Fourth Party Logistics Market Trends, Demand, Growth, Opportunities and Key Manufacturers | Lead By DB Schenker, CEVA Logistics, Allyn International Services, LOGISTICS PLUS, UPS Supply Chain Solutions
The key companies operating in the field of fourth party logistics that are profiled in the report include Allyn International Services, Inc., United Parcel Service of America, Inc., GEFCO Group, XPO Logistics, DHL Group, DB Schenker, DAMCO, LOGISTICS PLUS Inc., GEODIS, and CEVA Logistics among others. Several other players are also functioning in the market worldwide, contributing significant revenue shares year on year.
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The global fourth party logistics market accounted to US$ 54.06 Bn in 2018 and is expected to grow at a CAGR of 5.2% during the forecast period 2019 - 2027, to account to US$ 84.17 Bn by 2027.
It has been observed that regional demographics have also played a crucial role in the growth of the 4PL services market. As an example, the 4PL adoptions is observed by the retail sector, which in-turn has propelled due to the advent of e-commerce. As APAC region boasts of more than one-third of the global population, the market attractiveness for e-commerce industry is very high in the region. Further, developing economies and rising disposable incomes with individuals have accentuated further the growth in e-commerce activities. Rising demand diversities on account of diverse demographics observed in the region contributes to the supply chain complexities, thus requiring the needs for 4PL services to be deployed by the shipping companies.
Asia is home for nearly 3.5 Bn people, and presently, GDP per capita is 6,799 USD which is expected to grow. There are pleasant e-commerce markets within Asian countries such as China, Japan, and India. Also, count of users using online websites for shopping is projected to increase by 2021. This represents 53% of the total population. Such growing internet of users towards e-commerce sector for fashion, electronics, and other products would help the industry to contribute high portion in GDP. Moreover, many of Asia’s countries holds a leading position in the world of logistics such as China, Taiwan, Japan, Hong Kong, South Korea, and Singapore. Growing e-commerce industry provides positive opportunities to the 4PL providers across Asia.
The global fourth party logistics market by type was led by solution integrator model segment. The other type of fourth party logistics model include Synergy Plus Operating Model and Industry Innovator Model. The industry innovator model comprises of highest complexity and therefore incurs higher costs to the customers, leading to its slow growth over the forecast period in the fourth party logistics market.
The fourth party logistics market by end-user is segmented into Aerospace and Defense, Automotive, Consumer Electronics, Food and Beverage, Industrial, Healthcare, Retail, and Others. Fourth Party Logistics industry is growing at a high rapid pace and successfully introduces new advancements. In a dynamic era, manufacturers are developing diversified product categories, packaging designs, and numerous logistics arrangements which results into astounding amount of complexity creation in the form of expanding product variations, fragmented channels, and rising customer demands for the tailored solutions. Therefore, it is projected to create tremendous opportunities for lead logistics providers in the fourth party logistics market. This are efficient in managing entire supply chain, starting from packaging till last mile delivery.
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The report segments the global fourth party logistics market as follows:
Global Fourth Party Logistics Market - By Type
Synergy Plus Operating Model
Solution Integrator Model
Industry Innovator Model
Global Fourth Party Logistics Market - By End-User
Food and Beverage
Aerospace and Defense
Global Fourth Party Logistics Market - By Geography
Rest of Europe
Asia Pacific (APAC)
Rest of Asia Pacific
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