Order shipped: Industry demand will rise in-line with increased freight volumes

Over the past five years, the Third Party Logistics (3PL) industry steadily grew in line with overall demand. As the US economy and various global macroeconomic factors improved, such as consumer spending, industrial output and trade, freight volumes increased. As a result, demand for logistics services rose, boosting industry revenue over the five years to 2018. In particular, the increasingly complex global supply chain encouraged shippers to outsource to 3PL providers. Over the five years to 2023, industry revenue is projected to climb , as continued growth in consumer spending, industrial production and trade will drive freight volumes. Consequently, demand for logistics services offered by 3PL operators is anticipated to grow...purchase to read more.

Industry Statistics & Market Size
Revenue
$185bn
Annual Growth 13-18
3.7%
Forecast Growth 18-23
Profit
Employment
391,855
Businesses
18,971
Market Share of Companies

Industry Threats & Opportunities

  • Despite increasing demand, industry profit remained pressured over the past five years
  • Industry players provide outsourced logistics services such as warehousing
  • Industry companies will continue to operate under highly competitive conditions
  • Industry Report - Industry Products Chapter

    Industry operators offer a wide variety of products and services. Some offer fully integrated and customized supply chain solutions, while others specialize in certain fields or sectors. Typically, the more integrated and customized the industry service, the longer term the contract is. This facilitates the proper optimization and predictability of the service.Transportation managementTransportation management accounts for an estimated 72.8% of industry revenue. This product category is broad and can be divided into domestic and international operations. This service typically involves non-asset-based supply chain services such as freight forwarding (which accounts for the largest share of this service), brokerage and document preparation. Whi...purchase to read more.

    Additional Insights for the Third-Party Logistics Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Third-Party Logistics Industry are

  • Effective quality control
  • Access to the latest available and most efficient technology
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Freight transportation services index in the Third-Party Logistics industry impact industry performance..

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    What's in this report

    What is the Third-Party Logistics Industry?

    Third party logistics (3PL) companies provide outsourced logistics services to clients. Operators typically provide integrated supply chain solutions which include, but are not limited to, warehousing, forwarding, packing, consulting, brokerage and transportation documentation. In particular, 3PL providers will tailor and incorporate their services into their customer’s supply chain based on client’s needs. All revenue in this report is gross revenue.

    Industry Products
  • Transportation management
  • Warehousing and related services
  • Other services
  • Industry Activities
  • Logistic consulting
  • Transportation management
  • Forwarding
  • Packing
  • Freight brokerage
  • Warehousing
  • Dedicated contract carriage
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Freight transportation services index
  • Total trade value
  • Industrial production index
  • commerce sales

  • Current Performance
  • Demand expands
  • Competition and internal dynamics
  • Chart: Revenue Growth

  • Industry Outlook
  • Persistent demand conditions
  • Challenges and internal dynamics
  • Table: Third-Party Logistics Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Third-Party Logistics Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Retail Trade
  • Transportation and Warehousing

  • Key Selling Industries
  • Forklift & Conveyor Manufacturing
  • Industrial Building Construction
  • Local Freight Trucking

  • Products & Services
  • Transportation management
  • Warehousing and related services
  • Other services
  • Chart: Third-Party Logistics Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial
  • Other markets
  • Retail and wholesale
  • Transportation market
  • Chart: Major Market Segmentation for the Third-Party Logistics Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Third-Party Logistics

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Third-Party Logistics Industry

  • Industry Globalization
    CH Robinson Worldwide Inc.,
  • Table: CH Robinson Worldwide Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Third-Party Logistics Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Third-Party Logistics Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Freight transportation services index (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Forwarding
  • Arranging the storage and shipping of goods on behalf of its shippers.
  • Fulfillment
  • The process of delivering a product to a customer.
  • Integrated Logistic Service
  • Provision of transportation activities from door to door through the vertical integration of the supply chain.
  • What Our Customers Say

    Why buy this report?

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    IBISWorld industry market research reports enable you to:
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    • Identify threats and opportunities
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    This report on Third-Party Logistics:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Third-Party Logistics market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Third-Party Logistics, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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