Fourth Party Logistics (4PL) is anticipated to have CAGR of ~5% over 2019-2028. Logistics is said to be the management of the processes such as storing, acquiring, and transporting of resources at the end point. Fourth party logistics is among the most innovative form of outsourcing and has quickly been gaining popularity in the few years. The market is driven by the rise in demand for the customized solutions which would help the market to flourish in the coming years. The surge in complications in the operation process is anticipated to boost the industry. The rise in demand for the easier supply chain procedure from the different distributors and manufacturers would help the industry gain maximum revenue shares.
Top Driver: Adoption of Solution Integrator Model to boost the industry
Fourth Party Logistics (4PL) is projected to grow with the surge in the adoption of the solution integrator model. The key advantage in the solution integrator model is that it engages in operating and managing a comprehensive, which provides end-to-end supply chain solution for a single client. Furthermore, this business model influences the technology, resources, and capabilities of 4PL and complementary service providers to supervise a complete supply chain solution to deliver value to their customers. Food & beverage, and retail sector customers select this type of business relationship with their 4PL service providers. In addition, the solution is supposed to grow at the higher pace during the forecast period in the fourth party logistics industry.
Aerospace and Defense to Make Crucial Contribution to Growth of Global Fourth Party Logistics (4PL) Market
The market is segregated by end-user into Aerospace and Defense, Healthcare, Consumer Electronics, Automotive, Food and Beverage, Industrial, Retail, and Others. Among application segments of the global Fourth Party Logistics (4PL) market, Aerospace and Defense to gain maximum revenue shares in the forecast period. The surge in demand for the customized solutions in the Aerospace and Defense would help the industry grow in the coming years. Therefore, it is anticipated to create tremendous opportunities for lead logistics providers in the fourth party logistics market.
Surge in density of e-commerce companies to Benefit Asia-Pacific Market
The Asia Pacific is anticipated to gain maximum shares in the forecast period. Furthermore, the market in the region is expected to experience the highest CAGR in the coming years. This owes to the surge in the number of e-commerce companies in the region and also in the developing economies, especially in China and India is driving the market growth. The current trend of consumers is to have a higher preference to purchase products online and receive it at their doorstep. Additionally, this consumer behavior is anticipated to propel for the fourth party logistics market. North America gained a significant share in the fourth party logistics industry. The major companies are operating their business from this region. The presence of a large number of corporate companies in this region will help the industry to flourish in the next few years.
The growth in the population of patients suffering from Coronavirus disease-2 has led to a lockout situation, which as been enforced by the government of various countries. This is carried out in order to ensure the prevention of the spread of the infectious disease to the remaining majority of the population. The various industries have been experiencing a downfall due to this pandemic.
Players to Focus on Fourth Party Logistics (4PL)
The global Fourth Party Logistics (4PL) market leaders include Accenture Consulting, XPO Logistics, Inc., Global4PL Supply Chain Services, 4PL Insights LLC, C.H Robinson Worldwide, Ltd., Deloitte Touche Tohmatsu, Panalpina World Transport (Holding) Ltd., 4PL Group, Logistics Plus Inc., and CEVA Logistics.
Accenture Consulting: In May 2020, Accenture had acquired technology integrator PLM Systems, its second deal in Italy. Turin-based PLM Systems is a systems integrator that specialises in designing and building information systems for product lifecycle management. Such systems help companies manage all relevant information about a product from its inception to its disposal, and are mainly used by the engineering and innovation functions to facilitate their innovation and new product development process.
C.H. Robinson: In March 2019, Transportation and third party logistics (3PL) provider C.H. Robinson had expanded its worldwide network by paying $48 million to acquire a logistics service provider operating in Spain and Colombia. Eden Prairie, Minn.-based C.H. Robinson acquired The Space Cargo Group, a provider of international freight forwarding, customs brokerage, and other logistics services. The company plans to integrate Space Cargo into its Global Forwarding division and its Navisphere global technology platform.
Panalpina World Transport: In May 2017, Panalpina World Transport (Holding) Ltd had acquired a majority stake in Carelog Freight Service A/S and its subsidiaries, with the transaction completed in Copenhagen.
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