Astute Analytica: Global 3PL Market to Exceed $2.3 Trillion in Revenue by 2031
According to a research report generated by Indian-based analytics and advisory company Astute Analytica, the global 3rd-party logistics will continue to thrive and double its value in the next 10 years. The report predicts that the market will grow at a CAGR of 8.7% during the forecast period 2023-2031, from $1.1 trillion (number reported from last year) to $2.3 trillion (forecast number of 2031).
As businesses scale up and strive to become more cost-effective, outsourcing supply chain operations and adopting new technologies such as AI and blockchain in warehouse management systems, fleet management systems, and order management systems are becoming more and more common. The top 3PL solutions are namely automation increase, adoption of data analytics, sustainable practices, sustainable practices, digitalization, cloud computing, and AI.
The report also reveals many other interesting insights and trends from the global 3PL market. In 2031, the majority of revenue from the 3PL market will be brought by roadways (44%). Major logistics companies such as DHL, Kuehne + Nagel, and XPO Logistics are leading the way in adopting this trend for 3PL services.
Another lucrative segment that is expected to be in high demand is domestic transportation management. Domestic transportation management includes planning, scheduling, tracking, and monitoring shipments from the point of origin to the destination. It is predicted to capture over 36% of the revenue share in the Global PL market.
The last interesting insight is that the top 5 players in the market only hold less than 23% of the market share. This trend is contrary to the majority of the market, where big players could take up to 70% of the market share. This shows how competitive is the 3PL market with a large number of providers and equally distributed market share.
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