The total size of the third-party logistics market was USD 1,096 billion in 2023, which will power at a rate of 8% by the end of this decade, to touch USD 1,870.4 billion by 2030. The key drivers for the of the industry are globalization and growth of the e-commerce sector.

IoT, blockchain, and AI, have augmented security by allowing instantaneous tracking and guaranteeing smoother and more-effective processing of these kind of operations. Militaries also now make use of this approach as they get a more-advanced method for expertly transferring resources to areas where they are prominently required.

The roadways category was the leader of the pack, with a share, of about 45%, in 2023, as this mode provides accessibility, flexibility, actual product manufacturers, and cost-efficacy for logistics companies, and end customers. The widespread road network in all regions and the high requirement for last-mile deliveries make a substantial contribution to this category’s dominance.

IoT allows systematic management of the shipment, helping service providers to keep a track of the inventory while on the move. It also offers analytics, which directs the selection of placement and precision of inventory.

It provides access to 3PL companies for anticipating seasonal inventory builds and similarly supports in routing transport automobiles for ensuring the least damage possibility for fragile goods. Integrated supply chains have generated solutions for improved visibility, transparency, and answerability, crucial for global supply chains, becoming more and more complex.

North America leads the third-party logistics market, with a share of around 50%, in 2023. The region has a has a highly sophisticated logistics infra, and companies are continuously investing in warehouse management systems, transportation management systems, and real-time tracking solutions.

The fastest growth in terms of region was with the APAC with 8.5% by the end of this decade. The location of the region makes it a trade hub. Therefore, with more international trade happening within the APAC countries, 3PL service providers have a lot of opportunities in the region.

The domestic transportation management will have the fastest CAGR of around 8.4% in the future, powered by the incessant growth in e-commerce sales. The effect of the pandemic led to a shift in consumers’ requirements to same-day deliveries. Domestic transportation management contributes to an important and dynamic supply chain, strengthening 3PL providers. Regarding this, the convergence of novel market policies, technologies, and consumer requirements has boosted the industry growth at a greater pace than before.

It is because of the development of e-commerce industry all over the world, the demand for third-party logistics is on the rise. This trend will continue in the years to come as well.

Source: P&S Intelligence