Publication Month: Jul 2020 | Report Code: TIPMC00002694 | No. of Pages: 182 | Category: Automotive and Transportation | Status: Published
The global fourth party logistics market is experiencing a steady growth with regards to the initial research activities, product innovations, investments, technological integrations, and deployment in the current scenario and is anticipated to rise exponentially in the coming years. The fourth party logistics market is a highly fragmented market with the presence of significant number of players in each countries coupled with multiple players with a small and regional presence. The fourth party logistics market is influenced by the consumer side demands where manufacturers of various commodities have focused on creating a diverse set of product options, packaging designs, and logistic arrangements. This has raised the complexity in the supply chains by means of fragmented channels, expanding product variations, as well as increasing demand for customized solutions. The advanced countries in North America and Europe are observed to be the pioneers in the installations of 4PL solutions; whereas, the market is gathering pace in the developing countries of Asia. Hence, the growth of e-commerce, retail sector, and manufacturing sector coupled with the digitalization of infrastructures in the developing economies across the world are driving the adoption for 4PL based services. Positive economic outlook in the developing economies of the world, especially in the APAC region, is augmenting the growth of 4PL services.
During the forecast period, i.e. from 2020 to 2027, the growth outlook of fourth party logistics in all the major geographic regions estimated to be quite positive. However, due to ongoing COVID-19 outbreak, all the major countries in Europe, Asia Pacific, and North America have imposed strict restrictions on trade, movement of people/goods, and business activities. The lockdowns and restrictions are affecting the supply chains across the globe and thus affecting the revenue of the global fourth party logistics market players. The COVID-19 outbreak is anticipated to affect the growth rate of global fourth party logistics market in 2020 and early 2021, owing to the supply chain disruptions across the world and thus there is decline in y-o-y growth during these years. However, the growth is expected to normalize from 2021 onwards and the market is projected to grow at a steady pace from 2021 to 2027.
|Market Size Value in||US$ 56,472.1 Million in 2019|
|Market Size Value by||US$ 78,981.5 Million by 2027|
|Growth rate||CAGR of 4.5% from 2020-2027|
|No. of Pages||182|
|No. of Tables||56|
|No. of Charts & Figures||77|
|Historical data available||Yes|
|Segments covered||Type , and End User|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
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The emergence of fourth party logistics concept has essentially been a move towards removing all the bottlenecks from the complex global supply chain environment. Fourth party logistic (4PL) services is also termed as supply-chain-as-a-service, where the 4PL providers integrates itself with the customer company’s logistics department. This empowers the 4PL service providers with hands-on-approach to the entire operations involved in a supply chain ranging from order management to warehousing, and compliance regulations to supplier management. 4PL service providers would act as the single link of interface between various supply chain providers and client organization. With this, the 4PL providers manage all the operations with sophisticated resources to optimize and deliver valuable service to its customers.
Based on type, the fourth party logistics market is segmented into synergy plus operating model, solution integrator model, and industry innovator model.The solution integrator modelsegment held the largest share of the market in 2019. Largely, all B2B businesses focus on the solution integrator model for optimizing their supply chains and ensuring the best customer service. Consumers from food & beverage and retail sector prefer this type of business relationship with their 4PL service providers.
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The fourth party logistics services is used among different industry verticals under the name of enduser segment, which consists of automotive, consumer goods, healthcare, food & beverage, consumer electronics, retail, aerospace & defense, and others. The retail segment held the largest share of the market in 2019. With an increasing growth observed in the e-commerce sector, the retailers create parallel supply chains to fulfill both online and physical demand. 4PL services provide strategic vision and greater visibility of inventory which enable retailers to allocate stocks and meet the customer’s need.
Inorganic and organic growth strategiesare the commonly adopted strategies by companies to expand their market reach.
2020: UPS and Henry Schein, Inc. announced an agreement to explore as well as test variety of drone-delivery applications. These applications will examine the possibility of unmanned aerial vehicles in business-to-business (B2B) operating models. This initiative is anticipated to begin in 2020.
2020: XPO Logistics, Inc. signed a long-term partnership agreement with Mercedes-Benz Parts Logistics. This agreement will allow the company to manage distribution of parts in the UK with an integrated and digitally managed transportation network.
The List of Companies - Fourth Party Logistics Market