North America Fourth Party Logistics Market to Reach US$ 21.54 Bn at CAGR of 4.1% in 2027

North America Fourth Party Logistics Market to 2027 - Regional Analysis and Forecasts by Type (Synergy Plus Operating Model, Solution Integrator Model, and Industry Innovator Model); and End User (Aerospace & Defense, Automotive, Consumer Electronics, Food & Beverage, Industrial, Healthcare, Retail, and Others)

Publication Month : May 2019

  • Report Code : TIPRE00005048
  • Category : Automotive and Transportation
  • Status : Published
  • No. of Pages : 126
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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)

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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.
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, and End User

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
Country Scope

US, Canada

The List of Companies

  1. Allyn International Services Inc.
  2. CEVA Logistics AG
  3. DAMCO
  4. DB Schenker
  5. Deutsche Post AG
  6. GEFCO Group
  7. GEODIS
  8. Logistics Plus Inc.
  9. UPS Supply Chain Solutions
  10. XPO Logistics, Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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