by The global Third Party Logistics Market is estimated to be valued at US$ 1.41 Mn in 2023 and is expected to exhibit a CAGR of 8.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Third party logistics involves managing supply chain activities such as transportation, warehousing, freight and forwarding, and distribution for various industries through contractual agreements. It helps companies focus on their core business activities and gain access to flexible logistics services in a cost efficient manner. With rising global trade and demand for reduced inventory costs, third party logistics services have become crucial for businesses in transporting raw materials and finished goods across borders.
Market key trends:
One of the key trends in the third party logistics market is growing investments in logistics infrastructure development. Governments across major economies are investing heavily in modernizing transportation networks such as roads, railways, airports and seaports. This is helping connect manufacturing hubs with domestic and international markets more efficiently. Furthermore, third party logistics providers are leveraging advanced technologies such as IoT, AI and blockchain to optimize operations, enhance tracking of shipments and provide value added services to clients. Adoption of automated solutions is also helping reduce costs and improve service quality.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the logistics industry requires high capital investment and established networks. New entrants face economies of scale of existing players.
Bargaining power of buyers: The bargaining power of buyers is high as there are many third party logistics providers. Buyers can negotiate prices down by playing providers against each other.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many providers who are able to deliver logistics services without relying on specific suppliers.
Threat of new substitutes: The threat of new substitutes is moderate as there are limited substitutes available for third party logistics. However, in-house logistics can be a substitute.
Competitive rivalry: Intense as competition is based on technology, price and services.
Key Takeaways
The global Third Party Logistics Market Growth is expected to witness high growth, exhibiting CAGR of 8.8% over the forecast period, due to increasing demand for improved supply chain efficiencies and risk management. The market size is expected to reach US$ 2.58 Tn by 2030.
Regional analysis: Asia Pacific is expected to grow at the fastest rate due to growing manufacturing and e-commerce industries in emerging economies like China and India. North America is anticipated to dominate the market over the forecast period due to strong presence of leading players and increasing demand for inventory management and warehouse automation.
Key players operating in the Third Party Logistics market are DSV, a.p. moller – maersk, United Parcel Service of America, Inc., XPO Logistics Inc., DHL International GmbH, Kuehne+Nagel Inc., Geodis, FedEx Corporation, C.H. Robinson Worldwide, Inc., db schenker. Key players are focusing on developing innovative supply chain solutions and digital technologies to enhance operational efficiencies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
