North America Fourth Party Logistics Market Dynamics and Trends by 2027

Fourth Party Logistics market in North America is expected to grow from US$ 15.19 Bn in 2018 to US$ 21.54 Bn by the year 2027. This represents a CAGR of 4.1% from the year 2019 to 2027.

The technological advancements in the manufacturing sector and the emergence of Industry 4.0 are fueling the growth of the fourth party logistics market. Moreover, the retail and consumer electronics sector focus on adopting dynamic logistics, which in turn is anticipated to boost fourth party logistics market growth in the forecast period. The manufacturers of various products face stiff competition with their competitors on account of costs, quality, service, and time-to-market. Also, manufacturers have faced monumental challenges concerning maintaining a perfect balance between the demand and supply of the product in the diverse geographies. Manufacturing industries thus tend to focus more on their core competencies of manufacturing and outsource the rest to other stakeholders in the value chain. The need for an efficient supply chain system for the manufacturing sector seemed to be imminent as fourth party logistics providers focus on all aspects of supply chain management and provide advanced and assured management of goods from the production line until the consumer and reverse.

Moreover, Fourth party logistic market players provide the required coordination between OEM sites, contract manufacturer's sites, suppliers, and the logistics providers and all other parties involved to fulfill the consumer demands. Thus, the commodity and consumer goods sector moving towards provisioning of dynamic logistics demands to their customer brings in greater opportunities for the fourth party logistics market players to play a crucial role.

The Solution Integrator Model segment is the leading type with highest CAGR in North America fourth party logistics market. The solution integrator model is known as the core 4PL model. In the solution integrator model, the 4PL providers are 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 US is anticipated to lead the fourth party logistics market across the North American region through the forecast period. In the forthcoming years, the robust macroeconomic growth in the US grounded into corporate tax cuts and the sturdy labor market is expected to boost logistics demand. Another factor to have significant influence of fourth party logistics market is burgeoning imports and exports. Further, Mexico ranks ninth among the largest economies globally and consists of several industries including food & beverages, chemicals, petroleum, and oil among others. Due to low labor costs, several US-based and other companies are shifting their manufacturing base to Mexico, which in turns widen the scope for import-export trade and logistical processes to be carried. Growing concentration of manufacturing industries and increasing trade relations of Mexico with other countries of the world imply positive outlook in the coming years for the fourth party logistics market. The figure given below highlights the revenue share of the US in the North American fourth party logistics market in the forecast period:

Mexico Fourth Party Logistics Market Revenue and Forecasts to 2027 (US$ Bn)

NORTH AMERICA 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

• U.S.• Canada• Mexico

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.

North America Fourth Party Logistics Report Scope