UK Third Party Logistics (3PL) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 3.36 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UK Third Party Logistics (3PL) Market Analysis
The United Kingdom Third Party Logistics (3PL) Market size is estimated at USD 31.10 billion in 2023, and is expected to reach USD 36.69 billion by 2028, growing at a CAGR of 3.36% during the forecast period (2023-2028).
- The United Kingdom is one of the major trading countries globally, which exports most of its products to many European countries. The country's freight and logistics market has gained a strong base due to its developed infrastructure, sophisticated supply chain network, and presence of global players.
- The large retail and e-commerce sectors are among the country's key third-party logistics users. In highly-competitive markets, such as the United Kingdom, delivery time is a key competitive factor for retailers and online stores. So, retailers outsource their logistics to delivery specialists, and large and small retailers can compete on on-demand, next-day delivery.
- Shippers are continuing to leverage what 3PLs offer, allowing them to optimize the supply chain, minimize costs, create value, and align expectations to achieve success for both parties. The high-end technology integration by 3PLs, industry expertise, and cost reduction are reasons for an increase in outsourcing services. This outsourcing of services indicates that the demand for 3PLs is rising and driving the market.
- Mobile technology is revolutionizing 3PL. Many 3PL companies have already begun using mobile devices and apps to improve agility. Devices fitted with radio frequency identification (RFID) chips are not only capable of transmitting their location, but they also have the potential to hold data about themselves so that they can be instantly tracked and identified. Customers can order, process, and track freight shipments anytime using mobile apps installed on their mobile phones.
UK Third Party Logistics (3PL) Market Trends
Growth in Logistics Parks and Fulfilment Centers
The logistics sector is experiencing massive disruption where consumers will now be able to receive their items in time as little as one hour. The rapidly-delivered services are already familiar to most urban consumers. Leaders like Deliveroo, Ofo, and Uber have already made extreme efficiency a day-to-day reality for food and rides.
The United Kingdom is experiencing a record-breaking boom in constructing massive sheds to serve the soaring increase of internet shopping during the pandemic. Nearly 37 million square feet (3.4 million square meter) of warehouse space was slated for construction in 2021, up from 23 million square feet in 2020.
E-commerce continues to drive demand for warehouse expansion, but new warehouses are also needed to support the development of innovative technologies and sustainable energy. The UK warehousing sector is anticipated to continue strong for the foreseeable future.
As of January 2022, the East Midlands region had over 4.4 million square feet of the total 18.6 million square feet of speculative warehouse space under construction in the United Kingdom. This made the region with the most construction activity in the speculative market. Speculative development refers to construction projects that are undertaken without a commitment to a buyer or occupier.
E-Commerce Driving the Growth of the Market
The rapid growth of e-commerce is driving the demand for 3PL services in the United Kingdom. The unrelenting growth of e-commerce is fundamentally changing the third-party logistics (3PL) landscape. With the increasing consumer expectations for on-time and accurate deliveries and to stay competitive, more e-commerce retailers are outsourcing mission-critical components of their distribution and fulfillment operations to 3PL partners.
Many e-commerce retailers are small in size and need help to afford to have in-house logistic services. Therefore, services such as supply chain management, warehousing, consolidation service, and order fulfillment are outsourced to 3PL companies. However, major e-commerce retailers like Amazon and Alibaba are developing their logistics infrastructure.
Meanwhile, the growth of e-commerce and change in consumer expectations are also presenting challenges to the 3PL companies in terms of reducing parcel delivery times, increasing efficiency, adopting the latest and advanced technologies, etc. A huge transformation is taking place in last-mile delivery, with companies looking at alternatives, such as delivery lockers, pickup points, crowdsourced deliveries, drone deliveries, and autonomous vehicles. The evolution of technology is reshaping the entire supply chain and reinventing the parcel industry. Technology is becoming a crucial enabler in increasing efficiency and reaching consumer expectations.
UK Third Party Logistics (3PL) Industry Overview
The United Kingdom third-party logistics (3PL) market is fragmented in nature, with several large companies strategically forming alliances with mid-sized or small-sized companies to leverage their regional capabilities in the market. Major regional players have been observed to venture into new regions, allowing the companies to improve their geographic reach. New competitors are entering the United Kingdom third-party logistics (3PL) market with customized and industry-specific services. Some of the major players in the market include DHL International GmbH, Kuehne + Nagel, UPS, Wincanton PLC, and XPO Logistics Inc.
UK Third Party Logistics (3PL) Market Leaders
DHL International GmbH.
Kuehne + Nagel
UPS
Wincanton plc.
XPO Logistics, Inc.
*Disclaimer: Major Players sorted in no particular order
UK Third Party Logistics (3PL) Market News
- June 2023: Kuehne+Nagel signed an agreement to acquire Morgan Cargo, a leading South African, UK and Kenyan freight forwarder specialised in the transport and handling of perishable goods. During 2022 the company handled more than 40,000 tonnes of air freight and more than 20,000 TEU of sea freight globally, managed by approximately 450 logistics experts.
- February 2023: Wincanton announced a new four-year contract by Wickes that will extend and expand its mandate for the home improvement retailer. The new contract, which spans warehouse and transport operations, will see Wincanton become the sole supply chain partner for Wickes' kitchen and bathroom business in the UK. Wincanton is responsible for the management of Wickes' 400,000 sq ft kitchen and bathroom distribution centers in Northampton.
UK Third Party Logistics (3PL) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Market Definition
1.3 Scope of the Study
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Government Initiatives
4.2.1.2 Increase of Trade
4.2.2 Restraints
4.2.2.1 Shortage of Labor
4.2.3 Opportunities
4.2.3.1 Technological Advancements in the Logistic Sector
4.2.3.2 Reverse Logistics
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitutes Products and Services
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Policies and Regulations
4.6 General Trends in Warehousing Market
4.7 Demand From Other Segments, Such as CEP, Last Mile Delivery, Cold Chain Logistics Etc.
4.8 Technological Developments in the Logistics Sector
4.9 Insights on Ecommerce Business
4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Services
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By End User
5.2.1 Manufacturing and Automotive
5.2.2 Oil & Gas and Chemicals
5.2.3 Distributive Trade (Wholesale and Retail Trade Including E-commerce)
5.2.4 Pharmaceuticals and Healthcare
5.2.5 Construction
5.2.6 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Kuehne Nagel
6.2.2 DHL Supply Chain
6.2.3 United Parcel Service of America
6.2.4 Wincanton
6.2.5 Eddie Stobart
6.2.6 FedEx
6.2.7 XPO Logistics
6.2.8 CEVA Logistics
6.2.9 Tarlu Ltd
6.2.10 Schenker Limited
6.2.11 Yusen Logistics
6.2.12 Bibby Distribution
6.2.13 Xpediator
6.2.14 Rhenus Logistics
6.2.15 Torque
6.2.16 Lloyd Fraser
6.2.17 Pointbid Logistics Systems Ltd
6.2.18 Parcel Hub*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of Transport and Storage Sector to economy)
8.2 External Trade Statistics - Exports and Imports, by Product
8.3 Insights into Key Export Destinations and Import Origin Countries
UK Third Party Logistics (3PL) Industry Segmentation
Third-party logistics (3PL) services help organizations to focus on their core business and generate high revenue by reducing operating costs. These services also offer value addition to companies for the entire supply chain process, resulting in an efficient and effective supply chain. The main survival factors of the third-party logistic market include the cost-efficiency of services, company control, and technological advances. The United Kingdom Third Party Logistics (3PL) Market is segmented by Service (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution) and by End Users (Manufacturing and Automotive, Oil and Gas and Chemicals, Distributive Trade (Wholesale and Retail Trade including E-commerce), Pharmaceuticals and Healthcare, Construction, and Other End Users). The report offers the market sizes and forecasts for the United Kingdom Third Party Logistics (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 | |
| Manufacturing and Automotive | |
| Oil & Gas and Chemicals | |
| Distributive Trade (Wholesale and Retail Trade Including E-commerce) | |
| Pharmaceuticals and Healthcare | |
| Construction | |
| Other End Users |
UK Third Party Logistics (3PL) Market Research FAQs
What is the current United Kingdom Third Party Logistics (3PL) Market size?
The United Kingdom Third Party Logistics (3PL) Market is projected to register a CAGR of 3.36% during the forecast period (2024-2029)
Who are the key players in United Kingdom Third Party Logistics (3PL) Market?
DHL International GmbH., Kuehne + Nagel, UPS, Wincanton plc. and XPO Logistics, Inc. are the major companies operating in the United Kingdom Third Party Logistics (3PL) Market.
What years does this United Kingdom Third Party Logistics (3PL) Market cover?
The report covers the United Kingdom Third Party Logistics (3PL) Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United Kingdom Third Party Logistics (3PL) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UK Third Party Logistics Industry Report
Statistics for the 2024 UK Third Party Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UK Third Party Logistics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
