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Logistics Outsourcing Market (Logistics Providers - 3PL, 4PL, 5PL, and Others; Service Type - Material Management, Supply Chain Management, Distribution Management, Shipment Packaging, Channel Management, and Others; Mode of Transportation - Railways, Roadways, Waterways, and Airways): Global Industry Analysis, Trends, Size, Share and Forecasts to 2027

  • Published : September, 2021

  • Rep Id : AT00232

  • Category : Automotive, Aerospace & Defence

  • Status : Published

A recent report published by Infinium Global Research on the logistics outsourcing market provides an in-depth analysis of segments and sub-segments in the global as well as regional logistics outsourcing market. The study also highlights the impact of drivers, restraints, and macro indicators on the global and regional logistics outsourcing market over the short term as well as long term. The report is a comprehensive presentation of trends, forecast and dollar values of the global logistics outsourcing market. According to the report, the global logistics outsourcing market is projected to grow at a CAGR of 4.77% over the forecast period of 2021-2027, growing from nearly USD 948 billion in 2020 to over USD 1301 billion in 2027.

 

Market Insight

The supply chains have become very complex over the past few years due to rapid globalization, advancements in technology, and e-commerce. Logistics is one of the important functions for many industries, and several stakeholders are dependent on this function. Moreover, several manufacturers and service providers outsource different parts of logistic functions such as shipping, storing, packing, and delivering goods, from raw materials to the finished products. The companies use independent parties to perform logistic activities, which would be traditionally carried by internal staff and resources. Logistics outsourcing saves resources and ensures on-time delivery. Logistics outsourcing offers many benefits including cost savings, human capital reduction, and streamlined operations. The logistics service providers such as UPS, DHL, FedEx, and Kuehne + Nagel are some of the leading market players in the logistics outsourcing market.

 

The novel coronavirus pandemic had a serious impact on the global supply chains. The transportation and logistics resources faced heavy strain during the pandemic. The lockdowns across several countries created uncertainty in the movement of goods. Many ports and warehouses were closed in the countries with lockdown restrictions. Moreover, lack of staff and reduced working time due to health concerns and government restrictions further reduced the logistics activities. The market players faced many problems during the pandemic, such as disrupted transportation due to the boundary closure, and flooded warehouse facilities by the goods that were not sold due to the lockdown. Nevertheless, as the panic subsided, the logistics operations were back to their normal state. The demand for logistics outsourcing increased, as the sales from online channels increased rapidly over the period of pandemics. This augmented the growth of logistics outsourcing over a short period and is expected to drive the market in the future.

 

The rapid development of logistics infrastructure across developing regions such as Asia Pacific, the Middle East, and South America is majorly driving the growth of the logistics outsourcing market. Several new ports, airports, highways, and warehouses are been built across these regions, supporting the logistic operations. Moreover, the globalized product availability has further augmented the adoption of logistics outsourcing by the shippers. Many manufacturers offer the same product across the world without any major changes, increasing its appeal across the world. However, many shippers have their in-house logistics, and some are developing their own logistics departments, which poses a challenge to the market players. Nevertheless, technological advancements such as AI, IoT, and 5G are anticipated to offer growth opportunities to the market players. By adopting these modern technologies, the vendors can streamline their operations, and provide better services to their clients.

 

In terms of region, the global logistics outsourcing market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific accounted for the largest share in the global logistics outsourcing market, and it is expected to grow with the highest rate over the forecast period. The domination of the Asia-Pacific accounted is majorly attributed to the growing trans-regional trade corridors and gateways. Moreover, countries such as China, Taiwan, Vietnam, and Thailand have become manufacturing hub for global companies. This has increased the demand for logistics in the region. Furthermore, the continuous development of logistics infrastructure across the region is supporting the growth of logistic activities in the Asia Pacific. On the other hand, North America held the second-largest share in the global logistics outsourcing market. The presence of the leading market players in the region is majorly driving the growth of the market in North America. The market players have large fleets of trucks, and planes to transport heavy shipments.

 

Segment Covered

The report on global logistics outsourcing market covers segments such as logistics providers, service type, and mode of transportation. On the basis of logistics providers, the sub-markets include 3PL, 4PL, 5PL, and others. On the basis of service type, the sub-markets include material management, supply chain management, distribution management, shipment packaging, channel management, and others. On the basis of mode of transportation, the sub-markets include railways, roadways, waterways, and airways.

 

Logistics Outsourcing Market


Companies Profiled:

The report provides profiles of the companies in the market such as United Parcel Service of America, Inc., XPO Logistics, Inc., A.P. Møller - Mærsk A/S, DHL International GmbH, Kuehne + Nagel International AG, FedEx Corporation, Deutsche Bahn AG, Nippon Express Co., Ltd., DSV A/S, and SNCF Group.

 

Report Highlights:

The report provides deep insights into the demand forecasts, market trends, and micro and macro indicators. In addition, this report provides insights into the factors that are driving and restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis given in the report brings an insight into the investment areas that existing or new market players can consider. The report provides insights into the market using analytical tools such as Porter's five forces analysis and DRO analysis of the logistics outsourcing market. Moreover, the study highlights current market trends and provides forecast from 2021-2027. We also have highlighted future trends in the market that will affect the demand during the forecast period. Moreover, the competitive analysis given in each regional market brings an insight into the market share of the leading players.


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