US (3PL) Third-Party Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 238.20 Billion |
| Market Size (2029) | USD 281.21 Billion |
| CAGR (2024 - 2029) | 3.38 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
US (3PL) Third-Party Logistics Market Analysis
The United States 3PL Market size is estimated at USD 238.20 billion in 2024, and is expected to reach USD 281.21 billion by 2029, growing at a CAGR of 3.38% during the forecast period (2024-2029).
COVID-19 has transformed businesses across the world, with greater attention given to supplying chain optimization, growth of 3PL, and meeting essential and non-essential delivery challenges. Building supply chains more resistant to shocks like COVID-19 requires a blended approach by shippers to localized and global sourcing. With the implementation of the lockdown, the transportation sector, upon which supply-chain activities are dependent, has remained partially closed. Consequently, there were constraints to the smooth functioning of the supply chains, and this has had an adverse impact on global business and industrial activities. The shipping industry, which accounts for about 90% of trade activities, was impacted by the pandemic.
The 3PL market in the United States is driven by the increasing level of cross-border trade. The cost benefits of using 3PL are anticipated to boost the growth of the 3PL market. Consequently, 3PLs are going through a digital transformation and are investing in end-to-end solutions and end-to-end visibility to meet growing customer demand.
However, 3PL operators also face various challenges. Firstly, the development of the e-commerce sector and the consequent increase in the demand for services that manage supply chains around the world are expected to pose issues to the operation of the market.
Manufacturers and retailers are focusing on their core competencies and are now more readily subcontracting functions such as logistics to those with the expertise. Thus, the increase in competition has diverted the focus of manufacturers to promote their respective specializations in production and distribution.
Major third-party logistics providers are heavily investing in novel technologies, expanding their service portfolio, and widening their global reach. Software solutions are widely being used by companies for logistics applications.
US (3PL) Third-Party Logistics Market Trends
This section covers the major market trends shaping the US 3PL Market according to our research experts:
E-commerce Driving the 3PL Market
- With the increasing penetration of e-commerce in the United States market, consumers are demanding customized shipping along with real-time visibility of the shipments. These demands are driving the 3PL service providers to focus on providing overall network optimization and creating an agile supply chain through innovation and optimization for greater visibility.
- Even while e-commerce has been a core demand driver for sophisticated and high-end logistics services from 3PLs, the market is disrupting fast.
- Shopify, a leading e-commerce marketplace, acquired 6 River Systems. 6 River Systems is a provider of AI-enabled fulfillment automation solutions focused on effective picking, sorting, quicker turn-around time, and throughput. 6 River Systems lists XPO Logistics and other 3PL companies as clients. Such scenarios indicate the level of sophistication and ongoing disruptions in the fast-changing market.
- Even while e-commerce is expected to be a core demand driver for 3PL services, retailers and online marketplaces such as Amazon and Shopify would also require specialized 3PL support (given their scale of business).
- Hence, 3PL companies are expected to upgrade technology and acquire disruptive solution providers - so that outsourcing requirements of large and key customers can be fulfilled and required end-customer satisfaction can be achieved.
Increase in Demand for Warehousing Space
- The rising demand from key areas such as automotive, manufacturing, retail, technology, healthcare, and construction is expected to create strong demand for the warehousing space in the coming years.
- The manufacturing companies are demanding for outsourcing warehousing services to aid their production and operational expansions.
- Considering the advantages of outsourcing in terms of enhanced operational efficiency and cost savings, shippers are increasingly outsourcing the logistics portion of their activities to warehouse service suppliers to meet the increasing demand for fast delivery.
- This also allows them to concentrate on their core competencies. Moreover, with the growing popularity of frozen food, the demand for refrigerated storage and warehousing has also increased.
- Many logistic service providers and retailers have started establishing dedicated warehousing spaces for their activities in the market.
- In 2020, China Manufacturers Alliance LLC (CMA)/Double Coin Tires opened warehouses in Rancho Cucamonga and Riverside (US) to boost the capacity for truck/bus and OTR tires in the coming years. The addition of these facilities has expanded the company's warehousing footprint to approximately 338,000 sq. ft, adding extra capacity for around 225,000 units.
US (3PL) Third-Party Logistics Industry Overview
The market is relatively fragmented, with the presence of a large number of local and international players, including CH Robinson, XPO Logistics, UPS Supply Chain, Expeditors, and JB Hunt. Fragmentation in the market is expected to decrease with companies in the space actively merging and consolidating to get the benefits of economies of scale.
US (3PL) Third-Party Logistics Market Leaders
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C.H. Robinson
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XPO Logistics
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UPS
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Expeditors
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J.B. Hunt
*Disclaimer: Major Players sorted in no particular order
US (3PL) Third-Party Logistics Market News
- In January 2022, J.B. Hunt announced that it was acquiring the assets of Zenith Freight Lines from Bassett Furniture Industries, a leading manufacturer of quality furniture. The acquisition is worth USD 87 million. From now on, J.B. Hunt will continue to provide the services for Bassett. This investment helps J.B. Hunt to enhance its furniture delivery capabilities by expanding nationwide.
- In January 2022, XPO Logistics announced the opening of two LTL terminals to increase its customer service capacity. In October 2021, the company launched a 264-door terminal in Chicago Heights, Illinois, and took steps to increase freight flows in the face of rising demand.
- In December 2021, DHL Supply Chain collaborated with TuSimple to adopt and implement autonomous trucking operations. With this partnership, DHL made a reservation for 100 autonomous trucks designed by TuSimple and Navistar in the United States.
US (3PL) Third-Party Logistics Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
- 4.1 Market Overview
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4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.2 Restraints
- 4.2.3 Opportunities
- 4.3 Value Chain/Supply Chain Analysis
- 4.4 Industry Policies and Regulations
- 4.5 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics, Etc.
- 4.6 Technological Developments in the Logistics Sector
- 4.7 Industry Attractiveness - Porter's Five Forces Analysis
- 4.8 General Trends in the Warehousing Market
- 4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION (Market Size By Value)
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5.1 By Services
- 5.1.1 Domestic Transportation Management
- 5.1.2 International Transportation Management
- 5.1.3 Value-added Warehousing and Distribution
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5.2 By End User
- 5.2.1 Aerospace
- 5.2.2 Automotive
- 5.2.3 Consumer and Retail
- 5.2.4 Energy
- 5.2.5 Healthcare
- 5.2.6 Manufacturing
- 5.2.7 Technology
- 5.2.8 Other End Users
6. COMPETITIVE LANDSCAPE
- 6.1 Market Concentration Overview
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6.2 Company Profiles
- 6.2.1 C.H. Robinson
- 6.2.2 XPO Logistics
- 6.2.3 United Parcel Service
- 6.2.4 Fedex
- 6.2.5 J.B. Hunt
- 6.2.6 DHL Supply Chain Logistics
- 6.2.7 D.B. Schenker
- 6.2.8 Kuehne + Nagel
- 6.2.9 Hub Group
- 6.2.10 Ryder Supply Chain Solutions
- *List Not Exhaustive
7. FUTURE OF THE US 3PL MARKET
8. DISCLAIMER
9. APPENDIX
- 9.1 GDP Distribution, By Activity
- 9.2 Insights on Capital Flows
- 9.3 Economic Statistics - Export and Import by Product
- 9.4 Insights on Key Export Destinations
- 9.5 Insights on Key Import Origin Countries
US (3PL) Third-Party Logistics Industry Segmentation
Airfreight is another term for air cargo, which refers to the shipment of goods by air. The United States 3PL market is segmented by services (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution) and End User (Aerospace, Automotive, Consumer and Retail, Energy, Healthcare, Manufacturing, Technology, and Other End Users). The report offers market size and forecasts for the United States market in value (USD Billion) for all the above segments.
| By Services | Domestic Transportation Management |
| International Transportation Management | |
| Value-added Warehousing and Distribution | |
| By End User | Aerospace |
| Automotive | |
| Consumer and Retail | |
| Energy | |
| Healthcare | |
| Manufacturing | |
| Technology | |
| Other End Users |
US (3PL) Third-Party Logistics Market Research FAQs
How big is the United States 3PL Market?
The United States 3PL Market size is expected to reach USD 238.20 billion in 2024 and grow at a CAGR of 3.38% to reach USD 281.21 billion by 2029.
What is the current United States 3PL Market size?
In 2024, the United States 3PL Market size is expected to reach USD 238.20 billion.
Who are the key players in United States 3PL Market?
C.H. Robinson , XPO Logistics, UPS, Expeditors and J.B. Hunt are the major companies operating in the United States 3PL Market.
What years does this United States 3PL Market cover, and what was the market size in 2023?
In 2023, the United States 3PL Market size was estimated at USD 230.41 billion. The report covers the United States 3PL Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States 3PL Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which is the most influencing segment leading the US 3PL Market?
E-commerce is the most influencing segment leading the US 3PL Market.
USA (3PL) Third-Party Logistics Industry Report
The U.S. third-party logistics (3PL) market is witnessing significant growth, propelled by the increasing demand for specialized logistics services aimed at optimizing supply chains and boosting operational efficiency. This surge is attributed to the rise in e-commerce, international trade, and the necessity for cost-effective logistics solutions. US 3PL companies are leading the charge in embracing digital technologies like artificial intelligence, big data analytics, and the Internet of Things, set to enhance logistics efficiency and slash operational costs further. The competitive market landscape emphasizes technological advancements, strategic partnerships, and service expansion. With the market segmented by mode of transport, service type, and industry, it serves a wide array of sectors such as technology, automotive, retail, food & beverage, and healthcare. The ongoing digital transformation and commitment to end-to-end solutions by US 3PL companies are vital for addressing the increasing customer demand and the challenges from the dynamic e-commerce sector and global trading activities. For detailed statistics on the USA (3PL) Third-Party Logistics market share, size, revenue growth rate, and a forecast outlook, Mordor Intelligence™ Industry Reports offer a comprehensive analysis, available as a free report PDF download.
