4PL Logistics Market To Reach USD 129.4 Billion By 2032 CAGR: 7.4%. Report By DataHorizzon Research
DataHorizzon Research
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DataHorizzon Research
According to DataHorizzon Research, The 4PL logistics market size was valued at USD 63.9 Billion in 2022 and is anticipated to reach USD 129.4 Billion by 2032 with a CAGR of 7.4%.
Fort Collins, Colorado, Oct. 02, 2023 (GLOBE NEWSWIRE) -- DataHorizzon Research Published a report titled, "4PL Logistics Market Size, Growth, Share, Statistics Report, By Type (Industry Innovator Model, Synergy Plus Operating Model, and Solution Integrator Model), By End-User, By Region Forecasts, 2023-2032."
According to DataHorizzon Research, The 4PL logistics market size was valued at USD 63.9 Billion in 2022 and is anticipated to reach USD 129.4 Billion by 2032 with a CAGR of 7.4%. The 4PL logistics market is expected to grow in the next few years, driven by several key factors. Some of the primary drivers of the 4PL logistics market include the rapid development of technologies such as cloud computing, artificial intelligence (AI), and the Internet of Things (IoT) drives innovation in the logistics industry.
4PL logistics, also known as fourth-party logistics, is a type of logistics outsourcing that involves a company outsourcing its entire supply chain management process to a 4PL provider. A 4PL provider acts as a strategic partner, overseeing and coordinating all aspects of the supply chain on behalf of the client company. Unlike third-party logistics (3PL), which typically provides transportation and warehousing services, 4PL logistics providers take a more comprehensive approach to logistics management. They manage the physical movement of the goods and handle the entire logistics process from end to end, including supply chain planning, optimization, and execution.
Effective management of supply chains is necessary as they continue to become more complex. 4PL logistics providers offer a range of technical services, including supply chain planning, optimization, and execution, which makes them an attractive option for companies looking to improve their logistics operations. By outsourcing logistics management to a 4PL provider, companies can benefit from cost savings due to economies of scale and reduced overhead. This can be especially attractive to small and medium-sized businesses that may not have the resources to manage logistics operations in-house.
While the 4PL logistics market is expected to grow over the next few years, some restraints, such as high initial and maintenance costs, may impact its growth. Implementing 4PL logistics solutions can require significant investments in technology and infrastructure. The ongoing maintenance and support costs can also be increased, which may discourage some companies from adopting these solutions.
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Countries Covered
U.S., Canada, U.K., Germany, France, China, Japan, India, South Korea, Brazil, Mexico, UAE, Saudi Arabia, and South Africa, among others
Major Market Players
DB Schenker, Allyn International Services, Inc., GEFCO Group, Deutsche Post AG, United Parcel Service, Inc., XPO Logistics, Inc., DAMCO, Logistics Plus Inc., GEODIS, and CEVA Logistics AG.
Segmentation Overview:
The global 4PL Logistics market has been segmented into type, end-user, and region. The solution integrator model is expected to hold the largest market share due to the growing attention by B2B businesses on optimizing the supply chain and customer service. The retail segment is leading the market due to growth in the e-commerce sector.
North America is a leading region for the 4PL Logistics market mainly due to the presence of established logistics companies and high-tech infrastructure. The US and Canada are the largest markets in the region, with the US accounting for most of the market share. The growth of the e-commerce sector, increasing demand for faster and more reliable delivery services, and the need for supply chain visibility are driving the growth of the 4PL logistics market in this region.
The global 4PL Logistics market growth is anticipated at a CAGR of 7.4% by 2032.
4PL logistics provider offers specialized expertise in managing these supply chains, making them an attractive option for companies looking to expand internationally. The feasibility of 4PL logistics enables significant market growth in the forecast period.
The retail segment is leading in the global market due to the growing e-commerce landscape.
An increasing demand from the food & beverage and retail sector for the solution integrator model dominates the 4PL type segment globally.
North America is a leading region for the 4PL logistics market, and the growth is attributed to the expanding logistics industry. Asia Pacific is a fast-growing market attributed to the emergence of novel technologies in the logistics industry.
Some prominent players in the 4PL Logistics market report include DB Schenker, Allyn International Services, Inc., GEFCO Group, Deutsche Post AG, United Parcel Service, Inc., XPO Logistics, Inc., DAMCO, Logistics Plus Inc., GEODIS, and CEVA Logistics AG.
Key Developments in the Industry:
In 2020, UPS and Henry Schein, Inc. contracted with the trial diversity study drone app. These programs will explore the potential of unmanned aerial vehicles in a business-to-business (B2B) model. The initiative is expected to begin in 2020.
In 2020, XPO Logistic Inc. signed a long-term cooperation agreement with Mercedes-Benz Parts.
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DataHorizzon is a market research and advisory company that assists organizations across the globe in formulating growth strategies for changing business dynamics. Its offerings include consulting services across enterprises and business insights to make actionable decisions. DHR’s comprehensive research methodology for predicting long-term and sustainable trends in the market facilitates complex decisions for organizations.
