3PL Australia Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Market Report Covers Largest 3PL Companies in Australia and is segmented by Service (Domestic Transportation Management, International Transportation Management and Value-added Warehousing and Distribution) and End Users (Consumer and Retail, Automotive, Healthcare and Others). The report offers the market sizes and forecasts for the Australia 3PL Market in value (USD) for all the above segments.

Australia 3PL Logistics Market Size

Australia 3PL Market Summary
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Study Period 2019 - 2028
Base Year For Estimation 2022
Market Size (2023) USD 15.36 Billion
Market Size (2028) USD 19.62 Billion
CAGR (2023 - 2028) 5.01 %
Market Concentration Low

Major Players

Australia 3PL Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Australia 3PL Logistics Market Analysis

The Australia 3PL Market size is estimated at USD 15.36 billion in 2023, and is expected to reach USD 19.62 billion by 2028, growing at a CAGR of 5.01% during the forecast period (2023-2028).

  • The Australian logistics industry experienced rapid growth in express delivery services, which was aided by growth in the e-commerce industry, which provides a variety of value-added services such as one-day delivery and door-to-door services.This has prompted the growth of 3PL services, with international players entering the market.To gain a competitive advantage over the other players, the major corporations are focusing on value-added services. Good infrastructures, such as warehousing, distribution networks, and technological capabilities, are critical for Australian 3PL firms.
  • The development of logistics infrastructure, the rapid growth of the e-commerce sector, and the development of new technologies are expected to contribute to the Australian 3PL market growth significantly. Moreover, the omnichannel operation demands reliable, fast, and free shipping services, which has resulted in companies adopting a new business model to provide low-cost and on-demand delivery services. 3PL companies embrace various modifications in supply chain management to address the notable transformations and challenges that e-commerce presents. The 3PL companies are shifting their focus from long-haul delivery to just-in-time delivery. The suppliers are also transitioning from multiple storage facilities to a single warehouse location. To accommodate an increase in last-mile delivery, companies invest in smaller trucks and vans, which can support shorter and more frequent deliveries.
  • DHL Supply Chain announced the launch of four new state-of-the-art storage facilities around Australia. Given the increasing demand for products such as pharmaceuticals, medical devices, vaccines, and consumer health products, healthcare-grade facilities will store and manage inventory. Moreover, many startups, such as Passel, Sendle, Go People, and Zoom2U, have also entered the 3PL Australia market
  • The Australian logistics market has been growing, and it represents 8.6 percent of the nation's GDP. The Australian logistics and warehousing market is expected to increase over the forecast period. It is predicted that the freight forwarding industry will continue to account for a large share of the revenue, supported by the growth of 3PL companies. Government investment is also a key factor in the growth of the 3PL logistics industry in Australia.
  • The government plans an additional USD 75 billion investment in road and rail infrastructure from 2018 to 2027. These infrastructure development programs have, in turn, greatly improved the development of transport facilities, making freight movement easy and smooth.

Australia 3PL Logistics Market Trends

This section covers the major market trends shaping the Australia 3PL Market according to our research experts:

Rise in E-commerce Sector is Driving the Market

  • During the last few years, Australia's e-commerce market has experienced rapid expansion. The COVID-19 epidemic is expected to boost e-commerce sales in the country even more. According to Australia Post's Online Shopping Report, over 5.6 million Australian households shopped online in December 2020, a 21.3% increase over the 2019 average. The Australian express delivery market has seen growth in the last five years, driven majorly by growth in the e-commerce sector.
  • Companies are investing in logistics to meet the increased demand in to capitalize on this opportunity. Woolworths announced that it plans to build an automated warehouse in Western Sydney to fulfill up to 50,000 online deliveries a week and compete with Amazon's expanding footprint in Australia. Located in Western Sydney, the company said construction began in 2021, with a launch projected for 2024. The announcement comes as the company reported online sales growth of 92% in the last six months of 2020, with online sales accounting for 8% of total sales.
  • As of January 2023 in Australia, online retail expenditure in the takeaway food category from domestic merchants increased by around 11.5 percent compared to the previous year. International merchants in this category experienced a growth rate of 135.6 percent.

Australia 3PL Market- Annual Growth in Online Retail Shopping

A Surge in Retail Sales has Spurred the Demand for Road Freight Services

The retail sales in the country decreased in January 2020, affected by the prolonged bushfire season. However, it gradually increased in 2021 and 2022 and saw a surge in 2022, spurred by fears of shortages of essential products due to the spread of coronavirus.

With the coronavirus pandemic and the unprecedented grocery splurge, the domestic supply chain has witnessed challenges, with some companies exceeding 100% of their capacity to deliver supermarket goods. Major companies, such as Toll and Linfox, have reported deliveries exceeding those in the lead-up to Christmas to the major retailers.

Some of the truck operators have bought additional trailers, hired drivers, and are driving direct from interstate warehouses to supermarkets to cope with the COVID-19 panic-buying that has fueled more than double the usual grocery sales. The industry players are helping each other to provide fleets and equipment. The panic buying has been driving the demand for trucking services across the country. For example, one of the trucking operators reported that their fleet of double deliveries from a paper-products manufacturer went from the standard 8 each week to more than 40.

Before the impact of the coronavirus, the e-commerce sector in Australia is set to grow rapidly in 2020, and with the impact of COVID-19, the sector is expected to witness two sequential waves of accelerated growth.The grocery, liquor, healthcare, home maintenance, and recreational sectors may realize an increase in e-commerce trading, with apparel and footwear decreasing initially. However, the apparel and footwear categories are expected to witness high growth in the future.

Australia 3PL Market- Annual revenue of the retail trade industry

Australia 3PL Logistics Industry Overview

The report covers major international players operating in the Australian 3PL Market. The market is highly fragmented in nature, with large companies claiming significant market share. An increase in demand for an easy and effective supply chain system and an increase in the complexities in the operation process drive the growth of the 3PL market. In addition, players in the market expand their businesses through mergers, acquisitions, strategic partnerships, and services to meet customer needs.

The major companies in the country have adopted various modern technologies, such as warehousing management systems, automation, drone delivery, and the transportation management system, enabling better planning and tracking facilities, resulting in increased productivity and increased value proposition. Some significant players include DB Schenker, Linfox, Kings Transport, Invesco, Yusen Logistics, etc.,

Australia 3PL Logistics Market Leaders

  1. DB Schenker

  2. INVENCO PTY LTD

  3. KINGS Transport

  4. Linfox Pty Ltd

  5. YUSEN LOGISTICS CO., LTD

*Disclaimer: Major Players sorted in no particular order

Australia 3PL Market Concentration

Australia 3PL Logistics Market News

  • July 2022: Kings Transport (Australian transport and logistics provider) announced the opening of a new warehouse in Melbourne. The new facility will include 15,138 sqm of custom-built warehousing and two levels of office space totaling 725 sqm. The new premises will allow the company to provide a high-profile, state-of-the-art distribution center to deliver high-quality services to its clients.
  • June 2022: DHL Supply Chain Australia acquired the Glen Cameron Group(an Australian logistics company). The strategic combination of the Glen Cameron Group with the DHL Supply Chain will strengthen DHL's position in the evolving Australian road freight market and create one of the largest logistics companies in the country, with a combined revenue of over AUD1 billion (USD 707 million).

Australia 3PL Logistics Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Current Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Market Opportunities

    5. 4.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.5.1 Bargaining Power Of Suppliers

      2. 4.5.2 Bargaining Power Of consumers/ Buyers

      3. 4.5.3 Threat of New Entrants

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Technological Developments in the Logistics Sector

    7. 4.7 Insight on E-commerce Business

    8. 4.8 General Trends in the Warehousing Market

    9. 4.9 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Services

      1. 5.1.1 Domestic Transportation Management

      2. 5.1.2 International Transportation Management

      3. 5.1.3 Value-added Warehousing and Distribution

    2. 5.2 By End-User

      1. 5.2.1 Consumer and Retail (E-commerce, Apparel and Garment Sectors, Perishables, etc.)

      2. 5.2.2 Automotive

      3. 5.2.3 Healthcare

      4. 5.2.4 Other Industrial Activity Sectors (Manufacturing, Food and Beverage, Telecommunication, and Construction )

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 Linfox

      2. 6.2.2 BCR

      3. 6.2.3 Yusen Logistics (Australia) Pty. Ltd.

      4. 6.2.4 Invenco

      5. 6.2.5 Kings

      6. 6.2.6 DB Schenker

      7. 6.2.7 Automotive Holdings Group Refrigerated Logistics

      8. 6.2.8 DHL

      9. 6.2.9 Tiger Logistics

      10. 6.2.10 SCT Logistics*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

Australia 3PL Logistics Industry Segmentation

Third-party logistics companies provide services that have to do with the logistics of the supply chain. This includes transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, packaging, and freight forwarding. A 3PL (third-party logistics) provider offers outsourced logistics services, which encompass the management of one or more facets of procurement and fulfillment activities. In business, 3PL has a broad meaning that applies to any service contract that involves storing or shipping items. A 3PL service may be a single provider, such as transportation or warehouse storage, or it can be a systemwide bundle of services capable of handling supply chain management.

The Australia 3PL market is segmented by Service (Domestic Transportation Management, International Transportation Management and Value-added Warehousing and Distribution) and End Users (Consumer and Retail, Automotive, Healthcare and Others). The report offers the market sizes and forecasts for the Australia 3PL Market in value (USD) for all the above segments.

By Services
Domestic Transportation Management
International Transportation Management
Value-added Warehousing and Distribution
By End-User
Consumer and Retail (E-commerce, Apparel and Garment Sectors, Perishables, etc.)
Automotive
Healthcare
Other Industrial Activity Sectors (Manufacturing, Food and Beverage, Telecommunication, and Construction )

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Australia 3PL Logistics Market Research FAQs

The Australia 3PL Market size is expected to reach USD 15.36 billion in 2023 and grow at a CAGR of 5.01% to reach USD 19.62 billion by 2028.

In 2023, the Australia 3PL Market size is expected to reach USD 15.36 billion.

DB Schenker, INVENCO PTY LTD, KINGS Transport, Linfox Pty Ltd and YUSEN LOGISTICS CO., LTD are the major companies operating in the Australia 3PL Market.

Australia 3PL Industry Report

Statistics for the 2023 Australia 3PL market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia 3PL analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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