According to Facts and Factors Market Research, the global 4PL logistics market in 2019 was approximately USD 57.65 Billion. The market is expected to grow above a CAGR of 5.6% and is anticipated to reach over USD 84.43 Billion by 2026.
Supply chain logistics can be defined as the management of resources including procurement, storage, and transportation of resources to the receiving end. The fourth party logistics is the latest innovative form of supply chain outsourcing. It is a complete transfer of overall logistics management and not only the logistics task. The fourth party logistics offers various functionality in the management of inbound dynamic logistics, raw material supply, and demand-driven logistics.
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Top Market Players
- CEVA Logistics
- C.H Robinson Worldwide Ltd.
- XPO Logistics Inc.
- Accenture Consulting
- Panalpina World Transport (Holding) Ltd.
- 4PL Insights LLC.
- Global4PL Supply Chain Services
- Deloitte Touche Tohmatsu
- 4PL Group Logistics Plus Inc.
A large section of logistics customers and industrial manufacturing companies seek logistics service providers with high management capabilities and services for the management of inbound supplies. The inbound logistics handling requires a holistic solution for the management of all types of required material as well as the packaging need. The growing challenges and complexities in supply chain management have resulted in increased demand for outsourced logistics services. The 4PL services are intended to handle entire logistic management and are a major factor that is propelling the growth of the fourth party logistics market.
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Additionally, the manufacturers and retailer/distributors are seeking the incorporation of effective logistics services for inbound procurement and supplier collaboration management. These developments are further expected to propel the fourth party logistics market growth in the foreseeable future.
The solution integrator model is expected to continue dominance over the forecast period. In this model, the 4PL service providers offer end-to-end supply chain solutions to the customer. This market growth is owing to the range of services provided under this model to the client leading to increased demand for the solution integrator model-based 4PL services. This model finds major demand from the food and beverage industry.
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The e-commerce sector in the ASEAN countries is comparatively underdeveloped as compared to economies such as the U.S., Europe, and China. Numerous initiatives have been introduced across the ASEAN region to support the market growth, such as the ASEAN ICT Master plan 2015, and ASEAN Broadband Corridor. Additional initiatives are taken by individual governments to support the growth of e-commerce. Initiatives of the Chinese government to tackle logistics issues related to export through e-commerce. These initiatives generate multiple opportunities to the fourth party logistics-based companies located in the region, thus providing future growth prospectus for the growth of the fourth-party logistics market.
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This report segments the global 4PL logistics market as follow:
Global 4PL Logistics Market: By Type Segmentation Analysis
- Synergy Plus Operating Model
- Solution Integrator Model
- Industry Innovator Model
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