3PL: Key market research findings
- The market is driven by trade agreements amongst nations
- APAC dominates the market geographically
- Key vendors – C.H. Robinson, CEVA, DB Schenker, Deutsche Post DHL, DSV, Kuehne + Nagel, and Nippon Express
The market research analysts at Technavio predict the global 3PL market to grow at a CAGR of almost 6% between 2016 and 2020. The market is driven primarily by the increase in trade agreements amongst nations. Favorable government trade policies have resulted in an increased demand for 3PL services to keep pace with the growing logistics needs of importers and exporters, thereby opening up an opportunity for vendors to expand their base globally. In 2015, the APAC region occupied more than 39% of the overall market share to dominate the global 3PL market. An increase in the export and import of goods in the principal countries of this region is expected to propel growth in the 3PL market in APAC during the forecast period.
The new market research report from Technavio presents a breakdown and analysis of the 3PL segments by logistics services outsourced.
“An increase in the number of mergers and acquisitions is an ongoing trend in the global 3PL market. Vendors in the market are entering into mergers and acquisitions to expand their portfolio and take advantage of the new, combined organization to deliver top quality logistical and transport services. M&As help vendors increase their global presence, broaden their product portfolio, and achieve economies of scale in various supply chain management (SCM) processes. For instance, YUSEN LOGISTICS acquired HITECH ASIA PACIFIC for an undisclosed amount in March 2016,” Sharan Raj, Lead Analyst, Transportation & Logistics, Technavio Research.
In 2015, the transportation segment dominated the global 3PL market with around a 39% share of the market space. This segment of the 3PL market deals with the provision of different modes of transport services like the ground, ocean, air, and rail. The rise in intra-regional trades and infrastructural developments are factors that will contribute to the growth in the transportation segment of the 3PL market in the coming years.
The key vendors in the global 3PL market include C.H. Robinson, CEVA, DB Schenker, Deutsche Post DHL, DSV, Kuehne + Nagel, and Nippon Express. The market is fragmented and comprises many internal and local players, however, is primarily dominated by small and medium enterprises (SMEs). With the growing requirement for outsourced logistics, the market is expected to witness the entry of several new players. The industry is becoming more competitive because of the disorganized nature of the market, which includes local truck and warehouse owners. The market is capital-intensive where the vendors focus on providing value-added services to gain a competitive edge over their peers.
A more detailed analysis is available in the Technavio report, Global 3PL Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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