The management of acquiring, storing, and transporting of resources to its final destination is called logistics and outsourcing of logistics operations to a single partner who is responsible for designing, building, assessing, and measuring of the integrated supply chain solutions for the client, which is referred to as fourth-party logistics. The 4PL assembles, supervises, and manages the combination of warehouses, IT providers, business process management, shipping companies, freight forwarders, and various other agents. It offers various functionality in the management of inbound dynamic logistics, raw material supply, and demand-driven logistics. Thus, the responsibility of 4PL goes far beyond just ensuring timely delivery. At present, the growth of the e-commerce, retail, and manufacturing sector, coupled with the digitalization of infrastructure, is driving the adoption of 4PL-based services globally. For instance, in May 2022, A.P. Moller - Maersk announced a partnership with Decathlon to enhance Decathlon’s e-commerce capability by providing end-to-end logistics solutions with real-time tracking & visibility of each parcel via a single platform and cover the optimization of Decathlon’s “last mile” delivery in Singapore.
Increase in demand for an easy & effective supply chain system and increase in the complexities in the operation process drive the growth of the fourth party logistics market. In addition, rise in demand for customized solutions is also expected to drive the market growth. However, factors such as reluctance of companies to outsource the logistics function and changes in logistics regulations in different countries are expected to hinder the growth of the market. Further, increase in demand for consumer electronics and growth in the e-commerce market are factors that are anticipated to foster the market growth.
The fourth party logistics market is segmented on the basis of type, end-user, and region. On the basis of type, the market is categorized into industry innovator model, solution integrator model, and synergy plus operating model. On the basis of end user, it is divided into aerospace & defense, automotive, consumer electronics, food & beverages, industrial, retail, healthcare, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
4PL Group, 4PL Central Station, 4PL Consultancy Ltd., A.P. Moller - Maersk, Accenture, Allyn International Services, Inc., C.H. Robinson Worldwide, Inc., CEVA Logistics, DB Schenker, Deutsche Post AG, DSV, GEFCO, GEODIS, Global4PL, Logistics Plus Inc., Orkestra SCS, Phoenix Freight Systems, Primary Connect, Rhenus Group, and XPO Logistics Inc. are some of the leading players operating in the fourth party logistics (4PL) market.
Increase in demand for an easy & effective supply chain system and increase in the complexities in the operation process drive the growth of the fourth party logistics market. In addition, rise in demand for customized solutions is also expected to drive the market growth. However, factors such as reluctance of companies to outsource the logistics function and changes in logistics regulations in different countries are expected to hinder the growth of the market. Further, increase in demand for consumer electronics and growth in the e-commerce market are factors that are anticipated to foster the market growth.
The fourth party logistics market is segmented on the basis of type, end-user, and region. On the basis of type, the market is categorized into industry innovator model, solution integrator model, and synergy plus operating model. On the basis of end user, it is divided into aerospace & defense, automotive, consumer electronics, food & beverages, industrial, retail, healthcare, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.
4PL Group, 4PL Central Station, 4PL Consultancy Ltd., A.P. Moller - Maersk, Accenture, Allyn International Services, Inc., C.H. Robinson Worldwide, Inc., CEVA Logistics, DB Schenker, Deutsche Post AG, DSV, GEFCO, GEODIS, Global4PL, Logistics Plus Inc., Orkestra SCS, Phoenix Freight Systems, Primary Connect, Rhenus Group, and XPO Logistics Inc. are some of the leading players operating in the fourth party logistics (4PL) market.
KEY BENEFITS FOR STAKEHOLDERS
- This study presents analytical depiction of the global fourth party logistics market analysis along with current trends and future estimations to depict imminent investment pockets.
- The overall fourth party logistics market opportunity is determined by understanding profitable trends to gain a stronger foothold.
- The report presents information related to the key drivers, restraints, and opportunities of the global fourth party logistics market with a detailed impact analysis.
- The current fourth party logistics market is quantitatively analyzed from 2021 to 2031 to benchmark the financial competency.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.
Key Market Segments
By Type
- Industry Innovator Model
- Solution Integrator Model
- Synergy Plus Operating Model
By End User
- Aerospace Defense
- Automotive
- Consumer Electronics
- Food Beverages
- Industrial
- Retail
- Healthcare
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- 4PL Group
- 4PL Insights
- Accenture Consulting
- Allyn International Services, Inc.
- C.H Robinson Worldwide, Ltd.
- CEVA Logistics
- DAMCO
- DB Schenker
- Deloitte
- Deutsche Post AG
- GEFCO Group
- Global4PL Supply Chain Services
- Logistics Plus Inc.
- Panalpina World Transport
- United Parcel Service, Inc.
- XPO Logistics, Inc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: FOURTH PARTY LOGISTICS MARKET, BY TYPE
CHAPTER 5: FOURTH PARTY LOGISTICS MARKET, BY END USER
CHAPTER 6: FOURTH PARTY LOGISTICS MARKET, BY REGION
CHAPTER 7: COMPANY LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to the report, titled, “Fourth Party Logistics Market," the fourth party logistics market was valued at $57.9 billion in 2021, and is estimated to reach $111.7 billion by 2031, growing at a CAGR of 6.7% from 2022 to 2031.Fourth party logistics, popularly known as 4PL, is the model of outsourcing of logistics operations, where the service provider integrates with the company’s supply chain department. This logistics partner is responsible for assessing, designing, building, running, and measuring integrated supply chain solutions for the organization. It is rapidly emerging as the most innovative form of outsourcing & connecting a complex logistics structure for ease of operation. It handles the complete process-to-pay workflow, including the management of inbound raw material supply, dynamic logistics, demand-driven logistics, and global distribution. It also controls storage, packaging, and timely delivery of crucial and perishable products. global shift toward dynamic logistics, especially in consumer goods, food and beverage, and medical equipment, presents a large-scale opportunity for the fourth party logistics market. For instance, in August 2021, Primary Connect entered into a partnership with Walter & Wild, a leading food manufacturing company, to manage the collection & distribution of Walter & Wild’s brands, such as Hubbards, I Love Food, Aunt Betty’s, Hansells, Vitafresh, and Alfa One across storage facilities in New Zealand. The partnership serves as a great opportunity for Primary Connect to improve efficiencies for Walter & Wild with reduced transport costs by consolidating pick-ups from Walter & Wild’s Christchurch storage facility.
In addition, the fourth party logistics market has witnessed significant growth in recent years, owing to the improved customer service, reduction in operating costs, and emergence of a large number of manufacturers & regional logistics operators. Furthermore, the companies operating in the 4PL market have adopted partnerships, acquisitions, and business expansions to increase their market share and expand their geographical presence. For instance, in November 2021, Rhenus Group acquired Global Net Logistics, an international freight forwarder company based in Texas, U.S., to strengthen its road freight services and air & ocean solutions in the southwest region of the U.S. and provide door-to-door solutions to the customers.
Increase in demand for easy & effective supply chain system and increase in the complexities in the operation process propel the growth of the fourth party logistics market. In addition, rise in demand for customized solutions is also expected to drive the market growth. However, reluctance of companies to outsource the logistics function and changes in logistics regulations in different countries are expected to hinder the growth of the market. Further, increase in demand for consumer electronics and growth in the e-commerce market are anticipated to foster the market growth.
COVID-19 Impact Analysis
- The COVID-19 crisis is creating uncertainty in the 4PL market. Governments of different regions have announced total lockdown and temporarily shutdown of industries, thereby adversely affecting the overall production and sales. As a consequence of the coronavirus outbreak, important supply chains in the logistics and transportation industry are hampered, though differently across air, freight, and sea sectors. In addition, logistics firms, which are involved in the movement, storage, and flow of goods, have been directly affected by the COVID-19 pandemic. As an integral part of value chains, both within and across international borders, logistics firms facilitate trade & commerce and help businesses get their products to customers. According to research by Accenture, in 2021, 94% of Fortune 1000 companies witnessed supply chain disruptions from COVID-19, 75% of companies had a negative impact on business, and 55% plan to downgrade their growth outlooks. Therefore, supply chain disruptions to the sector caused by the pandemic impacted the fourth party logistics (4PL) market.
- Moreover, changes in consumers purchase behavior due to pandemic uncertainties could significantly impact the growth of the 4PL logistics market. With the growing internet penetration and smartphone usage, an increasingly shift to online shopping was witnessed within the consumers during lockdown. This resulted in a large-scale shift in consumer behavior, preferences, and expectations when it came to shopping & shipment deliveries. Hence, the growth is expected to normalize from 2021 onwards and the market is projected to grow at a steady pace from 2021 to 2031.
Key Findings of the Study
- By type, the industry innovator model segment dominated the global fourth party logistics market, in terms of growth rate.
- On the basis of end user, the consumer electronics segment is anticipated to exhibit a remarkable growth during the forecast period.
- By region, Europe is anticipated to exhibit a remarkable growth during the forecast period.
- 4PL Group, 4PL Central Station, 4PL Consultancy Ltd., A.P. Moller - Maersk, Accenture, Allyn International Services, Inc., C.H. Robinson Worldwide, Inc., CEVA Logistics, DB Schenker, Deutsche Post AG, DSV, GEFCO, GEODIS, Global4PL, Logistics Plus Inc., Orkestra SCS, Phoenix Freight Systems, Primary Connect, Rhenus Group, and XPO Logistics Inc. are the key market players operating in the fourth party logistics (4PL) market.
Companies Mentioned
- 4Pl Group
- 4Pl Insights
- Accenture Consulting
- Allyn International Services, Inc.
- C.H Robinson Worldwide, Ltd.
- Ceva Logistics
- Damco
- Db Schenker
- Deloitte
- Deutsche Post AG
- Gefco Group
- Global4Pl Supply Chain Services
- Logistics Plus Inc.
- Panalpina World Transport
- United Parcel Service, Inc.
- Xpo Logistics, Inc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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