United States (USA) Third Party Logistics (3PL) Market Overview, 2028

The concept of 3PL in the United States has been around for several decades. It emerged as a response to the growing complexity of supply chains. Initially, 3PL providers focused on basic warehousing and transportation services, but over time, their roles expanded to include various value-added services. 3PL providers in the U.S. play a pivotal role in optimizing supply chains for a variety of industries, from retail to healthcare. Their services can include transportation, warehousing, order fulfilment, inventory management, customs brokerage, and technology solutions like supply chain visibility platforms. The integration of technology in logistics, including IoT, AI, big data analytics, and supply chain management systems, has become a driving force in the 3PL market. These technologies enable greater visibility, efficiency, and data-driven decision-making. 3PL services offer businesses flexibility and scalability. They can adjust their logistics operations quickly in response to market fluctuations and seasonal demands, without the need for large, fixed infrastructure. Many industries, such as healthcare and aerospace, require specialized logistics services to handle sensitive, high-value, or regulated products. 3PL providers with expertise in these sectors can meet these unique demands. Many businesses are adopting just-in-time inventory management practices to minimize carrying costs and reduce inventory levels. 3PL providers can help by offering efficient warehousing and distribution solutions that align with this strategy. Mergers and acquisitions within the 3PL industry have led to the creation of large, global logistics companies. These consolidations have expanded the capabilities and geographic reach of these providers, benefiting clients looking for comprehensive logistics solutions.

According to the research report "United States Third-Party Logistics (3PL) Market Overview, 2028," published by Bonafide Research, the United States Third-party Logistics (3PL) market was valued more than USD 260 Billion in 2022. Sustainability has become a focal point for many businesses. 3PL providers are incorporating sustainable practices into their operations, such as eco-friendly transportation options, reduced emissions, and energy-efficient warehouses. Efficient last-mile delivery has become a critical component of the supply chain, driven by the rise in e-commerce. 3PL providers are developing innovative last-mile solutions, including route optimization, same-day delivery, and urban logistics strategies. The handling of sensitive customer and operational data is a top priority. 3PL providers are implementing robust cybersecurity measures to protect data and ensure regulatory compliance, particularly in the face of evolving data privacy laws. Some 3PL providers are integrating independent contractors and gig workers into their delivery networks to enhance flexibility and reduce costs, especially for last-mile deliveries. Blockchain technology is being explored to enhance transparency and traceability within the supply chain. 3PL providers are using blockchain to create immutable records of transactions, ensuring that data related to shipments and inventory can be trusted and verified by all stakeholders. 3PL providers are moving toward synchronized demand planning, collaborating with clients to develop demand forecasts that are in sync with supply chain capabilities. This helps reduce inefficiencies and the bullwhip effect in the supply chain. To meet changing customer demands and reduce costs, 3PL providers are increasingly utilizing multiple transportation modes, including road, rail, air, and sea. This approach allows for greater flexibility and cost savings. Robotics and automation are being deployed in warehouses to streamline operations and reduce labor costs. 3PL providers are implementing automated picking systems, automated guided vehicles (AGVs), and even fully automated warehouses. With the growth of the pharmaceutical and food industries, there is an increasing focus on temperature-controlled and cold chain logistics. 3PL providers are investing in infrastructure and technology to maintain the integrity of temperature-sensitive products during transportation and storage.

Road transport, which includes trucking and ground transportation, is a versatile mode of transport that can reach nearly every corner of the United States. This comprehensive geographic coverage makes it the preferred choice for many businesses looking to move their goods from one place to another. Road transportation provides better accessibility to both urban and rural areas, as compared to other modes of transport like rail or air. This flexibility is crucial for businesses serving a wide range of customer locations. Roadways allow for direct transportation, often resulting in quicker and more efficient deliveries. This is especially important for time-sensitive goods and industries where just-in-time inventory is crucial. In terms of reliability, road transportation is generally less susceptible to delays caused by factors like weather or infrastructure issues compared to other modes, such as rail or sea transport. Furthermore, Rail transport is often a cost-effective option for long-distance shipping, especially for bulk and heavy goods. It can be significantly cheaper than trucking over long distances, making it an attractive choice for companies looking to reduce transportation costs. Trains are highly fuel-efficient compared to trucks. They can move a large volume of goods with relatively low fuel consumption, which contributes to both cost savings and environmental benefits. The rail segment is well-equipped and regulated for transporting hazardous materials and chemicals. This capability is essential for industries like chemicals, oil and gas, and pharmaceuticals, which often require specialized handling and safety measures.

The Warehousing and Distribution (W&D) segment is expected to have the highest CAGR in the United States Third-Party Logistics (3PL) market. The rapid growth of e-commerce has led to a surge in demand for warehousing and distribution services. With more consumers shopping online, businesses require efficient warehousing and distribution solutions to manage and deliver their products to customers. Many businesses operate across multiple sales channels, including online marketplaces, brick-and-mortar stores, and their websites. To streamline their operations and meet customer expectations, they often turn to 3PL providers for warehousing and distribution services that can handle orders from various channels. Effective inventory management is crucial for reducing costs and ensuring that products are readily available when needed. 3PL providers specializing in warehousing services offer advanced inventory management systems, which help businesses optimize their inventory levels, reduce carrying costs, and minimize the risk of overstocking or stockouts. In addition based on end user, The healthcare industry is highly regulated, with stringent requirements for handling, storing, and transporting medical products and pharmaceuticals. Third-party logistics providers specializing in healthcare are well-versed in these regulations, ensuring compliance, which is critical for the industry. Many healthcare products, such as vaccines, biologics, and pharmaceuticals, require strict temperature control during transportation and storage. 3PL providers in the healthcare segment offer specialized temperature-controlled warehousing and transportation solutions, including cold chain logistics, to maintain product integrity.

Recent Developments:
• Bassett Furniture Industries, a well-known producer of high-quality furniture, announced in January 2022 that J.B. Hunt would be purchasing the Zenith Freight Lines assets. The purchase price is $87 million USD. From this point on, J.B. Hunt will carry on serving Bassett. Through this investment, J.B. Hunt is able to expand its nationwide furniture delivery capabilities.
• To expand its capacity for client service, XPO Logistics stated in January 2022 that it would be opening two LTL terminals. The firm opened a 264-door terminal in Chicago Heights, Illinois, in October 2021, and in response to growing demand, it increased freight throughput.
• DHL Supply Chain and TuSimple partnered in December 2021 to adapt and execute driverless transportation operations. Through this collaboration, DHL reserved 100 autonomous trucks in the US that were created by TuSimple and Navistar.



Considered in this report:
• Geography: United States
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• United States Third-Party Logistics (3PL) market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Mode of Transport
• Roadways
• Railways
• Waterways
• Airways

By Services
• Domestic Transportation Management (DTM)
• International transportation management (ITM)
• Dedicated contract carriage (DCC)
• Warehousing & Distribution (W&D)
• Value-Added Logistics By Services (VALs)

By End User
• Manufacturing
• Healthcare
• Retailing
• E-commerce
• Automotive
• Food & Groceries
• Technological
• Others

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.