3PL market to expand by 3.29% by 2020

Published: Saturday, September 17, 2016

MarketResearchReports.biz has added a new research report to its repository. The report, titled ‘3PL Market In The US’ offers a comprehensive overview of the 3PL market in the US and projects the market to expand at a CAGR of 3.29% during the period between 2016 and 2020. The present scenario of the market has been covered in the report along with various growth prospects that would define the future outlook of the market. The report defines the industry chain and analyzes the upstream and downstream components of the regional market. The impact of Porter’s five forces on the growth of the US 3PL market has been assessed. The overall market has been studied on the basis of services. The report further profiles some of the key vendors in the US 3PL market.

Third party logistics, better known as 3PL, refers to a provider of outsourced logistics services that include various supply chain management functions. Companies outsource their logistics function such as warehousing and transportation to 3PL providers who offer value-added services including cross-docking, inventory management, packaging of products, and door-to-door delivery. Presently, various new and innovative supply chain management techniques are improving the overall quality of the services in the 3PL industry.

The report points out that the cost effectiveness of 3PL services is expected to propel the growth of the U.S. 3PL market. However, the low adoption of technologically advanced equipment by 3PL providers will hinder the market growth during the forecast horizon. The overall market is witnessing an increasing number of mergers and acquisitions among the key players.

In terms of service area, the report segments the US 3PL market into international transportation management (ITM), dedicated contract carriage (DCC), domestic transportation management (DTM), and verified accredited wholesale distributors (AWD). The demand for each of the service segments has been analyzed in the report.