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The US third-party logistics (3PL) market is estimated to grow at a CAGR of 8.42% between 2022 and 2027, and the size of the market is forecast to increase by USD 117.1 billion. The growth of the market depends on several factors such as the increasing cross-border trade, the cost benefits of using 3PL, and the increasing use of multimodal transport.
This US third-party logistics (3PL) market report extensively covers market segmentation by end-user (retail, manufacturing, automotive, food and beverages, and others) and service (transportation, warehousing and distribution, and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The US third-party logistics (3PL) market research report includes the adoption lifecycle of the market, spanning from the innovator’s stage to the laggard’s stage. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
3PL Market in US Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing use of multimodal transport is the key factor driving the growth of the US 3PL market. Multimodal transport is the combination of two or more modes of transport, such as road, rail, air, or sea, for freight transport. Use a combination of trucks, rail cars, planes, and ships one after. By efficiently combining multiple modes of transport, you can reduce storage costs and lower the cost of goods. The use of multimodal transportation also helps businesses transport products efficiently and reduce outbound logistics transportation costs.
For instance, FedEx Corp. (FedEx) offers FedEx International Priority Freight, which is a transport solution for heavy auto parts consignments that weigh between 68 kg and 1,000 kg per item. The company uses multiple modes of transport, such as air or sea and rail or road, to ensure that the goods are transported to their destination safely. Similarly, PLS Logistics Services offers customized multimodal solutions for freight movement. Hence, the increasing use of multimodal transport will drive the growth of the 3PL market in the US during the forecast period.
Growing demand for green logistics is the primary trend in the US 3PL market growth. Increasing global warming is forcing suppliers in the US 3PL market to adopt green logistics solutions to reduce their carbon footprint. Green logistics includes implementing sustainable operations to reduce environmental impact. With the ever-increasing environmental problem of pollution around the world, vendors are choosing eco-friendly strategies that help generate profits and reduce their carbon footprint. Such sustainable approaches by vendors also help improve brand /image at a lower cost.
Thus, to support the green logistics strategy, some vendors are opting for electric vehicles for logistics, which will significantly reduce carbon emissions during the transportation of products. For instance, Deutsche Post partnered with StreetScooter GmbH, an electric vehicle manufacturer, to develop a new electric vehicle with hydrogen technology. StreetScooter is expected to deliver the vehicle to Deutsche Post from 2020 through 2021. Hence, an increase in the demand for green logistics will fuel the growth of the 3PL market in the US during the forecast period.
A major challenge for the US 3PL market is the increase in cargo theft. This has led to the need for proactive security requirements such as insurance that increases the overall cost of service. Most of the movement of goods and freight within the United States is by road. Cargo theft in several US states is forcing 3PL service providers and companies to choose logistics services to invest in protecting their goods. Moreover, Businesses are spending more to insure their goods, increasing demand for various insurance plans. This increases the cost of insurance premiums, further increasing operating costs for 3PL service providers and companies who choose logistics services.
In addition to investing in securing merchandise, companies have started following various strategies, such as click and collect, which is an omnichannel distribution, to reduce the threat of cargo theft. This distribution model challenges 3PL service providers as it eliminates the need for logistics partners to deliver goods to customers. Such factors would eventually restrict the growth of the market during the forecast period.
Vendors 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.
Americold Realty Trust Inc.: The company offers third party logistics services which provide real time information of dispatched orders.
Burris Logistics Co.: The company offers third party logistics services through inventory management services which provide inventory planning, replenishment services along with inventory cost accounting.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The retail segment will account for a major share of the market's growth during the forecast period. The retail industry includes organized retail and consumer goods. They are classified as slow-moving consumer goods (SMCGs) and fast-moving consumer goods (FMCGs). FMCGs usually have a shelf life shorter than a year and include household and cleaning products, personal care products, tobacco, apparel and footwear, and pet food/pet care products.
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The retail segment was valued at USD 47.02 billion in 2017 and continued to grow until 2021. In this retail segment, the consumer goods market is experiencing growth due to the adoption of appliances such as air conditioners, refrigerators, and washing machines; personal and beauty appliances, including hairstyling devices; and consumer electronics, such as mobile devices. In the home appliance segment, refrigerators and air conditioners account for the largest share, followed by washing machines and other home appliances. Such changing consumer preferences require the company to use this 3PL services to deliver products to retailers and other customers. Therefore, the growth of the consumer electronics segment of the retail industry is expected to drive the growth of the 3PL market in the United States over the forecast period.
Based on service, the market has been segmented into transportation, warehousing and distribution, and others. The transportation segment will account for the largest share of the end-user segment. Transportation of goods in the 3PL market is done through different modes of transport, such as road, rail, air, and water. As logistics services require high investment and expertise, which adds significantly to operating costs, many companies are outsourcing these services to 3PL providers. More than half of the transportation revenue generated by 3PL service providers in the US is from roadway transportation. Such factors will increase the segment growth during the forecast period.
The 3PL market in US report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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3PL Market Scope in US |
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Report Coverage |
Details |
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Page number |
141 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.42% |
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Market growth 2023-2027 |
USD 117.1 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.5 |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Americold Realty Trust Inc., Blu Logistics, Burris Logistics Co., C H Robinson Worldwide Inc., Crete Carrier Corp., Expeditors International of Washington Inc., FedEx Corp., Hub Group Inc., J B Hunt Transport Services Inc., Kenco Group Inc., Kuehne Nagel Management AG, M and W Logistics Group Inc., NFI Industries Inc., Ryder System Inc., Taylor Logistics Inc., Total Quality Logistics LLC, United Parcel Service Inc., Wagner Logistics Inc., XPO Inc., and Deutsche Post AG |
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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 forecast period. |
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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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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