Global Third-Party Logistics Market Size is Estimated at US$ 2,144 Billion by 2032
The global third-party logistics market is poised to achieve a valuation of US$ 2,144 billion by 2032, with a Compound Annual Growth Rate (CAGR) of 7.6% projected for the period spanning 2022 to 2032. The primary drivers of this growth are the increasing adoption of smart technology and the heightened awareness of e-commerce.
According to Fact.MR, the global third-party logistics market is expected to surpass a value of US$ 1,031 billion in 2022. The surge in industrial activities and the enhancement of foreign trade operations, which demand efficient transportation and storage systems, will drive the demand for third-party logistics services.
Moreover, the rising need for essential medicines and vaccines, along with a growing emphasis on outsourcing logistics services, will stimulate the adoption of third-party logistics within the healthcare sector.
The advent of e-commerce platforms across various sectors, including healthcare, railway, automotive, and more, has led to an increased demand for streamlined supply chain management to enhance revenue. Consequently, end-users are turning to smart third-party logistics solutions to ensure productivity and profitable returns.
As per the study, the manufacturing segment is expected to be the dominant force in the global market, particularly due to rapid expansion in the United States, Mexico, and India. The adoption of third-party logistics for manufacturing automotive products and enhancing customer service is fostering a favorable market environment. In response, key players are targeting the North America and South Asia markets to capitalize on the growing applications in the manufacturing industry.
For example, in April 2021, Flipkart, a leading e-commerce platform in India, announced a partnership with Mahindra Logistics Limited to streamline the deployment of electric vehicles within its logistics fleet.
· The global third party logistic market is expected to be worth US$ 955 billion in 2021.
· North America is expected to have the highest market share in 2022, amounting for 40% of the overall share.
· Based on service, the domestic transportation management (DTM) segment is anticipated to hold 32% share through 2032.
· In terms of end-use, the manufacturing segment is anticipated to account for 24% of the revenue share in 2022.
· Asia Pacific third party logistics market is expected to grow at 10% CAGR owing to the growing focus on transportation and logistics infrastructure.
· The incorporation of advanced technologies such as machine learning, artificial intelligence, and the internet of things into third-party logistics will boost the market.
· Rising emphasis on shipping cost reduction, seasonal variation management, lowering reliance on firm assets, and timely delivery management will boost the industry.
· The adoption of third-party logistics is expected to be hampered by stringent government laws and regulations governing shipping activities.
· The producer’s lack of control over logistics and warehousing operations is expected to hinder market expansion.
To enhance their worldwide footprint, key businesses are working on various methods such as mergers and acquisitions, partnerships, collaborations, and joint ventures. Furthermore, in order to maintain their market position, prominent firms are expanding their product ranges by creating production facilities.
· In October 2021, Nippon Express enhanced its presence in the Republic of Serbia by opening the Belgrade Branch. This development intends to broaden logistics services in order to suit the changing logistical demands of Central and Eastern Europe.
· In 2021, DHL, the global logistics giant, has formed a relationship with Embark, a major firm in North America that develops autonomous trucking technology. DHL intends to put these trucks into its operations based on this strategy once the software is publicly available in 2024. The primary goal is to maximize value while reaping the projected benefits of speed, safety, and sustainability.
Key Companies Profiled by Fact.MR
· Kuehne + Nagel
· Yusen Logistics Co. Ltd.
· Burris Logistics
· CEVA Logistics
· United Parcel Service of America, Inc.
· BDP International
· DB Schenker Logistics
· XPO Logistics, Inc.
· C.H. Robinson Worldwide, Inc.
· Nippon Express
· J.B. Hunt Transport, Inc.
More Valuable Insights on Third Party Logistics Market
In the latest study, Fact.MR offers a detailed study on global third party logistics market for the forecast period of 2022 to 2032. This study also highlights key drivers promoting the sales of third party logistics through detailed segmentation as follows:
By End Use:
· Value Added Logistics Services (VALs)
· Domestic Transportation Management (DTM)
· Warehousing &Distribution (W&D)
· Dedicated Contract Carriage (DCC)/Freight forwarding
· International Transportation Management (ITM)
· North America
· Latin America
Key Questions Covered in the Third Party Logistics Market Report
· What is the projected value of the third party logistics market in 2022?
· At what rate will the global third party logistics market grow until 2032?
· Which are the factors hampering the growth in the third party logistics market?
· Which region is expected to lead in the global third party logistics market 2022-2032?
· Which are the factors driving the third party logistics market during the forecast period?
· What is the expected market value of the third party logistics market during the forecast period?
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