(Third Party Logistics) 3PL market size is forecast to reach USD 1,029.47 billion till 2022, as per a new research report by Global Market Insights, Inc. Emphasis on core activities along with cost effectiveness is likely to spur global demand.
International Transportation Management (ITM) was the foremost service segment and was valued at USD 255.19 billion in 2014. It is likely to observe considerable gains, with approximation of USD 338.91 billion by 2022 at a CAGR of 3.7% from 2015 to 2022. Increased supply chain management and continued growth in global economic activity have led to substantial increase in demand. W&D was valued at USD 161.95 billion in 2014, and is likely to arrive at USD 213.82 billion by 2022, at an estimated CAGR of 3.6% through the forecast timeframe.
3PL providers have made their presence felt on social media to enhance customer engagement. Green logistics has been adopted by prominent logistics service providers to address growing environmental concerns. Route & load optimization and efficient packaging are some of the measures undertaken as a part of the green logistics initiative. Omni-channel distribution popularity can be credited to wide deployment of online marketing.
Key insights from the report include:
- Global third party logistics market revenue was USD 733.69 billion in 2014, with estimation of USD 1,029.47 billion by 2022, growing at 4.4% from 2015 to 2022.
- Global demand in DTM was USD 238.90 billion in 2014 and is predicted to hit revenue of USD 361.84 billion by 2022, growing at a CAGR of 5.4% from 2015 to 2022. Logistics software market is expected to grow at 6.5% during the next few years.
- Asia Pacific 3PL market size leads the regional demand with revenue share of 35.2% in 2014 and is expected to grow at 5.2% through the next few years. The region is predicted to exhibit high growth rate owing to increasing adoption of distribution and warehousing facilities in nations such as China, Thailand, India, Singapore and Indonesia. North America is anticipated to reach USD 265.40 billion up to 2022.
- Moderately fragmented 3PL market share consists of participants including C.H. Robinson, Expeditors International of Washington, Kuehne + Nagel, J.B. Hunt, Deutsche Post DHL (Exel), and UPS Supply Chain Solutions among others.
- A majority of providers target intensely competitive industries such as automotive, retail, computers, and electronics where margins are very low. Some partner with firms providing detailed supply chain collaboration services. Leading players also collaborate with other companies including competitors for achieving logistics cost and service improvements.
- Inventory management through virtualization and flexible distribution strategies, enable retailers offering omni-channel functionality to quickly respond to dynamic market demand
About Global Market Insights:
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.