LONDON--(EON: Enhanced Online News)--Technavio’s latest report on the third-party logistics (3PL) market in Europe provides an analysis on the most important trends expected to impact the market outlook from 2017-2021. Technavio defines an emerging trend as a factor that has the potential to significantly impact the market and contribute to its growth or decline.
The 3PL market in Europe is forecast to grow to USD 191.3 billion by 2021. The market’s three important end-users are manufacturing, retail, and consumer goods. The manufacturing industry in Europe contributed a massive 16% to the overall GDP of the region, making it the most important end-user for the 3PL market.
One of the most important market drivers is the growing complexity of in-house logistics operations. With manufacturing companies expanding their production capacities and operations, there is a high demand for efficient logistics management. This increases the complexity of supply chain management (SCM), leading manufacturers to outsource their logistics. This brings in the highest revenue to the 3PL market, thus driving the market.
Request a sample report: http://www.technavio.com/request-a-sample?report=55189
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
The top three emerging trends driving the third-party logistics market in Europe according to Technavio transportation and logistics research analysts are:
- Emergence of big data
- Growth in online retailing
- Increase in M&As
Emergence of big data
“Logistics companies and shippers are trying to gain a competitive edge in the market by using large amounts of data to deploy big data. The major advantages the vendors gain by deploying big data are availability of key market insights, customization of services, and new business models based on agility. Big data streamlines core activities to optimize delivery time, resource utilization, and geographical coverage,” says Abhay Sinha, one of the lead analysts at Technavio for logistics research.
However, the application of big data analytics in the European logistics market is yet to achieve its full potential, and is expected to slowly achieve traction in the forecast period. Modern logistics solutions are capable of seamlessly integrating into production and distribution processes in various industries. Additionally, the application of analytics methodology combined with the comprehensive knowledge enables manufacturers to ascertain supply chain risks and provides resilience against disruptions. These factors will push for the widespread adoption of 3PL in the region.
Growth in online retailing
Online retailing is rapidly gaining traction in the European market, with retailers looking to increase their sales channels. This is creating a steadily increasing demand for new warehouses and distribution spaces is growing rapidly. To get some perspective on the scale of operations, Amazon’s distribution space in the region has increased 1000% over the last 10 years. E-retailers have requirements that are more complex in nature when compared to traditional logistics players in the market.
Europe is witnessing massive business expansions, which have led to the development of e-fulfilment centers that handle the entire CSM process, from procurement to suppliers to handling returns. The 3PL providers are slowly evolving and adopting to the varied complex needs of the customers to increase market reach. Thus, increasing online retailing will be another major trend that will continue to become popular through the forecast period, bringing in even more sales.
Increase in mergers and acquisitions
“Mergers and acquisitions have played a major role in shaping the global 3PL industry to its current form. M&As are usually driven by growing demand for varied service offerings, expanding geographic coverage, achieving economies of scale, obtaining assets and/or technology, acquiring new customers, and securing talent management in in the target industry,” says Abhay, briefly explaining the driving force behind M&As.
A healthy increase in the number of M&As in the European market has created an increased demand for 3PL services. Increase in online retailing is also increasing the need for a common retail and storage space for the original equipment manufacturers (OEMs). In 2015, XPO Logistics acquired Norbert Dentressangle, a leading provider of contract logistics including freight brokerage, transportation, and e-commerce fulfillment. This acquisition strengthened the position of XPO Logistics in Europe.
Browse Related Reports:
- Global Third-party Chemical Distribution Market 2016-2020
- Logistics Market in the APAC Region 2016-2020
- Third Party Logistics Market in China 2017-2021
Become a Technavio Insights member and access all three of these reports for a fraction of their original cost. As a Technavio Insights member, you will have immediate access to new reports as they’re published in addition to all 6,000+ existing reports covering segments like packaging, tags and labels, and transportation and distribution. This subscription nets you thousands in savings, while staying connected to Technavio’s constant transforming research library, helping you make informed business decisions more efficiently.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at firstname.lastname@example.org.