Third-party Logistics Market Size, Share, & Trends Report

Third-party Logistics Market Size, Share, & Trends Analysis Report By Service (DTM, ITM, VAL), By End-use (Retail, Manufacturing, Automotive), By Transport, By Region, And Segment Forecasts, 2024 - 2030

Report ID: 978-1-68038-346-1
Number of Pages: 219
Format: Electronic (PDF)

Historical Range: 2018 - 2022
Industry: Technology

Market Segmentation

Third-Party Logistics Service Outlook (Revenue, USD Billion, 2017 - 2030)
- Dedicated Contract Carriage (DCC)/Freight forwarding
- Domestic Transportation Management (DTM)
- International Transportation Management (ITM)
- Warehousing & Distribution (W&D)
- Value Added Logistics Services (VALs)
Third-Party Logistics Transport Outlook (Revenue, USD Billion, 2017 - 2030)
- Roadways
- Railways
- Waterways
- Airways
Third-Party Logistics End-use Outlook (Revenue, USD Billion, 2017 - 2030)
- Manufacturing
- Retail
- Healthcare
- Automotive
- Others
Third-Party Logistics Regional Outlook (Revenue, USD Billion, 2017 - 2030)
- North America
  - North America Third-Party Logistics Market by Service
    - Dedicated Contract Carriage (DCC)/Freight forwarding
    - Domestic Transportation Management (DTM)
    - International Transportation Management (ITM)
    - Warehousing & distribution
    - Value added logistics services
  - North America Third-Party Logistics Market by Transport
    - Roadways
    - Railways
    - Waterways
    - Airways
  - North America Third-Party Logistics Market by End Use
    - Manufacturing
    - Retail
    - Healthcare
    - Automotive
    - Others
  - U.S.
  - Canada
    - Canada Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - Canada Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - Canada Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
  - Mexico
    - Mexico Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight Forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & Distribution
      - Value Added Logistics Services
    - Mexico Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - Mexico Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
- Europe
  - Europe Third-Party Logistics Market by Service
    - Dedicated Contract Carriage (DCC)/Freight forwarding
    - Domestic Transportation Management (DTM)
    - International Transportation Management (ITM)
    - Warehousing & distribution
    - Value added logistics services
  - Europe Third-Party Logistics Market by Transport
    - Roadways
    - Railways
    - Waterways
    - Airways
  - Europe Third-Party Logistics Market by End Use
    - Manufacturing
    - Retail
    - Healthcare
    - Automotive
    - Others
  - Germany
    - Germany Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - Germany Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - Germany Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
  - U.K.
    - U.K. Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - U.K. Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - U.K. Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
  - France
    - France Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - France Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - France Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
- Asia Pacific
- Latin America
  - Latin America Third-Party Logistics Market by Service
    - Dedicated Contract Carriage (DCC)/Freight forwarding
    - Domestic Transportation Management (DTM)
    - International Transportation Management (ITM)
    - Warehousing & distribution
    - Value added logistics services
  - Latin America Third-Party Logistics Market by Transport
    - Roadways
    - Railways
    - Waterways
    - Airways
  - Latin America Third-Party Logistics Market by End Use
    - Manufacturing
    - Retail
    - Healthcare
    - Automotive
    - Others
  - Brazil
    - Brazil Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - Brazil Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - Brazil Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
- Middle East & Africa
  - Middle East & Africa Third-Party Logistics Market by Service
    - Dedicated Contract Carriage (DCC)/Freight forwarding
    - Domestic Transportation Management (DTM)
    - International Transportation Management (ITM)
    - Warehousing & distribution
    - Value added logistics services
  - Middle East & Africa Third-Party Logistics Market by Transport
    - Roadways
    - Railways
    - Waterways
    - Airways
  - Middle East & Africa Third-Party Logistics Market by End Use
    - Manufacturing
    - Retail
    - Healthcare
    - Automotive
    - Others
  - KSA
    - KSA Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - KSA Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - KSA Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
  - UAE
    - UAE Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - UAE Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - UAE Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others
  - South Africa
    - South Africa Third-Party Logistics Market by Service
      - Dedicated Contract Carriage (DCC)/Freight forwarding
      - Domestic Transportation Management (DTM)
      - International Transportation Management (ITM)
      - Warehousing & distribution
      - Value added logistics services
    - South Africa Third-Party Logistics Market by Transport
      - Roadways
      - Railways
      - Waterways
      - Airways
    - South Africa Third-Party Logistics Market by End Use
      - Manufacturing
      - Retail
      - Healthcare
      - Automotive
      - Others

Third-party Logistics Market Dynamics

Driver: Increased Focus On Core Business Activities

Catering the services of a Third-Party Logistics provider allows the business to focus on its core activities such as R&D, manufacturing, and strategic planning, thereby, relieving it of the day-to-day burden of operational logistics issues. Outsourcing product fulfillment operations to a Third-Party Logistics provider provides all the benefits of an entire logistics set-up including warehousing, order processing equipment, and computer and software systems - without fixed overheads. Firms with limited in-house resources, to handle logistics, can economically manage high order volumes by outsourcing their logistics.

Catering the services of Third-Party Logistics vendors also prevents companies from taking recourse and splitting their in-house operations into several in-house sites, which may not be economical, resulting in Third-Party Logistics vendors using the latest IT software and applications that enhance the distribution coverage and provide quality services to the customers. Omni-channel distribution has gained prominence over the last five years, primarily due to the increased use of online marketing. Third-Party Logistics providers assist their partners to promptly locate and deliver products to the consumers, irrespective of the channel, using their expertise.

Driver: Reduced Cost of Shipping Through Third-Party Logistics

Third-Party Logistics services greatly reduce the cost of shipping, especially, for companies that engage in bulk shipments regularly. With the increasing freight rates, shippers need opportunities to pull out costs involved in the supply chain. Third-Party Logistics providers steward progression in optimizing transportation costs by prescribing effective and prompt supply chain solutions. The growth of e-commerce and entrepreneurial ventures has stoked the demand for specialized logistics and supply chain execution capabilities. Shippers benefit from contracting Third-Party Logistics services through the reduction in logistics costs, inventory costs, and fixed costs. Globalization has resulted in the outsourcing of logistics functions by several companies due to their infeasibility to manage worldwide supply chain operations. Customers desire increased services and better visibility at the same costs. Technology plays a critical role in delivering key metrics and enhancing customer experiences. Third-Party Logisticss provide improved and innovative ways to optimize the effectiveness of logistics.

Restraint: Economic Downturn

Sluggish economic growth, emphasis on costs and risk containment, and inconsistent freight volumes have adversely affected the global logistics market. The recent economic tumult has critically affected the landscape of Third-Party Logistics providers. Due to the economic decline, shippers concentrated their outsourcing requirements on a few close suppliers, resulting in several Third-Party Logisticss ceasing operations. Several economic factors influence the progress toward and maturity of the shipper-Third-Party Logistics relationships. The impact of the recession on the shipper-Third-Party Logistics relationship has led to scrutiny of costs along with choosing Third-Party Logistics partners. Many shippers are opting for contract bids with new providers and shortening their contract lengths to contain costs and leverage competition in the industry. Tepid economic activity has resulted in highly variable or neutral demand for outsourced logistics services. Thus, economic factors severely affect the profitability and future viability of Third-Party Logistics services, negatively influencing market growth.

Opportunity: The Rise of E-Commerce

The rise of e-commerce and digital phenomenon also called “The Amazon Effect”, has changed consumer expectations and buying behavior. End users are seeking unparalleled expectations in terms of convenience, cost, control, and choice. Omni-channel operation demands reliable, fast, and free shipping services, which has resulted in companies adopting a new business model to provide low-cost and on-demand delivery services. Third-Party Logistics companies embrace various modifications in supply chain management to address the notable transformations and challenges that e-commerce presents. Third-party logistics companies are shifting their focus from long-haul delivery to just-in-time delivery. The suppliers are also transitioning from multiple storage facilities to a single warehouse location. To accommodate an increase in last-mile delivery, Third-Party Logistics companies invest in smaller trucks and vans, which can support shorter and more frequent deliveries. In the coming years, last-mile delivery is presumed to be one of the key areas of focus for logistics companies.

What Does This Report Include?

This section will provide insights into the contents included in this third-party logistics market report and help gain clarity on the structure of the report to assist readers in navigating smoothly.

Third-party logistics market qualitative analysis

Industry overview
Industry trends
Market drivers and restraints
Market size
Growth prospects
Porter’s analysis
PESTEL analysis
Key market opportunities prioritized
Competitive landscape
- Company overview
- Financial performance
- Product benchmarking
- Latest strategic developments

Third-party logistics market quantitative analysis

Market size, estimates, and forecast from 2018 to 2030
Market estimates and forecast for product segments up to 2030
Regional market size and forecast for product segments up to 2030
Market estimates and forecast for application segments up to 2030
Regional market size and forecast for application segments up to 2030
Company financial performance

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