Third Party Logistics Market Size, Share, Growth Analysis, By Transport(Railways, Roadways, Waterways, Airways), By Service Type(Dedicated Contract Carriage (DCC), Domestic Transportation Management, International Transportation Management, Warehousing & Distribution), By Industry(Technological, Automotive, Retailing, Manufacturing), By Region - Industry Forecast 2024-2031

Third Party Logistics Market size was valued at USD 936 billion in 2019 and is poised to grow from USD 1034.43 billion in 2023 to USD 2199.08 billion by 2031, growing at a CAGR of 10.7% in the forecast period (2024-2031).

Third-party logistics refers to a company's capacity to outsource logistics and distribution activities. Inventory management, cross-docking, door-to-door delivery, and product packing are all services that third-party logistics companies can provide. Attributing to the e-commerce industry's growth, the third-party logistics services market is predicted to rise significantly. Furthermore, demand for this service is likely to rise in the near future as manufacturers and retailers focus on their core business (referred to as core competencies) and increasing interest in subcontracting activities such as logistics, which require expertise. As a result of the growing competition, manufacturers' focus has turned to promoting each specialization in manufacturing and distribution.

The outbreak of COVID-19 severely impacted the growth of the market. Retailers and brands in North America were experiencing a variety of short-term issues related to supply chain activities through retailers, distributors, and third-party logistics providers as a result of COVID-19. As a result, countries like the United States and Canada have limited the amount of logistics services they provide. The COVID-19's detrimental impact on market growth has been minimized with which lockdown restrictions can be implemented, as well as an emphasis on the effective restoration of food industry-related supply chain operations. However, post-COVID-19, the industry is on its path to recovery.

US Third Party Logistics Market is poised to grow at a sustainable CAGR for the next forecast year.