The global 3pl market size is estimated to be valued at USD 865 billion in 2018Posted by Alex Werner on February 5th, 2018 Global Third Party Logistics Market – 3PL Industry Size Analysis Third Party Logistics (3PL) is defined as outside Logistics Company that performs all or a part of firm’s material management and product distribution functions. This is also known as contract logistics. Global Third Party Logistics Market Drivers and Challenges As of 2017, total logistics activity accounts for nearly 18% to 23% of finished products and is expected to further increase with rise in global trade volume. According to the World Trade Organization (WTO), world trade is growing at 3% to 5% each year. In absolute terms, this represents huge market opportunity for engaged industry verticals including logistics and 3PL. Free trade agreement (FTA) is expected to further boost 3PL market. FTA in Indian subcontinent is expected to create higher incremental opportunity for industry players. 3PL providers are actively leveraging digital mode such as cloud service to make their service cost effective yet reliable. This has certainly led to supply chain optimization. Though the industry is expected to register favorable gains from growing trade volumes, geopolitical volatility could prove a major challenge to the industry especially in Middle East. However, the trend seems to be temporary in phase and would have minimal effect in near future. Logistics provider could minimize the operational risk by not investing too heavily in any single mode. Partnership could play a major role in next phase of 3PL. To know more, visit: https://bekryl.com/industry-trends/3pl-third-party-logistics-market-size-analysis Global Third Party Logistics Market Analysis, By Service By service, 3PL market will find its maximum usage in domestic service management followed by international transportation management. Collectively, these two services accounted for over 58% of total revenue. Warehousing distribution is expected to register fastest CAGR and will grow by 2.7X during the forecast period. Global Third Party Logistics Market Size and Forecast: Regional Analysis Asia Pacific will lead the global 3PL market not only in terms of value but also growth rate. The growth in the region will be driven by huge amount of trade flow occurring in China and South East Asia including Indian Subcontinent. 3PL Companies are expanding their business presence in China and India to gain higher ROI and strengthen their market position. Various investment were seen in last 10 years in Asia. For instance, in 2017, Lalamove raised USD 100 million investment from China under Series C funding. The company has over 2 million drivers across 50 cities in mainland China and six in South East Asia. Another major company GoGoVan with over 180,000 registered drivers, having freight operations in 14 cities across Asia Market, has agreed to merge with 58 Suyun to gain higher control over China third party logistics market. In Western Europe, Germany accounted for majority of the market share. The region is expected to register a CAGR of 4.5% between 2018 and 2028. North America 3PL market stands next to Europe, accounting for over 18% of global third party logistics industry share in 2017. The region is expected to further lose the market share with shift in global trade towards Chin and other part of Asia Pacific. C.H. Robinson dominates the regional market followed by XPO Logistics and UPS Supply Chain Solutions. Global Third Party Logistics Market Size and Forecast: Competition Landscape 3PL industry is highly fragmented. Some of the key third party logistics market industry players are C.H. Robinson, XPO Logistics, UPS Supply Chain Solutions, GoGoVan, Lalamove, DB Schenker Logistics, SNCF Logistics, J.B. Hunt Transport, Hub Group, Panalpina, Landstar, Coyote Logistics, Burris Logistics, and Ryder Supply Chain Solutions. For any other queries reach out to us at: sales@bekryl.com +1 347 464 1068 Like it? Share it! More by this author |