Europe Third Party Logistics Market Share and Forecast by 2025

Third Party Logistics market in Europe is expected to grow from US$ 210.0 Bn in 2017 to US$ 312.5 Bn by the year 2025. This represents a CAGR of 5.2% from the year 2018 to 2025.

Boosting benefits in managing seasonal variations of products is fueling the Europe third party logistics market. Third party logistic (3PL) firms have diversified resource network which help core companies to expand quickly and efficiently in a cost-effective manner. Depending on the needs of core companies, 3PL possess the capability to scale labor, space, and transportation needs irrespective of the fluctuation in inventory. 3PL firms deliver adequate resources and flexibility in services even in case of seasonal inventory or new product release. Many of the businesses experience seasonal fluctuation in customer demand and it is essential to handle such swings in business in order to maintain efficiency in operations, thereby driving the third party logistics market in Europe. This factor has created a potential market space for Europe third party logistics market.

The mounting application of software solutions is anticipated to fuel the Europe third party logistics market growth. The adoption of the RFID enabled devices are expected to store data for easy transport that will also simplify tracking & identification of products. Software related to transportation management system will reduce the inefficiency and costs with saving time for operations. Moreover, the implementation of speech recognition software in warehouse management system communications will support order turn-round and inventory records with reducing employee-training requirements. Along with this, acceptance of cloud-based technology in 3PL companies will respond demands by recognizing the need for customer access which is expected to better meet the seasonal trends efficiently.  For instance, Kuehne + Nagel’s new app to support mobile accessibility and new internet based control center to combine all online services and in china, KN FreightNet extension made for WeChat for digital accessibility. These initiative by the market player are enhancing the growth of Europe third party logistics market.

Germany is anticipated to leads the third party logistics market across the Europe region through the forecast period. Germany is one of the leading market for 3PL in Europe where warehousing is the major outsourced logistics service. Germany is one of the leading producers of automobiles in the world and many major car manufacturing companies are located in the country. Germany produces over 6 Mn vehicles every year, which includes both passenger cars and commercial vehicles. Approximately 70% of most of the premium brand vehicles across the globe are manufactured by German companies. Being the hub for the major automotive industries, automotive semiconductors are extensively used in this industry. This bolster the Europe third party logistics market on the forecast period. The figure given below highlights the revenue share of Spain in the Europe third party logistics market in the forecast period:

Spain Third Party Logistics Market Revenue and Forecasts to 2027 (US$ Bn)

EUROPE THIRD PARTY LOGISTICS – MARKET SEGMENTATION

Europe Third Party Logistics - By Mode of Transport

• Roadways
• Railways
• Waterways
• Airways

Europe Third Party Logistics - By Services

• International Transportation
• Warehousing
• Domestic Transportation
• Inventory Management
• Others

Europe Third Party Logistics - By End User

• Automotive
• Healthcare
• Retail
• Consumer Goods
• Others

Europe Third Party Logistics - By Customer

• Small & Medium Enterprises
• Large Enterprises

Europe Third Party Logistics - By Country

• France
• Germany
• UK
• Italy
• Spain
• Rest of Europe

Companies Mentioned

• Deutsche Post AG
• Kuehne + Nagel International AG
• Nippon Express Co., Ltd.
• DB Schenker
• C.H. Robinson Worldwide, Inc.
• DSV A/S
• XPO Logistics, Inc.
• Sinotrans Co., Ltd.
• Geodis
• UPS Supply Chain Solutions

Europe Third Party Logistics Report Scope