China Third-Party Logistics (3PL) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Market Size (2024) | USD 285.04 Billion |
| Market Size (2029) | USD 389.18 Billion |
| CAGR (2024 - 2029) | 6.43 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
China Third-Party Logistics (3PL) Market Analysis
The China Third-Party Logistics Market size is estimated at USD 285.04 billion in 2024, and is expected to reach USD 389.18 billion by 2029, at a CAGR of greater than 6.43% during the forecast period (2024-2029).
- The Chinese third-party logistics market is mainly driven by the rise in e-commerce activities and rising disposable income.
- China's e-commerce market is reshaping the nation's economic landscape. The digital economy is becoming ever more crucial in propelling China's GDP. In 2023, online purchases accounted for more than a quarter of China's consumer goods sales, outpacing the global average. Additionally, with its extensive workforce, e-commerce stands out as a major employment engine in the country.
- In the first half of 2024, China's e-commerce sector experienced significant growth, bolstering the momentum for consumption recovery in the world's second-largest economy. During this period, online retail sales jumped 9.8 percent year-on-year, totaling 7.1 trillion yuan (approximately USD 996 billion). Of this, retail sales of goods accounted for CNY 5.96 trillion, reflecting an 8.8 percent increase, as per data released by the Ministry of Commerce (MOC).
- Chinese e-commerce giants Alibaba and JD.com reported robust sales during the 2024 "Double 11" shopping festival, underscoring the steady recovery of China's consumer market.
- Alibaba Group's platforms, Taobao and Tmall, announced a notable surge in sales during the 'Double 11' event. A total of 589 brands surpassed the CNY 100 million sales mark, marking a 46.5 percent uptick from 2023. The company highlighted that consumer engagement reached an unprecedented peak in 2024.
- Beijing-based JD.com revealed that its live-streaming sales had skyrocketed, boasting a 3.8-fold increase from 2023. Over 17,000 brands celebrated sales growth exceeding five times. Taobao and Tmall's growth spanned various sectors, notably in home appliances and decoration. This momentum propelled over 139 brands past the 100-million-yuan sales milestone, with 9,600 brands experiencing a sales doubling from 2023. Hence, as e-commerce sales surge rapidly, the demand for 3PL logistics in the country is rising in tandem.
China Third-Party Logistics (3PL) Market Trends
Value-added warehousing and distribution experiencing substantial growth
- As China embraces the Industry 4.0 era, its manufacturing sector remains a key catalyst for logistics growth. The surge of high-tech manufacturers is driving a notable uptick in demand for Grade A warehouses.
- Highlighting this trend, solar cell production has seen a remarkable growth rate of 54.2%, while New Energy Vehicles (NEVs) have surged by 30.4%. According to the China Passenger Car Association (CPCA), NEV penetration in China hit 36.2% in 2023, leading many brands to either set up or expand their manufacturing bases.
- Leasing trends differ across regions: Southern China's light manufacturing firms are emphasizing flexibility in their warehouse operations. In Eastern China, a leader in the nation's shift towards a low-carbon economy, a flurry of eco-friendly warehouses boasting LEED certifications are springing up. On the other hand, Western China's rapid NEV growth is bolstering a steady demand for warehouse leases.
- In 2023, the stock of non-bonded Grade A warehouses in 31 major cities exceeded 90 million sqm. Eastern China emerged as a dominant player, representing over a third of the nation's total stock. As supply consistently flowed in recent years, some developers resorted to rental trade-offs to mitigate rising vacancy rates.
- Northern China, especially in cities like Langfang, Tianjin, and Beijing, saw a surge in new supply beginning in 2021. Conversely, Western China has been gradually slowing down since 2020, allowing it to absorb its vacant stock.
- Southern China reached a supply zenith, particularly in Guangzhou and Dongguan, spurred by strong demand from cross-border e-commerce. Meanwhile, Central China maintained steady demand for transportation and consumption, yet still grappled with vacancy pressures due to the influx of supply over the last three years. This underscores a pronounced demand for warehousing spaces across the industry.
Surge in e-commerce activities driving the market
- China's e-commerce market has ushered in a transformative era for the nation's economy. Today, the digital economy plays an increasingly pivotal role in bolstering China's GDP. In 2023, over a quarter of China's consumer goods were purchased online, significantly surpassing the global average. Moreover, e-commerce is a key driver of employment in the country, thanks to its vast workforce.
- For the past decade, China has led the e-commerce charge, outstripping the U.S. by over USD 486 billion in revenue. Currently, China boasts the world's largest population of digital buyers. Recent years have seen the integration of features like live streaming and swift delivery into China's e-commerce realm, further enriching the customer experience.
- With the rapid digitalization permeating every facet of life, a growing number of Chinese businesses are transitioning online. Bolstered by its vast manufacturing sector and governmental backing, China proudly hosts the globe's largest B2B e-commerce market. Yet, while the online retail sector flourishes, B2B e-commerce growth has recently decelerated. Cross-border transactions have emerged as a vital segment of China's B2B landscape, predominantly leaning towards exports, with the U.S. standing out as the primary destination for Chinese B2B goods.
- China, home to some of the world's largest e-retailers, has seen consistent growth in e-commerce sales. Rapid internet adoption has propelled online shopping penetration to over 80%. With the surge in mobile device usage, shopping via smartphones and tablets has become commonplace. The pandemic-induced social restrictions and lockdowns accelerated the rise of online-to-offline ventures, including quick commerce, online food delivery, and community group-buying. AI advancements are reshaping e-retail, optimizing operations and customer interactions. Furthermore, the adoption of augmented reality (AR) and virtual reality (VR) technologies is enriching shopping experiences, leading to heightened customer satisfaction and boosted sales.
China Third-Party Logistics (3PL) Industry Overview
The China third-party logistics (3PL) market is highly fragmented with a lot of local, regional, and global players. Some of the major players include Ceva Logistics, Sinotrans, DHL Supply Chain, XPO Logistics, SF Expres etc.
Companies are getting more competitive to capitalize on the enormous possibility. As a result, international firms are making strategic investments to build a regional logistics network, such as new distribution centers, smart warehouses, and so on.
China Third-Party Logistics (3PL) Market Leaders
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Ceva Logistics
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Sinotrans
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DHL Supply Chain
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XPO Logistics
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SF Express
*Disclaimer: Major Players sorted in no particular order
China Third-Party Logistics (3PL) Market News
- October 2024: JD Logistics, the logistics division of China's e-commerce behemoth JD.com, has unveiled an express delivery service extending from China to seven nations in Southeast Asia: Singapore, Malaysia, Thailand, Vietnam, Indonesia, the Philippines, and Brunei. This move underscores JD Logistics' dedication to addressing the surging demand for cross-border logistics services. Upholding its emphasis on reliability, efficiency, and innovation, JD Express International stands as a trusted ally in global shipping, delivering smooth and reliable logistics solutions to its global clientele.
- October 2024: JD Logistics, a Chinese supply chain service provider, unveiled its ambition to double its overseas warehouse space by the close of 2025. This move aligns with the company's expansive global supply chain strategy, aiming to cater to the surging demand for cross-border logistics solutions.
China Third-Party Logistics (3PL) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Method
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Robust demand for online clothing and accessories
4.2.1.2 Demand for FMCG products driving the market
4.2.2 Market Restraints/challenges
4.2.2.1 Regulatory challenges affecting the market
4.2.2.2 Labour shortages and rising costs affecting the market
4.2.3 Market Opportunities
4.2.3.1 Technological advancements driving the market
4.3 Value Chain / Supply Chain Analysis
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Government Policies and Regulations
4.6 General Trends in Warehousing Market
4.7 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics Etc.
4.8 Insights on Ecommerce Business
4.9 Technological Developments in the Logistics Sector
4.10 Impact of Geopolitics and Pandemics on the Market
5. MARKET SEGMENTATION
5.1 By Services
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By End User
5.2.1 Aerospace
5.2.2 Automotive
5.2.3 Consumer and Retail, Energy
5.2.4 Healthcare
5.2.5 Manufacturing
5.2.6 Technology
5.2.7 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Ceva Logistics
6.2.2 Sinotrans
6.2.3 DHL Supply Chain
6.2.4 XPO Logistics
6.2.5 SF Express
6.2.6 XPO Logistics
6.2.7 YTO Express
6.2.8 ZTO Express
6.2.9 JD Logistics
6.2.10 Kerry Logistics*
- *List Not Exhaustive
6.3 Other Companies
7. FUTURE OF THE MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of Transport and Storage Sector to economy)
8.2 External Trade Statistics - Exports and Imports, by Product
8.3 Insights into Key Export Destinations and Import Origin Countries
China Third-Party Logistics (3PL) Industry Segmentation
A third-party logistics (3PL) is a partner or service that assists manufacturers, especially e-commerce merchants, in outsourcing activities related to logistics and distribution. A third-party logistics company provides specialized services such as inventory management, cross-docking, door-to-door delivery, and packaging of products.
The China third-party logistics (3PL) market is segmented by service (domestic transportation management, international transportation management, value-added warehousing and distribution) and by end-user (aerospace, automotive, consumer and retail, energy, healthcare, manufacturing, technology, and other end users). The report offers China's third-party logistics (3PL) market size and forecast values (USD) for all the above segments.
| By Services | |
| Domestic Transportation Management | |
| International Transportation Management | |
| Value-added Warehousing and Distribution |
| By End User | |
| Aerospace | |
| Automotive | |
| Consumer and Retail, Energy | |
| Healthcare | |
| Manufacturing | |
| Technology | |
| Other End Users |
China Third-Party Logistics (3PL) Market Research FAQs
How big is the China Third-Party Logistics Market?
The China Third-Party Logistics Market size is expected to reach USD 285.04 billion in 2024 and grow at a CAGR of greater than 6.43% to reach USD 389.18 billion by 2029.
What is the current China Third-Party Logistics Market size?
In 2024, the China Third-Party Logistics Market size is expected to reach USD 285.04 billion.
Who are the key players in China Third-Party Logistics Market?
Ceva Logistics, Sinotrans, DHL Supply Chain, XPO Logistics and SF Express are the major companies operating in the China Third-Party Logistics Market.
What years does this China Third-Party Logistics Market cover, and what was the market size in 2023?
In 2023, the China Third-Party Logistics Market size was estimated at USD 266.71 billion. The report covers the China Third-Party Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the China Third-Party Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
China Third-Party Logistics (3PL) Industry Report
Statistics for the 2024 China Third-Party Logistics (3PL) market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. China Third-Party Logistics (3PL) analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
China Third-Party Logistics (3PL) Market Report Snapshots
