Find Out What Trends are Driving the US$1.3 Trillion Opportunity Projected for Third Party Logistics (3PL)
The global market for Third Party Logistics (3PL) is projected to reach US$1.3 trillion by 2025, driven by the rise of e-commerce and m-commerce as the future of shopping.
Global Industry Analysts, Inc. (GIA) launches comprehensive analysis of industry segments, market trends, growth drivers, market share, size and demand forecasts on the global Third Party Logistics market. Report segmentation include Service Type (DTM, ITM, DCC/FF, W&D, and VALs); Transport Type (Roadways, Railways, Waterways, and Airways); and End-Use (Manufacturing, Retail, Healthcare, Automotive, and Other End-Uses).
10 June 10:09 A.M., California/Marketwire/ - According to the new market research report, the global market for Third Party Logistics (3PL) is projected to reach US$1.3 trillion by 2025, driven by the rise of e-commerce and m-commerce as the future of shopping. The market is expected to decline by in the year 2020 before recovering to reach a revised market size and reset to a new normal which going forwards in a post COVID-19 era will be continuously redefined and redesigned.
Few of the advantages of e-commerce over traditional retail include eliminates the cost and time associated with travelling to the store; ability to find required products quickly; enables easy comparison of multiple brands; availability of lower prices, better deals, offers, discounts and coupons; access to complete information about the product; ability to shop 24/7/365; even niche products have higher visibility and can be easily accessed. For merchants, e-commerce offers the advantage of low financial costs, investments, overheads; ability to scale target markets internationally without investing in physical offices and assets; easy to showcase products and brands; ability to provide personalized shopping experiences; easy to encourage impulse purchases and retarget or remarket to the customer; ability to process higher volumes of orders; and access to rich and valuable customer big data. A key requirement for running successful e-commerce businesses is nevertheless the ability to efficiently handle distribution, warehousing, and fulfillment operations. A key challenge in this regard however is the complexity of supply chain management against the backdrop of a scenario where maintaining profitability in an inherently tough business/economic environment requires the ability to augment logistics efficiency. This juxtaposed with the fact that logistics is the largest cost component of an online business, adoption of third party logistics (3PL) services are gaining in prominence in the e-commerce sector. Also pushing up the competitive pressure on logistics efficiency are competitive service claims such as easy and fast delivery and same day delivery.
With easy returns being the prime advantage and unique selling proposition (USP) of e-commerce, reverse logistics is emerging into a critical part of logistics. Reverse logistics complicates an already complex logistics chain. Reverse logistics process includes physical shipping of the returned product; quality testing of the returned product; and documenting quality issues with the returned product. The scenario is driving adoption of 3PL services given the unrivalled cost benefits involved in outsourcing these operations to third party service providers. Expanding breadth of 3PL service capabilities such as custom brokerage, warehousing operations, product labeling/packaging, cross-docking, order fulfillment, reverse logistics etc. is additionally encouraging service adoption rates. Availability of industry-specific, tailor-made 3PL services from established 3PL vendors will contribute towards market growth. Another factor driving growth in the market include liberalization of economies, globalization of trade, recovery in global trade and the resulting increase in imports and exports of cross-border shipment agreements with international suppliers. Other noteworthy factors include rise of the on-demand society and a parallel need for faster delivery services; skills shortage and financial burden of maintaining in-house logistics management departments, growing awareness over the benefits of 3PL such as optimal cargo turnover, distribution efficiency, superior inventory management and holistic cost economies; an increasingly connected world, digitalization boom and rising capex on logistics.
Key Competitors Covered in the Report
C. H. Robinson
Expeditors International of Washington Inc.
J.B. Hunt Transport Services Inc.
Kerry Logistics Network Ltd.
Kintetsu World Express Inc.
Kuehne + Nagel International AG
Nippon Express Co. Ltd.
Panalpina World Transport (Holding) Ltd.
Sinotrans (HK) Logistics Limited
UPS Supply Chain Solutions Inc.
XPO Logistics Inc.
Geographies Analyzed in the Report
Europe (France, Germany, Italy, United Kingdom, Spain, Russia, and Rest of Europe)
Asia-Pacific (Australia, India, South Korea, and Rest of Asia-Pacific)
Latin America (Argentina, Brazil, Mexico, and Rest of Latin America)
Middle East (Iran, Israel, Saudi Arabia, United Arab Emirates, and Rest of Middle East)
This latest edition of the research study is conducted and published by Global Industry Analysts, Inc., in close collaboration with senior executives in the industry driving strategy, business development, marketing, sales, product management, technology and operations. All analysis and findings published in the report are based on validated engagements from a total executive pool size of 8368. Among this pool, 1172 direct interactions with domain experts were carried out via our proprietary market research platform, MarketGlass. Among the 251 unique participations, a total of 113 validated responses were received as part of this report's primary research outreach program. We are unique in the industry to provide our clients with the validated list executive engagements and the complete project data stack.
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) (www.strategyr.com) is the world's only influencer driven AI powered market research company. Serving more than 41,000 clients from 36 countries, GIA is recognized for accurate forecasting of markets and industries for 33 years, offering the widest coverage of topics, geographic markets, competitive brands, and companies profiled.
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Global Industry Analysts, Inc.