The Third party logistics market was valued at US$ 1273.11 million in 2022 and is projected to reach US$ 1929.18 million by 2030; it is expected to register a CAGR of 5.33% during 2022–2030.
Surging Adoption of E-Commerce
The e-commerce ensures timely delivery and if the goods or products are returned then the company has to manage all the operations in reverse logistics. In the e-commerce business, 3PL provider deliver flexibility & scalability, upgraded technology, and efficiency & specialization. Third-party logistics is acting as a significant component of e-commerce to manage the issues of inventory, warehousing, packing, tracking, and shipping. In the e-commerce business, third-party logistics providers deliver flexibility and scalability, upgraded technology, and efficiency and specialization. The logistics requirements and services provided by the third-party logistics firms to e-commerce businesses are supply chain management, warehousing, and consolidation services, which help shipping companies in successful order fulfillment. Thus, the growing number of shipments and quality services provided by the provider are driving the third-party logistics market. Third-party logistics firms have diversified resource networks that help core companies expand quickly and efficiently in a cost-effective manner. In addition, third-party logistics can also scale resources irrespective of the volatility in inventory. As a result, third-party logistics firms can deliver adequate resources and flexibility in services for seasonal inventory or new product releases. Many businesses experience seasonal fluctuations in customer preferences, and it becomes crucial to manage such swings to maintain efficiency and cater to the demand. Third-party logistics aids seasonal businesses in benefiting from the smoother transition between market lows and highs by utilizing logistic resources. According to the survey conducted by Coyote Logistics, approximately 40% of the respondents responded that they opted for third-party logistics to increase flexibility to scale up or down.
Deutsche Post DHL Group, Kuehne + Nagel International AG, Nippon Express Co., Ltd., DB Schenker, C.H. Robinson, GEODIS S.A and XPO Inc are among the key Third party logistics market players profiled during this study. In addition, several other important Third party logistics market players have been studied and analyzed during the study to get a holistic view of the Third party logistics market and its ecosystem.