Third-Party Logistics Market

Third-party Logistics Market Outlook (2024 to 2034)

The global third-party logistics market has been valued at US$ 1.2 billion in 2024, as revealed in the recently updated industry report by Fact.MR. Worldwide demand for third-party logistics solutions is projected to reach a market value of US$ 2.5 billion by 2034, registering a CAGR of 7.6% from 2024 to 2034.

Growing preference for third-party logistics services is attributed to the spread of the manufacturing network, which requires a safe and reliable way of delivering or stocking products.

Constant advancements in information technology are projected to contribute to the third-party logistics market growth as it is cost-effective and ensures reliability. Companies operating in the global market are offering long-term/short-term warehousing solutions, insurance, cross-country freight, etc. The growing e-Commerce sector and digitalization are estimated to positively affect market growth as companies require a strong network for safe warehousing and suppliers.

Leading market players are emphasizing offering technology-driven services, including real-time shipment tracking, route optimization, etc. They are also concentrating on maintaining visibility over the complete supply chain without burdening respective clients.

• Worldwide demand for third-party logistics services in the retail sector is calculated to increase at 7.6% CAGR and reach a market value of US$ 623.3 million by 2034.
• East Asia is forecasted to hold 26.5% share of global market revenue by 2034-end.
• The market for third-party logistics solutions in South Korea is forecasted to accelerate at a CAGR of 9% from 2024 to 2034.

Strengthened shipper-carrier relationships are estimated to increase transparency and information sharing between both parties, thus creating a favorable business environment. The availability of custom distribution programs and temperature-controlled storage programs through logistic technology is forecasted to offer customized solutions. In addition, improved agility in these services in execution with cost-effectiveness is expected to lead to their increased preference in the coming decade.

Report Attribute	Detail
Third-party Logistics Market Size (2024E)	US$ 1.2 Billion
Forecasted Market Value (2034F)	US$ 2.5 Billion
Global Market Growth Rate (2024 to 2034)	7.6% CAGR
Market Share of International Transportation Management Services (2034F)	30.2%
North America Market Share (2034F)	20.9%
Japan Market Growth Rate (2024 to 2034)	8.9% CAGR
Key Companies Profiled	DSV; Kuehne + Nagel; J.B. Hunt Transport, Inc.; Yusen Logistics Co. Ltd.; DB Schenker Logistics; Nippon Express; Burris Logistics; XPO Logistics, Inc.; CEVA Logistics; FedEx; United Parcel Service of America, Inc.; C.H. Robinson Worldwide, Inc.; BDP International.

Why Key Market Dynamics are Contributing to Increased Preference for Third-party Logistics Services?

“Increasing Trading Activities with Rising Globalization”

Constantly increasing globalization is contributing to the significant importance of trade. Market dynamism is estimated to make it challenging for manufacturers to keep track of transportation activities, therefore a growing preference has been given to third-party logistics services in recent years. In addition, constant advancements taking place in the overseas market are also projected to contribute to the expanding third-party logistics market size.

Complexities in custom rules & regulations in international documentation require effectiveness for handling supply chain activity, thus SMEs (small & medium enterprises) are leveraging third-party logistics services. Furthermore, an expansion of the e-Commerce platforms is estimated to positively influence third-party logistics market trends, enhancing their importance.

What Roadblocks are Providers of Third-party Logistics Services Encountering?

“Lack of Direct Control for Service-Seeking Companies”

Manufacturing companies depend on third-party logistics services for their competency, which is leads to the absence of direct control. The inability of manufacturers to monitor operations at warehouses is forecasted to adversely impact product quality. Further, disruption of transportation and delays in customs clearance are some other factors limiting demand for third-party logistics services.

How are New Companies Forecasted to Fare in This Competitive Business Space?

“Startups Will Do Well by Giving Emphasis to More Effective Services”

New market players are expected to invest in R&D activities conducted to offer more efficient third-party logistics services to ensure operational efficiency during product transportation. In addition, they are anticipated to focus more on minimizing chances of delay in shipment to avoid unnecessary waiting time and gaining the trust of respective end users.

Some advanced technologies, including artificial intelligence, predictive analytics, blockchain, etc., are adopted by service providers. This is estimated to enhance visibility, streamline supply chain operations, and optimize the overall effectiveness of service providers.

Country-wise Insights

As per the updated study by Fact.MR, a market research and competitive intelligence provider, East Asia is approximated to capture a 26.5% share of global market revenue by 2034. Constant development in logistic infrastructure and increasing emphasis on transportation practices in potentially high growth countries are expected to increase demand for third-party logistics solutions.

What’s Benefitting Third-party Logistics Solution Providers in the United States?

“High Demand for Cold Storage Facilities in the Country”

Attribute	United States
Market Value (2024E)	US$ 223.3 Million
Growth Rate (2024 to 2034)	6.4% CAGR
Projected Value (2034F)	US$ 415.3 Million

The United States is evaluated to hold 79.7% share of the North American market share by the end of 2034. There are some leading market players present in the country, which is anticipated to strengthen the country’s position in the region. UPS Supply Chain Solutions Inc., Expeditors International of Washington, Inc., and Robinson Worldwide Inc. are some of the well-known market players operating in the United States. Furthermore, increasing requirements for cold storage are estimated to augment market growth in the country.

Why is Demand for Third-party Logistics Services High in China?

“Concentration on Sourcing and Manufacturing Products in Multiple Industries”

Attribute	China
Market Value (2024E)	US$ 257.1 Million
Growth Rate (2024 to 2034)	6.7% CAGR
Projected Value (2034F)	US$ 493.6 Million

China is calculated to possess a share of 74.7% of the market in East Asia by 2034-end. The growing focus on sourcing and manufacturing products in the country is estimated to lead to a strategic shift in the pharmaceuticals, automotive, and technology sectors. This shift is anticipated to contribute to the rising demand for third-party logistics services for the effective operation of storage and transportation of products.

Category-wise Insights

Increasing demand for third-party logistics services for roadways is owing to the growing emphasis on supply chain infrastructure. Moreover, the rising public-private partnerships model for offering more effective road transportation facilities, which is also contributing to the growing preference for third-party logistics services.

Which End-use Industry Gives High Preference to Third-party Logistics Services?

“Flourishing Retail Sector Driving Demand for Outsourced Logistics Services”

Attribute	Retailing
Segment Value (2024E)	US$ 298.7 Million
Growth Rate (2024 to 2034)	7.6% CAGR
Projected Value (2034F)	US$ 623.3 Million

The retailing sector is expected to occupy 25% of the third-party logistics market share by the end of 2034. The sector is estimated to experience an increase in outsourced logistics activities, which is contributing to global market growth. Various benefits of these activities, including enhanced customer services, business process development, reduced transportation cost, and chain visibility are resulting in their surging preference, which is further creating remunerative growth opportunities in the global market in the coming 10 years.

Which Third-party Logistics Services are Becoming More Popular?

“International Transportation Management Facilities Procuring Significant Market Share”

Attribute	International Transportation Management
Segment Value (2024E)	US$ 396.7 Million
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 753.4 Million

Third-party logistics facilities for use in international transportation management are forecasted to account for a share of 30.2% of the global market by 2034. The growing popularity of e-Commerce platforms and increasing economic activities are contributing to the rising demand for third-party logistics services. Trade liberalization policies, cross-border logistics, and FTAs (Free Trade Agreements) are estimated to lead to an increase in international transportation services, which are widening the application scope of third-party logistics services.

Competitive Landscape

Prominent market players are adopting various strategies for expanding their global reach. Multiple methods, including partnerships, collaborations, acquisitions, etc., are adopted by market players to secure the forefront position. Investment in new product development is also estimated to help service providers get a competitive edge over competitors.

For instance :

• CEVA Logistics, in January 2022, announced its strategy to expand its reach in Europe and Middle East & Asia. The company updated the existing services and rolled out certain new services. Presently, Turkey is in the network of the company as it offers daily connection facilities between Halkali Terminal and Duisburg in Germany with its equipment. In addition, it also offers a block train solution linking Germany and Vietnam through China with weekly trips.

Fact.MR provides detailed information about the price points of key players in the third-party logistics market positioned across the world, sales growth, production capacity, and speculative technological expansion, in the recently updated market report.

Segmentation of Third-party Logistics Market Research

• By Service :

  • Value-added Logistics Services (VALs)
  • Domestic Transportation Management (DTM)
  • Warehousing & Distribution (W&D)
  • International Transportation Management (ITM)
  • Dedicated Contract Carriage (DCC)/Freight Forwarding

• By End-use Industry :

  • Retailing
  • Technological
  • Automotive
  • Healthcare
  • Food & Groceries
  • Elements
  • Industrial
  • Consumer Goods

• By Transport :

  • Airway
  • Railway
  • Roadway
  • Waterway

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA