Third-party Logistics Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2016–2024

Third party logistics (abbreviation TPL or 3PL) in a supply chain management or logistic is an outsource service provider company. The increasing globalization for trade offers a worldwide networking platform for manufacturing companies. To keep up the productively, the demand for third party logistics companies is raised by production companies. The increasing e-commerce industry become one of the major river for the growth of global third party logistics market in the most recent couple of years. In 2016, the global B2C ecommerce market generated revenue of US $2.1 trillion up from US$ 1.8 trillion in 2015 and is expected to reach up to US $2.4 trillion by the end of 2017. The e-commerce companies which adopted the online platform to sell their products and not all have their own logistics services. The increasing number startups in this industry, majorly not able to afford their own logistics services have increased the demand for third party logistic service companies. Moreover, the convenience of shopping online for the consumers have also increased the demand for the third party logistic services in e-commerce industry. Hence, this will remain a key factor for the third party logistics market as the emerging economies are expected to increase the ecommerce industry in the next few years provides a growth opportunity to the third party logistics market. In addition to this, the increasing fall in shipping rates further drives growth of the global third party logistics market.

Third party logistics market taxonomy

On the basis of service type, the global third party logistics market is classified into:

  • Dedicated Contract Carriage
  • Domestic transportation management
  • International transportation management
  • Warehouse & distribution management
  • IT service and logistics software

On the basis of mode of transportation, the global third party logistics market is classified into:

  • Waterways
  • Airways
  • Railways
  • Roadways

On the basis of end users, the global third party logistics market is classified into:

  • Manufacturing
  • Retail
  • Healthcare
  • Automotive
  • Others

Third Party Logistics Market Outlook – Asia Pacific holds the largest market of the global third party logistics market.

On the basis of geography, global third party logistics market is classified into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. Asia Pacific holds the dominant position in the global third party logistics memory market in 2016 and is projected to retain its dominance throughout the forecast period. The increasing disposable income and rising investment by e-commerce leaders and increasing internet penetration have increased the e-commerce industry in the emerging economies such as India and China. This helps to increase the market for third party logistics in the Asia Pacific region. In addition to this, North America also holds the largest share of the third party logistics market due to increasing demand from automotive industry and ecommerce sector. The U.S. and Canada are the major countries which derive the North America region. The rising demand for low cost services and rapid delivery services have surge the third party logistics market in the U.S. 

Key companies of global third party logistics market

AmeriCold Logistics LLC, BDP International, Burris Logistics, C.H. Robinson Worldwide, CEVA Logistics, DB Schenker Logistics, DHL Supply Chain, FedEx, GEODIS, J. B. Hunt, Kintetsu World Express, Inc., Landstar System, Inc., Nippon Express Co., Ltd, Panalpina World Transport Ltd., Ryder Supply Chain Solutions, Schneider National, Inc., SinoTrans (HK) Logistics Limited, Total Quality Logistics, Inc., Transplace Texas LP, Unyson Logistics, Inc., UPS Supply Chain Solutions, XPO Logistics, Inc. are some of the key companies of the global third party logistics market.

Research Methodology

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  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.

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Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
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Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

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  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.
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Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization:

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

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Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

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  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

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  • Manufacturers
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  • Distributors
  • End-users

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