Third Party Logistics Market Size, Share & Forecast Report - 2025 to 2030

The global third-party logistics (3PL) market size was valued at around USD 1 trillion in 2024 and projected to register a significant CAGR of over 8% during the forecast period from 2025 to 2030. The rapid growth in the e-commerce industry and the development of new technologies are some major factors to drive the market growth. The increasing demand to reduce shipping costs and focus to deliver on time is anticipated to spur market growth. moreover, the growing globalization and the changing supply chain to provide better services to customers are anticipated to boost the market growth over the forecast period. However, the less control of manufacturers on services and delivery process is expected to restrain the market growth.

Market Outlook:

Industry Trends Shaping the Third Party Logistics Market Growth:

The third-party logistics (3PL) market is witnessing rapid transformation driven by the growing need for supply chain optimization and digital integration. One of the major trends is the adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), blockchain, and the Internet of Things (IoT) to enhance visibility, real-time tracking, and predictive analytics across logistics operations. Companies are increasingly investing in automation, robotics, and warehouse management systems to improve efficiency and reduce operational costs. Additionally, the rise of e-commerce has significantly boosted demand for last-mile delivery solutions and omnichannel logistics, compelling 3PL providers to expand their service portfolios and develop flexible, customer-centric models.

Sustainability is emerging as another key trend shaping the 3PL landscape. With rising environmental concerns and regulatory pressures, logistics companies are focusing on eco-friendly transportation modes, route optimization, and green warehousing solutions. There’s also a growing emphasis on reverse logistics, helping businesses manage returns efficiently while reducing waste. Furthermore, strategic partnerships between 3PL providers and technology companies are on the rise, enabling data-driven decision-making and improving overall supply chain resilience. This trend, combined with the ongoing globalization of trade, is positioning the 3PL sector as a critical enabler of modern, sustainable, and adaptive logistics networks.

Third Party Logistics Market Key Drivers:

• Increasing globalization and international trade: The growth of international trade and globalization has led to complex and expansive supply chains. Companies are seeking the expertise of 3PL providers to manage their logistics operations across multiple regions and countries. 3PL providers offer specialized services, such as freight forwarding, customs brokerage, and cross-border transportation, to facilitate the movement of goods efficiently and effectively.
• Focus on core competencies: Companies are increasingly focusing on their core competencies and outsourcing non-core functions to specialized service providers. By partnering with 3PL providers, companies can leverage their expertise and resources in logistics management, transportation, warehousing, and distribution. This allows companies to concentrate on their core business activities, reduce costs, and improve overall operational efficiency.
• Cost savings and operational efficiencies: Outsourcing logistics functions to 3PL providers can result in cost savings and operational efficiencies. 3PL providers have the expertise, infrastructure, and networks to optimize transportation routes, consolidate shipments, and improve inventory management. They can also leverage economies of scale and negotiate favorable rates with carriers and suppliers, leading to cost savings for their clients.
• Technological advancements: Technological advancements have significantly impacted the 3PL market. The adoption of advanced technologies, such as cloud-based logistics platforms, warehouse management systems (WMS), transportation management systems (TMS), and real-time tracking and visibility tools, has improved the efficiency and transparency of logistics operations. 3PL providers that invest in technology can offer enhanced services, such as real-time shipment tracking, inventory management, and data analytics, which are attractive to companies seeking reliable and data-driven logistics solutions.
• E-commerce growth and last-mile delivery: The rapid growth of e-commerce has transformed the logistics landscape. E-commerce companies require flexible and scalable logistics solutions to manage their order fulfillment and last-mile delivery operations. 3PL providers specializing in e-commerce logistics can offer services like warehousing, order processing, inventory management, and last-mile delivery, enabling online retailers to meet customer expectations for fast and reliable deliveries.
• Supply chain complexity and risk management: Supply chains have become more complex, with multiple suppliers, distribution centers, and transportation modes involved. 3PL providers help companies navigate this complexity by providing end-to-end supply chain solutions. They can assist in supply chain design, demand planning, risk management, and contingency planning. By outsourcing logistics functions to 3PL providers, companies can mitigate supply chain risks and improve their overall resilience.
• Sustainability and environmental concerns: The focus on sustainability and environmental responsibility is driving companies to adopt greener logistics practices. 3PL providers play a crucial role in implementing sustainable logistics solutions, such as optimizing transportation routes to reduce emissions, implementing reverse logistics for product returns and recycling, and adopting eco-friendly packaging materials. Companies that prioritize sustainability can partner with 3PL providers that align with their environmental goals.
• Regulatory compliance and trade complexities: Compliance with regulations and trade complexities, such as customs procedures, trade agreements, and documentation requirements, can be challenging for companies engaged in international trade. 3PL providers specialize in navigating these complexities and ensuring compliance with relevant regulations. They have expertise in customs brokerage, trade compliance, and documentation management, helping companies streamline their cross-border operations.

Future Opportunities Reshaping the Third Party Logistics Market’s Evolution:

The third-party logistics (3PL) market presents significant opportunities driven by the continued expansion of global trade and the accelerating growth of e-commerce. As companies increasingly focus on core competencies, outsourcing logistics operations to specialized providers allows them to achieve cost efficiencies and operational flexibility. This has opened opportunities for 3PL providers to offer customized, value-added services such as inventory management, order fulfillment, packaging, and last-mile delivery solutions. Emerging economies, particularly in Asia-Pacific and Latin America, present untapped potential as infrastructure development and cross-border trade increase, creating strong demand for professional logistics services.

Moreover, the integration of advanced digital technologies offers a major opportunity for 3PL companies to differentiate themselves through innovation. The use of AI, big data analytics, and IoT in logistics can enhance transparency, predict disruptions, and optimize supply chain performance. Sustainability-focused solutions, such as electric fleets and carbon-neutral logistics, are also becoming lucrative areas for growth as more organizations prioritize environmental responsibility. Additionally, the rise of the healthcare, retail, and automotive sectors—each requiring specialized logistics—presents further opportunities for market expansion and diversification within the 3PL industry.

Market Segments Insights:

The global third party logistics market is bifurcated into service type, transport type, end-use, and geography. On the basis of service type, the market is further segmented into DCC, Domestic Transportation Management, International Transportation Management, and others. The domestic transportation management segment dominated the global market in 2024 and accounted to hold the largest market share of around one-third percent of the market in terms of revenue. On the other hand, the international transport management segment is expected to grow at a significant growth rate due to the growing e-commerce industry and the increasing global economic activities.

On the basis of transport type, the market is segmented into roadways, railways, waterways, and airways. The roadways segment dominated the global third party logistics market in 2024 and estimated to hold the largest revenue share of around two-third share of the market. The growth in public-private partnership and the growing inclination on logistics infrastructure is anticipated to drive the segment growth. Furthermore, the growing trend of online shopping is anticipated to boost the segment growth over the forecast period. In contrast, the airways segment is estimated to grow at a fast growth rate during the forecast period.

The third party logistics comprehensive study offers an in-depth analysis of industry trends, market size, competitive analysis, and market forecast – 2025 to 2030. Research Corridor report provides detailed premium insight into the global market and reveals the potential revenue streams, commercial prospects, market drivers, challenges, opportunities, issues, and events affecting the industry. In addition, the report has a dedicated section covering market forecasts and analysis for leading geographies, profiles of major companies operating in the market and expert opinion obtained from interviews with industry executives and experts from prominent companies.

Third Party Logistics Market Segmentation:

By Service Type:

• Dedicated Contract Carriage (DCC)/Freight Forwarding
• Domestic Transportation Management (DTM)
• International Transportation Management (ITM)
• Warehousing & Distribution (W&D)
• Value-Added Logistics Services (VALs)

By Transport Type:

• Roadways
• Railways
• Waterways
• Airways

By End-Use:

• Manufacturing
• Retail
• Healthcare
• Automotive
• Others

By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Geographic Coverage: Asia Pacific Holds the Largest Share of Third Party Logistics Market

Geographically, the Asia Pacific dominated the global third party logistics market in 2024 and expected to maintain its dominance over the forecast period. The region is also accounted to grow at the fastest growth rate over the forecast period. The availability of thousands of small and mid-size logistics service providers is a major factor to drive the market growth in the region.  The fast-growing e-commerce industry and the increasing demand for on-time delivery are expected to boost the market growth in the Asia Pacific.

Competition Assessment:

Some of the major market players operating in the global third-party logistics market BDP International, CEVA Logistics, C.H. Robinson Worldwide, Inc., DB Schenker Logistics, and DSV. Companies are exploring markets by expansion, new investment, the introduction of new services, and collaboration as their preferred strategies. Players are exploring new geography through expansion and acquisition to gain a competitive advantage through joint synergy.

Key Companies:

• BDP International
• CEVA Logistics
• H. Robinson Worldwide, Inc.
• DB Schenker Logistics
• DSV
• FedEx
• B. Hunt Transport, Inc.
• Kuehne + Nagel
• Nippon Express
• United Parcel Service of America, Inc.

Key Questions Answered by Third Party Logistics Market Report

• Global third party logistics market forecasts from 2025-2030
• Regional third party logistics market forecasts from 2025-2030 covering Asia-Pacific, North America, Europe, Middle East & Africa, and Latin America
• Country-level forecasts from 2025-2030 covering 15 major countries from the aforementioned regions
• Third party logistics submarket forecasts from 2025-2030 covering the market by service type, by transport type, by end-use, and geography
• Various industry models such as SWOT analysis, Value Chain Analysis pertaining to the market
• Analysis of the key factors driving and restraining the growth of the global, regional and country-level markets from 2025-2030
• Competitive Landscape and market positioning of top 10 players operating in the market