Asia Pacific Fourth Party Logistics Market Industry Share, Market Types, Business Providers...

Asia Pacific Fourth Party Logistics Market Industry Share, Market Types, Business Providers and Future Forecasts to 2027


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Aug 10, 2020 (Market Insight Reports) —
Selbyville, Delaware Market Study Report Has Added A New Report On Asia Pacific Fourth Party Logistics Market That Provides A Comprehensive Review Of This Industry With Respect To The Driving Forces Influencing The Market Size. Comprising The Current And Future Trends Defining The Dynamics Of This Industry Vertical, This Report Also Incorporates The Regional Landscape Of Asia Pacific Fourth Party Logistics Market In Tandem With Its Competitive Terrain.

The Asia Pacific fourth party logistics market accounted for US$ 18.75 Bn in 2018 and is expected to grow at a CAGR of 6.3% over the forecast period 2019-2027, to account for US$ 32.28 Bn in 2027.

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The increasing complexities in supply chains demanding for outsourced logistics services is the key driver that is propelling the growth of the fourth party logistics market. Moreover, the factors such as the incorporation of effective logistics services by retail and consumer electronics end-users, and manufacturers seeking for inbound procurement and supplier collaborations management are expected to boost the fourth party logistics market growth in the forecast period.

A majority of the logistics customers and the industrial manufacturing sector today look for logistics service providers who are capable of managing their inbound procurement as well as supplier collaborations. Provisioning of inbound raw material supplier solution demands for a multi-tier solution that is capable of computing all required raw material as well as packaging needs. A 4PL solution includes the entire procure-to-pay process, which is managed as a part of their multi-party and multi-echelon network.

Further, a 4PL solution also offers supply chain operations planning to its customer, which empowers them with forwarding forecast planning in the creation of production schedules. These services also support in raw material plans for each factory that includes third-party co-packers and even contract manufacturers. Thus, an opportunity for the 4PL solution providers is created with the manufacturing industry that is expected to further flourish in the forecast period. The fourth party logistics market players are focusing on various initiatives to enhance their capabilities and boost their position in the market.

The fourth party logistics market is fragmented with the presence of several industries, and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the fourth party logistics market further.

For instance, the governments of different economies in the region have taken actions to boost the e-commerce sector of their country. For example, initiatives by the Indian government such as Start-up India, Make in India, Digital India, and Skill India are contributing to the e-commerce growth in India. Also, the e-commerce sector in the ASEAN countries is relatively underdeveloped as compared to economies such as Europe, the U.S., and China. Several initiatives have been introduced across the region to support the market growth, such as the ASEAN ICT Master plan 2015, and ASEAN Broadband Corridor.

Additional initiatives are taken by governments separately to support the growth of e-commerce. Moreover, the Chinese government has also made multiple initiatives to enhance administration, convenience, and logistics issues related to cross-border e-commerce. These initiative provide various benefits to the fourth party logistics-based companies located in the region, thus, increasing the growth of the fourth party logistics market.

Based on type, the solution integrator model segment is leading the fourth party logistics market and is expected to continue its dominance during the forecast period. The solution integrator model is known as the core 4PL model.

In the solution integrator model, the 4PL providers are engaged in operating and managing a comprehensive end-to-end supply chain solution for a single client. This business model for 4PL leverages the resources, technology, and capabilities of 4PL and complementary service providers for provisioning a comprehensive supply chain solution to deliver value to their customers. Mainly, all B2B businesses focus on the solution integrator model for optimizing their supply chains and ensuring the best customer service. Food & beverage, and retail sector customers prefer this type of business relationship with their 4PL service providers.

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. It also provides an overview and forecast for the fourth party logistics market based on all the segmentation provided for the Asia Pacific region.

Also, primary interviews were conducted with industry participants and commentators 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 market. Some of the players present in fourth party logistics market are Allyn International Services Inc., CEVA Logistics AG, DAMCO, DB Schenker, Deutsche Post AG, GEFCO Group, GEODIS, Logistics Plus Inc., UPS Supply Chain Solutions, and XPO Logistics, Inc. among others.

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