Global Third Party Logistics Market to 2027 - COVID-19 Impact and Analysis - ResearchAndMarkets.com

The "Third Party Logistics Market to 2027 - COVID-19 Impact and Analysis and Forecast by Mode of Transport, Services, and End User" report has been added to ResearchAndMarkets.com's offering.

According to this report the market is expected to reach US$ 1,329.4 billion by 2027, registering a CAGR of 4.2% during 2020-2027.

In North America, the development of 3PL is majorly influenced by the factors such as time, cost, increased internationalization, competition, virtual organization, and high consumer awareness. DHL Supply Chain North America, XPo Logistics, Ryder Supply Chain Solutions, GEODIS North America, and Americold are among the major third party logistics providers in North America. Amongst them, in 2017, DHL Supply Chain in North America had 673 warehouses with 119 million square feet capacity. However, it is found that, the leading 3PL providers in North America have to deal with overcapacity and underutilization of their physical and human resources. The factors such as service integration, data management, expansion of service offerings, and inclination towards offering flexible solutions to customers are expected to create a substantial growth opportunity to the industry players in the North American 3PL market.

Third party logistic (3PL) firms have diversified resource network which help core companies to expand quickly and efficiently in a costoeffective 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. 3PL helps seasonal businesses to benefit from smoother transition between market lows and highs with utilizing more warehouse space and logistic resources. 3PL service providers manage company's warehousing, distribution, and fulfillment services that helps company's resources to manage seasonal swings.

Moreover, the growing e-commerce industry is propelling the growth of logistics. According to the World Bank, the North American logistics sector is highly developed scoring 3.89 in the LPI index of 2018. With the growing e-commerce industry in the US, DHL recently announced its plans to open innovation center near Chicago dedicated for the development of new tools to handle the acceleration in e-commerce demand.

Key findings of the study:

Third party logistics offer wide-range services from production to distribution and aftermarket services. The companies operating in global third party logistics market provide standardized warehousing, transport, and other value-added services in order to form a customized supply chain solution. For instance, the third party logistics services include planning, production activities, sourcing, packaging, aftermarket services, and repairs, among others. Major players operating in the third party logistics market are inclined towards applying standardized solutions and operations backed up by leading supply chain providers in order to meet the customer's quality expectations. The trend of outsourcing logistics and demand for value-added logistics services are expected to grow in near future. Moreover, demand for supply chain services is expected to increase in rapidly growing economies.

Swift growth of manufacturing industry along with their focus laid on core competencies, burgeoning needs for achieving cost efficiency, task optimizations and technological integrations pertaining to supply chain activities, and benefits in managing seasonal variations of products are projected to drive the third party logistics market during the forecast period. However, regional diversities and the complex nature of supply chain may negatively impact the growth of the market in near future. Moreover, the factors such as unprecedented growth rate of the e-commerce sector, focus on risk management in the supply chains, and increasing collaborations among companies are projected to generate remarkable growth opportunity to the industry players.

Reasons to Buy

• Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the global market.
• Highlights key business priorities in order to assist companies to realign their business strategies.
• The key findings and recommendations highlight crucial progressive industry trends in the Third Party Logistics market, thereby allowing players to develop effective long term strategies.
• Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
• Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
• Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to mode of transport, end-user, service, organization size, and end-users.

Market Dynamics

Drivers

• Rise in demand for reducing overall operational cost and focus on managing timely delivery
• Inclination of manufacturing companies on reducing assets and emphasize on core business
• Benefits in managing seasonal variations of products

Restraints

• Lesser control of manufacturer on logistics service and delivery processes

Opportunities

• Increase in adoption of e-commerce in retail sector

Future Trends

• Implementation of several software solutions

Companies Mentioned

• SINOTRANS Limited
• DB Group
• Deutsche Post Ag
• Geodis
• United Parcel Service, Inc. (Ups)
• XPO Logistics, Inc.
• Kuehne + Nagel International AG
• C.H. Robinson Worldwide, Inc
• DSV A/S
• Nippon Express Co., Ltd

For more information about this report visit https://www.researchandmarkets.com/r/xu7mq2

View source version on businesswire.com: https://www.businesswire.com/news/home/20210811005346/en/