Third-party Logistics Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis, 2018-2026

  • To Be Published : Nov 2018 |
  • Format : CMI Insight PPT Format CMI Insight PDF Format

Third party logistics (TPL or 3PL), is a service provider outsourced by a company in a supply chain management or logistic. Increasing globalization for trade offers manufacturing companies with a worldwide networking platform. Companies majorly focus on keeping up with their productivity, and thus rely on third party logistics to suffice their transportation and packaging. This in turn, has driven growth of the market for third part logistics. Growing e-commerce industry is one of the major drivers for growth of the global third party logistics market. For instance, in 2016, the global B2C ecommerce industry generated revenue of US$ 2.1 trillion, from US$ 1.8 trillion in 2015, and is expected to reach up to US$ 2.4 trillion by 2017. Several e-commerce companies that have adopted the online platform to sell their products do not have their own logistics services. This also contributes to the increased demand for TPL. Increasing number of startups, generally are unable to afford their own logistics services, thus increasing the demand for third party logistics. Moreover, the convenience of shopping online, is increasing adoption of online shopping by several customers worldwide, which in turn, is expected to fuel growth of the third party logistic services in e-commerce industry.

Third Party Logistics Market Taxonomy

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

  • Waterways
  • Airways
  • Railways
  • Roadways

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

  • Manufacturing
  • Retail
  • Healthcare
  • Automotive
  • Others

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

On the basis of geography, global third party logistics market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. The market in Asia Pacific held a dominant position in the global third party logistics market in 2016 and is projected to retain its dominance throughout the forecast period. Increasing disposable income and rising investment by e-commerce leaders and increasing internet penetration are leading to the rapid growth of the e-commerce industry in emerging economies such as India and China. This, in turn, is expected to boost growth of the market for third party logistics in the Asia Pacific. North America also holds a largest share of the third party logistics market, owing to increasing demand for TPL in the automotive and ecommerce sectors. The U.S. and Canada are the major growth engines for the market in the region. Rising demand for low cost services and rapid delivery services is also responsible for fueling the third party logistics market, in the U.S. 

Key companies of global third party logistics market

Key players operating in the third party logistics market include 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, and XPO Logistics, Inc.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • 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.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

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:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • 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:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

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:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • 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:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users

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