Armstrong says Europe’s 3PL market hit $229.7 billion in 2025

Armstrong & Associates released its 2026 European 3PL market analysis, showing the region’s logistics outsourcing market rebounded after a sharp 2023 drop and is on track for further growth through 2027. The report also ranks DSV first among Europe-based 3PLs after its DB Schenker acquisition and highlights ongoing supply chain disruption, warehousing demand and industry consolidation.

Why it matters: - Europe’s third-party logistics market is recovering from volatility and remains a major slice of global logistics activity. - The report points to continued growth in outsourcing, warehousing demand and consolidation across the region. - The findings matter for shippers, carriers, warehouse operators and investors tracking European supply chains.

What happened: - Armstrong & Associates released “Consolidation and Disruption: European 3PL Market Analysis 2026.” - The report covers European 3PL market growth from 2016 to 2027E and compares Europe with global, North America and other major regions. - The analysis includes disruptions affecting Europe’s supply chain, including the U.S./Iran war, EU-U.S. tariffs and EU customs reform. - The report also reviews European ocean ports, rail freight, air freight, warehousing, mergers and acquisitions, and results from A&A’s European 3PL Market Survey.

The details: - European 3PL gross revenue grew 8.1% in 2025 to $229.7 billion. - That total was 24.4% above the pre-pandemic 2019 level of $184.6 billion. - The market fell 20.7% in 2023 and recovered 1.7% in 2024. - A&A expects European 3PL revenue to rise 9.7% to $252.0 billion in 2026E and 5.1% to $264.8 billion in 2027E. - Europe accounted for 17.7% of global 3PL revenue in 2025. - European 3PL revenue equaled 10.2% of Europe’s logistics costs, versus a global average outsourcing rate of 10.0%. - Armstrong’s conclusion: Europe’s smaller global share reflects the industrial cycle and business mix more than weaker adoption of 3PL services. - Value-Added Warehousing and Distribution, called Contract Logistics in Europe, grew 7.6% in 2025 to $57.3 billion. - VAWD stood 33.8% above its 2019 level of $42.9 billion. - VAWD passed International Transportation Management/Freight Forwarding in 2023 to become Europe’s second-largest 3PL segment. - VAWD has grown every year since 2016, with a 4.4% compound annual growth rate from 2016 to 2025. - E-commerce fulfillment and demand for warehouse space closer to customers have supported VAWD growth. - VAWD is projected to reach $62.0 billion in 2026E and $63.9 billion in 2027E. - Transportation Management, which combines Domestic Transportation Management and Dedicated Contract Carriage, remained Europe’s largest 3PL segment. - Transportation Management grew 7.1% in 2025 to $113.0 billion, equal to 49.2% of total European 3PL revenue. - Transportation Management has posted a 4.9% CAGR from 2016 to 2025. - Armstrong expects Transportation Management to reach $135.1 billion in 2027E. - International Transportation Management/Freight Forwarding rebounded 10.8% in 2025 to $56.1 billion. - ITM was still 36.9% below its 2021 peak of $88.9 billion. - The Top 50 Europe-based 3PLs generated $249.0 billion in 2025 gross logistics revenue, equal to 19.2% of the $1.3 trillion global 3PL market. - Denmark-based DSV moved to first place after completing its acquisition of DB Schenker in April 2025. - DSV’s gross logistics revenue rose 11.2% to $37.4 billion. - DHL Supply Chain & Global Forwarding ranked second with $35.5 billion. - Kuehne + Nagel ranked third with $33.8 billion. - The list also includes the European operations of five non-European 3PLs with substantial regional revenue.

Between the lines: - The market data suggests Europe’s 3PL rebound is broad, but not evenly distributed across segments. - Warehousing and contract logistics appear to be benefiting from more localized inventory strategies and e-commerce demand. - The DSV-DB Schenker deal underscores how scale is becoming a bigger competitive advantage in European logistics. - The report’s inclusion of tariffs, customs reform and war-related disruption signals that geopolitics remains a direct market variable for logistics providers.

What's next: - Armstrong expects the European 3PL market to keep expanding through 2027E. - VAWD and Transportation Management are projected to continue growing into 2027E. - Further consolidation appears likely as large providers pursue scale and broader regional coverage. - The report is available for purchase through A&A’s online store and is included in all four tiers of A&A’s Expert Information Service subscription.

The bottom line: - Europe’s 3PL market is back in growth mode, but the next phase looks shaped by consolidation, geopolitics and shifting demand toward warehousing and transportation management.