According to the latest report "Third-Party Logistics Market by Solution (Dedicated Contract Carriage (DCC), Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution, Logistics Software), Mode (Air, Sea, Rail & Road), Regional Outlook, Competitive Market Share & Forecast 2026" by Global Market Insights Inc., the market valuation of third-party logistics (3PL) will cross $1800 billion by 2026. The growing demand for low-cost services and rapid expansion of the e-commerce sector will drive market growth.
3PL service providers are transforming the supply chain management system in emerging markets. These services help retailers to add value and enhance engagement with their customers. It helps maximize operational efficiency and improve profitability of their customers. Globally, 3PL service providers are investing in new technology, delivering data-driven solutions, broadening their service offerings, and expanding geographical reach to increase their market share.
The rise in globalization and increasing trade activities globally are driving the 3PL market growth. The adoption of various software solutions including SCMs and cloud ERP for logistics applications are being witnessed. Features provided by these software solutions such as warehouse management, real-time data, online documentation for international freight, and inventory tracking are gaining the attraction from manufacturers across the globe.
Europe third-party logistics (3PL) market is experiencing significant growth, owing to the steady development of the manufacturing sector, rising internet penetration, and improved economic conditions across the region. For instance, according to the 'The Manufacturing Organization UK', the UK became the ninth largest manufacturing nation in the world with an annual output revenue of $192 billion in 2019. European free trade agreements with various countries worldwide are further fueling the market growth.
Key players are focusing on providing improving processes and delivering enhanced value-added services to gain customer loyalty. Technologically advanced and cost-cutting services are being extensively adopted in the 3PL market. These industry participants in the market are leaning toward adopting digital technology to attract more customers. For instance, in December 2019 J.B. Hunt Transport Services, Inc., announced the integration of JB hunt 360 with JDA Software Inc's supply chain management platform to provide value-added services to its customers including greater pricing visibility.