The “North America Third Party Logistics Market to 2027 – Analysis and Forecasts by Mode of Transport, Services, End-User, and Customer” report has been added to ResearchAndMarkets.com’s offering.
The North America Third-party logistics market accounted for US$ 168.4 Bn in 2017 and is expected to grow at a CAGR of 6.0% over the forecast period 2018-2027, to account for US$ 266.1 Bn in 2027.
Factors including a focus on managing timely delivery along with reducing overall operational cost driving the North America Third-party logistics market. 3PL eliminates the need to invest in technology, warehouse space, transportation, trained staff to execute the logistics process. Additionally, hiring the third party firms is more cost-effective than investing in own logistic operations.
Thus, reducing overall operational cost and managing timely delivery are expected to drive the North America market for third party logistics. The market players are focusing on various initiatives to enhance its reach to rural areas and boost its position in the North America Third party logistics market.
The North America Third-party logistics market is fragmented with the presence of several industries and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the North America Third-party logistics market further.
On the basis of End-User, the retail segment is leading the North America Third-party logistics market. However, the automotive segment are anticipated to grow at a highest CAGR. Automotive industries are highly dependent on strategic logistic services in order to ensure effective & efficient operations and for allocating resources in other operations. Automotive products has their heavier usage and larger size which makes this industry as one of the leading user of integrated logistics systems and services.
The logistics services commonly used in auto industry are express services, inbound material flow management, reverse logistics, just-in-time delivery, cross-docking, and warehousing. Currently, the market players are looking ahead to support North America Third-party logistics industry by innovating advanced technological components.