) is Projected to Reach US$1.2 Trillion by 2022

Increased Emphasis on Supply Chain Efficiency Drives Growth of Third Party Logistics (3PL), According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry trends, growth drivers, market share, size and demand forecasts on the global Third Party Logistics (3PL) market. The global market for Third Party Logistics (3PL) is projected to reach US$1.2 trillion by 2022, driven by increased complexity in supply chain management and the rising need to augment logistics efficiency.

Third party logistics (3PL) is a supply chain concept wherein enterprises outsource their logistics operations to a third-party service vendor on a contract basis. Although a typical 3PL service contract that mainly focuses on transportation, warehousing and distribution functions, the model can seamlessly encompass various specialized and value-added services such as reverse logistics, cross-docking, inventory management, product packaging, and door-to-door delivery etc. The global market for 3PL evolved at a robust pace over the last decade on the back of increased need for efficient supply chain logistics in manufacturing, retail and wholesale domains. This is mainly led by escalation in manufacturing activity, fuelled by globalization of trade, liberalization of economies and steep expansion in demand for manufactured goods. A growing number of shippers are leaning towards 3PL to relieve themselves from resource- and time-intensive in-house logistics while benefiting from optimal cargo turnover, distribution efficiency, superior inventory management, and overall cost economies.

The retail sector has emerged as the new growth vertical for 3PL in recent years. Amid growing retail sales and increased complexity in warehousing and supply chains, retailers are increasingly moving towards 3PL partners. Proliferation of online retailing and e-commerce channels are generating considerable opportunities for 3PL in retail sector.  Availability of industry-specific, tailor-made 3PL services from established 3PL vendors that suffice shipper’s requirements is contributing to market growth in a major way.  The market has been a witness to proliferation of technology tools for performing various functions. Transportation Management Software (TMS), Warehouse Management System (WMS), and Business Intelligence (BI) systems are increasingly finding place in 3PL domain. IT Concepts such as ‘Cloud’ and Big Data hold immense potential in steering 3PL market progression in the coming years.

As stated by the new market research report on Third Party Logistics (3PL), Asia-Pacific represents the largest market worldwide. Trailing at a CAGR of 7.3% over the analysis period, Asia-Pacific ranks as the fastest growing market led by the steady expansion of the manufacturing and services sectors in countries such as China, India, Taiwan, Singapore, South Korea, Malaysia, and Thailand; and continuous improvement in the expertise of service providers in terms of quality of service provided and contract fulfillment.

Major players in the market include C. H. Robinson, CEVA Logistics, Damco, DB Schenker, DHL, DSV A/S, Expeditors International of Washington Inc., FedEx Corporation, GEODIS, J.B. Hunt Transport Services Inc., Kerry Logistics Network Ltd., Kintetsu World Express Inc., Kuehne + Nagel International AG, Nippon Express Co. Ltd., NYK Line, Panalpina World Transport (Holding) Ltd., Penske Corporation, Sinotrans (HK) Logistics Limited, UPS Supply Chain Solutions Inc., and XPO Logistics Inc. among others.

The research report titled “Third Party Logistics (3PL): A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections of revenues for all major geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (Australia, China, India, South Korea, and Rest of Asia-Pacific), Latin America (Brazil, Mexico and Rest of Latin America) and Rest of World. The report also analyzes the market for Third Party Logistics (3PL) by Category Type – International Transportation Management, Domestic Transportation Management (Asset & Non-Asset), Warehousing & Distribution, and Others (Dedicated Contract Carriage, and Software).

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