Third-party logistics market size will reach about US $ 1,710.58
OTTAWA, May 26, 2021 (GLOBE NEWSWIRE) – The world third-party logistics market was valued at $ 919.12 billion in 2020. Third-party logistics is a method by which manufacturers outsource their logistics and distribution services. A third-party logistics company provides various services to its customers, including cross-docking, inventory management, product packaging and door-to-door delivery. These companies provide rapid supply chain services in a cost effective manner. In addition, the outsourcing of supply chain services by manufacturing companies reduces their shipping and delivery costs, inventory costs, and meets technical requirements that increase their ability to focus more on development. products and other growth strategies.
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The booming e-commerce and retail business is dramatically increasing the demand for third-party logistics services. The main factors contributing to the growth of e-commerce activities are the modification of the purchasing behavior of consumers, the easy availability of products on the internet, the no need to shop in the digital world, and many others. In addition, the growing demand for fast and cost effective logistics services is also contributing to the growth of the third party logistics market. Hence, the market expected to experience deep growth during the forecast period.
Apart from this, the growing trend of manufacturing companies to outsource their supply chain is also driving a significant escalation into the third party logistics market. Previously, these companies invested heavily in maintaining their supply chain and inventory, as they had to manage their logistics from sourcing raw materials to the process of distributing finished products. By outsourcing the supply chain process, manufacturers are now freed from warehouse management, inventory management and more focused on their market growth strategies.
However, the COVID-19 outbreak in early 2020 has had a significant impact on the global supply chain. The logistics network has also been disrupted due to strict regulations imposed by the government to prevent the rapid spread of the virus. Several third-party logistics companies face uncertainty about the movement of their goods. In addition, the lack of human resources and the reduction of working hours have also had a negative impact on the third-party logistics market.
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Highlights of the report
- North America dominated the global third-party logistics market in 2020 and is expected to grow at a steady rate due to the growing demand for cold storage in the region.
- The Asia-Pacific region is expected to experience the highest growth rate during the forecast period due to increasing industrialization and manufacturing companies in the region.
- By service, Domestic Transportation Management (DTM) dominated the global third-party logistics market in 2020 with a revenue share of around 30.3%
- The roads segment has captured a significant share of the global market revenue due to the rapid development of logistics infrastructure
- Airlines is expected to be the fastest growing transportation segment due to the need for fast and cost effective delivery services
- In terms of end use, the manufacturing segment captured a significant revenue share of almost 25.5% due to the shift of companies to supply chain outsourcing rather than chain maintenance. in-house procurement.
- The retail industry expects flourishing growth in the next few years due to the rapid growth of retail businesses
North America has dominated the global third-party logistics market and holds a significant share of nearly 25.4% in 2020. The increase in domestic and international trade has had a significant impact on the growth of the logistics market third party in North America. The United States leads the North America region and has captured almost 70% of market revenue. According to the World Trade Organization (WTO), merchandise exports to the United States increased significantly between 2017 and 2018. Due to the growth in business activities, customers also demand fast product delivery and efficient operations. of the process.
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On the other hand, the Asia-Pacific region displays the fastest growth rate in the coming years due to several trade liberalization policies coupled with rapid growth of the manufacturing sector in both developing and international countries. underdeveloped countries. China, India, South Korea, Japan, and Taiwan are among the rapidly developing countries in terms of manufacturing, transportation, and industrialization that are helping to propel market growth in the region. For example, the Indian government has implemented the Logistics Efficiency Improvement Program (LEEP) for the development of a multi-model logistics park.
Key players and strategies
Major market players are focusing more on technological advancements in their services, including route optimization, real-time shipment tracking, and advanced driver assistance systems. These technologies help companies maintain full visibility throughout the supply chain.
In addition, some market players are also very focused on inorganic growth strategies such as mergers and acquisitions, partnerships, regional expansion and many more. For example, in August 2019, Panalpina Welt transport Holding AG, a logistics company based in Switzerland, was acquired by DSV. This increases the competitive value of the business in the market.
Some of the major market players are Burris Logistics, CEVA Logistics, CH Robinson Worldwide (CHRW) Inc., DB Schenker Logistics, FedEx Corporation, BDP International, UPS Supply Chain Solutions, Inc., Kuehne + Nagel International AG, JB Hunt Transport Services , Inc., Nippon Express Co., Ltd. and XPO Logistics, Inc., among others.
- Internal transport management (DTM)
- International transport management (ITM)
- Dedicated contract transport (DCC) / freight forwarding
- Value-added logistics services (VAL)
- Warehousing and distribution (W&D)
- The airways
- Health care
- North America
- Asia Pacific
- South Korea
- Rest of the world
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