Germany Third-Party Logistics (3PL) Market Report and Forecast 2025-2034

The Germany third-party logistics (3PL) market size was valued at USD 19.54 Billion in 2024. The market is further projected to grow at a CAGR of 3.30% between 2025 and 2034, reaching a value of USD 27.04 Billion by 2034.

Third-party logistics (3PL) is the process of outsourcing some or all the supply chain functions, such as transportation, warehousing, distribution, and fulfillment, to a specialised service provider. The 3PL service providers offer inventory management services, door–to–door delivery, cross-docking, packaging services. The sole focus on shipment and storage activities allows 3PL providers to offer greater scalability, efficient operations, and improved customer experience.

The Germany third-party logistics (3PL) market outlook looks positive due to the increasing demand for e-commerce, the rising need for cost reduction and operational efficiency, the growing adoption of green logistics solutions, and the development of the cold chain sector in the country.

Key Trends and Developments

Adoption of automation in logistics, growing focus on sustainability and green logistics, and rising e-commerce sales are driving the Germany third-party logistics (3PL) market growth

Germany Third-Party Logistics (3PL) Market Trends

Supportive ecosystems, favourable government policies, and healthy regional trade have allowed the exponential growth of new and established manufacturing sectors in Germany. This has created lucrative opportunities for the Germany third-party logistics (3PL) market growth.

The growth of the e-commerce sector is a major factor supporting the demand for third-party logistics in Germany. E-commerce retailers, attempting to provide their customers greater convenience, control, and choice, are rapidly adopting third-party logistics services that are reliable, fast, and cost-effective to enhance customer experience. The utilisation of advanced technologies such as AI, data analytics, and machine learning by service providers is promoting the Germany third-party logistics (3PL) market development. Such technologies allow greater client control over the supply chain and delivery by offering services like tracking, real-time query resolution, and optimisation of delivery time to enhance and streamline logistics services.

Market Segmentation

Germany Third-Party Logistics (3PL) Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Breakup by Service

• Dedicated Contract Carriage (DCC)/Freight Forwarding
• Domestic Transportation Management (DTM)
• International Transportation Management (ITM)
• Warehousing and Distribution
• Value Added Logistics Services (VALs)

Breakup by Transport

• Roadways
• Railways
• Waterways
• Airways

Breakup by End Use

• Manufacturing
• Retail
• Healthcare
• Automotive
• Others

Roadways  transportations are expected to hold significant market share as they provide better connectivity to domestic regions of the country

According to the Federal Statistical Office of Germany, road transport accounted for 71.2% of the total freight transport in 2019, followed by railways (18.1%), waterways (8.4%), and airways (1.1%). Roadways are expected to hold a significant portion of the Germany third-party logistics (3PL) market share over the forecast period. The growing demand for goods by the domestic regions of Germany increases the demand for roadways as they provide greater connectivity, reliability, and enhanced penetration into remote areas.

Railways are the second-largest mode of 3PL in Germany, offering advantages such as low emissions, high capacity, and safety. Railways are mainly used for transporting bulk goods, such as coal, iron ore, and chemicals. Further, waterways are the third-largest mode of 3PL in Germany, mainly serving the international trade through ports such as Hamburg, Bremen, and Duisburg. Waterways are suitable for transporting large volumes of goods over long distances, such as containers, oil, and gas.

According to Germany third-party logistics (3PL) market report, airways is expected to witness a robust growth due to the increased cross-border trade among European countries. Airways are mainly used for transporting high-value and time-sensitive goods, such as pharmaceuticals, electronics, and perishables. Airways offer fast delivery, security, and global connectivity.

Healthcare sector leads the market due to the increasing demand for specialised logistics services such as cold chain, clinical trials, and biopharma distribution

The manufacturing segment accounts for the largest share of the Germany third-party logistics (3PL) market as it benefits from the outsourcing of logistics services such as transportation, warehousing, distribution, and inventory management, which help reduce costs and improve efficiency. The manufacturing sector in Germany is highly diversified and competitive, with a strong presence of industries such as machinery, chemicals, pharmaceuticals, electronics, and automotive. These industries require reliable and flexible 3PL solutions to cope with the changing market conditions and customer expectations.

The retail segment in third-party logistics (3PL) market in Germany also relies on 3PL providers for timely delivery, order fulfillment, and reverse logistics, especially in the e-commerce sector. The e-commerce industry in Germany is one of the largest and fastest growing in Europe, with a high penetration of online shoppers and a diverse product range. The e-commerce retailers need 3PL partners to handle the complex and dynamic logistics processes, such as order processing, packaging, shipping, tracking, returns, and refunds. The 3PL providers also help the retailers to optimise their logistics network, reduce operational costs, and enhance customer satisfaction.

The healthcare segment of Germany third-party logistics (3PL) market is expected to expand at a faster rate in the coming years due to the growing demand for specialised logistics services such as cold chain, clinical trials, and biopharma distribution. The healthcare sector in Germany is one of the most advanced in the world, with a high expenditure on research and development, large number of patents, and a strong export orientation. The 3PL providers offer customised and value-added services to healthcare clients, such as temperature-controlled transportation and storage, real-time monitoring and tracking, quality assurance, and risk management.

According to the Germany third-party logistics (3PL) market analysis, the automotive sector also utilises 3PL services for the transportation and storage of raw materials, spare parts, and finished vehicles. As Germany is one of the world's largest automotive sectors with superior quality vehicle engineering, German vehicles are extensively exported across the globe. Additionally, increasing investments by vehicle manufacturers aimed at developing electric and hydrogen vehicles are expected to aid the market growth. The 3PL providers support the automotive clients in streamlining their logistics operations, reducing their inventory and transportation costs, improving their delivery performance, and enhancing their customer loyalty.

Competitive Landscape

Market players are committed to changing the world of logistics by introducing new logistics solutions and deploying sustainable fleet, further strengthening their position in the market.

Other players included in the Germany third-party logistics 3PL market are Schenker AG, WemoveBW GmbH, GEODIS, and Rhenus Group, among others.