The global 3PL market is expected to reach $419 billion USD by 2020, according to the latest market research report by Technavio.
“Exporting domestically manufactured goods requires efficient integrated logistics services, which includes transportation and management of logistics-related services,” said Sharan Raj, one of Technavio’s lead industry analysts for logistics. “Both, manufacturers and retailers require services that act as a link between suppliers and customers across various geographies.”
As the market gains momentum, there is a considerable amount of investment anticipated to come into infrastructure projects to meet the growing needs of domestic, cross-border, and international demand, Raj said.
Global 3PL market by geographical segmentation 2015
|Rest of the World||10.16%|
“Thus, rising exports of domestic products will further enhance the growth of this market over the next four years,” Raj said.
3PL market in APAC: largest region
The 3PL market in APAC was valued at $96.4 billion in 2015. The major reason for the highest growth of APAC in the forecasted period is an increase in imports and exports by the key countries in this region. Also, there is a huge demand for 3PL services in APAC because of economic growth and globalization, as a fallout of which, manufacturers have scaled their import and export of raw materials and finished goods globally.
In APAC, China emerged as the largest contributor to the revenue of the logistics market in 2015. The logistics market in this region will experience significant growth during the forecast period as the number of manufacturing companies are anticipated to increase during the forecast period. This consequently increases the demand for 3Pl services.
3PL market in North America: second-largest region
The 3PL market in North America was valued at $68 billion in 2015. Logistics providers in North America are looking to create a sustainable business model that adapts to the changing market dynamics.
Logistics companies in the region face intense competition in domestic and international markets. Several vendors operating in the market possess strong financial and operational capabilities which will likely lead to increased consolidation to forge stronger strategic alliances in the logistics market in North America during the forecast period.
3PL market in Europe
The 3PL market in Europe was valued at $62.8 billion in 2015. Europe is home to many automobile giants and other kind of manufacturing firms. This region has also witnessed a market slowdown because of the global economic recession in 2009 and the following Euro crisis. The logistics market has reached a saturation point in this region its mature nature. However, the market in Europe is recovering and is expected to see sustained growth over the next four years. During the forecast period, Germany and the UK are expected to lead the market growth in Europe, primarily because of the demand from their respective automobile industries.