Market Introduction
The global third party logistics market was valued at USD 1,032 Billion in 2021 and is forecasted to reach USD 1,656.7 Billion by the year 2027. The market is anticipated to register a CAGR of 8.2% over the projected period.
Third party logistics or 3PL or TPL involves hiring of a third party businesses by an organization for outsourcing elements on its warehousing, distribution, and fulfilment services. Increase in trading activities due to globalization is expected to boost the market growth. Furthermore, rise in focus of manufacturers and retailers on core competencies is also expected to fuel the market growth.
Despite the driving factors, issues over dependency are expected to hinder the market growth during the forecast period. Also, loss of direct control on the logistics is also expected to negatively impact the market growth. The COVID-19 pandemic put a unprecedented stress on logistics as well as transportation services. Hence, the pandemic restrained the market growth.
Growth Influencers:
Increase in trading activities due to globalization
Rapidly improving global economy along with the changing market conditions is leading to globalization. This is also increasing the trading activities, which makes it difficult for various organizations to control their activities as well as track them. Hence, various organizations partner with other companies for outsourcing their logistics activities. Hence, growing trading activities for globalization is expected to boost the market growth.
Rise in focus of retailers and manufacturers on their core competencies
Retailers and manufacturers are increasing their focus on core competencies to sustain the intense competition in their respective markets. Due to this, they are outsourcing their other supporting activities to third party vendors. One of the major activities outsourced includes logistics. Hence, rise in focus of manufacturers and retailers on core competencies is anticipated to fuel the market growth.
Segments Overview:
The global Third Party Logistics market is segmented the mode of transport, service, and end user.
By Mode of Transport,
Railways
Roadways
Waterways
Airways
The roadways segment is expected to hold the largest market share of around 44% owing to increasing emphasis on logistics infrastructure. Moreover, the airways segment is anticipated to witness the fastest growth rate of approximately 8.2% owing to growing preference of air transport owing to speedy transport of goods, especially medical equipment.
By Service,
Dedicated Contract Carriage (DCC)
Domestic Transportation Management
International Transportation Management
Warehousing & Distribution
Others
The domestic transportation management segment is estimated to hold the largest share of the market owing to growing trade movement among the unloading dock to a warehouse and increasing carrier charges. The dedicated contract carriage (DCC) segment is expected to grow at the fastest rate of over 10% during the projected period.
By End User,
Technological
Automotive
Retailing
Elements
Food & Groceries
Healthcare
Others
The technological segment is estimated to hold the largest market share of more than 28% owing to increasing demand of third party logistics by technological companies. The healthcare segments market size is approximately 37% of the automotive segments market size in 2021 and 41% by 2027.
Regional Overview
On the basis of region, the global Third Party Logistics market is divided into South America, North America, Europe, Asia Pacific, and the Middle East & Africa.

The Asia Pacific region is expected to hold the largest market share and is also expected to grow at the fastest rate of 8.9% during the projected period. this is owing to availability of cheap as well as skilled labor in the Asia Pacific countries, such as India and China.
Competitive Landscape
Key players operating in the global Third Party Logistics market include DHL International GmbH (Deutsche Post DHL Group), Kuehne+Nagel Inc., DB Schenker (DB Group), Nippon Express, C.H. Robinson Worldwide, Inc., Union Pacific Corporation, Fedex Corporation, United Parcel Service (UPS), Panalpina World Transport Ltd, Maersk, and Other Prominent Players.

These key players in the market are involved in collaborations, mergers & acquisitions, and new product launches to strengthen their market presence. For instance, in November 2021, DHL Express expanded its airfreight capacity for meeting the growing intra-Asia demand as well as between the U.S. and Asia Pacific.

The global Third Party Logistics market report provides insights on the below pointers:

Market Penetration: Provides comprehensive information on the market offered by the prominent players
Market Development: The report offers detailed information about lucrative emerging markets and analyzes penetration across mature segments of the markets
Market Diversification: Provides in-depth information about untapped geographies, recent developments, and investments
Competitive Landscape Assessment: Mergers & acquisitions, certifications, product launches in the global Third Party Logistics market have been provided in this research report. In addition, the report also emphasizes the SWOT analysis of the leading players.
Product Development & Innovation: The report provides intelligent insights on future technologies, R&D activities, and breakthrough product developments

The global Third Party Logistics market report answers questions such as:

What is the market size and forecast of the Global Third Party Logistics Market?
What are the inhibiting factors and impact of COVID-19 on the Global Third Party Logistics Market during the assessment period?
Which are the products/segments/applications/areas to invest in over the assessment period in the Global Third Party Logistics Market?
What is the competitive strategic window for opportunities in the Global Third Party Logistics Market?
What are the technology trends and regulatory frameworks in the Global Third Party Logistics Market?
What is the market share of the leading players in the Global Third Party Logistics Market?
What modes and strategic moves are considered favorable for entering the Global Third Party Logistics Market?