The Third Party Logistics Services Market is estimated to be valued at USD 1.3 billion in 2025 and is projected to reach USD 3.0 billion by 2035, registering a compound annual growth rate (CAGR) of 8.6% over the forecast period.
| Metric | Value |
|---|---|
| Third Party Logistics Services Market Estimated Value in (2025 E) | USD 1.3 billion |
| Third Party Logistics Services Market Forecast Value in (2035 F) | USD 3.0 billion |
| Forecast CAGR (2025 to 2035) | 8.6% |
The Third Party Logistics Services market is experiencing significant growth, driven by increasing demand for outsourced logistics solutions that enable operational efficiency, cost reduction, and scalability across industries. Growth is being supported by rising global trade volumes, e-commerce expansion, and complex supply chain networks that require specialized logistics expertise. Advanced technologies, including warehouse automation, transportation management systems, and real-time tracking, are enhancing service delivery while improving transparency and customer satisfaction.
The market is further shaped by the growing preference for integrated logistics solutions that combine warehousing, transportation, and inventory management. Regulatory compliance, safety standards, and environmental considerations are also influencing service adoption, as companies seek reliable partners to navigate complex requirements.
Continuous investment in infrastructure, technology, and workforce development is enabling service providers to offer flexible and scalable solutions As organizations prioritize supply chain optimization and focus on core competencies, the Third Party Logistics Services market is expected to witness sustained growth, with innovative and technology-enabled services driving long-term expansion and competitive differentiation.
The third party logistics services market is segmented by service type, asset ownership, asset contract type, end-use industry, and geographic regions. By service type, third party logistics services market is divided into Warehousing, Transportation, Packaging, Procurement, Distribution, Inventory Management, and Others. In terms of asset ownership, third party logistics services market is classified into Asset Based 3PL and Non-Asset Based 3PL.
Based on asset contract type, third party logistics services market is segmented into Public and Private. By end-use industry, third party logistics services market is segmented into Food & Beverages, Pharmaceuticals, Chemicals, Automotive & Aerospace, Electronics Goods, and Others.
Regionally, the third party logistics services industry is classified into North America, Latin America, Western Europe, Eastern Europe, Balkan & Baltic Countries, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The warehousing service type segment is projected to hold 25.6% of the market revenue in 2025, establishing it as a leading service category. Its growth is being driven by the increasing demand for storage solutions that support e-commerce fulfillment, inventory management, and multi-channel distribution. Warehousing services enable efficient handling of goods, reducing lead times and improving supply chain responsiveness.
Advanced technologies such as automated storage and retrieval systems, real-time inventory tracking, and IoT-enabled monitoring are enhancing operational efficiency and accuracy. Integration with transportation and distribution networks further strengthens service effectiveness. The ability to scale operations based on seasonal demand, product type, and regional requirements has enhanced the adoption of warehousing services.
Additionally, cost optimization through shared facilities and flexible contracts is encouraging businesses to outsource storage needs As demand for fast, reliable, and technology-enabled storage solutions continues to rise, the warehousing segment is expected to maintain its leadership position, supported by ongoing investments in smart warehouse infrastructure and process automation.
The asset based 3PL segment is expected to account for 55.2% of the market revenue in 2025, making it the leading asset ownership type. Growth in this segment is driven by providers owning and operating their own logistics assets, including warehouses, transportation fleets, and distribution centers, which ensures higher reliability, control, and service quality. Asset based 3PL providers can offer end-to-end solutions with guaranteed capacity, better operational efficiency, and faster response times compared to non-asset-based alternatives.
Integration of advanced logistics technologies, real-time tracking, and predictive analytics enables optimized routing and inventory management. Organizations benefit from reduced dependency on third-party carriers and improved visibility across the supply chain.
The ability to maintain dedicated resources for high-volume clients or specialized goods further strengthens market adoption As companies seek dependable, scalable, and technology-enabled logistics partners, the asset based 3PL segment is expected to remain dominant, supported by investments in infrastructure, fleet expansion, and digital platforms that enhance efficiency and client satisfaction.
The public asset contract type segment is projected to hold 60.7% of the market revenue in 2025, establishing it as the leading contract category. Its growth is driven by the increasing preference for publicly accessible logistics assets that enable flexible utilization, cost optimization, and shared resource management. Public contract models allow multiple clients to access warehousing, transportation, and distribution facilities without the need for dedicated ownership, providing scalability and operational flexibility.
This approach reduces capital expenditure for businesses while ensuring access to high-quality logistics infrastructure. Advanced management systems and real-time monitoring ensure efficient allocation, scheduling, and utilization of public assets, improving transparency and reliability. Growing demand from small and medium enterprises, e-commerce players, and seasonal industries has reinforced adoption.
The ability to dynamically allocate resources based on demand fluctuations and geographic requirements further strengthens the segment’s appeal As supply chains become increasingly complex and demand-driven, the public asset contract type is expected to maintain its leading position, driven by efficiency, flexibility, and cost-effectiveness.
The third party logistics services market is currently valued at USD 1036.08 Billion in the year 2025. It is estimated to record a CAGR of 8.6% from the year 2025 to 2035. It is expected to reach a valuation of USD 1128.44 Billion owing to the increasing network of supply chain and logistics.
Globalization has played a vital role in boosting the growth of 3pl companies. The worldwide spread of the manufacturing network needs a reliable and safe way to deliver or stock their products.
The advancement in information technology has contributed to the growth as it provides reliability and is cost-effective. In order to give tough competition in the market, 3pl companies can provide services like short-term/long-term warehousing, cross-country freight, insurance etc.
The ‘amazon effect’, which basically refers to digitalization and eCommerce, has affected the market positively as companies need a strong network of suppliers and safe warehousing.
The companies are stressing providing technology-driven services, such as route optimization and real-time shipment tracking. The companies are also trying to maintain complete visibility over the entire supply chain without overburdening the clients.
The strengthening of shipper-carrier relationships increases information sharing and transparency among both parties, creating a favourable business environment. The market is witnessing strong M&A activities over the last several years. Key companies are also engaging in partnerships, mergers, and acquisitions with small- and medium-sized companies to leverage their regional capabilities.
The 3pl market also brings some risks to the producers. As there is little or no control of manufacturers over the logistics, it brings a risk of theft and misplacing of a product. The producers may have to bear great losses and hence have their products insured. This also creates a question of the goodwill of a company. Many frauds take place relating to hampering the product before delivery.
Major players in the market provide temperature-controlled storage and custom distribution programs to logistics technology and direct-to-consumer fulfilment, a high level of flexibility in providing customized solutions and a greater level of agility in execution while maintaining cost efficiencies.
| Attributes | Details |
|---|---|
| Third party logistics services market (CAGR) | 8.6% |
| Third party logistics services market (2025) | USD 1039.08 Billion |
| Third party logistics services market (2035) | USD 1128.44 Billion |
| Country | CAGR |
|---|---|
| China | 11.6% |
| India | 10.8% |
| Germany | 9.9% |
| Brazil | 9.0% |
| USA | 8.2% |
| UK | 7.3% |
| Japan | 6.5% |
The Third Party Logistics Services Market is expected to register a CAGR of 8.6% during the forecast period, exhibiting varied country level momentum. China leads with the highest CAGR of 11.6%, followed by India at 10.8%. Developed markets such as Germany, France, and the UK continue to expand steadily, while the USA is likely to grow at consistent rates.
Japan posts the lowest CAGR at 6.5%, yet still underscores a broadly positive trajectory for the global Third Party Logistics Services Market. In 2024, Germany held a dominant revenue in the Western Europe market and is expected to grow with a CAGR of 9.9%.
The USA Third Party Logistics Services Market is estimated to be valued at USD 495.6 million in 2025 and is anticipated to reach a valuation of USD 495.6 million by 2035. Sales are projected to rise at a CAGR of 0.0% over the forecast period between 2025 and 2035. While Japan and South Korea markets are estimated to be valued at USD 68.6 million and USD 41.9 million respectively in 2025.
| Item | Value |
|---|---|
| Quantitative Units | USD 1.3 Billion |
| Service Type | Warehousing, Transportation, Packaging, Procurement, Distribution, Inventory Management, and Others |
| Asset Ownership | Asset Based 3PL and Non-Asset Based 3PL |
| Asset Contract Type | Public and Private |
| End-Use Industry | Food & Beverages, Pharmaceuticals, Chemicals, Automotive & Aerospace, Electronics Goods, and Others |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, Middle East & Africa |
| Country Covered | United States, Canada, Germany, France, United Kingdom, China, Japan, India, Brazil, South Africa |
| Key Companies Profiled | C.H. Robinson Worldwide, Inc., FedEx, Kuehne + Nagel, DB Schenker Logistics, DSV, XPO Logistics, Inc, CEVA Logistics, United Parcel Service of America, Inc., J.B. Hunt Transport, Inc., Yusen Logistics Co. Ltd., Burris Logistics, BDP International, and Nippon Express |
The global third party logistics services market is estimated to be valued at USD 1.3 billion in 2025.
The market size for the third party logistics services market is projected to reach USD 3.0 billion by 2035.
The third party logistics services market is expected to grow at a 8.6% CAGR between 2025 and 2035.
The key product types in third party logistics services market are warehousing, transportation, packaging, procurement, distribution, inventory management and others.
In terms of asset ownership, asset based 3pl segment to command 55.2% share in the third party logistics services market in 2025.
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Third Party Logistics Services Market
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