Wilmington, Delaware, May 17, 2024 (GLOBE NEWSWIRE) -- Allied Market Research published a report, titled, "Logistics Business Outsourcing Market by Mode of Transport (Air Freight, Ocean Carriers, Railways, and Roadways), and End User (Pharmaceuticals, Automotive, Food and Beverages, Chemicals, and Others): Global Opportunity Analysis and Industry Forecast, 2023-2032". According to the report, the logistics business outsourcing market was valued at $1.3 trillion in 2022 and is estimated to reach $2.1 trillion by 2032, growing at a CAGR of 5.7% from 2023 to 2032.
Prime Determinants of Growth
As supply chains become more complex due to global trade, multi-modal transportation, and evolving customer demands, businesses seek specialized expertise to manage their logistics operations efficiently. Outsourcing logistics functions such as transportation management, warehousing, and distribution allows companies to focus on core competencies while leveraging third-party logistics providers (3PLs) to streamline supply chain operations. Furthermore, cost reduction and operational efficiency are significant drivers of logistics outsourcing. By partnering with 3PLs, businesses can benefit from economies of scale, shared resources, and optimized transportation networks, resulting in lower overall logistics costs. Outsourcing also helps avoid large capital investments in warehousing facilities, transportation fleets, and technology infrastructure.
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Report Coverage & Details:
| Report Coverage | Details |
| Forecast Period | 2023–2032 |
| Base Year | 2022 |
| Market Size in 2022 | $1.3 trillion |
| Market Size in 2032 | $2.1 trillion |
| CAGR | 5.7% |
| No. of Pages in Report | 485 |
| Segments covered | Mode of Transport, End User, and Region |
| Drivers | Growth in the e-commerce industry coupled with rise in reverse logistics operations |
| Rise in trade related agreements | |
| Opportunity | Emergence of last-mile deliveries coupled with logistics automation |
| Restraint | Poor infrastructure and higher logistics costs |
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Impact of Russia-Ukraine War Scenario
- The Ukraine-Russia conflict can disrupt supply chains, especially in regions directly affected by the conflict or those reliant on trade routes passing through the region. Logistics operations may experience delays, interruptions, or rerouting of shipments, impacting the efficiency and reliability of outsourced logistics services.
- In addition, heightened geopolitical tensions and supply chain disruptions can increase the demand for risk management services within LBO. Companies may seek specialized logistics providers capable of mitigating geopolitical risks, diversifying supply chain networks, and ensuring business continuity amid uncertain geopolitical conditions.
The ocean carriers segment to maintain its leadership status throughout the forecast period
On the basis of mode of transport, the ocean carriers segment held the highest market share in 2022, accounting for around two-fifths of the global logistics business outsourcing market revenue. This is attributed to ocean freight accounting for a substantial portion of global trade volume, especially for transporting goods across continents. As international trade continues to grow, businesses rely heavily on ocean carriers to facilitate the movement of goods between major trading regions. However, the ocean carriers segment is projected to manifest the fastest CAGR of 6.08% from 2023 to 2032, This is attributed to ocean carriers benefiting from economies of scale, allowing them to transport large volumes of goods efficiently and cost-effectively. By leveraging large container vessels and efficient shipping networks, ocean carriers can offer competitive pricing and reliable transit times for LBO clients.
The pharmaceuticals segment to maintain its leadership status throughout the forecast period
On the basis of end user, the pharmaceuticals segment held the highest market share in 2022, accounting for more than one-fourth of the global logistics business outsourcing market revenue. This is attributed to pharmaceuticals often requiring precise temperature control throughout the supply chain to preserve product integrity and efficacy. Specialized logistics providers offer temperature-controlled storage, transportation, and distribution services (e.g., cold chain logistics) to ensure the safe and effective delivery of pharmaceutical products, including vaccines, biologics, and specialty medicines. However, the food and beverage segment is projected to manifest the fastest CAGR of 6.52% from 2023 to 2032. This is attributed to the food and beverage industry operating within a complex supply chain characterized by perishable goods, strict regulatory requirements, and varying consumer demands. Outsourcing logistics allows companies to leverage specialized expertise in managing temperature-controlled storage, transportation, and distribution to ensure food safety and quality compliance.
North America to maintain its dominance by 2032
On the basis of region, North America held the highest market share in terms of revenue in 2022, accounting for more than two-fifths of the logistics business outsourcing market revenue. This is attributed to North America, particularly the U.S. and Canada, comprising the world's largest and most diverse economies. The region is home to a wide range of industries, including manufacturing, retail, healthcare, technology, automotive, and consumer goods, all of which rely on efficient logistics and supply chain solutions. The size and diversity of the North American economy drive the demand for outsourced logistics services. However, Asia-Pacific is expected to witness the fastest CAGR of 7.14% from 2023 to 2032. This is attributed to Asia-Pacific being home to some of the world's fastest-growing economies, including China, India, Japan, South Korea, and Southeast Asian countries. The region's economic growth has driven increased industrialization, urbanization, and consumption, resulting in rising demand for efficient logistics and supply chain services.
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Leading Market Players:
- inexia (sncf group)
- UNITED PARCEL SERVICE OF AMERICA, INC.
- XPO Logistics, Inc.
- DHL International GmbH
- Kuehne + Nagel International AG
- FedEx Corporation
- Deutsche Bahn AG
- Nippon Express Co., Ltd.
- DSV A/S
- A.P. Moller - Maersk
The report provides a detailed analysis of these key players in the global logistics business outsourcing market. These players have adopted different strategies such as expansion and product launch to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, product portfolio, and strategic moves of market players to showcase the competitive scenario.
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