Third party logistics involves management of various logistics activities like transportation, warehousing, freight and forwarding by an external company. It is a supply chain management service in which firms outsource logistical functions such as transportation, warehousing, cross-docking, and inventory management to a specialized logistics service provider. It is commonly used by companies to reduce costs and focus on core activities. The rise in online shopping and sale through e-commerce platforms has increased the usage of third party logistics for delivery of goods in perfect condition to customers within committed timeframe.

The global third party logistics Market is estimated to be valued at US$ 1.63 Mn in 2024 and is expected to exhibit a CAGR of 5.9% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The surge in e-commerce sales over the years has been a major driver of growth for the third party logistics market. According to Organisation for Economic Co-operation and Development (OECD), global B2C e-commerce sales grew to $26.7 trillion in 2019 compared to $22.4 trillion in the previous year, registering strong growth of 19%. As more people shop online, third party logistics providers play a vital role of safe and timely delivery of products. Their warehousing and transportation services ensure that online orders are processed smoothly. Additionally, offering of value-added services like quality inspection, packaging and labelling by third party logistics enhance customer experience. The growth in e-commerce has boosted demand for their services. The market is also gaining from cost advantages of outsourcing logistical activities which allows companies to focus on core operations.

SWOT Analysis
Strength: Third party logistics helps companies reduce cost of transportation and warehousing. It allows them to focus on their core competencies. Utilizing third party expertise helps gain access to advanced technologies and better economies of scale.
Weakness: Reliance on third party can reduce control over logistics activities. Any inefficiencies or misunderstandings on part of third party can impact service quality. There is also risk of discontinuity of service if third party faces financial or operational issues.
Opportunity: Growth of e-commerce sector fuels demand for third party logistics. Expanding global trade increases complexity of supply chains creating scope for third parties. Technological advancements like IoT, analytics, robotics bring new opportunities to enhance efficiency.
Threats: Intense competition can compress margins of third party logistics providers. Rising fuel costs and shortage of transportation assets can increase logistics costs. Trade policies affecting global trade flows pose challenges.

Key Takeaways

The Global Third Party Logistics Market Size  is expected to witness high growth over the forecast period of 2024 to 2031. The market size is projected to reach US$ 1.63 billion by 2024. Rapid growth of e-commerce necessitates optimizing supply chain operations which drives demand for third party services.

Regional analysis related content comprises: The Asia Pacific region dominates the third party logistics market currently holding around 35% share. China accounts for over 25% market share benefiting from large manufacturing base and international sourcing and distribution needs of companies. India is expected to be the fastest growing regional market due to 'Make in India' initiative and expanding consumption.

Key players related content comprises: Key players operating in the third party logistics market are Johnson Controls, Solberg, Dr. Sthamer, National Foam, Eau&Feu, Dafo Fomtec AB, ICL Performance Products, KV Fire Chemicals and Auxquimia & Angus Fire. Johnson Controls is the global market leader providing comprehensive warehousing, transport management and reverse logistics services to diverse industries.

For more Insights, Read –

https://www.insightprobing.com/third-party-logistics-market-market-size-share-analysis-growth/