NEW YORK, June 21, 2021 /PRNewswire/ — Technavio identifies the increasing complexities of in-house logistics operations as one of the major factors driving the growth of the third-party logistics market in Europe. Manufacturing companies across the world are expanding their production capacities and operations. The growth in production volumes is necessitating the need for efficient logistics solutions to transport raw materials to factories and finished goods to retailers and distributors, which is increasing complexities in the supply chain. Hence, many manufacturing companies are outsourcing their supply chain operations to 3PL service providers. This enables them to focus more on their core business while reducing operational costs. All these factors are positively influencing the growth of the third-party logistics market in Europe.
In 2020, the Rest of the Europe region accounted for about 26% of the global market share. However, Germany is expected to remain a potential market for third-party logistics in Europe during the forecast period. The strong growth of the automotive and automotive components industries is one of the key factors driving the market demand in the country. Also, the growth of other industries such as mechanical engineering, aerospace, chemical, and pharmaceutical will provide significant opportunities for market players.
Similarly, based on the end-user, the market generated maximum revenue in the manufacturing segment in 2020. The growth of the segment can be attributed to the thriving manufacturing sector in the Eastern European region. In addition, the growing ICT sector and the introduction of 5G technologies will support the growth of the segment during the forecast period.
Although the third-party logistics market in Europe is expected to record a healthy growth during the forecast period, limited use of IT and regulatory barriers and high operational cost and competitive pricing might reduce the growth opportunities for market participants. This report on the third-party logistics market in Europe will help businesses become better equipped, make informed decisions, and develop effective strategies to improve their market positions.