Asia Pacific Third-Party Logistics (3PL) Market Report and Forecast 2024-2032

Asia Pacific Third-Party Logistics (3PL) Market Outlook

The Asia Pacific third-party logistics (3PL) market size reached approximately USD 390.7 billion in 2023. The market is projected to grow at a CAGR of 6.9% between 2024 and 2032, reaching a value of around USD 714.2 billion by 2032.

Key Takeaways

• The adoption of software solutions, such as cloud ERP and SCMs is contributing to the growth of the market.

• China is witnessing a significant number of mergers among third-party logistics players, further contributing to the market development.

• It is estimated that by 2030, India is poised to be a global powerhouse of e-commerce, reaching about 500 million buyers by 2030.

Technologies such as GPS route planning technology and AI are revolutionising the Asia Pacific third-party logistics (3PL) market, as they can accurately optimize routes based on speed, cost, and driver rest time. Moreover, the adoption of comprehensive databases is aiding 3PLs in packing products at optimal carrying capacity and also helps to better keep track of extra space during transportation operations. This further results in lowered operating costs for the companies. Currently, the average e-commerce penetration rate (excluding food and beverage) in Southeast Asia is 20%, which is further anticipated to increase over the  upcoming years. This further contributes to the growth of the Asia Pacific third-party logistics (3PL) market.

Reportedly, about 29.6% of activity in major airport submarkets is by 3PL logistics companies. The increasing number of organisations setting up office spaces near major airports, the  improved convenience and the shorter time offered by airways are contributing to the increasing distribution of goods through air transport.

China is considered a top e-commerce market on a global scale, constituting about 50% of the world’s transactions. In 2021, China’s cross-border e-commerce imports and exports increased 15 year-on-year to USD 273 billion. The improved convenience offered by e-commerce is further leading to the expansion of the 3PL market in China.

Market Segmentation

Asia Pacific Third-Party Logistics (3PL) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Service

• Dedicated Contract Carriage (DCC)

• Domestic Transportation Management (DTM)

• International Transportation Management (ITM)

• Warehousing and Distribution

• Value Added Logistic Services (VALs)

Market Breakup by Transport

• Railways

• Roadways

• Waterways

• Airways

Market Breakup by End Use

• Retail

• Healthcare

• Manufacturing

• Automotive

• Others

Market Breakup by Country

• China

• Japan

• India

• ASEAN

• Australia

• Others

Competitive Landscape

The market players are increasingly focusing on the integration of advanced technologies to offer improved 3PL services.

• FedEx Corp

• Deutsche Post AG (DHL)

• Schenker AG

• CH Robinson Worldwide Inc

• CEVA Logistics S.A

• Nippon Express Holdings Inc.

• Toll Holdings Limited

• Kintetsu World Express, Inc.

• CJ Logistics Corporation

• Linfox Pty Ltd

• Others

Key Highlights of the Report