South Africa Third Party Logistics (3PL) Market Overview, 2028

The South African third-party logistics market is expected to expand rapidly. The automotive industry, technological innovation, an increase in last-mile connections, and an increase in cross-border trade activities are all major factors driving the growth of the South African third-party logistics market. Manufacturing industries deal with the conversion of items or materials into new products. The pace of expansion in the country's manufacturing industry is an indicator of its economic strength. Manufacturing industries were relocating, and overall employment in the sector was reducing as these countries became more service-oriented, while the manufacturing sector experienced major losses. Consumption of meat, canned fruits and vegetables, and packaged foods has increased in recent years as the middle class has grown. The demand for medicine, vaccines, and medical equipment storage has also expanded throughout the years in the healthcare sector. Companies are actively developing to provide a faster service while simultaneously reducing carbon emissions. The country's broad and developing economy is a major driver of the 3PL market in South Africa. South Africa's economy is diverse, ranging from agriculture to industry, mining, and services. This diversity necessitates a robust and flexible 3PL sector that can cater to the unique demands of each industry. The demand for 3PL services has grown as businesses seek more efficient and cost-effective ways to manage their supply chains, resulting in a flourishing 3PL market. Furthermore, South Africa's geographic location makes it a crucial gateway to the rest of Africa, driving up demand for cross-border logistics and transportation services. South African 3PL providers have taken advantage of this opportunity, giving solutions to firms wishing to expand into the larger African market. This regional cooperation is crucial for the growth and sustainability of South Africa's 3PL sector.

According to the research report "South Africa Third-Party Logistics (3PL) Market Overview, 2028," published by Bonafide Research, the South Africa Third-Party Logistics (3PL) market is projected to reach market size of more than USD 7 Billion by 2028. Another key trend in the South African 3PL market is the integration of technology and digital solutions. Logistics providers are progressively using cutting-edge technologies such as the Internet of Things (IoT), blockchain, and artificial intelligence to improve efficiency, visibility, and real-time tracking. These technologies not only help to streamline supply chain operations, but they also provide vital data and analytics, allowing businesses to make educated decisions and optimize their logistical processes. Because of its well-developed transportation infrastructure, including ports, roadways, and rail networks, South Africa serve as a central transit hub for products entering or departing Africa. Many corporations use South Africa as a distribution hub for products destined for other African countries. As a result, the South African 3PL market specializes in cross-border logistics, including customs clearance, international freight forwarding, and documentation management. South Africa has numerous significant ports, the busiest of which are in Durban, Cape Town, and Port Elizabeth. These ports are critical points of entry and exit for products. South African third-party logistics businesses specialize in controlling the movement of cargo via these ports, providing services such as warehousing, container handling, and distribution from these strategic locations. South Africa is a member of several African regional trade agreements and economic blocs, including the Southern African Development Community (SADC) and the African Continental Free Trade Agreement (AfCFTA). South African 3PL providers are well-versed in these agreements and can assist clients in managing trade restrictions and tariffs inside these regional trade blocs, stressing their regional logistics expertise.

Based on mode of transportation market is segmented into roadways, railways, waterways and airways. Waterways is one of the significant mode of transportation opt by third-party logistics service providers in South Africa. South Africa has numerous significant ports, the busiest of which are in Durban, Cape Town, and Port Elizabeth. These ports are critical points of entry and exit for products. South African third-party logistics businesses specialize in controlling the movement of cargo via these ports, providing services such as warehousing, container handling, and distribution from these strategic locations. South Africa is a member of several African regional trade agreements and economic blocs, including the Southern African Development Community (SADC) and the African Continental Free Trade Agreement (AfCFTA). South African 3PL providers are well-versed in these agreements and can assist clients in managing trade restrictions and tariffs inside these regional trade blocs, stressing their regional logistics expertise. Based on services market is segmented into domestic transportation management (DTM), international transportation management (ITM), dedicated contract carriage (DCC), warehousing & distribution (W&D), and value-added logistics by services (VAS). Among them domestic transportation management (DTM) service segment dominates the South Africa third-party logistics market. South Africa is a large and geographically diversified country with a diverse range of economic activity, including agriculture, manufacturing, mining, and services. In order to transfer goods throughout the country, these businesses demand efficient and dependable domestic transportation services. Domestic transportation management requires considerable attention due to the sheer magnitude of South Africa's domestic market and the requirement to connect diverse regions. South Africa's commercial activities are dispersed throughout many regions; therefore, the need for intra-country transportation is significant. 3PL companies with DTM expertise provide bespoke solutions for managing the movement of goods inside South Africa's borders, optimizing routes, and ensuring on-time delivery.

Based on end user industry market is bifurcated into manufacturing, healthcare, retailing, e-commerce, automotive, food & groceries, technological, and others. Healthcare industry is one of the key end user of third-party logistics in South Africa. Compliance with numerous rules is critical for the storage, handling, and transportation of medications, medical equipment, and healthcare supplies in the healthcare sector, which is highly regulated. The expertise and infrastructure required to achieve these regulatory criteria, assuring the safe and legal transfer of healthcare commodities, are provided by 3PL companies. Many healthcare goods, such as vaccinations, medications, and medical devices, necessitate precise temperature regulation to preserve efficacy and safety. Temperature-controlled logistics solutions, such as cold chain management, are provided by 3PL providers to ensure that healthcare supplies are transported and stored at the proper temperatures. In the healthcare industry, effective inventory management is crucial for reducing waste, ensuring product availability, and controlling prices. Inventory management services are provided by 3PL providers to assist healthcare firms in optimizing their stock levels, reducing the risk of stockouts, and enhancing supply chain visibility.

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



Aspects covered in this report:
• South Africa 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 (VAS)

By End User:
• Manufacturing
• Healthcare
• Retailing
• Food & Groceries
• Automotive
• E-commerce
• 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.