Growth Opportunities for 3PL Companies – Top Stats

Growth Opportunities for 3PL Companies – Top Stats for 2022

Contents

  • 3PL Industry Statistics 
  • 3PL Order and Outsourcing Statistics
  • 3PL Growth Challenges Statistics
  • Logistics and 3PL Growth Statistics
  • Conclusion

3PL Industry Statistics to Always Keep in Mind

Write these on post-its, log them in your phone or email them to your teammates – make sure you know these statistics by heart if you plan on making your place in the 3PL world. 

  • The current revenue for the global 3PL industry is USD 1,998.73 billion. In 2020, this figure was USD 961.8 billion, which means that the industry has significantly grown in the last 2 years. (Grand View Research)
  • The global revenue for the 3PL industry is expected to reach more than USD 1.755 trillion by 2026. More and more 3PLs are popping up every single day, and soon it will be one of the biggest industries in the market. (Mordor Intelligence)
  • Asia Pacific is the biggest 3PL market, at USD 483.6 billion revenue. This particular region has experienced a dramatic increase in its logistical infrastructure in the past decade and continues to grow. Asia is the most populous area in the globe – China and India make up the major chunk of eCommerce transactions all over the world, hence the APAC region is considered to be the safe haven for 3PLs. (GlobeNewswire)
  • The largest share in the 3PL market is held by the roadways segment, closely followed by the seaways and the railways segments. The smallest share is held by the airways segment. This segmentation can be explained by the fact that roadways have seen significant improvement in the past few years. This, paired with advanced transport management systems as well as warehouse management systems makes it easier for businesses to rely on roadways as the primary mode of transport. (Fortune Business Insights)
  • DHL is the top 3PL provider in the world. In 2021, DHL announced record revenue at USD 30 billion. The operating profit, free cash flow, as well as the dividend witnessed monumental improvements. It is reported that these improvements and the profitable growth of DHL are only increasing as we move forward. (DHL)

3PL Order & Outsourcing Statistics for Setting the Right Standards

Don’t shoot in the dark when it comes to order processing and outsourcing… have a look at these stats that will let you know the real deal as it is. 

  • A decade ago, only 46% of companies that worked with 3PLs were Fortune 500s. Today, reported 90 percent of companies that choose to work with 3PLs are Fortune 500s. (Shopify). It’s important to remember that this year, the revenue threshold for the 2022 Fortune 500 list was $6.4 billion, up 19% from last year. This means that there is a huge influx of orders Fortune 500s get that 3PLs are entrusted to deal with. (Cision PR Newswire)
  • In 2021, 85% of 3PLs experienced growth in order volumes – and by the time 2022 ends, we are likely to witness an increase in these figures. More orders means more customers, which means that 3PLs can expect a relatively smoother journey towards success (DC Velocity).
  • 45 global corporations reviewed by NTT Services plan to increase outsourcing after the pandemic (DC Velocity). These figures include outsourcing for logistics, since logistics is the most impacted aspect of order fulfilment when it comes to Covid.
  • According to BCG, 62% of companies are willing to renegotiate outsourcing contracts (Findstack). This means that there is a boost in customer retention, and more businesses are satisfied with outsourced services. 
  • 54% of the companies surveyed by a report from PA consulting have stated that they have witnessed no change to service quality with outsourcing initiatives. The report also sheds light on how 96% of all cloud-based outsourcing relationships are rated positively today (Findstack). This means that the trust in outsourcing as well as logistic outsourcing to 3PLs has increased, and will increase even further in the future. 
  • Gartner reports that at least 85% of logistics leaders expect to see an increase in outsourcing budgets. This is because according to 70% of those surveyed, logistics outsourcing improves end-to-end supply chain processes and helps companies meet their end goals. For 3PL, this means the cash flow for 3PLs is going to increase, considering that businesses are now willing to invest in outsourced logistics (Findstack).

3PL Growth Challenges Statistics to Help You Prepare Better

There’s no fun without a little challenge. Go through the following statistics and help them to prepare you for any problems that may hinder the growth of your 3PL activities. 

  • According to Deloitte, 32% of companies believe they will outsource less after the pandemic (Findstack). Although Covid is still apart of the picture and pushes businesses to rethink their strategies, it is likely that the chaos will ease even more than it has in the coming years. Would this prove to be a challenge for 3PLs? Only time will tell. 
  • Currently, the world is facing a global price hike for fuel – in June of 2022, the BBC reported that the UK had seen the biggest daily jump in 17 years for petrol prices. It is predicted that soon, filling a typical family car will exceed well over £100 (BBC). This situation is just as bad for many other companies in the world who are experiencing similar rises in fuel prices. While on one hand this means that businesses will be more willing to trust 3PLs with their delivery and transportation needs, it also means that the fulfilment process is likely to become more expensive for 3PLs. 
  • According to a report by City & Guilds, the labour market crisis in the UK is set to worsen in future years – only 23% of people said they would consider working in the logistics sector, which is expected to have worker shortages of at least 400,000 people by 2026 (CIPS). Not only that, but the Labour Market Outlook Summer report states that the transport and storage sector, which involves 3PLs, is one of the worst affected fields when it comes to chronic staff shortages (Think Vertical). Given then, 3PLs may struggle with having sufficient workforce onboard, and employee retention should be one of top priorities when it comes to moving towards success. 
  • 76% of clients will switch to a competitor on the basis of just one bad experience (Martech Alliance). Customer expectations are hard to satisfy in 2022, and this may prove to be a hurdle for 3PLs. 
  • Customers expected connected journeys – at least 76% of customers will expect to see consistent, integrated interactions across multiple areas within a business (Martech Alliance). For 3PLs, this puts the focus on making experiences more integrated, and ensuring that there is proper connection between all the different departments within the 3PL. 
  • 66% of customers want and expect companies to understand their unique needs. However, 66% also feel like they are not special to the company and are more or less treated like numbers (Martech Alliance). 3PLs will have to step up their personalisation game if they want their customers to feel valued, which can often prove to be a hard thing to achieve. 
  • When asked if delivering an amazing customer experience provides a powerful competitive advantage, 78.5 CMOs in the UK, France, and Germany strongly agreed with the statement (Martech Alliance). This means that many businesses now understand the worth of customer experience and a huge majority of them are striving to be better at customer services, so 3PLs should watch out for their competitors!

Logistics and 3PL Growth Statistics to Make Moves that Matter

Just how lucrative is the logistics industry for 3PLs and anyone looking to establish a business in the 3PL world? These statistics paint out the whole picture for you. 

  • The global logistics market is expected to reach USD 6.55 trillion by 2027, based on a CAGR of 4.7 during 2022 – 2027 (Businesswire). 3PLs that are looking to join the industry and even those who are already apart of it have a lot to look forward to, as the following years are predicted to give way to awesome growth and opportunities for logistics providers. 
  • Participants in the 3PL market generate an economic value exceeding USD 961 billion (Statista). By being apart of the 3PL spectrum, you become an asset to the economy and will get the fruits accordingly, which is the perfect opportunity and can aid your growth as a 3PL to a great extent. 
  • The size of the freight forwarding market worldwide is EUR 161 billion (Statista). Such figures prove that the logistics industry worldwide is vast and is only growing every year. 
  • 3PLs are expected to reach US dollars 2114 billion from 2022 to 2032, with a projected CAGR of 7.6% (Fact.MR). Again, this is amazing growth and makes 2022 the perfect year for 3PLs to start making scalable changes that work towards long-lasting success. 
  • Key players of the third party logistics market include. Kuehne + Nagel, BDP International, FedEx, DSV, DB Schenker Logistics, XPO Logistics, Inc., Yusen Logistics Co. Ltd., Burris Logistics, CEVA Logistics, United Parcel Service of America, Inc., C.H. Robinson Worldwide, Inc., Nippon Express, and J.B. Hunt Transport, Inc (Fact.MR). With these giants developing the 3PL industry and making it more advanced than ever before, it can be safely stated that the future seems bright. 
  • Based on the service segment, transportation management is anticipated to have procured a 32% of the market share in 2022 (Fact.MR). This essentially means that 3PLs that incorporate transportation management in the third party logistics they offer are actually setting themselves up for success, and incorporating this aspect in your services can help you make just the right moves. 
  • 42% of 3PL businesses are looking to improve demand forecasting in 2022. 40% are looking to improve capacity forecasting, whereas 38% are looking to improve international transportation logistics. 36% want to improve supply chain network design or redesign, and 33% expect to improve data analysis and visibility (Locus). Essentially, the 3PL industry is becoming increasingly advanced and hence, is turning more lucrative by the day. Any business that chooses to join this area in the upcoming years can expect to get the full support, resources, technology, and tools that will aid their growth properly. 

Remember:

These statistics are here to help you understand that the 3PL industry is a great place if you are looking to establish a business that grows consistently into the future. Dependence on 3PL logistics is increasing day by day – thanks to different reliability factors that have been introduced to the scene. 3PLs are the go-to choice for businesses that don’t want to take the headache of dealing with their logistics, and since all businesses get to at least once in their journey, it can be said that the concept of logistic outsourcing is here to stay for a long, long time. The landscape for 3PL growth and opportunities seems to be considerably ideal – all you have to do is play your cards right and get the right tools to help you, and you will be witnessing yourself become a 3PL maestro in no time whatsoever. 

One of the most challenging aspects of any business is the handling of the logistics and the fulfilment procedure. In consideration of this fact, it really is no surprise that more and more businesses are gravitating towards 3PLs and trusting them to take care of the logistics. With top-notch technology and advanced resources to facilitate an astonishingly smooth and seamless fulfilment journey, 3PLs are becoming more powerful than ever; allowing the whole industry to take the world by storm. 

As the industry expands, it becomes apparent that this area of the commercial world is filled to the brim with opportunities of growth and success for 3PLs – regardless of whether they are newer companies or established third party logistics services providers. 

If you are looking to gauge the exact extent of growth in the 3PL industry, you must turn to statistics. Statistics will help you understand the 3PL industry better as well as understand the areas within your own business that you need to work on the most in order to grow and expand. 

Here are the top stats for growth opportunities for 3PL companies in 2022 – and we hope they can help you take your business in the right direction.