According to the latest market research study released by Technavio, the 3PL market in Europe is expected to grow at a CAGR of more than 3% during the forecast period 2017-2021.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the global 3PL market in Europe market based on end-user:
3PL market in Europe shares by end-user 2016
|
Manufacturing |
16.57% |
|
Retail |
14.48% |
|
Consumer goods |
13.23% |
|
Healthcare |
12.89% |
|
Others |
12.88% |
|
Hi-tech |
11.26% |
|
Food and beverage |
10.26% |
|
Automotive |
8.43% |
Source: Technavio
The top three revenue contributing end-user segments are discussed below:
3PL market in Europe by manufacturing industry
In 2016, the manufacturing industry accounted for around 17% in the 3PL market in Europe. The European Commission plans to increase manufacturing industry’s contribution to 20% by 2021, to revamp the European economy.
“Manufacturing companies have adopted various business models that follow an integrated approach for providing products and services. Moreover, the manufacturing industry will increase its competitiveness in areas like sensor technologies, advanced computing, and robotics. The growing manufacturing sector provides substantial growth opportunities to 3PL service providers,” says Abhay Sinha, a senior analyst at Technavio for research on logistics.
The growth of this sector in the region is driven by the increasing nearshoring in the Eastern European countries such as Poland, Romania, the Czech Republic, and Hungary. The nearshoring is due to easy availability of cash grants and tax incentives.
3PL market in Europe by retail industry
The growth of e-commerce has increased the demand for 3PL services in the retail industry. Retailers face tough challenges in maintaining in-house logistics, as it is an expensive and cumbersome process. Holding inventory in warehouses is a high-cost activity as there is a risk of the stock, which is costly, becoming obsolete. Beside this, warehouses are expensive to operate, and the vehicles used to transport goods between warehouses and shops also involve high capital and operating costs. Involvement of such high costs has compelled the retailers to outsource their logistics services to the 3PL providers.
3PL market in Europe by consumer goods industry
Changing consumer shopping behavior such as buying goods from various channels has led to the migration of huge amount of product from offline to online channels. The investors in the industry are reducing costs in maintaining physical stores and investing more in online platforms. The unpredictable market conditions have led to decrease in consumer expenditure. With the downfall of mass market, the CPG manufacturers are targeting niche customer segments by offering personalized products. So, CPG companies are reducing their operational cost by availing logistics services from 3PL vendors.
The top leading vendors operating in the 3PL market in Europe are:
- C.H Robinson
- CEVA Logistics
- DB Schenker Logistics
- Deutsche Post DHL
- Expeditors International of Washington
- J.B. Hunt Transport
- Kuehne + Nagel International
- SNCF Logistics
- SNCF Logistics
- UPS
Other prominent vendors in the market include ACP Freight Services, Agility, Alkomtrans, APL Logistics, AWT, Baltic Logistics, BDP International, BLS AG, Bulk Logistics Solutions, Czech Logistics Alliance, Azkar Dachser, Damco, DAN-CZECH, DEIJ Transport, DSV, FedEx Supply Chain, FM Logistic, Gondrand International, H.P. Therkelsen, hansa-express logistics, Huktra, IMPERIAL Logistics International, Ital Logistics, Jawimex Logistics, John G Russell Transport, Jordon Freight, KLG Europe, LCL International, LKW WALTER International, LogServ, Mainfreight, Menlo Worldwide Logistics, Move Intermodal, Neovia Logistics Services, OGRIS Logistics, Panalpina, Rhenus, RJ International Freight, Rob Masters Specialist Transportation, Ryder, Schneider Logistics, STEF, VECCHI ZIRONI, VTG AG, Warrant, Werner Enterprises Dedicated and Logistics, and Ziegler.
A more detailed analysis is available in the Technavio report titled, ‘3PL Market in Europe 2017-2021’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Third-Party Chemical Distribution Market 2016-2020
- Logistics Market in the APAC Region 2016-2020
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