3PL Market Revenue to Cross $1.8 Trillion by 2026
Growing demand for low-cost services and a rapidly expanding e-commerce sector will boost the market valuation of third-party logistics (3PL) to $1.8 trillion by 2026, according to the latest Global Market Insights report.
The rise in globalization and increasing trade activities around the world are driving 3PL market growth. Companies are adopting various software solutions for warehouse management, real-time data, online documentation for international freight, and inventory tracking.
The European 3PL market is experiencing significant growth, due to the steady development of the manufacturing sector, rising internet penetration, and improved economic conditions across the region. For instance, the U.K. became the ninth-largest manufacturing nation in the world with an annual revenue of US$192 billion in 2019, according to The Manufacturing Organization U.K.
European free-trade agreements with various countries worldwide are also fueling market growth.
Key 3PLs are focusing on providing improved processes and delivering enhanced value-added services to gain customer loyalty. They are extensively adopting technologically advanced and cost-cutting services. These industry participants in the market are also leaning toward adopting digital technology to attract more customers.
For instance, in December 2019, J.B. Hunt Transport Services announced the integration of J.B. Hunt 360 with JDA Software's supply chain management platform to provide value-added services, including greater pricing visibility, to its customers.