The global third party logistics market is valued at US$ 805.4 million in 2017 and is estimated to reach US$ 1,240.0 million by 2025, growing at a CAGR of 5.6% during 2018 to 2025. Asia-Pacific is the leading revenue generating region in 2017 with China and Japan being the leading countries in this region. This growth in demand for 3PL in this region is attributed to robust economic growth and dynamic business environment along with growing retail enactment owing to the rising disposable income. Moreover, foreign manufacturers prefer Asian countries as their production locations due to the availability of cheaper labor.
In Asia-Pacific, rapid economic development, fast growth in e-commerce sector, and rise in foreign direct investment are boosting the third party logistics market. Asia-Pacific comprise of large number of 3PL providers along with the intense competition owing to the rising demand for 3PL services. This attracted several non-asset-based 3PL entrants and encouraged existing players to expand their geographic reach with broad service portfolio.
Asia-Pacific is showing a greatest traction for e-commerce owing to cross-border purchasing and growth in consumer spending. In 2018, the expansion of logistics warehouse space in China is recorded owing to the continued demand. In last few years, China’s retail sales have increased at a faster rate due to the rapid growth in middle class population. In 2015, China was accounted for 43% of the global online sales volume which was around US$ 666 Bn.
Logistic industry can be considered as the wheel of globalization and competitive product availability for the increase in number of global consumers. 3PL is a significant part of today’s supply chain for small and large businesses. These firms provide services such as international & domestic transportation, inventory management, warehousing, distribution, order fulfilment, and freight consolidation. By outsourcing 3PL services, manufacturing companies are able to focus on product development, sales, and other core operations. 3PL offers immediate knowledge & expertise in the field, track on international logistics, and create cost savings.
The key players profiled in the third party logistics market report are Deutsche Post DHL Group, Kuehne + Nagel International AG, Nippon Express Co., Ltd., DB Schenker, C.H. Robinson, DSV, XPO Logistics, Sinotrans, GEODIS, and UPS Supply Chain Solutions.