Companies that provide multiple logistics services to purchasing company are known as third-party logistic companies. Globalization, virtual organization, time & cost competition, and high customer awareness are impacting positively on third party logistic market. Main survival factors of third party logistic market include cost efficiency of services, company control, and advances in technology.
Rapid urbanization, expansion of economy, and high consumer expectations are likely to create are expected to boost the market for third-party logistics market during the forecast period. The drastic shift in retail and manufacturing business models coupled with adoption of advanced technologies is expected to offer significant opportunities to the third party logistic market during the forecast period. Expansion of the e-commerce industry owing to urbanization, increasing penetration of internet and mobile along with an increase in the number of warehouses and expansion of the logistics industry are anticipated to propel the third party logistic market during the forecast period. However, a lack of infrastructure, stringent rules and regulations about shipping, and absence of good reporting system are likely to restrain the third-party logistics market during the forecast period.
The global third-party logistics market can be segmented based on mode of transport, service, industry, and region. Based on mode of transport, the third party logistic market can be classified into railways, roadways, waterways, airways, and others. Mode of transportation is a key factor that is projected to drive the third-party logistics market in the near future. Road transportation is primarily employed in the logistics industry. Road transportation offers multiple advantages such as cost-effectiveness, rapid and timely delivery, coverage of local, over border, long, and short haul deliveries in urban as well as in rural areas, and complete door-to door-service. This, in turn, is projected to boost the roadway segment at a significant pace during the forecast period.
Based on service, the third-party logistics market can be categorized into simple, combined, and value-added service. Changing consumer demand and increasing competition among third party logistics providers are projected to fuel the add value service segment during the forecast period.
In terms of industry, the third-party logistics market can be bifurcated into manufacturing, retail, healthcare, automotive, and others. Strategic advantages in third-party logistics reduce the service cost, which in turn is estimated to boost the adoption of third party logistics in the automotive sector. Third party logistics providers offer one-stop shop services and hence, the automotive segment is likely to expand during the forecast period.
In terms of region, the third-party logistics market can be classified into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. The market in Asia Pacific is likely to expand during the forecast period owing to rapid expansion of the e-commerce industry, and presence of several automotive manufacturers in the region.
Key players operating in the third-party logistics market are C.H. Robinson Worldwide, Inc., DB Schenker, DHL INTERNATIONAL GMBH, NIPPON EXPRESS, FedEx, BDP International, Burris Logistics, Ozburn-Hessey Logistics, LLC., KUEHNE + NAGEL and others.