The global third-party logistics market size is expected to reach USD 1.56 trillion by 2027, registering a compound annual growth rate (CAGR) of 8.3% from 2020 to 2027, according to a new report by Grand View Research, Inc. The advent of new technologies is changing the Third-party Logistics (3PL) industry dynamics. The advanced data collection capabilities, warehouse automation, and digitalization of the entire supply chain are enabling companies to adopt a consistent innovative, customer-centric, and agile approach. As a result, 3PL companies are providing technologically driven services by investing in block-chain solutions, mobile technologies, and 3PL software to gain a competitive advantage in a fiercely competitive marketplace.
The internet of things (IoT) and cloud-based logistics management solution turn the data into actionable value-added information, which can shape the strategic decision-making process and increase productivity. Some of the capital-intensive organizations are increasing their Information Technology (IT) spending and are using predictive analytics for supply chain enhancement. For instance, C.H. Robinson Worldwide (CHRW) Inc. is using artificial intelligence (AI) technology to analyze the customer data and get notified about extreme weather conditions or traffic disruption.
Logistics automation is expected to play a vital role in the growth of the third-party logistics market. The use of robots in warehouses and unloading docks help to streamline order fulfillment services. The use of automated guided vehicle (AGV) can help to lessen the human errors, resolve material handling issues, ensure movement of high-volume goods, and increase accuracy and repeatability. In order to deliver immediate value and long-term returns, companies are widely accepting logistics automation.
The value-added logistics services are expected to witness the highest growth rate over the forecast period. The 3PL companies are offering comprehensive logistics services to ensure their competitiveness of the business. Shippers are reducing their operational costs by shifting their focus from transportation and back-office functions such as warehousing, order taking and picking process, kitting and final assembly, product localization, and labeling. Thus, the value-added logistics services are becoming the boon for the shippers to mitigate inventory and transportation costs.
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The 3PL companies are emphasizing value-added logistics services to unveil their unique capabilities and provide enhanced customer experience, facilitating the strong growth of the segment
Logistics is the backbone of the retail sector. The steady growth of the sector is expected to provide lucrative opportunities for 3PL companies
Globalization, along with sustainable economic growth, is expected to drive the growth of airways logistics mode over the forecast period
Asia Pacific is anticipated to register the highest CAGR of over 10.0% from 2020 to 2027 owing to the growing transport infrastructure and effective transit of freight and goods among emerging countries
Grand View Research has segmented the global third-party logistics market on the basis of service, transport, end use, and region:
Third-party Logistics Service Outlook (Revenue, USD Billion, 2016 - 2027)
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, 2016 - 2027)
Third-party Logistics End-use Outlook (Revenue, USD Billion, 2016 - 2027)
Third-party Logistics Regional Outlook (Revenue, USD Billion, 2016 - 2027)
List of Key Players in the Third-party Logistics Market
C.H. Robinson Worldwide (CHRW) Inc.
DSV Panalpina A/S
DB Schenker Logistics
J.B. Hunt Transport Services, Inc.
Kuehne + Nagel International AG
Nippon Express Co., Ltd.
UPS Supply Chain Solutions, Inc.
XPO Logistics, Inc
Yusen Logistics Co. Ltd. (Nippon Yusen)
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