Report : North America Third Party Logistics Market Forecast to 2030 - Regional Analysis - by Mode of Transports (Roadways, Railways, Waterways, and Airways), Services (International Transportation, Warehousing, Domestic Transportation, Inventory Management, and Others), and End user (Automotive, Healthcare, Retail, Consumer Goods, and Others)
At 5.9% CAGR, North America Third Party Logistics Market is Speculated to be Worth US$ 497.56 Billion by 2030, says Business Market Insights
According to Business Market Insights’ research, the North America third party logistics market was valued at US$ 315.07 billion in 2022 and is projected to reach US$ 497.56 billion by 2030, registering a CAGR of 5.9% from 2022 to 2030. Surging adoption of e-commerce and implementation of software solutions and adoption of big data analytics are among the critical factors attributed to drive the North America third party logistics market growth.
Logistics is a complex process that involves the flow of multiple goods and information across the network of suppliers, carriers, and warehouses. This complexity can be handled using software systems, which allow the analysis of real-time and real-world data. This implementation of software systems improves lead times, reduces excess inventory levels, helps in resolving warehousing issues, and decreases inventory costs. Increased competitiveness in the industry is the major reason for third-party investing in automation and digitization. In the coming years, third-party logistics firms are expected to shift toward mobile technology to reduce paper records.
The adoption of RFID-enabled devices is also expected to store data for easy transport that will also simplify tracking and identification of products. Software related to transportation management systems will reduce inefficiency and costs. Furthermore, the usage of speech recognition software in warehouse management system communications will help with order turnaround and inventory records while lowering employee training needs. Along with this, the acceptance of cloud-based technology in third-party logistics organizations will respond to demands by recognizing the need for client access, allowing them to address seasonal trends better.
Big Data is another technology that is transforming the third-party logistics industry notably. By analyzing financial and operational KPIs and providing the best shipping experience, a data-driven strategy aids third-party logistics service providers in maintaining flexibility. Third-party logistics service providers will be able to turn data into insightful knowledge by developing data science technologies and other resources. End-to-end supply chain visibility, improved resource planning, and cost reduction are a few of them. According to a study done by Council of Supply Chain Management Professionals in 2021, 98% of third-party logistics organizations and 93% of shippers agree that data analytics are essential for making wise business decisions. In fact, 71% of them think data analytics significantly improves the effectiveness and quality of their company. Thus, advancements in third-party logistics such as IT solutions, supply chain software, higher use of mobile technology and Big Data, and greater inclination toward the use of cloud-based systems will help companies meet the real-time demand for services.
On the contrary, reduced control of manufacturer hampers the growth of North America third party logistics market.
Based on mode of transports, the North America third party logistics market is segmented into roadways, railways, waterways, and airways. The roadways segment held 40.1% market share in 2022, amassing US$ 126.48 billion. It is projected to garner US$ 196.20 billion by 2030 to register 5.6% CAGR during 2022–2030.
In terms of services, the North America third party logistics market is segmented into international transportation, warehousing, domestic transportation, inventory management, and others. The others segment held 28.7% share of North America third party logistics market in 2022, amassing US$ 90.35 billion. It is anticipated to garner US$ 136.50 billion by 2030 to expand at 5.3% CAGR during 2022–2030.
Based on end user, the North America third party logistics market is segmented into automotive, healthcare, retail, consumer goods, and others. The others segment held 54.9% market share in 2022, amassing US$ 172.83 billion. It is projected to garner US$ 264.54 billion by 2030 to register 5.5% CAGR during 2022–2030.
Based on country, the North America third party logistics market is categorized into the US, Canada, and Mexico. Our regional analysis states that the US captured 85.3% share of North America third party logistics market in 2022. It was assessed at US$ 268.90 billion in 2022 and is likely to hit US$ 417.91 billion by 2030, registering a CAGR of 5.7% during 2022–2030.
Key players operating in the North America third party logistics market are C H Robinson Worldwide Inc, DB Schenker, DSV AS, GEODIS SA, Kuehne + Nagel International AG, Nippon Express Co Ltd, Sinotrans Ltd, United Parcel Service Inc, and XPO Inc, among others.
- In September 2023, C.H. Robinson announced the opening of a new facility that speeds up trade across the Mexico border at a time when a growing number of global shippers are nearshoring in order to diversify and fortify their supply chains. It’s one of the largest cross-docks in Laredo, the nation’s No. 1 inland port, where the logistics company has been facilitating global business for more than 30 years.
- In January 2022, XPO Logistics, Inc., a leading provider of freight transportation services, announced the opening of two less-than-truckload (LTL) terminals to increase customer service capacity in its North American network. In addition, the company increased production capacity at its trailer manufacturing facility and will open four more fleet maintenance shops this quarter.
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