The global third-party logistics market size is expected to reach USD 1,691.86 billion by 2028, according to a report by Grand View Research, Inc. To meet the demand, 3PL companies are providing technologically driven services by investing in block-chain solutions, mobile technologies, and 3PL software.
Report highlights include:
- The market will grow due to development of a logistics infrastructure in the Asia and Middle East regions, growth of the global e-commerce sector, and the development of new technologies
- Value-added logistics services are expected to register the highest CAGR over the forecast period
- The roadways segment held the largest share in 2020 owing to the growing public-private partnerships model and increased emphasis on logistics infrastructure
- Globalization is expected to drive the growth of the airway logistics mode over the forecast period
- Asia Pacific is anticipated to register the highest CAGR of over 10.0% from 2021 to 2028 owing to the growing transport infrastructure and effective transit of freight and goods in emerging countries
Logistics automation will play a vital role in the growth of the market. The use of robots in warehouses and unloading docks streamlines order fulfillment services and automated guided vehicles (AGV) reduce human errors, resolve material handling issues, ensure movement of high-volume goods, and increase accuracy and repeatability.
3PL companies are offering comprehensive logistics services to ensure their competitiveness of the business. Shippers are reducing their operational costs by shifting their focus from transportation and back-office functions, such as warehousing, order taking and picking process, kitting and final assembly, product localization, and labeling. Value-added logistics services are becoming a boon for the shippers to mitigate inventory and transportation costs.
Original Release: PR Newswire