U.S. 3PL market hits $323 billion in 2025

The U.S. Third-Party Logistics market grew 5.0% in gross revenue to $323.4 billion in 2025 — a significant acceleration from 2.8% growth in 2024. Net revenue rose 5.1% to $138 billion.

International Transportation Management led the way at 7.7% gross revenue growth, driven by tariff-related front-loading of imports and ongoing Red Sea disruptions that rerouted container traffic around the Cape of Good Hope. ITM net revenue surged 11% to $30.4 billion, the strongest segment performance by far.

Domestic Transportation Management, the largest segment at $128.3 billion, grew 4.5% as the freight market showed early signs of recovery. Spot rates and tender rejections are rising, and carrier capacity has contracted as smaller operators exit the market. Stricter FMCSA Drug and Alcohol Clearinghouse enforcement is limiting new capacity from re-entering, which means — unlike previous cycles — the capacity rebound will be slower. That’s a structural positive for 3PLs heading into 2026.

Value-Added Warehousing & Distribution remains the steadiest performer with a 4% CAGR through the downturn, buoyed by tariff-driven inventory builds, nearshoring demand, and growing investment in warehouse automation. Companies continue to hold more safety stock as supply chain resilience takes priority over just-in-time efficiency.

Dedicated Contract Carriage grew 1.6% to $32.0 billion. Unlike the other segments, DCC continued to grow through the freight recession — its long-term contracts and dedicated assets make it far “stickier” than spot-market-reliant services. Shippers locked in capacity after the turbulence of 2021–2022, and DCC providers benefited from their ability to attract drivers through wage increases and invest in equipment.

Technology is the differentiator across all segments. In Domestic Transportation Management, digital freight matching and agentic AI are separating leaders from laggards. In International Transportation Management, roughly half of freight forwarders have automated documentation and compliance workflows — large forwarders are gaining a competitive edge while many smaller players fall behind.