Supporting the machinery and devices of modern globalization has required the development of sophisticated worldwide spare/service parts logistics (SPL) networks.
A handful of third-party logistics providers (3PLs) have answered the market’s demand and service most of earth’s area and population.
As a result, the spare parts logistics network, which relies on companies like UPS, FedEx, DHL, DB Schenker, Ryder, SEKO , and CEVA has grown to $52.7 billion a year, representing approximately 6.9% of total 3PL revenue.
The major vertical industries in the spare parts logistics network are Automotive, Industrial, and Technology.
In short, the spare parts logistics market is driven by high-value manufactured products and their maintenance.
To a smaller extent, the Elements and Healthcare sectors also play in the spare parts logistics space.
To arrive at estimates for the spare parts logistics market, we begin with some basic Armstrong & Associates’ research results.
Each year, Armstrong & Associates estimates global third-party logistics market revenue. We then split total revenues by Fortune 1000 industry verticals. We also apply
assumptions based on industry trends and growth rates. The base year used in this analysis is 2008. Our estimates for 2016 indicate a compound annual growth rate (CAGR) of 5.5%.
On the following pages of this report, we break down global 3PL SPL revenue by select vertical industries.