3PL Australia Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Market Report Covers the 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

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Australia 3PL Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 16.13 Billion
Market Size (2029) USD 20.60 Billion
CAGR (2024 - 2029) 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 16.13 billion in 2024, and is expected to reach USD 20.60 billion by 2029, growing at a CAGR of 5.01% during the forecast period (2024-2029).

  • The Australian logistics industry experienced rapid growth in express delivery services, aided by growth in the e-commerce industry, which provides various value-added services such as one-day delivery and door-to-door services. This has prompted the development of 3PL services, with international players entering the market. The major corporations focus on value-added services to gain a competitive advantage over the other players. Good infrastructures, such as warehousing, distribution networks, and technological capabilities, are critical for Australian 3PL firms.
  • The development of logistics infrastructure and new technologies are expected to contribute significantly to the Australian 3PL market growth. 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 of e-commerce. 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.
  • The Australian logistics and warehousing market is expected to increase over the forecast period. The freight forwarding industry is predicted to 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

Increase in Manufacturing exports

A significant source of demand for logistics services is the manufacturing division. Businesses' confidence in the ability of third parties to manage their stocks has been enhanced by the development of advanced inventory tracking and monitoring systems throughout supply chains. In 2023, the manufacturing sector contributed 20 % of domestic demand, followed by TP&W at 51%.

Machinery and equipment manufacturing, which will add 161,700 square meters to warehouse demand by 2023, is the most significant contributing subsector of industry in production. Transport equipment manufacturing took 61,800 sqm of space, and food product manufacturing demand accounted for 52,900 sqm.

The rise in international trade increases exports and imports, with total goods and services exports increasing from USD 149,786m (29%) to USD 668,940m. The total imports of goods and services increased by USD 127,754 million or 33% to USD 513,210 million.

An Economic Cooperation and Trade Agreement was signed between India and Australia in 2022. From January to August 2023, India's exports to Australia increased by 14% yearly, amounting to 5.87 billion dollars. However, from April to November 2023, imports from Australia to India fell by 19% annually to USD 11.15 billion, mainly due to a fall in demand for coal, coke, and briquettes in India.

Australia 3PL Market: Gross value added (GVA) by the manufacturing industry in Australia from 2018 to 2022 (in billion Australian dollars)

Australia's road freight dominates the market

Australia's road freight sector is considered a vital component of the nation's economy. Because of this, most businesses nationwide can receive much-needed support, not least because it plays a crucial role in the economy. The growth of Australia Road freight transport over the years is driven by increasing domestic and international trade, e.g. a boom in online shopping and an urgent need for efficient logistics solutions.

Across Australia, demand for next-day and same-day delivery has soared to record levels. Parcel delivery volumes increased by 25% in the 1st quarter of fiscal year 2024 compared to the preceding corresponding period. In addition, a 47% increase in same-day metro deliveries, indicating a significant shift in consumer preferences, was observed.

Rigid and articulated trucks dominate intercity merchandise freight on the Australian market, as these vehicles represent the fastest, cheapest, and most convenient option for many clients. In cities, light commercial vehicles are the dominant form of transport for the final delivery stage. A substantial rise in the total value of merchandise trade has supported demand for road freight transport.

Australia 3PL Market- Freight Transport By Road Production Turnover, in USD Million, 2018-2022

Australia 3PL Logistics Industry Overview

The market is highly fragmented, 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 transportation management systems, 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. KINGS Transport

  3. Linfox Pty Ltd

  4. Invenco Pty Ltd

  5. Yusen Logistics Co. Ltd

*Disclaimer: Major Players sorted in no particular order

Australia 3PL Market Concentration
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Australia 3PL Logistics Market News

  • November 2023: Freight Management Holdings (FMH), a subsidiary of Singapore Post (SingPost), has purchased Australian transportation and distribution services provider Border Express for a maximum purchase price of AUD 210m (USD 135m). Upon completion, Border Express will join the transportation companies held under the FMH Group umbrella, GKR Transport, Niche Logistics, BagTrans, Formby Logistics and Spectrum Transport.
  • March 2023: CEVA Logistics is rolling out an indigenous artist’s design across six long-haul trailers in Australia. The trailers will serve on line-haul routes along the East Coast and Southern regions. The artwork is a distinctive and prominent manifestation of the RAP's role in advancing diversity, equity, and inclusion within CEVA in Australia.

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

      1. 4.2.1 The rise in online shopping and consumer demand for fast delivery

      2. 4.2.2 Rise in cross-border trade activities

    3. 4.3 Market Restraints

      1. 4.3.1 Poor infrastructure and higher logistics costs

    4. 4.4 Market Opportunities

      1. 4.4.1 Rising demand for consumer electronics

    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 Transport

      1. 5.2.1 Roadways

      2. 5.2.2 Railways

      3. 5.2.3 Waterways

      4. 5.2.4 Airways

    3. 5.3 By End-User

      1. 5.3.1 Consumer and Retail (E-commerce, Apparel and Garment Sectors, Perishables, etc.)

      2. 5.3.2 Automotive

      3. 5.3.3 Healthcare

      4. 5.3.4 Manufacturing

      5. 5.3.5 Other

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration and Major Players)

    2. 6.2 Company Profiles

      1. 6.2.1 DHL

      2. 6.2.2 Linfox

      3. 6.2.3 BCR

      4. 6.2.4 Yusen Logistics (Australia) Pty. Ltd.

      5. 6.2.5 Invenco Pty Ltd

      6. 6.2.6 Gold Tiger Logistics Solutions Pty Ltd

      7. 6.2.7 DB Schenker

      8. 6.2.8 Kings Consolidated Group Pty Ltd.

      9. 6.2.9 Toll Holdings Limited

      10. 6.2.10 Tiger Logistics

      11. 6.2.11 SCT Logistics*

    3. *List Not Exhaustive
    4. 6.3 Other Companies

  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

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Australia 3PL Logistics Industry Segmentation

A third-party logistics (3PL) is a partner or service that assists manufacturers, especially e-commerce merchants, in outsourcing activities related to logistics and distribution. A third-party logistics company provides specialized services such as inventory management, cross-docking, door-to-door delivery, and packaging of products.

A complete background analysis of the Australia 3PL Logistics market, which includes an assessment of the sector and the contribution of the industry to the economy, market overview, market size estimation for critical segments, key regions, and emerging trends in the market segments, market dynamics, and essential production and consumption statistics are covered in the report.

The Australia 3PL market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution), by transport (roadways, railways, waterways, and airways), and by end users (consumer and retail, automotive, healthcare, manufacturing, 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 Transport
Roadways
Railways
Waterways
Airways
By End-User
Consumer and Retail (E-commerce, Apparel and Garment Sectors, Perishables, etc.)
Automotive
Healthcare
Manufacturing
Other
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Australia 3PL Logistics Market Research FAQs

The Australia 3PL Market size is expected to reach USD 16.13 billion in 2024 and grow at a CAGR of 5.01% to reach USD 20.60 billion by 2029.

In 2024, the Australia 3PL Market size is expected to reach USD 16.13 billion.

DB Schenker, KINGS Transport, Linfox Pty Ltd, Invenco Pty Ltd and Yusen Logistics Co. Ltd are the major companies operating in the Australia 3PL Market.

In 2023, the Australia 3PL Market size was estimated at USD 15.32 billion. The report covers the Australia 3PL Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Australia 3PL Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Australia 3PL Industry Report

Statistics for the 2024 Australia 3PL market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Australia 3PL analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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3PL Australia Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)