Fourth Party Logistics Market to 2027 - Global 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)
The global fourth party logistics market is accounted to US$ 54.06 Bn in 2018 and is expected to grow at a CAGR of 5.2% during the forecast period 2019 - 2027, to account to US$ 84.17 Bn by 2027. The global fourth party logistics market is experiencing steady growth in the forecast period on account of the adoptions of better and advanced logistics solutions. The continuous globalization, tough scenarios for retailers and other distributors came into existence, and thereby, use of value-added supply chain services among retail industries is gaining high momentum and is expected to propel entire fourth party logistics market. Need to manage entire processes beginning from a purchase order, warehouse receipt process, and distribution center to store logistics, need to manage complete logistics is required. The prominent e-commerce companies represents their lead logistic providers by keeping and maintaining overall supply chain proficiently in the fourth party logistics market. From many years, a significant portion of retailers uses logistic services to handle packaging, warehousing, transportation, and fulfillment. With a boom observed in the e-commerce sector, the retailers create parallel supply chains to fulfill both online and physical locations demand. The fourth party logistics provides strategic vision and greater visibility of inventory which enable retailers to allocate stocks and meet the customer's need. These services assist the retailers to effectively manage their operations effectively and efficiently, which is forecasted to bolster fourth party logistics market.
The e-commerce industry sustained its growth by continuous modify the supply chain. The expertise of supply chain puts extra efforts on solutions to make last-mile delivery efficient such as using crowdsourcing deliveries, click-and-collect technology, and pickup lockers. Increase in customers' expectations is putting pressure on the shippers to reconsider last mile delivery in the supply chain. Through this, it would ease the entry of new players into the market and would provide platform to logistics provider to cater maximum number of players. Also, the large e-commerce players focus on creating demand from their online websites and then fulfill the orders, using their supply chain and logistics functions, which was earlier outsourced to the third parties. Now the shippers concentrate on building utmost resilient supply chains to gain and retain the carrier capacity at the minimal costs. Such growth in retail and e-commerce industry is anticipated to gain traction endlessly in coming times which have a significant impact on the fourth party logistics market.
Fourth party logistics market by end user is segmented into aerospace and defense, automotive, consumer electronics, food and beverage, industrial, healthcare, retail, and others. The fourth party logistics in retail, e-commerce, and online business also helps in replenishing the store with its forward-deployed inventory in small stores, as these lags in having additional space to keep their inventory. Additional services offered by the logistics players is anticipated to have an positive impact on brick and mortar business and therefore is projected to accelerate growth of fourth party logistics market.
The overall fourth party logistics market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the fourth party logistics market. Also, multiple primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the fourth party logistics industry.
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