Rising Technology Integration in Manufacturing to Drive Fourth Party Logistics Market
According to our latest market study on “Fourth Party LogisticsMarket Forecast to 2027 – COVID-19 Impact and Global Analysis −by Type, End User, and Geography,”the global fourth party logistics market was valued at US$ 56,472.1 million in 2019 and is projected to reach US$ 78,981.5 million by 2027; it is expected to grow at a CAGR of 4.5% during the forecast period from 2020 to 2027.The report highlights the key factors driving the market growth, and prominent players and their developmentsin the market.
The global manufacturing industry has witnessed rapid growth in recent times owing to huge investments coming up from the governments of various countries, especially from the developing economies. This growth in the manufacturing industry is expected to embrace technological advancements to enhance plant productivity, maintain an edge with the customers, and gain competitive advantage. Steady and consistent economic growth in countries across the world is a major driving factor for the development and advancements in the manufacturing industry. The 21stcentury is characterized by cut-throat competition among all the industry sectors. The manufacturers of various products face a strongcompetition with their competitors on account of costs, quality, service, and time-to-market. Additionally, manufacturers have faced monumental challenges while maintaining a perfect balance between the demand and supply of the product in diverse geographies. Manufacturing industries thus tend to focus towards their core competencies of manufacturing, and outsource the rest to other stakeholders existing in the value chain. The need for an efficient supply chain system for the manufacturing sector seemed to be imminent as the fourth party logistics providers focus on all aspects of supply chain management and provide advanced as well as assured management of goods from the production line until the consumer and vice versa. The services offered by fourth party logistics providers add substantial value to the manufacturing companies. These firms help companies to reduce weak points that outcomes in loss of revenue or profits and further help to assure maximal profitability. 4PL providers are specialized in network analysis, mode network optimization, management of vendor compliance, and other management operations. In contrast with this, it is challenging for the core companies to recruit such expertise in terms of inventory management and storage, assembly needs, and shipping in every business division. Establishing a partnership with fourth logistics company often empowers the client organization to focus on its core competencies while outsourcing the management of logistic operations.
Allyn International Services, Inc.; United Parcel Service, Inc.; GEFCO Group; XPO Logistics, Inc.; Deutsche Post AG; DB Schenker; DAMCO; Logistics Plus Inc.; GEODIS; and CEVA Logistics AG are among the key companies operating in the field of fourth party logistics that are profiled in this report.
COVID-19 Impact on Fourth Party Logistics Market
Europe is a major manufacturing and industrial hub for several industrial sectors such as automotive, aerospace & defense, energy & power, pharmaceuticals, and food & beverages. Hence, logistics and transportation plays a crucial role in ensuring the development and growth of these industries in the region. The road freight is an essential part of region’s economy and it is anticipated to contract over 15% due to COVID-19 outbreak in 2020. The governments of various European countries have already announced that the outbreak of COVID-19 negatively impacted their transport systems as the European supply chains of various countries are closely interlined with each other. With restrictions on movement of people and goods from one country to other, all types of freight services including land, sea, and air are affected badly in the past few months. The aviation freight industry has the worst impact with a ban on international flights across the world. The Association of European Freight Forwarders and Polish Chamber of Forwarding and Logistics have already raised warnings regarding the limited export loads and delays in port operations, owing to non-availability of operators and manpower.
Report : Fourth Party Logistics Market Forecast to 2027 - COVID-19 Impact and Global Analysis by Type (Synergy Plus Operating Model, Solution Integrator Model, and Industry Innovator Model), and End User (Aerospace & Defense, Automotive, Consumer Electronics, Food & Beverages, Industrial, Healthcare, Retail, and Others)
The report segments the global fourth party logistics market as follows:
Fourth Party Logistics Market – By Type
Fourth Party Logistics Market – By EndUser
Fourth Party Logistics Market – By Geography