Asia Pacific Fourth Party Logistics Market Developments and Forecast by 2027

Fourth Party Logistics market in the Asia Pacific is expected to grow from US$ 18.75 Bn in 2018 to US$ 32.28 Bn by the year 2027. This represents a CAGR of 6.3% from the year 2019 to 2027.

The increasing complexities in supply chains demanding for outsourced logistics services is fueling the growth of the fourth party logistics market. Moreover, the factors such as the incorporation of dynamic logistics services by retail and consumer electronics end-users, and manufacturers seeking for inbound procurement and supplier collaborations management are anticipated to boost fourth party logistics market growth in the forecast period. The emergence of the fourth party logistics concept has essentially been a move towards removing all the bottlenecks mentioned above in the increasingly complex supply chain environment. Fourth party logistic (4PL) services are also called as supply-chain-as-a-service, where the 4PL providers integrate itself with the customer company's logistics department. This empowers the fourth party logistics market players with a hands-on approach to the entire operations involved in a supply chain ranging from order management to warehousing and compliance regulations to supplier management. A 4PL service provider would act as the single link of the interface between the numerous supply chain providers and the client organization. With this, the 4PL provider manages all the operations with sophisticated resources to optimize and deliver value to its customers.

Moreover, the fourth party logistics market players provide the required coordination between OEM sites, contract manufacturer's sites, suppliers, and all other parties involved to fulfill the consumer demands. Thus, the consumer goods industry focus on adopting effective logistic services, which creates significant opportunities for the fourth party logistics market players to play a crucial role.

The retail segment is the leading end-user with the highest market share in Asia Pacific fourth party logistics market. The rapid growth in e-commerce sector coupled with increasing customized demands from the consumers, have propelled the use of lead logistics providers in the supply chain for retail-based goods. 4PL provides strategic vision and greater visibility of inventory, which enable retailers to allocate stocks and meet the customer's need. Also, 4PL helps in replenishing the store with its forward-deployed inventory in small stores, as these lags in having additional space to keep their inventory.

China is anticipated to lead the fourth party logistics market across the Asia Pacific region through the forecast period, followed by the rest of Asia Pacific. China holds a position of world's utmost prominent manufacturer of shoes to heavy machinery. China is a global leader in the manufacturing of passenger cars and commercial vehicles, as well as electronic product assembly. Therefore, China's factories look forward to opting 4PL services to effectively manage all supply chain related operations and thereby to lower capital expenditures. Rest of APAC includes Australia, Singapore, Malaysia, and others. The demand for consumer electronic products in this region in the emerging Asian markets is anticipated to encourage the manufacturing industries in the Asia Pacific region to adopt more new technologies to synchronize with the consumers' expectations. This will lead to the growth of the fourth party logistics market. The figure given below highlights the revenue share of the Rest of Asia Pacific in the fourth party logistics market in the forecast period:

Rest of Asia Pacific Fourth Party Logistics Market Revenue and Forecasts to 2027 (US$ Bn)

ASIA PACIFIC FOURTH PARTY LOGISTICS MARKET SEGMENTATION

By Type

• Synergy Plus Operating Model• Solution Integrator Model• Industry Innovator Model

By End-User

• Automotive• Healthcare• Food and Beverage• Consumer Electronics• Aerospace and Defense• Retail• Industrial• Others

By Country

• Taiwan• China• India• Australia• Japan• Rest of Asia Pacific

Fourth Party Logistics Market - Companies Mentioned

• Allyn International Services Inc.• CEVA Logistics AG• DAMCO• DB Schenker• Deutsche Post AG• GEFCO Group• GEODIS• Logistics Plus Inc.• UPS Supply Chain Solutions• XPO Logistics, Inc.

Asia Pacific Fourth Party Logistics Report Scope