Third Party Logistics Market 2018 Top Key Players are FedEx Corporation, Union Pacific Corporation, Kuehne+Nagel Inc., BNSF Railway Company, AmeriCold Logistics, LLC, CEVA Logistics, Ryder System, Burris Logistics
The global third party logistics market generated $795 billion in 2017 and is anticipated to grow at a CAGR of 5.3% during the forecast period.Third Party logistics or 3PL is expected to replace the traditional ways in which companies handle their supply chain and logistics operations. It is the process of outsourcing majority or almost all of the supply chain and logistics operations to an independent company. This enables the manufacturers and retailers to focus on their core business and its competencies by subcontracting the skills they lack. The services offered by 3PL include dedicated contract carriage, domestic transportation management, international transportation management, warehousing distribution and other services.
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Increased globalization has propelled a strong connectivity of manufacturing and retail activities, which has greatly influenced the third party logistics market growth. The increase in manufacturing productivity has increased the demand for supply chain, supporting the growth of the third party logistics market. The reliability and cost effectiveness of services offered by 3PL has encouraged businesses to invest in it to increase their overall productivity. However, since there is no control of logistics with the manufacturers and retailers, a risk of loss of reputation hinders the market growth to a certain extent. The implementation of multi-channel logistics network to reduce the total time and cost, along with integration of IT software and services is expected to offer growth opportunities during the forecast period.
The report provides an extensive qualitative and quantitative analysis of the market trends and growth prospects of the Global third party logistics market, 2017-2026. This report comprises a detailed geographic distribution of the market across North America, Europe, Asia-Pacific, Latin America, and MEA. North America is further segmented into U.S., Canada, and Mexico. Europe is divided into Germany, UK, Italy, France, and Rest of Europe. Asia-Pacific is bifurcated into China, India, Japan, and Rest of Asia-Pacific.
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Asia-Pacific generated the highest revenue in the market in 2017 owing to increasing demand from automotive and manufacturing sectors. The emerging economies of China, Japan, India, and South Korea along with increasing trend of e-commerce impacts the market growth.
Competitive Landscape and Key Vendors
The global third party logistics market is characterized by the presence of well-diversified international and small and medium-sized vendors. These companies are consistently launching new products to enhance their offerings in the market. With the advancement of technologies, companies are innovating and introducing new customized products to cater the growing needs of the customers. Leading companies are also acquiring other companies, and enhancing their product offerings to improve their market reach. Acquisitions enable key players to increase their market potential in terms of geographic expansion and expansion of customer base.
The key players operating the third party logistics market include FedEx Corporation, Union Pacific Corporation, Kuehne+Nagel Inc., BNSF Railway Company, AmeriCold Logistics, LLC, Landstar System, Inc., Ryder System, Inc., Burris Logistics, DB SCHENKER Logistics, and CEVA Logistics.
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