Third-Party Logistics - Sri Lanka

Revenue in the Third-Party Logistics market is projected to reach US$1.30bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.61%, resulting in a projected market volume of US$1.34bn by 2029.

Definition

The term “third-party logistics” (3PL) refers to the use of an external company to manage and carry out one or more logistics processes for a business. These operations can include transportation, warehousing, inventory management, and packaging. 3PL providers offer a range of services to help companies increase efficiency, reduce costs, and improve their supply chain operations. The Third-Party Logistics (3PL) market covers providers that specialize in the above-mentioned third-party logistics services.

The Third-Party Logistics (3PL) market has experienced significant growth in recent years due to increased eCommerce and globalization, which have led to a greater need for logistics and supply chain management services. Additionally, technological advancements, such as automation and big data use, are likely to drive growth in the 3PL market. Other expected growth drivers include the increasing number of small and medium-sized enterprises (SMEs) entering the market and the growing trend of outsourcing logistics and supply chain activities.

Additional Information

Key players in the Third-Party Logistics (3PL) market include large multinational logistics providers, regional 3PL firms, and specialized service providers, such as DHL Supply Chain & Global Forwarding, Kuehne + Nagel, and C.H. Robinson. These companies play a significant role in managing and optimizing supply chains across various industries, driving innovation, and contributing to the growth of the logistics sector.

Third-party logistics (3PL) providers
Third-party logistics (3PL) services
Logistics services outsourced to third-party logistics (3PL) experts

First-party logistics (1PL) providers and services
Second-party logistics (2PL) providers and services
Fourth-party logistics (4PL) providers and services
Fifth-party logistics (5PL) providers and services
Non-Logistics Related Services
Passenger Transport Services
Military and Government Logistics

The global Third-Party Logistics market is expected to grow steadily in the coming years, driven, among other things, by increasing eCommerce, a rise in international trade, and the need for cost-effective and efficient logistics solutions. The market is highly competitive, with many players operating in different regions. The Asia-Pacific region is expected to be home to the fastest-growing market for third-party logistics due to its rapidly expanding eCommerce industry and the increasing adoption of automation and digitalization in logistics processes. Companies in this market focus on developing their services, investing in technology, and forming strategic partnerships to gain a competitive advantage. The increasing adoption of digital technologies, such as artificial intelligence, big data analytics, and the Internet of Things, will likely impact the market and contribute to its growth. These technologies are expected to improve the efficiency of logistics and reduce costs for companies. Overall, the global Third-Party Logistics market is likely to be a lucrative opportunity for companies looking to expand their operations in the logistics industry.

The North American Third-Party Logistics (3PL) market is highly competitive, with various players offering services such as transportation, warehousing, and distribution. Market drivers include the increase in eCommerce and the need for a cost-effective and efficient supply chain management. Some key players in the North American 3PL market are UPS Supply Chain Solutions, FedEx Supply Chain, and XPO Logistics.

The Third-Party Logistics market in Europe is fragmented, with many small and medium-sized companies operating in this region. Key players in this market include DHL Supply Chain, Kuehne + Nagel, DB Schenker, and XPO Logistics.

The 3PL market in Africa is relatively small but growing fast. It is expected to continue to grow in the coming years, aided by increasing trade and investments, urbanization, and eCommerce growth. However, the market is also faced with a number of challenges, including poor infrastructure, inadequate transportation and logistics systems, and the need for a more skilled workforce.

In the Middle East, market players have been gaining popularity as businesses are looking to focus on their core competencies, leaving logistics to the experts. The Middle East's strategic location at the crossroads of Asia, Europe, and Africa, in combination with the increase in eCommerce, has made it attractive for 3PL companies. However, challenges such as a lack of infrastructure and limited access to financing can make it difficult for these companies to operate in this region.

In South America, Brazil has the largest market for 3PL, followed by Argentina. The market is characterized by many small and medium-sized players as well as a few large, multinational companies. It is expected to continue growing in the coming years, driven by factors such as the increasing adoption of technology and automation in logistics operations and the growing need for sustainable and environmentally friendly logistics solutions.

In 2020, the COVID-19 pandemic had a negative impact on the logistics industry, leading to supply chain disruptions and decreased demand for logistics services. During the pandemic, online shopping increased, and many companies turned to 3PL companies to help manage their logistics and supply chain needs. The market came roaring back in 2021, with global revenue growing by 49% from 2020 to 2021.

Data coverage:

The data encompasses B2B enterprises. Figures are based on revenue and logistics cost.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and industry associations, third-party studies and reports, survey results from our primary research (e.g., the Statista Consumer Insights Global survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, logistics cost share as a percentage of GDP . This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, Ridge function models. The main drivers are GDP per capita, logistics performance index.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. The data is modeled using current exchange rates.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Industrial management shapes the global economy we live in today. As part of the supply chain network, the logistics industry performs a multitude of services that facilitate the economic coordination of firms. The size of the global logistics market was worth 8.4 trillion U.S. dollars in 2021 and is expected to exceed over 13.7 trillion U.S. dollars by 2027. One of the services that the logistics industry provides is third-party logistics (3PL), which helps firms of all sizes to fulfil their business performance and production.