Canada 3PL Market Report and Forecast 2024-2032

Canada 3PL Market Outlook

The Canada 3PL market size reached USD 20.85 billion in 2023. The market is projected to grow at a CAGR of 6.9% between 2024 and 2032, reaching almost USD 38.37 billion by 2032.

Key Takeaways:

• 96% of  all FORTUNE 500 companies rely on 3PL for driving business growth and expanding customer base.

• Roadways are expected to constitute a major portion of the Canada 3PL market share.

• The automotive industry is expected to be one of the leading end users of 3PL services in Canada.

Customer satisfaction is expected to become the topmost priority for major companies as customers value effective communication, on-time deliveries, and personalised services. 3PL enables business to achieve the same and can help companies in extending their brand value.

As many e-commerce retailers based in the United States seek to scale up their size and expand into the Canadian market, the demand for third party logistics services is expected to grow. This is because 3PL service providers have in depth knowledge of demography and connectivity, and they can leverage their expertise in providing goods to the remotest of all Canadian regions.

The manufacturing industry of Canada is expected to grow at a CAGR of over 2% uptil 2028 and positively beyond. This is expected to favour the Canada 3PL market growth as manufacturers rely on 3PL service providers for better route planning for incoming raw materials, auditing freight invoices, and providing improved customer services.

Outsourcing logistics services saves businesses the hassle of inventory management and tracking consumer deliveries. This, in turn, enables them to innovate their production and processing strategies which brings efficiency in operations and contributes to business growth. This is further supported by cost benefit and time management advantages associated with third party logistics services.

Market Segmentation

Canada 3PL Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Mode

• Roadways

• Railways

• Waterways

• Airways 

Market Breakup by Services

• Dedicated Contract Carriage (DCC) / Freight Forwarding

• Domestic Transportation Management (DTM)

• International Transportation Management (ITM)

• Warehousing and Distribution

• Value Added Logistics Services (VALs)

Market Breakup by End Use

• Automotive

• Manufacturing

• Chemical

• Retail

• Healthcare and Pharmaceuticals

• Construction

• Others

Market Breakup by Region

• Northern Canada

• British Columbia

• Alberta

• The Prairies

• Central Canada

• Atlantic Canada

The key market players are CMA CGM Group (CEVA Logistics SA), Schenker AG, C.H. Robinson Worldwide Inc., Deutsche Post AG, DSV A/S, Kuehne + Nagel International AG, Nippon Express Co., Ltd., Expeditors International of Washington, Inc., Kintetsu World Express Inc., and TSI Group Inc., among others.

Key Highlights of the Report