Third-party Logistics (3PL) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Mode of Transport (Railways, Roadways, Waterways, Airways), By Service Type (Dedicated Contract Carriage (DCC), Domestic Transportation Management, International Transportation Management, Warehousing and Transportation, Others), By Industry (Technological, Automotive, Retailing, Elements, Food and Beverages, Healthcare, Others), By Region, By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 1.68 Trillion
CAGR (2026-2031)	10.99%
Fastest Growing Segment	Warehousing and Transportation
Largest Market	North America
Market Size (2031)	USD 3.14 Trillion

Market Overview

The Global Third-party Logistics (3PL) Market will grow from USD 1.68 Trillion in 2025 to USD 3.14 Trillion by 2031 at a 10.99% CAGR. The Global Third-party Logistics (3PL) Market comprises the outsourcing of logistics and supply chain management functions, such as transportation, warehousing, and fulfillment, to specialized external providers. The primary drivers fostering growth in this sector are the increasing organizational focus on core competencies, the demand for cost reduction through operational efficiency, and the substantial expansion of the e-commerce sector which necessitates scalable distribution networks. According to the Council of Supply Chain Management Professionals, in 2024, global online retail sales neared $6.3 trillion, necessitating increasingly agile warehousing and delivery support to handle the surge in volume.

However, a significant challenge impeding the market's expansion is the rising geopolitical instability and trade fragmentation which disrupts established supply chains. The unpredictability of tariffs and shifting international regulations complicates cross-border logistics, forcing providers to continuously adapt their networks and absorb higher operational costs. This volatility creates uncertainty that can delay strategic investments and hinder the seamless flow of goods required for sustained global market growth.

Key Market Drivers

Rapid Expansion of the Global E-commerce Industry acts as a primary catalyst for the 3PL market, fundamentally altering distribution strategies to accommodate high-frequency, low-volume shipments. As consumers increasingly demand rapid fulfillment and transparent tracking, retailers are compelled to outsource logistics to providers capable of managing complex last-mile delivery networks and scalable warehousing. This shift is quantified by the sheer volume of goods moving through these networks; according to Pitney Bowes, June 2025, in the 'Parcel Shipping Index', U.S. parcel volume reached 22.4 billion shipments in 2024, representing a 3.4% increase over the prior year. This surge underscores the critical reliance on third-party experts to navigate the density of residential deliveries while maintaining service levels that individual retailers cannot achieve independently.

Increasing Globalization and Cross-border Trade Activities further impel market development, particularly as supply chains restructure to leverage nearshoring opportunities and diversify manufacturing bases. As companies navigate shifting trade lanes, they depend on 3PLs for regulatory compliance, freight forwarding, and multimodal transportation solutions that bridge international borders. According to the Council of Supply Chain Management Professionals, June 2025, in the '2025 State of Logistics Report', trade transactions between the U.S. and Mexico reached a record $840 billion in 2024, illustrating the growing magnitude of cross-border logistics requirements. To manage such expansive networks, organizations are simultaneously prioritizing cost efficiency. According to the Council of Supply Chain Management Professionals, in 2025, U.S. business logistics costs totaled $2.6 trillion in 2024, highlighting the substantial financial pressure that drives enterprises to partner with 3PLs for asset-light operational models and optimized spending.

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Key Market Challenges

Rising geopolitical instability and trade fragmentation pose a critical challenge that directly hampers the growth of the Global Third-party Logistics (3PL) Market. This volatility disrupts the seamless flow of goods by creating an unpredictable operational environment where tariffs and regulations shift rapidly. 3PL providers are consequently forced to divert financial resources toward managing these complexities and absorbing inflated operational costs, rather than investing in network expansion or technological innovation. The uncertainty surrounding international trade lanes makes long-term strategic planning difficult, leading to stagnation in capital deployment and infrastructure development necessary for market scaling.

The severity of this market strain is evident in the struggle of logistics companies to sustain operations amidst such disruption. The inability to secure consistent margins in a fragmented trade environment forces many providers to exit the sector, reducing overall market capacity. According to the Council of Supply Chain Management Professionals, in 2024, the compounding pressures of economic volatility and fragmented trade flows resulted in the closure of over 1,000 freight brokerages in the United States. This significant reduction in market participants demonstrates how geopolitical instability not only erodes operational efficiency but also threatens the commercial viability of logistics providers, thereby stalling the broader growth trajectory of the industry.

Key Market Trends

The Widespread Adoption of Warehouse Automation and Collaborative Robotics is reshaping the sector as providers seek to mitigate labor shortages and enhance throughput. 3PLs are deploying autonomous mobile robots and automated storage systems to optimize picking accuracy within high-density fulfillment centers. This technological shift allows companies to scale operations efficiently without proportional headcount increases, effectively addressing volatile demand patterns. This trend is substantiated by major players securing contracts driven by their technological capabilities; according to GXO Logistics, February 2025, in the 'Fourth Quarter and Full Year 2024 Results', the company closed more than $1 billion of new business wins, a performance directly attributed to the accelerating customer demand for outsourced automation solutions.

Implementation of Green Logistics and Carbon-Neutral Shipping Strategies has become a critical differentiator as regulatory pressures and consumer eco-consciousness intensify. Providers are increasingly investing in fleet electrification and alternative fuels to decarbonize supply chains while maintaining service reliability. This transition serves as a strategic value proposition for clients aiming to reduce Scope 3 emissions through sustainable partners. The scale of this commitment is evident in the operational shifts of leading carriers; according to Amazon, July 2025, in the '2024 Sustainability Report', the company expanded its global electric delivery fleet to more than 31,000 vehicles in 2024, enabling the delivery of 1.5 billion packages using zero-emission transportation.

Segmental Insights

The Warehousing and Transportation segment is identified as the fastest-growing category within the Global Third-party Logistics (3PL) Market, driven primarily by the exponential expansion of the e-commerce sector. As online retail activity surges, businesses are increasingly outsourcing logistics to ensure efficient inventory management and rapid last-mile delivery. This growth is further accelerated by the rising complexity of global supply chains, which compels companies to leverage professional warehousing solutions and integrated transportation networks for seamless cross-border operations. Additionally, the shift towards omni-channel distribution models necessitates robust infrastructure to handle fluctuating demand and optimize order fulfillment timelines.

Regional Insights

North America commands the largest share of the Global Third-party Logistics Market, supported by extensive transportation networks and the high adoption of supply chain management services. The regional market benefits significantly from strong cross-border trade volumes, facilitated by the United States-Mexico-Canada Agreement which streamlines logistics operations. Furthermore, the expansion of the e-commerce sector drives substantial demand for efficient distribution and warehousing solutions. Continuous infrastructure developments, overseen by institutions such as the United States Department of Transportation, ensure the operational reliability necessary to support high-frequency freight movement across the continent.

Recent Developments

• In September 2024, DSV signed a definitive agreement to acquire Schenker from Deutsche Bahn in a transaction valued at EUR 14.3 billion. This strategic development was designed to significantly strengthen the company's global network and competitive position within the dynamic transport and logistics industry. The combination of these two major organizations was expected to create a world-leading player with a pro forma revenue of approximately EUR 39.3 billion and a combined workforce of around 147,000 employees across more than 90 countries. The acquisition aimed to provide access to new markets and enhance the comprehensive service offerings available to customers across various industry verticals.
• In September 2024, GEODIS Netherlands secured a third multi-year contract from iiyama, a leading international manufacturer of display solutions, extending a long-standing collaboration between the two companies. This renewed partnership appointed the logistics provider to continue serving as the global distribution center for the client, managing business-to-business distribution needs ranging from single-unit orders to full truckloads. Under the new agreement, the company planned to implement key optimizations such as enhanced storage solutions for odd-sized pallets and advanced just-in-time order management. These innovations aimed to elevate operational efficiency and reduce lead times to support the customer's consistent growth.
• In May 2024, DHL Supply Chain announced the expansion of its multi-user campus in Leipzig/Halle, Germany, through the construction of a new logistics center. The state-of-the-art facility, spanning 34,000 square meters, was designed to offer capacity for up to 55,000 pallet spaces to support customers requiring efficient logistics solutions in Europe and worldwide. This development aimed to serve clients from the technology sector and other industries by leveraging the site's excellent multimodal transport connections. The carbon-neutral building was also set to feature sustainable energy systems, including a photovoltaic array and energy-efficient heat pumps, aligning with the group's environmental sustainability goals.
• In March 2024, Kuehne+Nagel entered into an agreement to acquire City Zone Express, a subsidiary of Chasen Holdings Ltd. and a reputable provider of cross-border road logistics in Southeast Asia. This strategic acquisition was intended to bolster the company's network in the region, particularly connecting markets in Malaysia, Singapore, Vietnam, Thailand, and China. By integrating the acquired entity's fleet of 260 vehicles and 80,000 square meters of warehousing space, the logistics leader aimed to better support customers in booming sectors such as high-tech and e-commerce. The transaction was expected to be immediately earnings-accretive and complement existing service capabilities in complex cross-border environments.

Key Market Players

• Geodis
• DHL International GmbH
• db Schenker
• a.p. moller - maersk, Kuehne+Nagel Inc.
• XPO Logistics Inc.
• C.H. Robinson Worldwide, Inc.
• FedEx Corporation
• United Parcel Service of America, Inc.
• DSV

By Mode of Transport	By Service Type	By Industry	By Region
Railways Roadways Waterways Airways	Dedicated Contract Carriage (DCC) Domestic Transportation Management International Transportation Management Warehousing and Transportation Others	Technological Automotive Retailing Elements Food and Beverages Healthcare Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Third-party Logistics (3PL) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Third-party Logistics (3PL) Market, By Mode of Transport:

• Railways
• Roadways
• Waterways
• Airways

• Third-party Logistics (3PL) Market, By Service Type:

• Dedicated Contract Carriage (DCC)
• Domestic Transportation Management
• International Transportation Management
• Warehousing and Transportation
• Others

• Third-party Logistics (3PL) Market, By Industry:

• Technological
• Automotive
• Retailing
• Elements
• Food and Beverages
• Healthcare
• Others

• Third-party Logistics (3PL) Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE