by The global Third Party Logistics Market is estimated to be valued at US$ 1.41 Million in 2023 and is expected to exhibit a CAGR of 8.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Third party logistics involve outsourcing of logistics and distribution activities to an expert third party logistics service provider. It helps businesses to focus on core competencies while improving operational efficiencies and reducing costs.
Market key trends:
Growing demand for a scalable logistics infrastructure is expected to drive the market growth over the forecast period. With changing global trade dynamics, growing international trade, and rising e-commerce sector, the demand for flexible and scalable logistics has increased tremendously. Third party logistics providers help businesses meet changing demands through scalable infrastructure and asset-light business models. Furthermore, the adoption of advanced technologies such as machine learning, Internet of Things (IoT), and big data analytics by third party logistic providers is also expected to support market growth between 2023 and 2030.
SWOT Analysis
Strength: Third party logistics providers offer flexibility and cost savings for companies. They leverage their scale and infrastructure across multiple clients to offer competitive rates.
Weakness: Reliance on third parties reduces control over logistics operations. Performance issues or delays by third party logistics providers can disrupt supply chains.
Opportunity: Growth of e-commerce is generating more demand for warehousing, order fulfillment and last mile delivery services. This provides an opportunity for third party logistics providers to expand.
Threats: Intensifying competition may decrease pricing power for large third party logistics companies. Newer startups are challenging established players with technology-driven offerings and vertical-specific solutions.
Key Takeaways
The global Third Party Logistics Market Growth is expected to witness high growth, exhibiting CAGR of 8.8% over the forecast period, due to increasing demand for outsourcing of transportation and warehousing activities from manufacturing and retail industries. Expanding cross-border trade is also fueling the need for innovative supply chain solutions.
Regional analysis: North America represents the largest market for third party logistics currently. However, Asia Pacific is expected to emerge as the fastest growing regional market propelled by rapid growth of e-commerce in countries like China and India. Infrastructure investments in newer markets provide opportunities for third party logistics providers to capture demand.
Key players operating in the third party logistics market are DSV, a.p. moller – maersk, United Parcel Service of America, Inc., XPO Logistics Inc., DHL International GmbH, Kuehne+Nagel Inc., Geodis, FedEx Corporation, C.H. Robinson Worldwide, Inc., db schenker. These companies are focusing on developing digital platforms and automated solutions to enhance visibility and optimize supply chain networks for customers across industries. Partnerships for niche service capabilities is another competitive strategy pursued by large third party logistics providers.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
