Dublin, Oct. 17, 2024 (GLOBE NEWSWIRE) -- The "US Fourth-Party Logistics (4PL) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024-2029)" report has been added to ResearchAndMarkets.com's offering.
The United States Fourth-Party Logistics Market size is estimated at USD 15.16 billion in 2024, and is expected to reach USD 20.30 billion by 2029, growing at a CAGR of 6.01% during the forecast period (2024-2029).
During the forecast period, it is predicted that the US will dominate the fourth-party logistics market in North America. Demand for logistics is anticipated to increase in the future years as a result of the US's strong macroeconomic development, which corporate tax cuts and a stable labor market have fueled. Growing imports and exports are another issue that will have a substantial impact on the fourth-party logistics business. Additionally, Mexico is home to a number of industries, including food and beverage, chemicals, oil, and petroleum, ranking it tenth among the world's largest economies.
Due to Mexico's affordable labor, a number of US-based and foreign companies are moving their manufacturing operations there, which expands the opportunities for import-export commerce and logistical operations. Positive prospects for the fourth-party logistics market in the upcoming years are suggested by the growing concentration of manufacturing industries and Mexico's expanding trade links with other nations of the world.
Today's businesses generate a wide variety of items and do business globally. The management of the manufacturing supply chain has become extremely difficult as a result of all of this. In order to satisfy their client's expectations, these outside providers (4PL) develop imaginative and comprehensive services. The necessity for an effective and user-friendly supply chain system is increasing as corporate operations get more complex, and this is why the fourth-party logistics market is expanding. Additionally anticipated to fuel market expansion is a surge in demand for customized solutions. However, factors such as businesses' reluctance to outsource the logistics function and changes in the law are anticipated to hinder the market's growth.
The logistics, transportation, and e-commerce sectors are gradually adapting their methods to provide a pertinent, responsible logistics solution that emits less carbon as a result of consumer demand for eco-friendly solutions. The use of recyclable materials to reduce waste, the use of solar, wind, and other renewable energy sources, the construction of hybrid assembly lines, and the creation of efficient workstations are some methods for achieving this. According to reports, 80% of consumers prefer to make repeat purchases from businesses that recycle their garbage. Supply networks and how to break them have never been the most crucial issue since the outbreak of the epidemic. To ensure that commodities are delivered from the point of manufacture to the point of use and satisfy customer expectations, transportation and logistics are crucial.
At present, the United States represents one of the key markets for logistics in the world, with a highly integrated supply chain network that links producers and consumers through multiple transportation modes, such as air and express delivery services, freight rail, maritime transport, and truck transport.
US Fourth-Party Logistics (4PL) Market Trends
Ecommerce Industry Driving Growth in the Market
- The market for fourth-party logistics is expanding quickly due to factors such as rising globalization, shifting consumer behavior, and businesses' need to cut costs while boosting operational efficacy. The market also gains from technological developments like artificial intelligence, machine learning, cloud computing, and the Internet of Things, which enable 4PL providers to efficiently and accurately handle intricate supply chain networks.
- By 2023, ecommerce sales in the United States are expected to reach USD 1.01 trillion, overtaking Japan as the second-largest market. Within the US e-commerce market, ecommerceDB takes into account five markets. The largest market in the United States and the source of 27.3% of ecommerce sales is food & personal care. Following it are toys, hobby & DIY (25.6%), fashion (20.5%), furniture & Appliances (13.4%), and electronics & media (12.8%).
- Along with the rise in customer demand for quick deliveries, the e-commerce sector is growing. Today, more people prefer same-day and one-day deliveries. To meet the needs of their customers for quick services, major retailers have started to offer logistical services. Additionally, as e-commerce grows, there will be a rise in the need for logistics services due to speedy delivery and inventory control.
- The demand for 4PL service providers would significantly increase in tier three to five cities where the need for logistics services has increased. These elements are predicted to fuel the logistics services (4PL) market growth throughout the forecast period. The United States holds a significant share of the global 4PL market as it has an extensive transportation network and supports the growth of the healthcare and pharmaceutical sectors.
Technology Integration Expanding and Propelling the Industry
- The concept of a "fourth-party supply chain" is a significant step towards solving most issues brought on by the convoluted international supply chain. The expansion of several end users, including those in the consumer electronics, automotive, retail, food & beverage, and healthcare sectors, is also anticipated to contribute to the expansion of the worldwide 4PL logistics market.
- Retailers, for instance, must set up a parallel supply chain to accommodate the demand for in-store and online purchases due to the expansion of e-commerce and the digitalization of infrastructure in developing nations. Thanks to 4PL services, which aid in developing a strategic vision and improving inventory visibility, retailers may more effectively allocate stock to meet the rising needs of their customers. By utilizing these services, producers can concentrate on developing a superior and more innovative product portfolio by managing their complex supply chains.
- Fast-moving consumer goods (FMCG) are in high demand; thus, maintaining high manufacturing standards and precise stock levels is imperative. To do this, businesses must comprehend predicted facts and make judgments immediately. Technology can be used to input, analyze, and act on this data to successfully control the flow of products. Businesses can have a deeper understanding of the consumers of their products with greater data integration. This helps the organization better address short-term client demand while also enabling enhanced long-term planning and forecasting. With advanced data analytics, distributors and retailers can keep track of their inventory. By using historical sales data, consumer habits, and other factors, retailers can place more precise orders.
US Fourth-Party Logistics (4PL) Industry Overview
The United States fourth-party logistics 4PL market is fairly fragmented, with various domestic and international players, including UPS Supply Chain Solutions, Inc., DB Schenker, GEODIS, and Xpo Inc. etc, in the market. The top companies are extensively innovating to leverage the opportunities developing in the market. The integration of Texlog into the operations of Logifashion in Colombia is one example. This merger has boosted the logistics capacity of Logifashion in the country, expanding the custody and special services capacity for textile raw materials.
Key Topics Covered
1 INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Growing need for simple and effective supply chain systems
4.2.2 Increase in demand for household appliances
4.3 Market Opportunities
4.3.1 The growth of intelligent and innovative IT solutions has further developed the logistics industry
4.3.2 The rise of the e-commerce sector and the digitization of infrastructure in emerging markets
4.4 Market Restraints
4.5 Porter's Five Forces Analysis
4.6 Impact of COVID-19 on the market
4.7 Insights on technological advancements in the 4PL Logistics market
4.8 Insights on Government Policies & Regulations in the 4PL Logistics Market
5 MARKET SEGMENTATION
5.1 By Operating Model
5.1.1 Lead Logistics Provider (LLP)
5.1.2 Solution Integrator Model
5.1.3 Digital Platform Solutions Provider (4PL)
5.2 By End-user
5.2.1 FMCG
5.2.2 Retail
5.2.3 Fashion and Lifestyle
5.2.4 Reefer
5.2.5 Technology
5.2.6 Other End-users
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 UPS Supply Chain Solutions, Inc.
6.2.2 DB Schenker
6.2.3 Geodis
6.2.4 Gefco Group
6.2.5 XPO Inc.
6.2.6 Deutsche Post AG
6.2.7 Logistics Plus Inc.
6.2.8 Allyn International Services Inc.
6.2.9 Amazon Logistics
6.2.10 Damco USA LLC
6.3 Other Companies
7 FUTURE OUTLOOK
8 APPENDIX
For more information about this report visit https://www.researchandmarkets.com/r/ac5o1r
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