Armstrong & Associates, Inc. (A&A), an internationally recognized leader in third-party logistics market information and consulting, just released its latest market research report, “Divergence – Latest Third-Party Logistics Market Results and Outlook.”
Based on 3PLs’ reported 2023 financial results, A&A’s current estimates show U.S. 3PL Market net revenues (gross revenues less purchased transportation) were down 12.8% to $129 billion in 2023, and overall gross revenues fell 26.1%, bringing the total U.S. 3PL Market to $299.5 billion in 2023.
The Value-Added Warehousing and Distribution (VAWD) 3PL Market segment was the best-performing segment of the four main 3PL Market segments in 2023, with a mere 1.6% increase in gross revenue to $68 billion. This was on top of an extremely good 2022, with a gross revenue increase of 22.7% to $67 billion.
Although the VAWD 3PL Market segment had the best year-over-year growth in gross and net revenues for 2023, the Domestic Transportation Management (DTM) 3PL Market segment continues to lead in net revenue growth with a Compound Annual Growth Rate (CAGR) of 10.2% since 2010.
Due to lower air and ocean rates and demand in 2023, the ITM 3PL segment’s CAGR declined the most since 2010, down 4.1% versus 2022, which came in with a 7.8% CAGR.
Further information on all four major 3PL Market segments, latest trends and estimates in the U.S. and Global 3PL Markets, including the Top 50 U.S. and Global 3PLs and 3PL M&A activity, can be found in A&A’s latest market research report “Divergence – Latest Third-Party Logistics Market Results and Outlook.” This annual report is a standard benefit for A&A’s Expert Information Services (EIS) subscribers. Additional A&A market research can be found at Guides & Research Reports.
On another note, Armstrong & Associates is hosting its 12th annual 3PL Value Creation North American Summit 2024 at Embassy Suites Chicago Downtown Magnificent Mile in Chicago, Illinois, on October 8th and 9th. C-level 3PL executives, investment community leaders, and technology innovators gather in this unique forum to assess the current and future state of the third-party logistics market and explore strategies for value creation in a rapidly changing environment.
Armstrong & Associates will also host its first annual 3PL Value Creation European Summit 2024 on November 14th in Barcelona, Spain.
To learn more about these events or join us as a speaker or sponsor, please get in touch with us at 3PL Value Creation North American Summit - Request Information or 3PL Value Creation European Summit - Request Information or call 1-414-545-3838.
ABOUT ARMSTRONG & ASSOCIATES, INC.
Armstrong & Associates, Inc. (A&A) was established in 1980 to meet the needs of a newly deregulated domestic transportation market. Since then, through its leading Third-Party Logistics (3PL) market research and history of helping companies outsource logistics functions, A&A has become an internationally recognized key resource for 3PL market information and consulting.
A&A’s mission is to have leading proprietary supply chain knowledge and market research not available anywhere else. As proof of our continued work in supporting our mission, A&A’s 3PL market research is frequently cited in media articles, publications, and securities filings by publicly traded 3PLs. In addition, A&A’s email newsletter currently has over 88,000 subscribers globally.
A&A’s market research complements its consulting activities by providing continually updated data for analysis. Based upon its unsurpassed knowledge of the 3PL market and the operations of leading 3PLs, A&A has provided strategic planning consulting services to over 50 3PLs, supported 26 closed investment transactions, and provided advice to numerous companies looking to benchmark existing 3PL operations or outsource logistics functions.
