Third party logistics (3PL) service providers help manage procurement, distribution, inventory, transportation, warehousing, and fulfillment services for various industries. 3PL services aid in optimizing supply chain operations and reducing logistical costs for businesses.
The global Third Party Logistics Market is estimated to be valued at US$ 1.63 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising focus of organizations on streamlining their supply chain operations has accelerated the demand for 3PL services over the past few years. 3PL providers help companies manage logistics more efficiently by offering flexible solutions tailored to their specific industry and business needs. They utilize advanced technologies and data analytics to optimize inventory levels, transport fleet management, and deliver superior customer service. This has enabled various industries to redirect their capital and resources towards their core business areas. The trend is expected to continue driving market growth over the forecast period.
Segment Analysis
The third party logistics market is segmented into transportation, warehousing, value-added services, and other services. The transportation segment dominates the market and accounts for over 45% of the global revenue share. High dependency of industries on transportation services for delivery of raw materials and finished goods from one place to another has resulted in the rapid growth of this segment over the years. Advancements in technologies and emergence of transportation management systems has also contributed significantly to the growth of this segment.
Key Takeaways
The Global Third Party Logistics Market Size is estimated to be valued at US$ 1.63 Mn in 2023 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031.
Regional analysis related content: North America accounts for the largest share of over 35% of the global third party logistics market. Well established logistics infrastructure, presence of major 3PL service providers, and growth of industries like e-commerce in the region have boosted the demand for third party logistics services. Asia Pacific is expected to witness the fastest growth during the forecast period owing to industrialization and growth in international trade in developing economies of China and India. Rapid expansion of manufacturing capabilities and consumer goods industries in Asia Pacific is surging the requirements for efficient logistics services.
Key players
Key players operating in the third party logistics market are Johnson Controls (including ANSUL), Solberg (a division of Amerex Corporation), Dr. Sthamer, National Foam (a part of Kidde-Fenwal, Inc.), Eau&Feu, Dafo Fomtec AB, ICL Performance Products, KV Fire Chemicals, Auxquimia & Angus Fire. Johnson Controls dominates the market by leveraging its strong global presence and wide range of fire protection solutions for various end use industries. Solberg and National Foam have a significant market share in North America owing to their leadership in innovation and formulation of effective firefighting foam products.
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