Singapore Third Party Logistics (3PL) Market Report and Forecast 2032

Singapore Third Party Logistics (3PL) Market Insights & Analysis

The Singapore Third Party Logistics (3PL) Market reached a value of nearly USD 5.59 billion in 2025. The market is assessed to grow at a CAGR of around 3.47%, during the forecast period of 2025-2032 to attain a value of around USD 7.1 billion in 2032. Singapore's manufacturers & exports greatly rely on foreign content, making it a key competitor across regional & global supply chains due to the expansion of highly varied cross-border production. Owing to its status as a regional center, producers favor Singapore since it provides them access to the country's top shippers & third-party logistics providers (3PLs). To coordinate their regional & international supply chains, manufacturing companies locate their supply chain control towers & distribution centers in Singapore.

Moreover, one of the key drivers of the Singapore Third Party Logistics (3PL) Market growth is e-commerce. When entering the Southeast Asian market, e-commerce enterprises have chosen to set up shop in this country. Also, e-commerce's recent uptake has contributed to the 3PL industry's expansion. Being among the top ten airports worldwide for international air cargo traffic, Changi Airport has constantly sustained its status as one of the region's key air cargo hubs. Further, with its sizable facilities, the Airport Logistics Park of Singapore (ALPS) is home to top international third-party logistics (3PL) companies that drive Singapore Third Party Logistics (3PL) Industry growth.

Singapore Third Party Logistics (3PL) Market FY32

• Study Period: 2020- 2032


• Base Year: 2024


• CAGR(2025-2032): 3.47%


• Market Value 2032: USD 7.1 Billion


• Major Players: Deutsche Post (DHL), Nippon Express, C.H. Robinson, Kuehne + Nagel International, FedEx, DB Schenker, DSV, Geodis, United Parcel Service of America (UPS), Others

Furthermore, Singapore's contemporary infrastructure, business-friendly atmosphere, and strategic location as a primary trading hub are making the country a flourishing logistics market. Also, its position as a regional commercial hub is being strengthened by the nation's third-party logistics (3PL) suppliers. Further, an increasingly youthful population & a tech-savvy populace, with over 95% of individuals utilizing the Internet, are stimulating the expansion of the e-commerce industry. Also, e-commerce businesses are outsourcing their logistical operations to third-party logistics (3PL) providers, which is further infusing the expansion of the Singapore 3PL Market.

Besides, with more Singaporean customers resorting to online channels for their purchasing requirements, the online retail share is foreseen to elevate to nearly 25.6% by 2032. Also, companies are being driven to implement a robust e-commerce strategy owing to the tremendous shift in consumer behavior, which is also instigating the growth of the Third-Party Logistics (3PL) Market in Singapore during the future period.

Recent Upgrades & Developments in the Singapore Third Party Logistics (3PL) Market

• 2024: DB Schenker, the logistics division of Deutsche Bahn, was settled to be attained by DSV for nearly USD 15.85 billion. DSV is now a top global logistics provider due to this purchase, outdoing competitors in terms of volume & income. Once regulatory permissions are obtained, the purchase is projected to be settled by the second quarter of 2025. 
• 2024: In a significant USD 15.85 billion transaction, DSV acquired DB Schenker, indicating a key consolidation in the global logistics sector.

Singapore Third Party Logistics (3PL) Market Dynamics

Factors Influencing the Singapore Third-Party Logistics (3PL) Market

• A flourishing e-commerce sector to upsurge the Singapore market's requirement for 3PL services. With the uptake of online shopping, enterprises are seeking efficient solutions for order fulfillment, warehousing, and last-mile delivery. 3PL businesses are utilizing modern supply chain management, AI-driven logistics, and automation to gratify increasing consumer demands.
• The rising infrastructure & government assistance to encourage the expansion of the Singaporean Third-Party Logistics (3PL) Market. Primary aspects driving the Singapore Third-Party Logistics (3PL) Market comprise the government's robust backing & continuous infrastructural advancement. Operational efficacy & the connectedness of global trade are being enhanced by substantial investments in digital supply chains, automation, and smart logistics.

Challenges Faced by the Singapore Third-Party Logistics (3PL) Industry

• Higher operational costs are witnessed to impact the revenue growth of the Singapore Third-Party Logistics (3PL) Market. Logistics establishments' profit margins are being hampered by increasing labor, fuel, warehouse, and regulatory compliance costs. Also, revenue generation is further obstructed by the requirement for 3PL providers to offer competitive costing due to snowballing competition.
• Congestion & land constraints pose challenges for the Singapore 3PL Industry. Owing to the nation's strong urbanization & lack of available land, real estate prices are fueled by the requirement for more space for distribution & warehousing facilities. Moreover, heavy traffic slows down last-mile delivery & transportation, specifically in the vicinity of vital ports & commercial centers.

Singapore Third Party Logistics (3PL) Market Segment-wise Analysis

By Service:

• Domestic Transportation Management
• International Transportation Management
• Warehousing & Distribution
• Value-Added Services & Others

The International Transportation Management segment dominates the Singapore Third-Party Logistics (3PL) Market by capturing the largest market share.

In line with its valuable geographic location as a key hub for international trade & commerce, Singapore has gained prominence. World-class ports & airports are part of the country's well-developed infrastructure, which makes it convenient to relocate goods proficiently & elevates its importance in global logistics. Additionally, Singapore's considerable cross-border sales volume, which makes up over half of its e-commerce industry, drives the requirements for universal transportation services.

Moreover, with the upscale of e-commerce, the Warehousing & Distribution segment is also gaining momentum. Companies across the country are progressively in need of storage & fulfillment services, which is why varied e-commerce contentment centers have been established.

By End-user:

• Consumer & Retail (E-commerce, Apparel, Garment Sectors, Perishables, etc.)
• Healthcare & Pharmaceuticals
• Oil & Gas, Petrochemicals & Chemicals
• Others

In the Singapore Third-Party Logistics (3PL) Market, the Consumer & Retail sector, which is specifically compelled by e-commerce, is foreseen to uphold the potential market share in the forecast years.

The nation's e-commerce sector, with types, such as electronics, media, fashion, and home furnishings encompasses more than two-thirds of the industry. This substantial online retail activity has led to an amplified demand for proficient logistics solutions, like warehousing, fulfillment centers, and last-mile delivery services. Subsequently, 3PL suppliers are progressively aiming at the consumer & retail sector to cater to the logistics requirements of e-commerce companies in Singapore.

What Does Our Singapore Third Party Logistics (3PL) Market Research Study Entail?

• Singapore Third Party Logistics (3PL) Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• Singapore Third Party Logistics (3PL) Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.