Press release
Fourth Party Logistics Market Outlook to 2027 - Allyn International Services, CEVA Logistics, DAMCO, DB Schenker, Deutsche Post, GEFCO, GEODIS, LOGISTICS PLUS, UPS Supply Chain Solutions, XPO Logistics
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.Asia-Pacific was the leading geographic market and it is anticipated to be the highest revenue contributor throughout the forecast period. The huge population, growing disposable incomes, rising domestic consumption and lower costs are some of the factors attributing to the growth of e-commerce sector in countries like China, India, Taiwan, Japan and South Korea, which is further expected to fuel fourth party logistics market in this region.
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Market Insights
Adoptions of Solution Integrator Model
The solution integrator model is known as the core 4PL model. In the solution integrator model, the 4PL providers is engaged in operating and managing a comprehensive end-to-end supply chain solution for a single client. This business model for 4PL leverages the resources, technology, and capabilities of 4PL and complementary service providers for provisioning a comprehensive supply chain solution to deliver value to their customers. Largely, all B2B businesses focus on the solution integrator model for optimizing their supply chains and ensuring the best customer service. Food & beverage, and retail sector customers prefer this type of business relationship with their 4PL service providers. The solution is supposed to grow at the fastest pace during the forecast period in the fourth party logistics market.
Retail and consumer electronics sector moving towards provisioning dynamic logistics
The high-tech consumer electronics and the medical equipment markets today are highly driven by diverse consumer demands coupled with customization features. Strategies such as build-to-order and postponement are often deployed for selling products from the high-tech electronic verticals by many retailers, websites, resellers etc. In many scenarios faced by consumer goods and retail sectors, a customer orders large volumes of products that might be sourced at different locations. These diverse products need to be assembled first, and then need to be shipped to the consumer at the earliest possible timelines. Fulfillment of such demands requires the deployment of a highly sophisticated and Omni-channel supply chain approach by the logistics service provider. This factor is anticipated to provide huge opportunities to the players operating in the fourth party logistics market.
Segment by Type Insights
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.
Segment by End-User Insights
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.
Strategic Insights
New market initiatives were observed as the most adopted strategy in global fourth party logistics industry. Few of the recent market initiatives are listed below:
2019: Logistics Plus Inc. Opened New "Logistics Plus Chemical SCM" Entity in India which will bring a full suite of 3½PL and 4PL solutions to petrochemical and chemical companies located in India.
2019: Deutsche Post DHL Group has concluded the landmark deal to transfer its supply chain operations in Mainland China, Hong Kong and Macau, herein after referred to as "China" to SF Holding ("SF"), a leading premium logistics service provider in the country.
2018: GEFCO launched global mission control centre for Time Critical Freight Forwarding solutions. Innovative Centre is expected to provide global operational support, control and coordination of time critical solutions shipments.
Leading Fourth Party Logistics Market Players:
• Allyn International Services, Inc.
• CEVA Logistics AG
• DAMCO
• DB Schenker
• Deutsche Post AG
• GEFCO Group
• GEODIS
• LOGISTICS PLUS Inc.
• UPS Supply Chain Solutions (United Parcel Service, Inc.)
• XPO Logistics Inc.
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Key Elements that the report acknowledges:
• Market size and growth rate during forecast period.
• Key factors driving the Fourth Party Logistics Market.
• Key market trends cracking up the growth of the Fourth Party Logistics Market.
• Challenges to market growth.
• Key vendors of Fourth Party Logistics Market.
• Detailed SWOT analysis.
• Opportunities and threats faces by the existing vendors in Global Fourth Party Logistics Market.
• Trending factors influencing the market in the geographical regions.
• Strategic initiatives focusing the leading vendors.
• PEST analysis of the market in the five major regions.
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