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Title United Kingdom Third Party Logistics 3PL Market Share, Growth and Outlook 2025-2033
Category Business --> Transportation and Logistics
Meta Keywords united kingdom third party logistics (3pl) market
Owner Imarc
Description

Market Overview

The United Kingdom Third Party Logistics (3PL) Market reached a market size of USD 38.9 Billion in 2024. The market is projected to grow at a CAGR of 5.2% during the forecast period from 2025 to 2033, reaching a market value of USD 61.3 Billion by 2033. Growth is attributed to the expansion in e-commerce, the rise of omni-channel retailing, and advancements in logistics technologies.

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

United Kingdom Third Party Logistics (3PL) Market Key Takeaways

  • The market size was valued at USD 38.9 Billion in 2024.
  • The market is expected to grow at a CAGR of 5.2% from 2025 to 2033.
  • The forecast period is 2025-2033.
  • The market is driven by the emergence of the e-commerce sector and omni-channel retail expansion.
  • Technological advancements such as AI, ML, IoT, and automation improve logistics efficiency.
  • A growing focus on core competencies by businesses is boosting reliance on 3PL services.
  • Favorable trade regulations positively impact the market.

Sample Request Link: https://www.imarcgroup.com/united-kingdom-third-party-logistics-market/requestsample

Market Growth Factors

Increasing E-commerce Demand

Growth in the e-commerce sector is one of the major growth factors for the UK 3PL market. The rapid expansion of online shopping has increased demand for efficient logistics to manage the growing number of deliveries. In 2023, more than 91% of the population aged between 25 and 34 years made at least one online purchase. This, in turn, has strengthened the requirement for 3PL companies that provide value-added services in handling issues related specifically to e-commerce logistics. The collaboration enables e-commerce companies to make use of innovative technologies and scalable solutions that address demands in volumes.

The expansion of omni-channel retailing

Consumer expectations of seamless shopping across online, in-store, and mobile platforms drive retailers to consider an omnichannel approach. Third-party logistics providers enable this through the provision of integrated logistics services related to warehousing, inventory management, order fulfillment, and distribution. This integration makes sure that the inventories are accurately maintained across all sales channels, reducing the risks associated with stockouts and overstocking.

Rapid Technological Changes in Logistics

AI, machine learning, automation, and IoT are rapidly changing logistics services. These technologies optimize transportation routes by mapping out the most effective routes for drivers, predict changes in demand, improve decision-making, and make warehouse operations quicker and more efficient through automation and robotics. Such advancements cut down on labor costs, minimize errors, and enable 3PL providers to optimize operations and lower costs.

 

Market Segmentation

Transport Insights:

  • Railways
  • Roadways
  • Waterways
  • Airways

These segments include transportation via rail, road, water, and air, providing a detailed breakdown of the 3PL market based on transport modes.

Service Type Insights:

  • Dedicated Contract Carriage
  • Domestic Transportation Management
  • International Transportation Management
  • Warehousing and Distribution
  • Value Added Logistics Services

This segmentation covers services including contract carriage and transport management both domestic and international, along with warehousing, distribution, and specialized value-added logistics offerings.

End-Use Insights:

  • Automotive
  • Manufacturing
  • Chemical
  • Retail
  • Healthcare and Pharmaceuticals
  • Construction
  • Others

The market is segmented by end-use industries such as automotive, manufacturing, chemicals, retail, healthcare and pharmaceuticals, construction, and other sectors.

Regional Insights

The report analyzes major UK regions including London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others. Specific market share or CAGR data by region is not disclosed.

Recent Developments & News

In February 2023, Wincanton secured a four-year contract extension with Wickes, managing warehouse and transport operations for its kitchen and bathroom distribution centers totaling 400,000 sq ft in Northampton. In June 2023, Kuehne+Nagel acquired Morgan Cargo, a freight forwarder specializing in perishable goods across South Africa, the UK, and Kenya. This acquisition complements Kuehne+Nagel's perishables logistics and enhances connectivity, including cold chain facilities.

Key Players

  • Wincanton
  • Kuehne+Nagel

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

Request For Customization:https://www.imarcgroup.com/request?type=report&id=24515&flag=E

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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