Growth Opportunities for 3PL Companies – Top Stats for 2024

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Growth Opportunities for 3PL Companies – Top Stats

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The Third Party Logistics Software (3PL) industry is not just evolving; it’s booming. As businesses increasingly outsource their logistics needs, the 3PL market has become a critical player in global supply chains. To succeed in this competitive landscape, staying updated with the latest trends and statistics is essential. This guide covers the most important 3PL industry statistics, offering insights that can help you make informed decisions and stay ahead of the curve in 2024.

Key 3PL Industry Insights to Watch in 2024

Whether you’re a veteran in the 3PL industry or just starting out, these statistics provide a foundation for understanding the current market landscape and its potential. Here’s what you need to know:

Industry Insights
  • Global Market Size: The global 3PL market size reached approximately $2.46 trillion in 2024, up from $1.89 trillion in 2023. This represents a significant year-over-year growth of 22.9%, reflecting the increasing reliance on third-party logistics services across various industries (Grand View Research). The market is expected to grow at a CAGR of 10.2%, reaching around $3.01 trillion by 2028 (Mordor Intelligence).
  • Asia-Pacific Dominance: The Asia-Pacific region continues to lead the 3PL market, with revenues projected to exceed $682.1 billion by the end of 2024, representing a growth of 24.1% compared to the previous year (GlobeNewswire). The region’s growth is driven by its booming e-commerce sector, particularly in China and India, which together account for a significant portion of global online sales.
  • Transportation Segment Growth: Roadways hold the largest share in the 3PL market, with significant advancements in transportation and warehouse management systems. This trend is expected to continue, with road transport projected to maintain a 32% market share through 2024 (Fortune Business Insights). However, the airways segment is also experiencing significant growth due to the increasing demand for faster and more reliable transportation options for time-sensitive goods.
  • Leading 3PL Providers: DHL remains the top global 3PL WMS Software provider, reporting a record revenue of $35 billion in 2024 (DHL). The company’s strong financial performance is attributed to its focus on innovation, digitalization, and customer-centric solutions.

3PL Order & Outsourcing: Setting the Right Standards for 2024

Outsourcing logistics functions to 3PL providers is becoming a standard practice among top companies, particularly Fortune 500 firms. Here are some key statistics that highlight the importance of outsourcing in 2024:

  • Fortune 500 Engagement: As of 2024, 95% of Fortune 500 companies are working with 3PL providers, a significant increase from 90% in 2023 (Shopify). The growing complexity of global supply chains has made outsourcing to 3PLs not just an option but a necessity for these large corporations.
  • Increase in Order Volumes: 92% of 3PLs reported an increase in order volumes in 2024, driven by the ongoing expansion of e-commerce and omnichannel retailing (DC Velocity). This growth indicates that businesses are increasingly trusting 3PL Warehouse management with their logistics operations, leading to higher revenues and more robust customer bases.
  • Outsourcing Growth Post-Pandemic: 68% of companies plan to increase their outsourcing budgets in 2024, especially in logistics, as businesses seek to optimise their supply chains in a post-pandemic world (Gartner). This shift reflects a broader trend towards outsourcing as companies focus on core competencies while leaving logistics to specialised providers.
  • Customer Satisfaction: 75% of companies are satisfied with the quality of outsourced logistics services, with 82% reporting no change or improvement in service quality (Findstack). This indicates growing trust in 3PLs and their ability to deliver reliable and cost-effective solutions.

Navigating 3PL Growth Challenges in 2024

While the 3PL warehouse management system or industry is ripe with opportunities, it also faces significant challenges. Understanding these challenges is key to navigating them successfully:

  • Fuel Costs and Inflation: Global fuel prices have remained volatile, with a significant impact on logistics costs. In 2024, the average cost to fill a standard family vehicle in the UK has exceeded £110 (BBC). This increase in fuel costs directly impacts transportation expenses for 3PL providers, making cost management a critical focus area.
  • Labour Market Pressures: The logistics sector continues to face severe labour shortages, with the UK expected to have a shortfall of over 500,000 workers by 2026 (CIPS). This shortage is exacerbated by the industry’s ageing workforce and the increasing demand for skilled logistics professionals. 65% of 3PLs are struggling to attract and retain qualified talent, particularly in areas like warehouse management, transportation, and technology (City & Guilds).
  • Customer Experience Expectations: In 2024, 82% of customers are more likely to switch to a competitor after just one negative experience, making customer service more critical than ever (Martech Alliance). Additionally, 72% of customers expect 3PLs to have advanced technology capabilities, such as real-time tracking, automated processes, and inventory management systems (Martech Alliance). 3PL providers must prioritise personalised, seamless experiences to retain clients and maintain a competitive edge.

Logistics and 3PL Growth: Making Moves that Matter in 2024

The logistics industry is a vast, dynamic sector that offers numerous growth opportunities for 3PL providers. Here’s a look at what the future holds:

  • Global Logistics Market Expansion: The global logistics market is on track to reach $7.2 trillion by 2027, with a CAGR of 5.2% from 2024 onwards (Businesswire). This growth is fueled by increasing global trade, e-commerce expansion, and continuous innovation in 3PL warehouse management and logistics technologies.
  • Freight Forwarding Market: The global freight forwarding market is expected to reach €185 billion in 2024, driven by the growth of international trade and e-commerce (Statista). This growth underscores the importance of efficient freight management and the opportunities it presents for 3PL providers.
  • Technological Advancements: 45% of 3PLs are expected to invest in artificial intelligence (AI) and machine learning technologies in 2024 to improve their operations, enhance customer service, and gain a competitive advantage (Locus). Additionally, 42% plan to enhance their demand forecasting capabilities, while 35% are focusing on warehouse management and transportation management, projected to hold a 35% market share in 2024 (Fact.MR).

Growth Opportunities for 3PL Companies: Predictions for 2024

The global 3PL market is expected to experience continued growth in 2024, driven by factors such as the expansion of e-commerce, increasing globalisation, and the growing complexity of supply chains (Market Watch). Here are key trends to watch:
Growth Opportunities
  • Sustainability and Environmental Responsibility: There is an increased focus on sustainability, with 3PLs investing in green technologies and sustainable practices to meet the growing demand for environmentally friendly logistics solutions.
  • Technological Innovations: Advancements in technology, such as the Internet of Things (IoT), blockchain, and robotics, are enabling 3PLs to improve visibility, efficiency, and cost-effectiveness. These innovations are set to reshape the industry and provide new growth avenues, especially in areas like eCommerce Warehouse Management and cloud-based inventory management.
  • Omnichannel Fulfilment and Last-Mile Delivery: The growing demand for omnichannel fulfilment and last-mile delivery is driving 3PLs to expand their capabilities to meet the needs of retailers and e-commerce businesses that require flexible and efficient delivery options. This is particularly relevant for eCommerce Warehouse Management Systems.
  • Supply Chain Resilience and Risk Management: As supply chains become more complex, there is an increased focus on resilience and risk management. 3PLs are developing strategies to mitigate risks and disruptions, such as those caused by natural disasters, geopolitical events, and supply chain bottlenecks.

Conclusion

The 3PL industry is experiencing significant growth through 3PL WMS Software and transformation, driven by a variety of factors, including the expansion of e-commerce, globalisation, and technological advancements. 3PLs that can adapt to these trends and invest in innovation will have strong opportunities for growth and success in the coming years.

By understanding the key statistics and trends in the 3PL industry, you can make informed decisions and develop a growth strategy that positions your business for success. Also, you can check out Canary7, a solution for your 3PL industry. As the market continues to grow, those who adapt and innovate will be the ones who lead the way.

Colleen Ballantine

Colleen Ballantine

Author

UPDATED ON: 23rd Aug 2022

Colleen is a marketing specialist at Canary7, writing in-depth blog content on warehouse management, inventory control, and logistics. With extensive industry experience, Colleen focuses on delivering informative and insightful posts

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