Canada 3PL Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, Mode of Transportation : Global Opportunity Analysis and Industry Forecast, 2024-2033.

Canada 3PL Market Statistics, 2033

The Canada 3PL market was valued at $ 23.1 billion in 2023, and is projected to reach $ 49.7 billion by 2033, growing at a CAGR of 8.4% from 2024 to 2033.

Third-party logistics (3PL) is the function by which a manufacturer or retailer outsources activities related to logistics and distribution. Third-party logistics companies can provide specialized services such as inventory management, cross-docking, door-to-door delivery, and packaging of products. The 3PL service in Canada is expected to witness significant growth due to development of the e-commerce industry. Moreover, the demand for this service is expected to escalate in the near future due to an increase in focus of manufacturers and retailers on their core business (known as core competencies) and subcontracting activities, such as logistics, where they have less expertise. Therefore, the increase in competition has diverted the focus of manufacturers to promote respective specializations in production and distribution.

For instance, in September 2024, Buske, a global logistics provider serving Canada, expanded its 3PL capabilities with the acquisition of Hydra Warehouse and Transportation. This acquisition allowed Buske to operate over 7.5 million square feet of warehouse space across more than 35 locations in the U.S. and Canada, significantly enhancing its supply chain reach. By efficiently managing distribution and logistics for manufacturers, Buske enabled its customers to focus on core production and specialization, boosting overall operational effectiveness. The Third-Party Logistics (3PL) market growth is driven by rise in trading activities fueled by globalization, which expands the need for comprehensive logistics solutions capable of bridging international supply chains and efficiently handling cross-border shipments.

Key Takeaways

• On the basis of type, the others segment held the largest share in the Canada 3PL market in 2023.
• On the basis of mode of transportation, the roadways segment held the largest share in the Canada 3PL market in 2023.

The rapid expansion of the e-commerce industry significantly boosts demand for 3PL services. With online shopping as a dominant retail mode, efficient fulfillment and last-mile delivery services are essential, and 3PL providers meet this need with advanced, scalable solutions. These factors collectively drive the growing adoption of 3PL services as businesses prioritize both efficiency and competitive growth. For instance, in September 2022, SCI Group, a leading Canadian third-party logistics (3PL) provider specializing in e-commerce fulfillment and transportation management, partnered with Bench, an athletic clothing brand. This partnership aims to enhance Bench's logistics capabilities, ensuring efficient fulfillment and delivery processes that support the growing demand for their products in the North American market.

The Canada 3PL market is segmented into type and mode of transportation. Depending on type, the market is divided into home decor, health & nutrition, beauty & cosmetics, pet, sport & recreation, and others. By mode of transportation, it is divided into railways, roadways, waterways, and airways.

Rise in urbanization, changing outlook of domestic and international trade activities, and surge trend of outsourcing the transportation services are expected to spur the demand for third-party logistics services in the Canada market. Canada is one of the leading consumers for third-party logistics in the global market. Focus on core competencies as the priority move for manufacturers or retailers is anticipated to support 3PL activities. The Canada 3PL market is highly fragmented as several market participants are operating across Canada and majority of the market participants from Canada are operating in the domestic market only. The health & nutrition and beauty & cosmetics segments are growth frontiers in the Canada 3PL market.

For instance, in November 2023, Canada Cartage Corporation acquired The GTI Group, which is a strategic move that strengthens its position within the third-party logistics (3PL) market in Canada. By acquiring GTI's extensive supply chain services—including brokerage, transportation management, and specialized trucking—Canada Cartage significantly enhances its 3PL offerings. This acquisition boosts its annual revenue potential to over $1 billion, which allows it to provide a more comprehensive suite of logistics solutions. As demand for efficient and flexible logistics services continues to grow, particularly in e-commerce and heavy freight sectors, this expanded capability positions Canada Cartage to better meet the evolving needs of its customers in a competitive 3PL landscape.

Furthermore, the 3PL is an outsourced activity related to the management of the flow of goods in a company’s supply chain and delivery of products from the manufacturer to the consumer on time. These services go beyond logistics and include value-addition to the entire process from procurement of goods to the distribution of furnished products to the customers establishing an effective and efficient supply chain. Moreover, in January 2024, Metro Supply Chain Inc., which acquired SCI Group Inc., is a prominent Canadian third-party logistics (3PL) provider that offers supply chain solutions for some of the world’s fastest-growing organizations. This acquisition is being made from Canada Post Corporation and Purolator Holdings Ltd., marking a significant expansion of Metro Supply Chain’s capabilities in the logistics sector.

In addition, the Canada 3PL market is witnessing robust growth, primarily fueled by the expansion of ecommerce and a rising demand for innovative, technology-driven logistics solutions. Businesses are increasingly prioritizing sustainability initiatives and focusing on enhancing supply chain resilience and efficiency, leading to greater reliance on third-party logistics providers for streamlined operations.

Segment Review

The Canada 3PL market is segmented on the basis of type, and mode of transportation. By type, it is divided into home décor, health and nutrition, beauty and cosmetics, pet, sport and recreation, and others. By mode of transportation, it is classified into railways, roadways, waterways, and airways.

By Type

On the basis of type, the others segment generated maximum revenue in 2023. The others segment deals with distribution, warehousing, packaging, and fulfillment. These services cater to a variety of industries, allowing flexibility in meeting different logistical needs. The growing demand for e-commerce and just-in-time inventory systems further fuels the need for comprehensive 3PL solutions in the others category.

By Mode of Transportation

On the basis of mode of transportation, the roadways segment generated maximum revenue in 2023 due to its extensive infrastructure, flexibility, and capacity for last-mile delivery. The increasing demand for faster shipping, particularly in e-commerce and cross-border trade, drives its dominance. Additionally, improvements in road infrastructure and a robust supply chain network further contribute to the segment's growth, positioning it as the most lucrative in 3PL services.

Competitive Analysis

The key players profiled in the Canada 3PL market include Some leading companies profiled in the report include A.P. Moller-Maersk, Bolloré Group, C.H. Robinson Worldwide, Inc., FedEx, Kintetsu World Express, Inc, Nippon Express Holdings, Penske, Purolator Inc., Metro Supply Chain Inc. (Former SCI Group Inc.), and United Parcel Service of America, Inc.

Increase in Trading Activities Due to Globalization

Dynamic market conditions and global economy movement are the key factors driving globalization. Various activities related to trade have witnessed an increase, owing to the rise in globalization in the last few years. Moreover, growing globalization leads to increased manufacturing and trade activities. Growing trade activities require efficient transportation solutions for goods transportation. Manufacturers or retailers find it difficult to keep a track of transportation activities in an effective manner; hence, third-party logistics (3PL) companies support these manufacturers to keep a track and control of transportation and supply chain activities, including warehousing, distribution, and fulfillment services. The growing trade activities and increasing concern toward seamless transportation activities are expected to drive the growth of the Canada 3PL market.

For instance, in June 2022, Fastfrate Group acquired a controlling stake in Challenger Group, positioning it as one of Canada’s largest cross-border trucking operators, with a combined annual revenue of approximately $1 billion. This move leverages the growing demand for efficient third-party logistics (3PL) solutions driven by globalization, enabling Canadian providers to deliver seamless, cost-effective logistics for international trade.

Moreover, development of the overseas market is a significant factor fueling industry growth. Trade activities with the U.S. and other countries are anticipated to support the growth of the 3PL market in the coming years. 3PL services are becoming extremely vital for price-sensitive customers who require a wider choice of high quality products with timely delivery. Therefore, increase in trading activities due to globalization fuels the growth of the Canada 3PL market.

Rise in Focus of Manufacturers and Retailers on Core Competencies

Manufacturers or retailers are vital points in the overall supply chain of a particular industry as the focus of these participants is on their sub-contracting and core business activities. Transportation and logistics activities are add-on operations for these players as these activities involve high capital investment and dedicated workforce to streamline activities.

For instance, in March 2024, Canadian logistics company Groupe Robert, partnered with Dematic, to open a new distribution center in Quebec, featuring one of Canada’s tallest Automated Storage and Retrieval Systems (AS/RS) for a 3PL facility, with 130-foot cranes for handling fresh and frozen products in high-density cold storage. This state-of-the-art center serves as a strategic hub for manufacturers seeking efficient storage and redistribution across North America, underscoring Groupe Robert’s commitment to innovation, growth, and exceptional customer service. Moreover, for dynamic trade activities of the end-use industries and effective capital management requirement, manufacturers and retailers are focused only on their core business activities and assign these transportation activities to the third-party service providers.

Moreover, 3PL companies can make better use of transportation assets by balancing the needs of multiple client shippers across transportation and distribution functions, thereby resulting in economies of scale. Offshoring and outsourcing result in longer and more complex supply chains. Management of this type of supply chain is extremely difficult for manufacturers; therefore, the need for 3PL service providers is expected to increase in the coming years. 3PL model provides greater asset utilization and asset sharing alliances, which increases its demand, thereby contributing toward the growth of the Canada 3PL market.

Development of the E-Commerce Industry

E-commerce refers to the buying and selling of goods by using internet. Third-party logistics service providers carry out shipping of products to consumers. In addition, the e-commerce industry utilizes 3PL service to manage and oversee the supply chain of e-commerce companies, which allows these companies to focus on marketing and other business operations. For instance, in April 2023, SCI, a prominent Canadian 3PL provider, partnered with Dr. Squatch, a rapidly growing men’s natural soap brand, to support its expansion into the Canadian market. Leveraging SCI’s expertise in Canadian localization for e-commerce brands, the partnership enabled the seamless launch of a tailored supply chain solution, including warehousing, fulfillment, and final-mile transportation management. SCI’s end-to-end support streamlined Dr. Squatch's Canadian operations, ensuring efficient delivery, cost effectiveness, and uninterrupted service for customers. Moreover, the growth of e-commerce in Canada is fueling demand for third-party logistics (3PL) services, as businesses increasingly rely on 3PL providers for efficient warehousing, inventory management, and timely last-mile delivery solutions. Therefore, due to numerous benefits provided by 3PL to the e-commerce industry, adoption of 3PL service is increasing at a significant rate, which, in turn, drives the growth of the 3PL market

Risk Toward Goodwill of Manufacturers

Third-party logistics service providers are responsible for one of the most critical functions of the business such as management of customs, distribution, warehousing, and order fulfillment. Their mistake is expected to affect the manufacturer’s reputation and relation with customers. In case a 3PL service provider fails to deliver the order on time, it leads to a decrease in creditability of the manufacturing company, thereby degrading the level of trust of consumers in the company. This factor is expected to restrain the growth of the Canada 3PL market.

Strategic Partnership with End Users

Involvement of huge capital requirement and dedicated workforce, end users are entering into strategic partnership with 3PL service providers to gain competitive advantage. For instance, in April 2023, De Havilland Canada partnered with Fokker Services, which leveraged Fokker's third party logistics (3PL) expertise to support De Havilland’s aftermarket operations. Fokker Services provided a 27,000-square-foot warehouse in Amsterdam and managed De Havilland’s hub-and-spoke parts distribution model, covering inbound receiving, put-away, picking, packaging, shipping, and quality control. This partnership reinforced De Havilland Canada’s commitment to enhancing distribution network efficiency, enabling closer proximity to customers for improved lead times and reduced freight costs.

Moreover, 3PL service providers are involved in direct business with the end consumer to portray the manufacturers or retailer’s goodwill. To maintain streamlined transportation and supply chain activities of the company and uphold the goodwill of the company, end users opt for the service along with long-term agreements and contracts with 3PL service providers. Market participants need to focus on long-term business agreements with end users to attain lucrative opportunities in the near future. Therefore, entering into strategic partnership with end user is a lucrative opportunity for the Canada 3PL market.

Recent Developments in the Canada 3PL Industry

• In June 2024, United Parcel Service of America, Inc. signed an agreement to sell its Coyote Logistics business unit to RXO, Inc., for $1,025 million. Coyote Logistics is one of the leading global third-party logistics (3PL) providers, working with 100,000 network carriers and managing 10,000 loads per day.

• In May 2023, Nippon Express Co., Ltd. acquired Austrian logistics company Cargo-Partner for up to $1,500 million to become a global mega-freight forwarder. This strategy strengthens Nippon Express Group’s network in Europe, especially the growing manufacturing regions in central and eastern countries and increases its ocean and air forwarding volumes.

• In March 2023, A.P. Moller-Maersk launched the Captain Peter Integrated package that enables data integration with Application Programming Interface (API) for customers. It gets the raw data log with temperature readings into their own system of choice. It is used to check the condition of perishable goods & track the conditions inside the reefers.

• In December 2022, A.P. Moller-Maersk expanded its business with opening a new cold storage facility planned for Flat Holmen quay in Aalesund, Norway. It is specifically designed to accommodate the needs of the vast Norwegian seafood industry & it is one of the largest cold storages of its kind in the country.

• In February 2022, C.H. Robinson Worldwide, Inc. expanded its global and Asian reach, by opening a new office in Beijing. With its favorable location in the Chaoyang district, this location offered easier access for customers to access the services of the firm in Asia.

Key Benefits for Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the Canada 3PL market analysis from 2023 to 2033 to identify the prevailing Canada 3PL market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the Canada 3PL market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the market trends, key players, market segments, application areas, and market growth strategies.

  Canada 3PL Market Report Highlights

Aspects	Details
By Type	Home Decor Health and Nutrition Beauty and Cosmetics Pet Sport and Recreation Others
By Mode of Transportation	Railways Roadways Waterways Airways
By KEY PLAYERS	A.P. Moller-Maersk Bolloré Group C.H. Robinson Worldwide, Inc. FedEx Kintetsu World Express, Inc NIPPON EXPRESS HOLDINGS Penske Purolator Inc. Metro Supply Chain Inc. (Former SCI Group Inc.) United Parcel Service of America, Inc.
Key Market Players	Roadways, Others

Analyst Review

Increase in trading activities due to globalization and rise in focus of manufacturers & retailers on core competencies fuel the growth of the Canada 3PL market. However, risk of goodwill of manufacturers hinders the growth of the market. In addition, reduced control of manufacturers on logistics service restrains the growth of the market. Although 3PL upcoming innovative technologies will never completely replace the need for people to manage and design transportation networks, they are expected to reduce the number of people required. The Canada 3PL market is highly fragmented due to the presence of several market participants operating in the market. Moreover, the 3PL market participants cater to their domestic markets as majority of the operations are maintained at the end-user end and can maintain large fleets. However, the outbreak of COVID-19 health crisis has negative impact on the overall market results, which demonstrated slow growth in 2020, owing to weak financial performance of the original equipment manufacturers as they are expected to focus on working capital management. Furthermore, the recovery of the market is quite fast as domestic trading and export & import activities are evolving in the time of such health crisis. The expected time to recover the market is estimated to start from the second quarter of 2021, and gain momentum in 2022.

The Canada 3PL market is segmented into type and mode of transportation. Depending on type, the market is divided into home decor, health & nutrition, beauty & cosmetics, pet, sport & recreation, and do it yourself. By mode of transportation, it is fragmented into railways, roadways, waterways, and airways

Author Name(s) : Anup Mankar | Lalit Janardhan Katare

Related Tags

• 3pl
• Logistics
• Supply Chain