The global fourth party logistics market is expected to reach a market value of USD 78,446 by 2027, with a CAGR of 4.6% during the forecast period, 2020–2027. The global shift toward dynamic logistics, especially in consumer goods, food and beverage, and medical equipment, presents a large-scale opportunity for the 4PL market.
The installation of 4PL SCM networks to manage air and ocean channels in Southeast Asia and South America offers lucrative opportunities for revenue generation, as a majority of their trade and transportation is carried out via land. Sophisticated demand-driven strategies, real-time order processing, and inventory optimization can open new opportunities in the upcoming years. The proper integration of technology can co-ordinate services on various levels, thereby reducing additional charges for low-income countries.
Most transportation is managed after the order is created and processed. In today’s tech-savvy world led by digitalization, hundreds and thousands of domestic and international orders are placed every minute. Therefore, with enhanced vision and forecasting, 4PL can pre-determine consumer behavior across a particular region and build intelligent shipments based on the expected demand.
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The increasing struggle with the global logistics and supply chain has forced companies to contact local 3PLs that have little or no relationship with other providers. These companies can opt for technologically advanced 4PL, which offers global visibility and facilitates planning and execution for the global customer, OEM, contract manufacturers, suppliers, and carriers.
4PL can leverage today’s multi-enterprise cloud networks to aggregate multi-party shipments from one continent to another, known as the global fulfillment lane. No single company, even with enough volume and frequency, could match the reduced cost and supply variability offered by well-integrated fourth party logistic (4PL) services.
The solution integrator model segment by type is expected to grow at a CAGR of 4.3% during the forecast period, 2020–2027. Companies and organizations around the globe are partnering with 4PL providers to access back-end system integration, increased market transparency for goods and services, standardization and automation of order placement, and reduced procurement costs and order cycle times. For example, in October 2018, Opel and Vauxhall brands renewed their 4PL partnership with GEFCO for the integration of supply chain networks for a four-year period.
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The automotive sector is expected to grow at the highest CAGR of 4.75% during the forecast period, 2020–2027. The high cost of investment required to change obsolete systems has increased the demand for more sophisticated ways to manage supply chain networks by OEMs. 4PL ensures the right transport of parts and equipment by consignment basis — parcel, groupage, full truck load (FTL), ocean, or air — in the automotive sector.
The India FPL market was valued at USD 2,498 million in 2019. The country offers lucrative opportunities for the growth of 4PL as a provider of a well-connected and organized supply chain network in upcoming years. India ranked 44th in the World Bank’s Logistics Performance Index (LPI) in terms of overall logistics performance in 2018.
An article on the Indian logistics sector published on the ‘Make in India’ site in June 2019 states that the Indian logistics sector is currently valued at USD 160 billion and expected to grow to USD 215 billion during the forecast period. The sector is one of the largest job providers in the country and employs more than 22 million people.
Some of the key players operating in the market are C.H. Robinson Worldwide, Inc., Accenture Consulting, XPO Logistics, Inc., 4PL Group, Panalpina World Transport (Holding) Ltd., Deloitte Touche Tohmatsu LLC, Global4PL, Logistics Plus Inc., CEVA Logistics, and DAMCO (A.P. Møller Mærsk Group).
Fourth Party Logistics Market Segmentation
" Crucial Insights The Report Provides:"
* Known and Unknown Adjacencies Influencing the Growth of Market
* Explorable Revenue Sources
* Customer Behaviour Analysis
* Target Partners
* Customized Geographical Data Based on Customers as well as Competitors
* Analysis of Market Size and CAGR between the Forecast PeriodsView Full Report Buy This Report Now