U.S. 3PL market rebounded in 2024, says new Armstrong & Associates report

Coming off an annual net revenue decline, from 2022 to 2023, the United States third-party logistics (3PL) market, saw a rebound, from 2023 to 2024, according to a new report recently issued by Brookfield, Wisc. -based supply chain consultancy Armstrong & Associates.

The report, entitled “Working through the Uncertainty—Latest Third-Party Logistics Market Results and Outlook,” said that U.S. 3PL Market net revenues, which Armstrong defines as gross revenues less purchased transportation, increased 1.8%, to $131.5 billion in 2024, coming off of a 12.8% annual decline, to $129 billion, in 2023.

Armstrong said that gross revenues for the four segments of the 3PL market—Dedicated Contract Carriage, or DCC, (also known as asset-based transportation), Value-Added Warehousing and Distribution (VAWD), International Transportation Management (ITM), and Domestic Transportation Management (DTM), which includes freight brokerage, managed transportation, intermodal transportation management, and last-mile delivery—headed up 2.8% annually, following a 26.1% annual decline in 2023, bringing the U.S. 3PL Market’s total value to $307.9 billion. And it added that going back to 1994, when it began developing 3PL market size estimates, the highest annual growth was in 2001, at 48.1%, followed by 2000, at 22.9%, and 2010, at 19%.  

Armstrong reported the following for 2024 U.S. 3PL Market Growth by segment:

• DTM gross revenue, at $122.7 billion, down 0.7% annually, and net revenue, at $19.1 billion, down 2.8% annually;
• ITM gross revenue, at $79.8 billion, up 7.9% annually, and net revenue, at $19.1 billion, down 2.8% annually;
• DCC gross revenue, at $31.5 billion, up 5.9% annually, and net revenue, at $53.8 billion, up 3.7% annually; and
• VAWD gross revenue, at $69.6 billion, up 2.2%, and net revenue, at $53.8 billion, up 3.7% annually

ITM annual growth was paced by shipping uncertainties in the Red Sea and a decrease in ocean traffic through the Suez Canal, according to the report, coupled with tariff- and trade war-driven concerns. As for DCC, it explained that its growth was the byproduct of shippers wanting to lock in capacity subsequently after what it called a “turbulent 2021,” an increased ability to attract drivers through wage increases, better recruiting, and capital for equipment purchases. Addressing the VAWD market, Armstrong explained that most warehouses are full, coupled with higher interest rates having “kept a lid on new warehouse development,” while adding that there has been increased focus on fine-tuning warehouse pricing and improved bid performance.

For 2025, Armstrong estimates U.S. 3PL gross revenue to come in at $317.2 billion, for a 4.5% annual increase, with 2025 net income pegged at $136.7 billion, for 4.0% annual gain.   

Looking at the global 3PL market, the report said that following a 21.4% revenue decline in 2023, the global 3PL market normalized throughout 2024, adding that it estimates the market increased 3.4% in 2024 to $1.22 trillion, and expects 2025 to be up 2.6%, coming in at around 12.2 trillion.

“The global 3PL market is highly fragmented and underpenetrated, with abundant growth potential,” the report said. “Tariff uncertainty, trade policy changes, the COVID-19 pandemic, and recent years’ unprecedented supply chain disruptions in the Red Sea and Panama Canal have accelerated the outsourcing pace of global logistics.”