According to our latest market study on "Third party logistics Market Forecast to 2030 – Global Analysis – by Mode of Transport, Services, End-user," the market is expected to grow from US$ 1273.11 billion in 2022 to US$ 1929.18 million by 2030; it is anticipated to register a CAGR of 4.9% from 2022 to 2030.
The Third party logistics market share in Europe is segmented into France, Germany, Italy, Russia, the UK, and the Rest of Europe. In Europe, the factors that are driving 3PL market are increased interest of customers in outsourcing a wider range of logistics services. Along with this, continual growth in internationalization are expected to deliver substantial growth opportunity to the industry players in this region. The highly outsourced 3PL services in this region are transportation, inventory management, and warehousing. Though, the main challenges faced by the European 3PL providers are gaining profits with price pressure from customers, distributing services in new geographies, and delivering newest technology to customer. In 2018, European Union has implemented the General Data Protection Regulation (GDPR), which is applicable form the 25th May 2018 and this regulation may act as a challenge for the logistic industry in order to manage the data. GDPR is European Union’s act for data protection for the companies which are based in Europe as well as for the companies that are based outside Europe 7 doing business in collaboration with European based companies. In 2022, Deutsche Bahn invested approximately US$ 15 billion to modernize and renew Germany's rail infrastructure, a US$ 1000 million increase over last year.
DHL Logistics, CEVA Logistics, and Kuehne + Nagel are among the players operating in the Europe third party logistics market. For instance, In 2020, DB Schenker expanded its activities near cargo center at Luxembourg Airport. It is one of the largest airport in Europe. This new 7,000 m² logistics center help the company to link its European and global network.
Key Findings of Market Study:
The services offered by 3PL firms add substantial value to the manufacturing companies. These firms help different companies to reduce weak points that outcomes in loss of revenue or profits and further help to assure maximal profitability. Based on the service segment, Domestic Transportation is dominating the Global Third Party Logistics Market. Domestic 3PL provides their clients with the similar quality of services that internationally located 3PL companies’ offers to their clients. The technological advancement in 3PL system allow to deliver superior services to the clients irrespective of international or domestic. Railway mode of transport is also generating lucrative opportunities in the Global Third Party Logistics Market. The railways segment plays a vital role in 3PL services, particularly for long-distance and intercontinental transport, where it excels in moving bulk commodities and containers. It provides cost-effective and environmentally friendly solutions for clients with time-insensitive cargo. Based on end-user segment, Healthcare category is expected to account for highest market growth during the forecast period. Healthcare supply chain expenses in the US are often greater than those in other sectors. Nearly 20–30% (i.e., $760 billion to $1.14 trillion) of hospital operations are spent on the supply chains that transport drugs, medical equipment, and consumables to the receiving docks of more than 7,000 hospitals countrywide. Developing countries such as China, India, Japan and South Korea are expected to create lucrative opportunities during the forecast period. India had the second-highest growth rate among the G20 nations and nearly doubled that of emerging market economies. Strong public infrastructure investment, high domestic demand, and growing financial sector all contributed to resiliency. As a result, the country's logistic industry grew significantly. Further, South Korea's e-commerce business is worth more than KRW 60 trillion (US$ 55.7 billion) every year. As a result, the opportunities for the logistics service provider are increasing rapidly. The country would aid the logistics industry's digital transition and relax laws governing the construction of logistics hubs in metropolitan areas. Moving ahead, advanced technology is offering in-depth reporting and analytic capabilities, which can assist in boosting a company's confidence in a 3PL supplier and drastically reduce the overall production and distribution costs. In such a customer-centric business, offering the highest level of service is crucial to success, and having skilled labor is critical to staying competitive. However, getting qualified personnel has become a greater challenge for 3PLs in recent years. According to Inbound Logistics' survey, 60% of survey respondents in 2018 identified locating, training, and retaining qualified employees as a concern.
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