Covid-19 Impact on Third-party Logistics Market Size to surge at 8.3% CAGR is expected to reach $1.56 Trillion in 2027

Third-party Logistics Market Growth & Trends

The global third-party logistics market size is expected to reach USD 1.56 trillion by 2027, registering a compound annual growth rate (CAGR) of 8.3% from 2020 to 2027, according to a new report by Grand View Research, Inc. The advent of new technologies is changing the Third-party Logistics (3PL) industry dynamics. The advanced data collection capabilities, warehouse automation, and digitalization of the entire supply chain are enabling companies to adopt a consistent innovative, customer-centric, and agile approach. As a result, 3PL companies are providing technologically driven services by investing in block-chain solutions, mobile technologies, and 3PL software to gain a competitive advantage in a fiercely competitive marketplace.

The internet of things (IoT) and cloud-based logistics management solution turn the data into actionable value-added information, which can shape the strategic decision-making process and increase productivity. Some of the capital-intensive organizations are increasing their Information Technology (IT) spending and are using predictive analytics for supply chain enhancement. For instance, C.H. Robinson Worldwide (CHRW) Inc. is using artificial intelligence (AI) technology to analyze the customer data and get notified about extreme weather conditions or traffic disruption.

Logistics automation is expected to play a vital role in the growth of the third-party logistics market. The use of robots in warehouses and unloading docks help to streamline order fulfillment services. The use of automated guided vehicle (AGV) can help to lessen the human errors, resolve material handling issues, ensure movement of high-volume goods, and increase accuracy and repeatability. In order to deliver immediate value and long-term returns, companies are widely accepting logistics automation.

The value-added logistics services are expected to witness the highest growth rate over the forecast period. The 3PL companies are offering comprehensive logistics services to ensure their competitiveness of the business. Shippers are reducing their operational costs by shifting their focus from transportation and back-office functions such as warehousing, order taking and picking process, kitting and final assembly, product localization, and labeling. Thus, the value-added logistics services are becoming the boon for the shippers to mitigate inventory and transportation costs.

Request a free sample copy or view report summary:
Third-Party Logistics Market Report

Third-party Logistics Market Report Highlights

• The 3PL companies are emphasizing value-added logistics services to unveil their unique capabilities and provide enhanced customer experience, facilitating the strong growth of the segment
• Logistics is the backbone of the retail sector. The steady growth of the sector is expected to provide lucrative opportunities for 3PL companies
• Globalization, along with sustainable economic growth, is expected to drive the growth of airways logistics mode over the forecast period
• Asia Pacific is anticipated to register the highest CAGR of over 10.0% from 2020 to 2027 owing to the growing transport infrastructure and effective transit of freight and goods among emerging countries