Portland, OR -- (SBWIRE) -- 09/13/2017 -- As per the findings of the extensive research carried out by Allied Market Research, the global 3PL (Third Party Logistics) market is envisioned to garner $1,110 billion by 2022, growing at a compound annual growth rate of 5.16% during the period 2016–2022. The data presented in the report is acquired from extensive primary and secondary research carried out by core industry experts. Vital statistics, charts, figures, and tables are included to add credibility to the information presented.
The process, right from the production or procurement of goods to the proper and timely distribution of the completed products, constitutes an efficient supply chain. Manufacturers, these days, outsource the activities related to logistics and distribution owing to the customer-specific features and additional benefits offered by the Third Party Logistics companies. The value-added benefits presented by the 3PL market include complete management of the inventory, door to door delivery, and cross docking.
According to Porter's Five Forces Analysis, the global 3PL market displays a fiercely competitive market scenario owing to the presence of a few major brands and the immense brand loyalty present among the end users of the market. The suppliers have a higher bargaining power compared to the buyers in the global 3PL market since the number of service providers providing high-quality service is limited. The highly competitive nature of the market makes it difficult for new entrants to gain a strong foothold in the global market.
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The global 3PL market is thriving with an increase in the free trade agreements between the countries, as a result of globalization. The surge in the use of advanced IT solutions along with developments in the logics operation and e-commerce industry are driving the market. In spite of the advantages of the 3PL market, manufacturers are apprehensive when to adopt the services offered by 3PL companies. The reputation of the manufacturer's business is at risk with the involvement of a third party. In addition, the manufacturer's reduced control on the logistics service restricts the growth of the market. The report states that a reduction in the lead time coupled with a considerable reduction in cost with the use of multi-modal system provides tremendous opportunities for growth to the potential investors and stakeholders.
The market is segmented based on the mode of transport and the type of service. The modes of transportation used by 3PL companies include roadways, railways, waterways, and airways. The service segment is further bifurcated into Dedicated Contact Carriage (DDC), Domestic transportation management, warehouse & distribution management, and other services such as IT and logistics software. The presence of the 3PL market in the regions of North America, Asia-Pacific, Europe, and LAMEA are analyzed and compiled. Asia-Pacific is projected to dominate the market globally, growing at a CAGR of 6.67% with China occupying more than 50% of the market.
The key players profiled in the report include DHL International GmbH, United Parcel Service, FedEx Corporation, DAMCO (The Maersk Group), DB Schenker, Kuehne+Nagel Inc., NYK Logistics, Panalpina World Transport Ltd., Union Pacific Corporation, and BNSF Railway Company. The company's overview, key operating segments, developments, and the winning strategies adopted by them give a deeper understanding of the market and enable the potential investors to take informed decisions.
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Key Points of the report
- The IT services and logistics software segment is anticipated to grow at a CAGR of 5.72% during the forecast period.
- Two-thirds of the global 3PL market is accounted for by the goods transported through roadways and waterways.
- The Indian 3PL market is expected to grow at the highest growth rate of 8.13% during the forecast period.
- Double Decker goods trains are used in countries like China to increase the number of goods transported.