2025 State of the Third-Party Logistics Industry Report
Building resilience to face an uncertain world
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Introduction
Amid rapid innovation and evolving global commerce, the logistics landscape is entering a transformative era. In early 2025, before the start of global tariffs, the U.S. 3PL market was poised for growth — with Technavio predicting $132.3 billion of growth between 2025 and 2029. But now, the industry faces a great deal of unpredictability.
Now up against economic headwinds, shifting demand, and global uncertainty, the pressure on supply chains is intensifying. For third-party logistics (3PL) providers, this isn’t just a test — it’s a turning point. And those that respond with foresight, flexibility, and strong partnerships have the potential to emerge more resilient than ever.
In this year's State of the Third-Party Logistics Industry Report, we highlight 4 key trends 3PLs will face and offer solutions to navigate the uncertainties of each.
Trend #1: Economic uncertainty amid tariffs and geopolitical tensions
If there is one thing on the minds of everyone in the 3PL industry, it’s tariffs. When U.S. President Donald Trump took office, he set in motion the tariffs he campaigned on. At this time, tariffs are a leading factor influencing prices, consumer sentiment, and spending — and they could potentially trigger an economic recession
Unfortunately, for 3PLs, tariffs have remained a moving target all year. The uncertainty around tariffs can make forecasting incredibly difficult, if not impossible. And as they are enforced, their impact is likely to be detrimental to business.
Trend #2: Deploying AI and automation to reduce costs and meet customer expectations
In our 2024 State of the Industry report, we discussed the rise of excitement around artificial intelligence (AI) and the need to embrace technology. Those trends are sure to continue as AI and automation will continue to transform 3PL operations, improving efficiency, forecasting, and decision-making.
In fact, according to our 2024 Third-Party Logistics Warehouse Benchmark Report, only 16% of 3PLs were exploring AI in 2023, but this number surged to 25% in 2024. And that makes sense when you consider that 74% of shippers would be at least somewhat likely to switch 3PL providers based on their AI capabilities. It’s clear that 3PLs that offer AI solutions will gain a significant competitive advantage.
Trend #3: Increasing customer demand for fast, cost-effective shipping
The pandemic may be over, but we aren’t giving up on online shopping. Consumers are expected to spend $1.2 trillion on online retail purchases, or ecommerce, according to a report from Digital Commerce 360. Globally, that figure is expected to grow to more than $8 trillion by 2027.
Ecommerce has obvious benefits for both consumers and retailers: more product options and more customers, respectively. But with the continued increasing popularity of ecommerce comes increasing expectations.
Consumers now consider delivery within two days as the standard, according to the 2025 Third-Party Logistics Study conducted by NTT DATA, Penske Logistics, and Penn State University. According to the study, 53% of 3PLs say customers expect deliveries in less than two days. A lower percentage — 26% of 3PLs — say customers expect two- to three-day delivery windows.
Trend #4: Building resilient supply chains
Resilience is one constant in the 3PL industry — but in the midst of significant change and disruption, 3PLs must make sure their supply chains are more resilient than ever. Recent global disruptions and the ongoing threat of tariffs have reinforced the need for supply chains that can adapt to volatility and uncertainty.
“The one thing I’m sure of is that prices are going up,” David Miller, Extensiv's vice president of customer success, says. “So 3PLs will need to get way more prescriptive about how they are running the rest of their supply chain so they can make up some of those costs.”
Conclusion
In 2025, the 3PL industry will continue to face uncertainty and challenges, such as fluctuating trade policies and changing consumer demands. To navigate these, 3PLs should focus on resilience and operational efficiency by monitoring tariff changes, implementing automation technologies, and using a Warehouse Management System (WMS). Supporting onshoring and nearshoring can reduce supply chain disruptions, while diversifying suppliers decreases dependency on single sources. These strategies help 3PLs minimize risks and gain a competitive edge.
About Extensiv
Extensiv, formerly 3PL Central, is a visionary technology leader focused on creating the future of omnichannel fulfillment. We partner with warehouse professionals and entrepreneurial brands to transform their fulfillment operations in the radically changing world of commerce and consumer expectations.
Through our unrivaled network of more than 1,500 connected 3PLs and a suite of integrated, cloud-native warehouse management (WMS), order management (OMS), and inventory management (IMS) software, we enable modern merchants and brands to fulfill demand anywhere with superior flexibility and scale without painful platform migrations as they grow. More than 25,000 logistics professionals and thousands of brands trust Extensiv every day to drive commerce at the pace that modern consumers expect.
We update our "State of the Third-Party Logistics Industry" Report with new data every year.
You can download the most recent report above and read the older reports below.
2024 Report
In the 2024 State of the Third-Party Logistics Industry Report, we see that adaptability has been key to navigating these turbulent times. The industry has faced multiple years of unprecedented challenges, and quite frankly, it does not seem like 2024 will bring a return to "precedented" times. Yet, despite (and sometimes because of) these trials, the logistics world has also uncovered new opportunities for growth and innovation. This report discusses how 3PLs must continue to focus on strategic planning, leveraging technology, and building agile business models to stay competitive.
2023 Report
The 2023 State of the Third-Party Logistics Industry Report offers top industry trends for the year and recommended best practices to help logistics providers thrive despite the year’s top challenges: lack of warehouse space, consolidation within the industry, the ongoing labor crisis, and an uncertain economic climate. These trends include a foundation of (digital) automation, the continued rise of 4PLs, considering the duality of customer service, and the evolution of fulfillment.
2022 Report
In our 2022 report, we focus on how COVID-19 has renewed focus on the 3PL Industry.
Once a hidden industry of service, it is now a topic for highly notable news stories from package delivery delays, congested ports, or what Amazon is doing next. With 3PLs at the heart of the supply chain, their success will help expand new markets, grow emerging brands, and continue to inspire the rapid growth of today’s supply chain.
2021 Report
The 2021 State of the Third-Party Logistics Industry Report shares the latest trends and best practices today’s warehouses needed to consider to be successful in 2021—including technology, outsourcing, and Amazon. It also reveals why 51% of warehouses polled have already invested in creating long-term shifts in diversifying their warehouse businesses to adopt ecommerce and omnichannel fulfillment.
2020 Report
For our 2020 report, we will focus on the year of the 3PL warehouse and how they can utilize best practices to overcome challenges and create growth opportunities. As we entered a new decade, many 3PLs will find themselves facing momentous technological changes impacting everything - from the competitors they face to customer expectations, their ability to streamline and automate operations, and more
2019 Report
In our 2019 State of the Industry Report, we focus on the year of 3PL Warehouse Operations and how leveraging technology will play a crucial role in overcoming five challenges across the warehouse.
2018 Report
We believe that today’s smartest warehouses will view these increased levels of customer expectations as a significant opportunity to differentiate themselves from their competition. In 2018, we predicted these new levels of customer expectations will produce five specific new opportunities for 3PL warehouses to do just that.
The five opportunities we saw for 2018 were:
- Handling the Pressure of Growing Customer Support
- Supporting of Omnichannel Fulfillment to Meet Retailer Demands
- Embracing the Big Data Era
- Discovering New Logistics Technologies to Meet Growing Demands
- The Opportunity to Partner With New and Non-Traditional Fulfillment and Delivery Players
2017 Report
2017 promised to be one of the most memorable years the warehousing and fulfillment industry has seen in some time. There was an unprecedented amount of opportunity for the savvy 3PL warehouse operator juxtaposed against significant uncertainties stemming from a continued shift in consumer habits, a more daunting competitive landscape and, of course, a controversial incoming Presidential administration who had vowed to “stir the pot”.
This eBook identifies five of the largest challenges facing 3PL warehouse operators in 2017 and shares insights, reactions, and guidance from two leading 3PL and warehousing industry experts.