Report Overview

South Africa Third-Party Logistics (3PL) Market - Industry Trends & Forecast Report, 2029

South Africa third-party logistics market size is projected to grow at a CAGR of 8.25% during the forecast period between 2023 and 2029. Major factors driving the growth of the South Africa third-party logistics market are rising the automotive industry, technological advancement, an increase in last-mile connectivity, and an increase in cross-border trade activities all contribute to the 3PL market's expansion. A third-party logistics (3PL) partner or service assists manufacturers, particularly e-commerce merchants, in outsourcing logistics and distribution activities. A third-party logistics company specializes in services such as inventory management, cross-docking, door-to-door delivery, and product packaging. This, in turn, helps enterprises provide a better customer experience, ensure scalability, mitigate product damage risks, promote business growth and market expansion, and complete core business operations.

South Africa Third-Party Logistics (3PL) Market - Overview

Third-party logistics (3PL) helps producers make their products available and create stronger demand prospects within a specific period by managing demand fluctuations. When a company lacks infrastructural facilities and acts as a warehouse, the service providers also maintain better warehouse management and assist the manufacturers in maintaining inventory stocks.

Growth Drivers

Expanding Manufacturing Industry

Manufacturing industries are those that deal with the transformation of goods or materials into new products. The country's manufacturing industry's growth rate is an indicator of its economic strength. The manufacturing sector, on the other hand, suffered significant losses, with manufacturing industries relocating and overall employment in the sector decreasing as these countries became more service oriented.

Restraints

Inefficient Infrastructure Making Logistics Expensive

Providers of third-party logistics (3PL) seek efficient supply chains, infrastructure, and trade facilitation. Without these, businesses must accumulate more working capital and stock reserves, which can have a significant impact on regional and national competitiveness due to high financial expenses. Also, a lack of infrastructure makes the market for contract logistics more expensive and less dependable. They include severe transportation inefficiencies, shoddy storage facilities, complicated taxation, slow adoption of modern technology, and inadequate logistical professional competency.

Impact of COVID-19 on South Africa Third-Party Logistics (3PL) Market

Manufacturing has taken a significant hit owing to the COVID-19 outbreak, both in terms of production and demand for products. The demand for third-party logistics in South Africa declined significantly during 2020–2021. The growth of South Africa third-party logistics (3PL) market was hampered by disruptions in the supply chain and value chain, brief periods of lockdown and shutdown, and restrictions on entering foreign borders.

South Africa Third-Party Logistics (3PL) Market

Segmental Coverage

South Africa Third-Party Logistics (3PL) Market - By Services

On basis of services, South Africa third-party logistics market is divided into Warehousing, International Transportation, Domestic Transportation, Inventory Management, and other segments. The domestic transportation category accounts for the highest market share. Domestic transportation services are carried out in partnership with freight brokers, who handle the origin to destination of shipments. The expansion of domestic transportation segment is also expanding due to an increase in commerce movement from unloading docks to warehouses, rising carrier rates, an increase in cross-docking services, and growing fuel surcharges.

South Africa Third-Party Logistics (3PL) Market - By Transport Outlook

On the basis of transport outlook, South Africa third-party logistics (3PL) market is divided into Roadways, Railways, Waterways, and Airways segments. Among them, the roadways segment dominates the market. During the forecast period, the growing public-private partnership model and increased emphasis on logistics infrastructure is expected to drive the growth of the roadways segment. Also, several government initiatives are boosting the growth of the road transportation segment. The Federal Motor Carrier Safety Administration's recent regulations allowing the use of cameras as a substitute for rearview mirrors are expected to benefit truck drivers in terms of safety.

South Africa Third-Party Logistics (3PL) Market - By End User

On basis of end user, South Africa third-party logistics (3PL) market is divided into Consumer Goods, Retail, Healthcare, Automotive, and other segments. The automotive and retail industries are expected to grow at the fastest rate during the period in analysis. The ability to fulfill orders quickly and efficiently is made possible by logistics, which is the backbone of the modern retail sector. Retail organizations can now expand their operations and product offers in semi-urban areas owing to e-retailing and dedicated logistics services, which have made it possible for medium-sized businesses to enter the 3PL market. Also, 3PL gives retail companies the freedom to create new items, improve skills, and broaden their regional presence.

Competitive Landscape

Major players in the South Africa third-party logistics (3PL) market include FedEx Corporation, KUEHNE+NAGEL Inc., Maersk, DHL International GMBH, Nippon Express, Union Pacific Railroad, Agility Logistics, Barloworld Logistics, Imperial Logistics, and Bidvest Panalpina Logistics. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In June 2022 - FedEx Corporation and FourKites established a strategic alliance that will give organizations enhanced capabilities for real-time visibility that will assist them in overcoming their most pervasive supply chain challenges, becoming more efficient, and unlocking new growth opportunities.

Scope of the Report

By Services

• Warehousing

• International Transportation

• Domestic Transportation

• Inventory Management

• Others

By Transport Outlook

• Roadways

• Railways

• Waterways

• Airways

By End User

• Consumer Goods

• Retail

• Healthcare

• Automotive

• Others

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Third-Party Logistics (3PL) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increase in Trading Activities
         2. Growth of Seaborne Trade Contributing
      2. Restraints
         1. Lack of Proper IT Infrastructure in the Logistics Industry
      3.  Opportunities
         1. Growth of Manufacturing Industry
      4. Challenges
         1. Risk to Goodwill of Manufacturers
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Third-Party Logistics (3PL) Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Services
         1. Warehousing
         2. International Transportation
         3. Domestic Transportation
         4. Inventory Management
         5. Others
      2. By Transport Outlook
         1. Roadways
         2. Railways
         3. Waterways
         4. Airways
      3. By End User
         1. Consumer Goods
         2. Retail
         3. Healthcare
         4. Automotive
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Third-Party Logistics (3PL) Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on South Africa Third-Party Logistics (3PL) Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. FedEx Corporation
   2. KUEHNE+NAGEL Inc.
   3. Maersk
   4. DHL International GMBH
   5. Nippon Express
   6. Union Pacific Railroad
   7.  Agility Logistics
   8. Barloworld Logistics
   9. Imperial Logistics
   10. Bidvest Panalpina Logistics
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1.  Qualitative Research
      1.  Primary & Secondary Research
   2.  Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       South Africa Third-Party Logistics (3PL) Segmentation               

Figure 2       South Africa Third-Party Logistics (3PL) Market Value Chain Analysis             

Figure 3       Company Market Share Analysis, 2022         

Figure 4       South Africa Third-Party Logistics (3PL) Market Size, By Value (USD Million), 2019–2029          

Figure 5       South Africa Third-Party Logistics (3PL) Market Share, By Services, By Value, 2019–2029          

Figure 6       South Africa Third-Party Logistics (3PL) Market Share, By Transport Outlook, By Value, 2019–2029          

Figure 7       South Africa Third-Party Logistics (3PL) Market Share, By End User, By Value, 2019–2029          

List of Tables

Table 1        South Africa Third-Party Logistics (3PL) Market Size, By Value (USD Million), 2019–2029 

Table 2        South Africa Third-Party Logistics (3PL) Market Size, By Services, By Value, 2019–2029 

Table 3        South Africa Third-Party Logistics (3PL) Market Size, By Transport Outlook, By Value, 2019–2029

Table 4        South Africa Third-Party Logistics (3PL) Market Size, By End User, By Value, 2019–2029

Table 5        FedEx Corporation Company Overview

Table 6        FedEx Corporation Financial Overview

Table 7        KUEHNE+NAGEL Inc. Company Overview

Table 8        KUEHNE+NAGEL Inc. Financial Overview

Table 9        Maersk Company Overview

Table 10      Maersk Financial Overview

Table 11      DHL International GMBH Company Overview

Table 12      DHL International GMBH Financial Overview

Table 13      Nippon Express Company Overview

Table 14      Nippon Express Financial Overview

Table 15      Union Pacific Railroad Company Overview

Table 16      Union Pacific Railroad Financial Overview     

Table 17 Agility Logistics Company Overview

Table 18 Agility Logistics Financial Overview

Table 19 Barloworld Logistics Company Overview

Table 20 Barloworld Logistics Financial Overview

Table 21 Imperial Logistics Company Overview

Table 22 Imperial Logistics Financial Overview

Table 23 Bidvest Panalpina Logistics Company Overview

Table 24 Bidvest Panalpina Logistics Financial Overview