4PL logistics market is expected to reach 111.7 billion USD in 2031
The Allied Market market research report shows that global fourth-party (4PL) logistics in 2031 will reach 111.7 billion USD at a CAGR of 6.7%.
Allied Market publishes its “Fourth-Party Logistics Market (4PL)” report that includes metrics on logistics type and end-users. It is accompanied by an analysis of the industry’s global opportunities and a forecast for logistics in general for the period 2021-2031. According to the report, global 4PL logistics generated USD 57.9 billion in 2021. It is expected that by 2031, this index will reach USD 111.7 billion at a CAGR of 6.7%, extending from 2022-2031.
Increasing demand for supply chains, operational complexity and increasing demand for customized solutions have all contributed to the growth of the fourth-party logistics market. However, the fact that some businesses are forced to use external logistics services and changes in industry regulations in some countries are predicted by Allied Market to hinder the growth of the market.
On the other hand, the increasing demand for shopping on e-commerce and the explosion of this market is still expected to bring new opportunities in the future. Based on these types of service businesses in the logistics sector, the solution integration model segment will hold the highest market share in 2021 with about three-quarters of the global 4PL logistics market. This segment is estimated to maintain its leading position during the next 5-10 years.
Increased customer loyalty to online shopping coupled with widening opportunities such as cross-selling of products or services is expected to drive the adoption of the solution integration model in enterprise. However, the sector is forecast to experience only a peak CAGR of 11.2% from 2022 to 2031. Rapid industrialization and digitization have increased the need to adopt an innovation model in the industry. This is the main factor driving the growth of this segment.
In addition, the report also shows that the retail segment will maintain its leading position during the forecast period until 2031. Based on data on end users, the retail segment will account for the largest market share in 2021, closing and contributes nearly 1/5 of the global 4PL logistics market. The consumer electronics industry is forecasted to maintain its leading position in the next 10 years, expected to achieve the largest CAGR of 10% from 2022-2031.
This rapid pace is forecasted by Allied Market due to the increasing popularity of technology devices, contributing to changing people’s lifestyles and increasing per capita income. Furthermore, businesses’ continued investment in market research and development to launch new, enhanced feature-rich consumer electronics products has fueled the industry’s growth.
Based on the region, Asia – Pacific is the leading territory in the field of 4PL logistics. Followed by Europe and North America, holding the highest market share in terms of revenue in 2021, accounting for more than 2% of this entire market. This is attributed to the explosion of e-commerce in emerging economies.
In addition, the increasing adoption of outsourced logistics services in the region is driving the growth of the 4PL logistics market in the Asia Pacific. While Europe is expected to record the fastest CAGR of 8.4% from 2022-2031. This partly reflects the strong growth of e-commerce, retail, and manufacturing sectors and the process of digitizing infrastructure in European countries.
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