North America Third Party Logistics Market to Reach US$ 315.0 Bn at CAGR of 6.2% in 2025

North America Third Party Logistics Market to 2025 - Analysis and Forecasts by Mode of Transport (Roadways, Railways, Waterways, and Airways), Services (International Transportation, Warehousing, Domestic Transportation, and Inventory Management), End-User (Automotive, Healthcare, Retail, and Consumer Goods), and Customer (Small & Medium Enterprises and Large Enterprises), and Country

Publication Month : Apr 2019

  • Report Code : TIPRE00003898
  • Category : Automotive and Transportation
  • Status : Published
  • No. of Pages : 147
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Third Party Logistics market in North America is expected to grow from US$ 196.2 Bn in 2017 to US$ 315.0 Bn by the year 2025. This represents a CAGR of 6.2% from the year 2018 to 2025.

Enhancing focus of manufacturing companies are concentrating on reducing assets and emphasize on core business is fueling the North America third party logistics market. 3PL firms also help to reduce inventory cost and can strategize to reduce a company’s overall shipping & delivery costs as well. The core companies may not have that time or expertise to keep logistic services and systems updated. The company often face challenges meeting timely delivery of products during high business growth. Outsourcing logistic function from a third party is helpful for core companies as these firms manage and maintain warehouse, transportation, and other operations with more efficiently with expertise. Also, 3PL eliminates the need to invest in technology, warehouse space, transportation, a trained staff in order to execute the logistics process, thereby driving the third party logistics market in North America. This factor has created a potential market space for North America third party logistics market.

The bolstering acceptance of several software solutions is anticipated to fuel the North America third party logistics market growth. In coming years, the 3PL firms are expected to shift towards mobile technology in order to reduce the paper records. Moreover, 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.  For instance, XPO Logistics announced XPO Connect which is a digital freight and cloud-based marketplace. This platform is developed to offer shippers with a single POE (point of entry) for visibility across modes to minimize cost and time. These initiative by the market player are enhancing the growth of North America third party logistics market.

US is anticipated to leads the third party logistics market across the North America region through the forecast period. US is one of the leading market for 3PL in North America where warehousing is the major outsourced logistics service. Increase in inclination of manufacturers to develop paperless work along with rise in adoption of just-in-time trucking for e-commerce companies is boosting the market for 3PL in U.S. The growth of the warehousing market in the U.S is majorly attributed to the rising sophistication and system capabilities of the VAWD (Verified-Accredited Wholesale Distributors) and 3PL. The industry therefore offers great opportunities for the high tech development, particularly to the automotive shippers along with other verticals. This bolster the North America third party logistics market on the forecast period. The figure given below highlights the revenue share of Mexico in the North America third party logistics market in the forecast period:

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


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

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NORTH AMERICA THIRD PARTY LOGISTICS - MARKET SEGMENTATION

North America Third Party Logistics Market - By Mode of Transport

  • Roadways
  • Railways
  • Waterways
  • Airways

North America Third Party Logistics Market - By Services

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

North America Third Party Logistics Market - By End User

  • Automotive
  • Healthcare
  • Retail
  • Consumer Goods
  • Others

North America Third Party Logistics Market - By Customer

  • Small & Medium Enterprises
  • Large Enterprises

North America Third Party Logistics Market - By Country

  • US
  • Canada
  • Mexico

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
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

This text is related
to segments covered.

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

This text is related
to country scope.

The List of Companies - North America Third Party Logistics Market

1. DEUTSCHE POST AG
2. KUEHNE + NAGEL INTERNATIONAL AG
3. NIPPON EXPRESS CO., LTD.
4. DB SCHENKER
5. C.H. ROBINSON WORLDWIDE, INC.
6. DSV A/S
7. XPO LOGISTICS, INC.
8. SINOTRANS CO., LTD.
9. GEODIS
10. UPS SUPPLY CHAIN SOLUTIONS

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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