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The Europe - Third-Party Logistics (3PL) Market size is estimated to grow at a CAGR of 8.13% between 2023 and 2028. The market size is forecast to increase by USD 96.42 billion. The accelerated growth of the market is by various factors such as the growing complexity of in-house logistics operations, cost reduction advantages of utilizing 3PL services and growth in the automobile and auto components industry.
The research report of the Europe Third-Party Logistics Market offers industry forecasts and segmentation based on End-user which comprises manufacturing, retail, consumer goods, healthcare, and others. It also segments the market by Service, which includes transportation, warehousing and distribution, and others. The market size, historical data for 2018-2022, and future forecasts are presented in terms of value (in USD billion) for all these mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges.
The growing complexity of in-house logistics operations is notably driving the market growth. Difficulties in fleet management, a shortage of skilled drivers, a lack of IT infrastructure such as tracking management systems, and operational issues are some of the challenges that shippers face in managing in-house logistics. Manufacturing firms around the world are increasing their production capabilities and operations, which raises their logistical needs for getting raw materials to factories and finished items to retailers and distributors. As a result of the increased complexity of SCM for manufacturing organizations, a rising number of manufacturers are outsourcing their SCM responsibilities to 3PL service providers, either partially or totally.
Furthermore, given the benefits of outsourcing in terms of greater operational efficiency and cost savings, shippers are increasingly outsourcing the logistics portion of their operations to third-party logistics providers, allowing them to focus on their core capabilities which will have a positive impact on Europe - 3PL Market growth. Thus, such factors are expected to drive the growth of the Europe 3PL market during the forecast period.
Growth in online retailing is an emerging trend shaping the market growth. The online retailing market is rapidly growing in Europe. Traditional retailers are broadening their sales channels, and the demand for new warehouses and distribution speed is growing swiftly. For example, Amazon has increased its distribution space in Europe by significant numbers over the last ten years. E-retailers require a more complex distribution network than traditional logistics players. E-commerce business is based on the business-to-consumer (B2C) model, which eliminates at least one intermediary from the supply chain, increasing the number of customers the e-trailer/warehouse occupier is dealing with thousands.
However, a significant number of players in the industry prefer to outsource their supply chain to a 3PL company that can meet their requirements. Thus, due to the increasing online sales of various retailers, 3PL providers have immense opportunities in Europe to increase their revenue. Hence, such factors are expected to fuel the growth of the Europe 3PL Market during the forecast period.
High operational costs and competitive pricing are significant challenges hindering market growth. With the growing demand for 3PL services like transportation, warehousing, and distribution, companies in the Europe - third-party logistics (3PL) market are also demanding value-added services and specialized professional supply chain solutions. The opportunities available for providing value-added services have increased price-based competition among 3PL service providers in Europe. The fragmentation in the Europe - third-party logistics (3PL) market also leads to price wars among companies. As customers demand additional services at the cost of basic services, companies often face pricing pressures. The Europe - third-party logistics market is characterized by its capital-intensive nature.
Moreover, Europe - 3PL Market requires capital-intensive infrastructure in terms of a large fleet of vehicles and containers at ports, technologically equipped warehouses that specialize in storing different kinds of products and a skilled workforce. Furthermore, 3PL service providers must control their operational costs to compete in the market. Hence, such factors are expected to hinder the growth of the Europe - 3PL Market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Europe Third-Party Logistics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AP Moller Maersk AS - The company offers third-party logistics such as road freight, sea freight, air freight and customs.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The manufacturing segment is estimated to witness significant growth during the forecast period. According to The World Bank Group, in 2022, the manufacturing industry contributed 15% to the total GDP of the EU. Toward the restructuring of the European economy, the European Commission (EC) aims to increase the manufacturing industry contribution to 20% by 2023.
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The manufacturing segment was the largest and was valued at USD 26.03 billion in 2018. The growing manufacturing sector in Europe provides substantial growth opportunities to 3PL service providers. The growth of the manufacturing sector in the region is driven by increasing nearshoring activities in Eastern European countries. In Europe, Western Europe is considered the manufacturing hub. However, the increasing wages and rental rates in Western Europe have shifted the industry focus to Central and Eastern Europe. The Czech Republic, Poland, Romania, and Hungary will become major hubs for manufacturing innovation due to the easy availability of cash grants and tax incentives. Also, the availability of a skilled workforce at lower wages is shifting the focus of companies in Europe - third-party logistics market from Western Europe to Eastern Europe. Hence, the above-mentioned factors are expected to drive the growth of the Europe - 3PL Market in the manufacturing segment during the forecast period.
The Europe Third-Party Logistics Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Europe Third-Party Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.13% |
Market Growth 2024-2028 |
USD 96.42 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.65 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AP Moller Maersk AS, Baltic Logistic Solutions, C H Robinson Worldwide Inc., CMA CGM SA Group, DB Schenker, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., FedEx Corp., FM LOGISTIC CORP, GEODIS, Ital Logistics Ltd., Kintetsu World Express Inc., Sanmina Corp., United Parcel Service Inc., XPO Inc., ACP Freight Services Ltd., FourKites Inc., H. P. Therkelsen AS, Huktra UK Ltd., Imperial Logistics Ltd, Jordon Freight Ltd., hansa express logistics GmbH, and NTG Nordic Transport Group AS |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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