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United Kingdom Third Party Logistics (3PL) Market Size: By Mode: Roadways, Railways, Waterways, Airways; By Services: Dedicated Contract Carriage (DCC)/Freight Forwarding, Domestic Transportation Management (DTM), International Transportation Management (ITM), Others; By End Use; Competitive Landscape; 2024-2032
United Kingdom Third Party Logistics (3PL) Market Outlook
The United Kingdom third party logistics (3PL) market size reached approximately USD 30.2 billion in 2023. The market is projected to grow at a CAGR of 2.6% between 2024 and 2032, reaching a value of around USD 38.05 billion by 2032.
Key Takeaways
- The main driver of the United Kingdom 3PL market is the increase in both domestic and international trade.
- Third party logistics in the UK have grown significantly, creating a substantial number of jobs throughout the country.
- Key players are attempting to achieve net zero emissions amid the growing trend of sustainability.
Third party logistics providers are independent organisations that offer single or multiple logistics services to other businesses. This framework allows companies to outsource their supply chain activities such as inventory management and product distribution to specialised organisations.
Third party logistics providers perform a variety of functions, including inventory storage, packaging, warehousing, shipping, and distribution, among others. By outsourcing these services, organisations can benefit from cost-saving measures and flexible solutions tailored to their specific needs. Furthermore, the growing focus by businesses to minimise infrastructure costs and eliminate the need for storage and warehouse space, transportation, and shipment is aiding the United Kingdom third party logistics (3PL) market growth.
Third-party logistics companies, also known as 3PL or fulfillment providers, are crucial in the UK's supply chain. The logistics sector in the United Kingdom receives support from the government in the form of investments. For instance, in June 2023, the Department for Transport (DfT) announced £300,000 of government funding to support Generation Logistics, a campaign aimed at inspiring young people to pursue a career in the logistics industry.
Key Trends and Developments
Increasing cross-border trades, rise in employment opportunities, reduction in operating cost, and adoption of sustainable practices are the major trends impacting the United Kingdom third party logistics (3PL) market growth
| Date | Company | Action |
| April 12th, 2023 | EGLO | Teamed up with third party logistics to strengthen its presence in the UK |
| May 12th, 2023 | AIT Worldwide Logistics | Extended its business domain in Europe by acquiring Mach II Shipping |
| Oct 23, 2023 | Kuehne+Nagel UK | Joined forces with the UK Government's 'Zero Emission HGV and Infrastructure Demonstrator Programme' |
| Trend | Details |
| Reducing operating costs | Third party logistics services are a crucial aspect of achieving supply chain efficiency and reducing operational expenses. |
| Rise in job opportunities | The logistics industry is one of the largest in the UK, employing approximately 1.25 million people, which is almost 4.1% of all UK jobs. |
| Adoption of sustainable practices by 3PL providers | To reduce their carbon footprint, third-party logistics companies are adopting environmentally friendly business practices and green initiatives. |
| Increase in cross border trade | The UK is an open economy with its trade relations expanded to different parts of the world. Easy movement of goods requires a robust logistics mechanism. |
| Integration of advanced technologies in 3PL services | Technologies like artificial intelligence and machine learning are increasingly integrated into 3PL services to optimise routes, provide real-time updates, and facilitate predictive maintenance. |
United Kingdom Third Party Logistics (3PL) Market Trends
Due to the rise in e-commerce and trade activities, the demand for third-party logistics is expected to grow in the coming years. Favorable government regulations are also supporting the United Kingdom third party logistics (3PL) market expansion. Freight forwarders are consolidating their functions and services effectively by sharing centralised management facilities and logistic facilities to provide competent services.
Furthermore, third party logistics handles the supply chain and logistic operations of external businesses. By outsourcing fulfillment operations, customers of third-party logistics companies can save on investing in warehouse space, transportation, logistics labourers, distribution sites, retail outlets, e-commerce platforms, and logistics management software.
While a company may be a specialist in a particular industry with excellent product knowledge and customer relationships, managing the logistics of the supply chain is a completely different specialisation. Third-party logistics companies are supply chain experts who stay up to date on the best industry practices and developments. Their role is to help businesses ensure sustainable growth in terms of profitability and customer base, without the expense of physically expanding or relocating.
Cross-border trade is increasing due to more than 70 trade agreements signed by the UK with different countries. This facilitates the free flow of goods and services across borders, stimulating the growth of the United Kingdom third party logistics (3PL) market. Efficient integrated logistics services are required to export domestically manufactured goods, including transportation and logistics-related services management.
Market Segmentation
The EMR’s report titled “United Kingdom Third Party Logistics (3PL) Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:
| Market Breakup | Categories |
| Mode | Roadways, Railways, Waterways, Airways |
| Services | Dedicated Contract Carriage (DCC)/Freight Forwarding, Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing and Distribution, Value Added Logistics Services (VALs) |
| End Use | Automotive, Manufacturing, Chemical, Retail, Healthcare and Pharmaceuticals, Construction, Others |
The demand for 3PL services from the retail sector is expected to increase in the coming years due to their ability to facilitate convenience and ease for customers.
The retail sector holds a significant portion of the United Kingdom third party logistics market share. The United Kingdom’s retail sector is continuously expanding due to untamed competition, multichannel strategies, and a rise in consumer demand. To adjust to these dynamics, retailers are embracing 3PL services to improve their customer services and gain a competitive edge.
The new era of e-commerce has changed the retail environment, further driving the demand for optimal 3PL services. Meanwhile, the automotive industry in the UK is renowned for premium and sports car marques including Aston Martin, Bentley, Caterham Cars, Daimler, and Jaguar. This also requires a robust supply chain, including third-party logistics.
Competitive Landscape
Major players in the United Kingdom third party logistics (3PL) market are focusing on decarbonisation amid the rising trend of sustainability:
| Company | Established Year | Headquarters | Description |
| Kuehne + Nagel International AG | 1890 | Switzerland | International transport and logistics company |
| Deutsche Post AG | 1995 | Germany | German multinational supply chain management and package delivery company |
| Wincanton plc | 1925 | United Kingdom | Provides logistics and transport services, including supply chain management for businesses and high-capacity warehouses |
| Schenker AG | 1872 | Germany | German logistics company and a subsidiary of Deutsche Bahn |
Other players in the United Kingdom third party logistics (3PL) market are XPO, Inc., Yusen Logistics Co., Ltd., FedEx Corporation, Fidelity Supply Chain Solutions, and PostNord AB, among others.
In October 2023, Kuehne+Nagel UK partnered with the UK Government's £200 million 'Zero Emission HGV and Infrastructure Demonstrator Programme' to help the UK achieve its net-zero goals by transitioning heavy goods vehicles to operate with zero emissions. This initiative is in collaboration with Innovate UK, and it would bring approximately 370 zero-emission trucks and around 57 refueling and electric charging sites via four consortiums. Kuehne and Nagel's involvement is expected to play a vital role in decarbonising the UK's haulage sector.
Key Highlights of the Report
| REPORT FEATURES | DETAILS |
| Base Year | 2023 |
| Historical Period | 2018-2023 |
| Forecast Period | 2024-2032 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Mode |
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| Breakup by Services |
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| Breakup by End Use |
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| Market Dynamics |
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| Competitive Landscape |
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| Companies Covered |
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*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.
1 Preface
2 Report Coverage – Key Segmentation and Scope
3 Report Description
3.1 Market Definition and Outlook
3.2 Properties and Applications
3.3 Market Analysis
3.4 Key Players
4 Key Assumptions
5 Executive Summary
5.1 Overview
5.2 Key Drivers
5.3 Key Developments
5.4 Competitive Structure
5.5 Key Industrial Trends
6 Market Snapshot
7 Opportunities and Challenges in the Market
8 Europe Third Party Logistics (3PL) Market Overview
8.1 Key Industry Highlights
8.2 Europe Third Party Logistics (3PL) Historical Market (2018-2023)
8.3 Europe Third Party Logistics (3PL) Market Forecast (2024-2032)
8.4 Europe Third Party Logistics (3PL) Market breakup by Country
8.4.1 United Kingdom
8.4.2 Germany
8.4.3 France
8.4.4 Italy
8.4.5 Others
9 United Kingdom Third Party Logistics (3PL) Market Overview
9.1 Key Industry Highlights
9.2 United Kingdom Third Party Logistics (3PL) Historical Market (2018-2023)
9.3 United Kingdom Third Party Logistics (3PL) Market Forecast (2024-2032)
10 United Kingdom Third Party Logistics (3PL) Market by Mode
10.1 Roadways
10.1.1 Historical Trend (2018-2023)
10.1.2 Forecast Trend (2024-2032)
10.2 Railways
10.2.1 Historical Trend (2018-2023)
10.2.2 Forecast Trend (2024-2032)
10.3 Waterways
10.3.1 Historical Trend (2018-2023)
10.3.2 Forecast Trend (2024-2032)
10.4 Airways
10.4.1 Historical Trend (2018-2023)
10.4.2 Forecast Trend (2024-2032)
11 United Kingdom Third Party Logistics (3PL) Market by Services
11.1 Dedicated Contract Carriage (DCC)/Freight Forwarding
11.1.1 Historical Trend (2018-2023)
11.1.2 Forecast Trend (2024-2032)
11.2 Domestic Transportation Management (DTM)
11.2.1 Historical Trend (2018-2023)
11.2.2 Forecast Trend (2024-2032)
11.3 International Transportation Management (ITM)
11.3.1 Historical Trend (2018-2023)
11.3.2 Forecast Trend (2024-2032)
11.4 Warehousing and Distribution
11.4.1 Historical Trend (2018-2023)
11.4.2 Forecast Trend (2024-2032)
11.5 Value Added Logistics Services (VALs)
11.5.1 Historical Trend (2018-2023)
11.5.2 Forecast Trend (2024-2032)
12 United Kingdom Third Party Logistics (3PL) Market by End Use
12.1 Automotive
12.1.1 Historical Trend (2018-2023)
12.1.2 Forecast Trend (2024-2032)
12.2 Manufacturing
12.2.1 Historical Trend (2018-2023)
12.2.2 Forecast Trend (2024-2032)
12.3 Chemical
12.3.1 Historical Trend (2018-2023)
12.3.2 Forecast Trend (2024-2032)
12.4 Retail
12.4.1 Historical Trend (2018-2023)
12.4.2 Forecast Trend (2024-2032)
12.5 Healthcare and Pharmaceuticals
12.5.1 Historical Trend (2018-2023)
12.5.2 Forecast Trend (2024-2032)
12.6 Construction
12.6.1 Historical Trend (2018-2023)
12.6.2 Forecast Trend (2024-2032)
12.7 Others
13 Market Dynamics
13.1 SWOT Analysis
13.1.1 Strengths
13.1.2 Weaknesses
13.1.3 Opportunities
13.1.4 Threats
13.2 Porter’s Five Forces Analysis
13.2.1 Supplier’s Power
13.2.2 Buyer’s Power
13.2.3 Threat of New Entrants
13.2.4 Degree of Rivalry
13.2.5 Threat of Substitutes
13.3 Key Indicators for Demand
13.4 Key Indicators for Price
14 Competitive Landscape
14.1 Market Structure
14.2 Company Profiles
14.2.1 Kuehne + Nagel International AG
14.2.1.1 Company Overview
14.2.1.2 Product Portfolio
14.2.1.3 Demographic Reach and Achievements
14.2.1.4 Certifications
14.2.2 Deutsche Post AG
14.2.2.1 Company Overview
14.2.2.2 Product Portfolio
14.2.2.3 Demographic Reach and Achievements
14.2.2.4 Certifications
14.2.3 Wincanton plc
14.2.3.1 Company Overview
14.2.3.2 Product Portfolio
14.2.3.3 Demographic Reach and Achievements
14.2.3.4 Certifications
14.2.4 Schenker AG
14.2.4.1 Company Overview
14.2.4.2 Product Portfolio
14.2.4.3 Demographic Reach and Achievements
14.2.4.4 Certifications
14.2.5 XPO, Inc.
14.2.5.1 Company Overview
14.2.5.2 Product Portfolio
14.2.5.3 Demographic Reach and Achievements
14.2.5.4 Certifications
14.2.6 Yusen Logistics Co., Ltd.
14.2.6.1 Company Overview
14.2.6.2 Product Portfolio
14.2.6.3 Demographic Reach and Achievements
14.2.6.4 Certifications
14.2.7 FedEx Corporation
14.2.7.1 Company Overview
14.2.7.2 Product Portfolio
14.2.7.3 Demographic Reach and Achievements
14.2.7.4 Certifications
14.2.8 Fidelity Supply Chain Solutions
14.2.8.1 Company Overview
14.2.8.2 Product Portfolio
14.2.8.3 Demographic Reach and Achievements
14.2.8.4 Certifications
14.2.9 PostNord AB
14.2.9.1 Company Overview
14.2.9.2 Product Portfolio
14.2.9.3 Demographic Reach and Achievements
14.2.9.4 Certifications
14.2.10 Others
15 Key Trends and Developments in the Market
List of Key Figures and Tables
1. Europe Third Party Logistics (3PL) Market: Key Industry Highlights, 2018 and 2032
2. United Kingdom Third Party Logistics (3PL) Market: Key Industry Highlights, 2018 and 2032
3. United Kingdom Third Party Logistics (3PL) Historical Market: Breakup by Mode (USD Billion), 2018-2023
4. United Kingdom Third Party Logistics (3PL) Market Forecast: Breakup by Mode (USD Billion), 2024-2032
5. United Kingdom Third Party Logistics (3PL) Historical Market: Breakup by Services (USD Billion), 2018-2023
6. United Kingdom Third Party Logistics (3PL) Market Forecast: Breakup by Services (USD Billion), 2024-2032
7. United Kingdom Third Party Logistics (3PL) Historical Market: Breakup by End Use (USD Billion), 2018-2023
8. United Kingdom Third Party Logistics (3PL) Market Forecast: Breakup by End Use (USD Billion), 2024-2032
9. United Kingdom Third Party Logistics (3PL) Market Structure
Key Questions Answered in the Report
In 2023, the market reached an approximate value of USD 30.2 billion.
The market is estimated to grow at a CAGR of 2.6% between 2024 and 2032.
The market is estimated to witness a healthy growth during 2024-2032 to reach around USD 38.05 billion by 2032.
The robust growth of the e-commerce sector and a rise in cross-border trade are the major drivers of the market.
The key trends aiding the market expansion include sustainable practices adopted by third party logistics companies and increased job opportunities.
Roadways, railways, waterways, and airways are the different modes of third party logistics (3PL).
Automotive, manufacturing, chemical, retail, healthcare and pharmaceuticals, and construction, among others, are the various end uses of third party logistics (3PL).
The major players in the market are Kuehne + Nagel International AG, Deutsche Post AG, Wincanton plc, Schenker AG, XPO, Inc., Yusen Logistics Co., Ltd., FedEx Corporation, Fidelity Supply Chain Solutions, and PostNord AB, among others.
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