Rising penetration of smart technology and increased awareness of e-commerce are the key factors expected to boost sales, leading the global third-party logistics market to reach a $ 2,144 billion valuation by 2032.
According to the recent report by Fact.MR, the global third-party logistic market is set to grow at a CAGR of 7.6% between 2022 and 2032. The global third-party logistics market is projected to surpass a valuation of $ 1,031 billion in 2022. Surging industrial activity and improved foreign trade activities for efficient transportation and storage systems will push the demand for third-party logistics.
Incorporating advanced technologies such as machine learning, artificial intelligence, and the internet of things into third-party logistics will boost the market. Rising emphasis on shipping cost reduction, seasonal variation management, lowering reliance on firm assets, and timely delivery management will boost the industry further. However, the adoption of third-party logistics is expected to be hampered by stringent Government laws and regulations governing shipping activities. The producer's lack of control over logistics and warehousing operations is expected to hinder market expansion.
Some of the key players in this space include Kuehne + Nagel, Yusen Logistics, Burris Logistics, CEVA Logistics, United Parcel Service of America, BDP International, FedEx, DSV, DB Schenker Logistics, XPO Logistics, C.H. Robinson Worldwide, Nippon Express, J.B. Hunt Transport.
The report said that the increased demand for important medications and vaccines and the increased emphasis on outsourcing logistics services will boost the adoption of third-party logistics sales in the healthcare sector. With the advent of e-commerce platforms in multiple domains such as healthcare, railway, automotive, and others, the need for streamlined supply chain management is surging to improve revenue. Hence, end users are adopting smart three-party logistics to ensure productivity and profitable revenues.
As per the study, the manufacturing segment is expected to dominate the global market with rapid expansion in the US, Mexico, and India. The adoption of third-party logistics for manufacturing automotive products and enhanced customer service creates a conducive market environment. On the back of this, key players are eyeing the North America and South Asia market to capitalise on the rising application in the manufacturing industry.
To enhance their worldwide footprint, key businesses are working on various methods such as mergers and acquisitions, partnerships, collaborations, and joint ventures. Furthermore, in order to maintain their market position, prominent firms are expanding their product ranges by creating production facilities, the report noted.
Courtesy: Fact.MR. Photo is representational.
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