Global third-party Logistics (3PL) market to reach $1,513 billion by 2025
3PL market will register a Compound Annual Growth Rate (CAGR) of 7.1% from 2018 to 2025
According to an Allied Market Research report, the global third-party logistics (3PL) market was valued at $869 billion in 2017, and is estimated to reach $1,513.11 billion by 2025.
The report believes that the current trade wars, the most prominent of which is the US-China dispute initiated by the Trump administration, will not significantly hinder growth in the long term and instead expects greater globalisation.
Indeed, the reports says that China should expect continued strong growth as Asia-Pacific will continue to be the largest market for 3PL services through to 2025. AMR currently estimates that it accounts for more than one-third share of the total market revenue. However, in pure percentage terms, they forecast that Latin America will register the fastest CAGR of 10.1% from 2018 to 2025, owing to increase in population and upsurge in R&D activities in the region.
The report also notes very strong growth for air transportation, which would register the highest CAGR of 10.8% from 2018 to 2025.