Report : Third Party Logistics Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Mode of Transport (Roadways, Railways, Waterways, and Airways), Services (International Transportation, Warehousing, Domestic Transportation, and Inventory Management), and End User (Automotive, Healthcare, Retail, and Consumer Goods); and Geography
Increasing Adoption of E-commerce to Provide Growth Opportunitiesfor Third Party Logistics Providers
According to the latest market study on “Third Party Logistics Market to 2027 – COVID-19 Impact and Analysis and Forecast by Mode of Transport (Roadways, Railways, Waterways, and Airways), Services (International Transportation, Warehousing, Domestic Transportation, and Inventory Management), and EndUser (Automotive, Healthcare, Retail, and Consumer Goods), and Geography,”the marketis estimated to reach US$ 1,329.4billionby 2027 from US$ 899.4billionin 2019. The report highlights the factorsdriving and restraining the market growth, as well as enumeratesprominent players in the market with their recent developments.
Increasing adoption of e-commerce to provide growth opportunities for Third Party Logistics providers
Third party logistics (3PL) is a significant component of e-commerce in order to manage the issues of inventory, warehousing, packing, tracking, and shipping. In contrast with retail store, the e-commerce business is accountable for ensuring timely delivery and if the products are returned, the company has to manage all the operations in reverse logistics. The logistics requirement and services provided by the 3PL firms to e-commerce business are supply chain management, warehousing, consolidation service, and order fulfillment. In the e-commerce business, 3PL providers deliver flexibility and scalability, upgraded technology, and efficiency and specialization. There are numerous benefits related to e-commerce and it can be fulfilled if the company outsource their logistics requirements to a third party service provider. This enables the e-commerce participants to perform their specialized roles.Thus, it is a reliable alternative to outsource third party organization in the e-commerce ecosystem. 3PL firms are specialized in supply chain management that allow online stores to emphasize on marketing and other business operations.
The third party logistics marketis segmented intomode of transport, services, enduser,and geography. Asia Pacific held the largest share of the third party logistics market, followed by Europe and North America,in 2019. Based on mode of transport, the third party logistics market is segmented into roadways, railways, waterways, and airways. The roadways mode of transport segment led the third party logistics market in 2019.In road transport, the vehicles are owned and managed by a third party and the transportation operations are adhered to licensing, insurance, and regulation of vehicles. The vehicle also requires documentation pertaining to maximum permissible weight in terms of gross vehicle weight and payload. In third party logistics, roadways are considered one of the feasible alternative as it ensures rapid and cost-effective transportation. However, roadways transport system is weather sensitive.
Deutsche Post AG;Kuehne + Nagel International AG;Nippon Express Co., Ltd;DB Schenker (Deutsche Bahn AG);C.H. Robinson Worldwide, Inc;DSV A/S;and UPS Supply Chain Solutions (United Parcel Service, Inc.) are among the major companies offering products in third party logistics marketworldwide.
Global Third Party Logistics Market
The Report Segments the Global Third Party Logistics Market as Follows:
By Mode of Transport