U.S. Third-party Logistics Market To Reach $451.3 Billion By 2030

U.S. Third-party Logistics Market Growth & Trends

The U.S. third-party logistics market size is anticipated to reach USD 451.3 billion by 2030, expanding at a CAGR of 9.2% from 2024 to 2030, according to a new report by Grand View Research, Inc. The rising demand for third party logistics (3PL) services in the United States can be attributed to several key factors that reflect the evolving landscape of modern business operations. One primary driver is the strategic shift among businesses towards focusing on their core competencies. In an era where specialization is crucial for competitiveness, companies prefer to allocate their resources and efforts to areas where they excel, such as manufacturing or marketing, while entrusting the complexities of logistics management to specialized 3PL providers.

Furthermore, the growth of e-commerce and international trade has also played a significant role in driving the demand for 3PL services. The rise of online shopping has increased the need for efficient and reliable logistics services to handle the growing volume of shipments. The globalization of trade has created a demand for logistics services that can efficiently manage cross-border transportation and customs clearance. As  reported by the Census Bureau of the Department of Commerce, the adjusted estimate for U.S. retail e-commerce sales in the third quarter of 2023 stood at USD 284.1 billion, showing a 2.3% rise from the second quarter of 2023. In comparison to the third quarter of 2022, the e-commerce sales estimate for Q3 2023 demonstrated a notable increase of 7.6%. E-commerce transactions during the third quarter of 2023 constituted 15.6% of the overall sales.

One of the key advantages of adopting 3PL solutions is the cost-saving potential they offer. 3PL solution providers have the expertise to optimize transportation costs, negotiate bulk shipping discounts, and minimize property as well as labor costs This leads to lower operating expenses for businesses. By leveraging their network and industry knowledge, 3PL solution providers can identify cost-saving opportunities and prescribe effective logistics strategies in order to reduce logistics costs, inventory costs, and fixed costs for shippers.

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U.S. Third-party Logistics Market Report Highlights

• Based on services, the domestic transportation management (DTM) segment dominated the market in 2023. DTM providers have witnessed strong demand and sequential carrier rate increases. This has positively impacted net revenue growth

• Additionally, DTM providers have a strong local presence and established relationships with carriers, warehouses, and other stakeholders within a specific country, which provides an advantage in terms of efficient management of transportation networks and better control over the supply chain

• Based on transport, the waterways segment is expected to register the highest CAGR from 2024 to 2030, propelled by cost-effectiveness, high carrying capacity, increasing demand for water transportation, infrastructure development, and the growth of international trade as well as shipping

• Additionally, investments in infrastructure development, such as locks and dams as well as other facilities, have improved the efficiency and reliability of water transportation. For instance, in November 2023, the U.S. Department of Transportation’s  Maritime Administration (MARAD) announced that it had allocated USD 653 million to support 41 projects aimed at enhancing port infrastructure across the country through the Port Infrastructure Development Program (PIDP)

• Aligned with President Biden's Investing in America agenda, a central tenet of Bidenomics, financial backing is intended to foster the expansion of capacity and improvement of operational efficiency at various ports, including coastal seaports, Great Lakes ports, and inland river ports

• Based on end-use, the retail & e-commerce segment dominated the market in 2023. The retail and e-commerce sector often involves complex and dynamic supply chains. 3PL providers play a crucial role in managing these complexities, from inventory management and order processing to last-mile delivery, allowing retailers to focus on their core business activities

• Moreover, consumers increasingly expect fast and reliable delivery services when making online purchases. To meet these expectations, retail and e-commerce companies leverage 3PL providers to optimize their logistics operations, ensuring timely order fulfillment and delivery

• The West Coast is expected to register the fastest CAGR during the forecast period. The West Coast is strategically positioned for international trade, serving as a gateway for goods moving between the U.S. and key trading partners in Asia, particularly China. The proximity to major ports such as the Port of Los Angeles and the Port of Long Beach enhances the region's significance in global trade

• In December 2023, Yusen Logistics Co. Ltd. entered a strategic partnership with Pickle Robot Company, one of the leaders in the field of physical artificial intelligence (AI) and robotic automation

• Plans envisaged commencing the collaboration with the implementation of Pickle Unload solutions at Yusen Logistics Co. Ltd.'s Contract Logistics Group trans-loading operation located in Long Beach, California.

• By integrating the cutting-edge solution, Yusen Logistics Co. Ltd. will be able to reduce the physical workload for its employees and enhance service reliability. The partnership reflected Yusen Logistics Co. Ltd.'s dedication to introducing the most advanced robotics automation solutions within its warehouses, with the ultimate goal of providing superior service to its valued customers.

U.S. Third-party Logistics Market Segmentation

Grand View Research has segmented the U.S. third-party logistics market based on service, transport, end-use, and region:

U.S. Third-party Logistics (3PL) Service Outlook (Revenue, USD Million, 2017 - 2030)

• Dedicated Contract Carriage (DCC)/Freight Forwarding

• Domestic Transportation Management (DTM)

• International Transportation Management (ITM)

• Warehousing & Distribution (W&D)

• Value Added Logistics Services (VALs)

U.S. Third-party Logistics (3PL) Transport Outlook (Revenue, USD Million, 2017 - 2030)

• Roadways

• Railways

• Waterways

• Airways

U.S. Third-party Logistics (3PL) End-use Outlook (Revenue, USD Million, 2017 - 2030)

• Manufacturing

• Retail & E-commerce

• Healthcare

• Automotive

• Others

U.S. Third-party Logistics (3PL) Region Outlook (Revenue, USD Million, 2017 - 2030)

• East Coast

  • Florida

  • New York

  • New Jersey

  • Others

• West Coast

  • California

  • Washington

  • Oregon

  • Others

• Rest of the U.S.

List of Key Players in the U.S. Third-party Logistics (3PL) Market:

• Ultra

• BDP INTERNATIONAL INC.

• Burris Logistics

• C.H. Robinson Worldwide, Inc

• CEVA Logistics

• DSV

• DB Schenker Logistics

• FedEx

• J.B. Hunt Transport, Inc.

• Kuehne + Nagel

• Nippon Express

• United Parcel Service of America, Inc

• XPO Inc.

• Yusen Logistics Co. Ltd.

• Ryder System, Inc.

• Flexport Inc.