Logistics Services (3PL & 4PL) Market Ecosystem is also known as the third-party logistics provider. Such logistic providers offer outsourced logistic services to companies, and their services usually include freight forwarding, customs brokerage, inventory storage & management, shipping & distribution, and cross-docking, among others. Logistics Services (3PL & 4PL) Market Ecosystem functions well with both international and local distribution, resulting in a speedy delivery. Further, 3PL works well with bulk orders and fast-growing businesses, and it saves money and time through economies of scale.
However, Logistics Services (3PL & 4PL) market Ecosystem services can become expensive in case of a small quantity of orders, and it excludes flammable, hazardous, and perishable items. 3PL services are best suited for small and medium scale businesses. Logistics services are outsourced by most companies to reduce logistics-related costs and to focus on their core business process. The services provided by a third party logistics company includes warehousing, transportation, packaging and freight forwarding, and inventory management, amongst others.
A fourth party logistics organization manages the resources, infrastructure, technology, distribution, and procurement and provides supply chain solutions and other services to companies. The Global Logistics Services (3PL & 4PL) Market Ecosystem is expected to reach US$ 2,033.9 Bn by 2027, growing with a CAGR of 9.64% during the forecast period.
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The key companies operating in the field of Logistics Services (3PL & 4PL) market Ecosystem includes Allyn International Services, Inc., United Parcel Service of America, Inc., GEFCO Group, XPO Logistics, DHL Group, DB Schenker, DAMCO, LOGISTICS PLUS Inc., GEODIS, and CEVA Logistics, among others. Several other players are also functioning in the market, accounting for significant revenue shares year on year.
The e-commerce industry is expected to grow at a CAGR of 18.3% up to the year 2026, which is driving the global logistics services (3PL & 4PL) market Ecosystem. Increasing globalization has made it difficult for e-commerce companies to manage their supply chain processes. The value-added services provided by logistics service providers, such as the management of a company’s supply chain processes, warehousing, transportation, analyzing, and providing better solutions and technologies to handle business, and others, are increasing the market demand for 3PL 4PL Logistics.
Managing inventory for the e-commerce industry is a difficult task. The logistics service providers offer strategic vision and solutions to help these companies in operating more efficiently and effectively. With the expertise and knowledge in the field of supply chain management, logistics service providers give efficient last-mile delivery services to e-commerce firms.
The e-commerce giants focus on generating more demand for their products through their websites and on fulfilling these orders. It is made easier by outsourcing logistics and supply chain functions to logistics service providers.
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Service Type |
End-user |
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Transportation |
Automotive |
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Warehousing |
Consumer Electronics |
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Value-Added Services
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Healthcare |
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Others
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Industrial |
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Aerospace & Defense |
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Food & Beverages |
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Others |
Global Logistics Services (3PL & 4PL) Market Ecosystem
The Asia Pacific region is expected to hold the pole position in the Logistics Services (3PL & 4PL) market Ecosystem, owing to the increasing penetration of e-commerce across the region. The major providers such as Nippon express, Yusen Logistics, and APL Logistics are providing 3PL and 4PL services in the market. Increasing demand for logistic services from various e-commerce players in the Asia Pacific has boosted the growth of the logistic services market in the region. The growing need for effective delivery services and better customer experience has been met with the use of new platforms and technologies in the North American and European countries. The e-commerce industry has sustained its growth to modify the supply chain. The supply chain expertise puts extra efforts on solutions to make the last-mile delivery efficient, such as by using crowdsourcing deliveries, click-and-collect technology, and pickup lockers.
An increase in customers’ expectations is putting pressure on shippers to reconsider the last-mile delivery in the supply chain. Through this, it would ease the entry of new players into the market. Also, the large e-commerce players are focusing on creating demand from their online websites and then fulfill the orders, using their supply chain and logistics functions, which were earlier outsourced to third parties. Now, shippers are concentrating on building resilient supply chains to gain and retain the carrier capacity at minimal costs.
The market for 4PL is being influenced by consumer demands, where manufacturers of various commodities have focused on creating a diverse set of product options, packaging designs, as well as logistic arrangements. This has given rise to complexities in the supply chain in the form of fragmented channels, product variations, as well as increasing demand for customized solutions.
There are many trends that are having an impact on the market forecast. These, when evaluated from a company’s perspective, can drive growth. Our numerous consulting projects have generated sizeable synergies across all regions and all sizes of companies.
The major players operating in the global Logistics Services (3PL & 4PL) market Ecosystem are as follows:
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Company |
Ecosystem Positioning |
Total Revenue |
Region |
|
DHL Group |
Service Provider |
$ 66.7 Billion |
Global |
|
DSV (Denmark) |
Service Provider |
$ 11.4 Billion |
Global |
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DSC Logistics, Inc. |
Service Provider |
$ 14.2 Million |
Global |
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FedEx Corporation |
Service Provider |
$ 69 Billion |
Global |
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General Dynamics Corporation |
Service Provider |
$ 30.5 Billion |
Global |
Very few markets have interconnectivity with other markets like Logistics Services (3PL & 4PL) market Ecosystem. Our Interconnectivity module focuses on the key nodes of heterogenous markets in detail. Transport, Warehouse, Value-added services, etc., are some of our key researched markets.
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Trends |
Service Type |
End-user |
Impact |
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Globally, market players have been actively participating in the technology with respect to various aspects of the logistics such as WMS for warehousing, RFID for transportation, IoT for communication among different departments, cloud for data storage, and last-mile delivery software for delivery and route optimization for the truck drivers, among others. |
Warehouse |
Green Tea
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0.45%
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Robotics automation, ASRS and autonomous vehicles have benefitted the market in reducing cost incurred ,different departments along with increasing ROI on the overall investment on solutions and infrastructure. The investment and funding has also enabled advancement in logistics by different players |
Value-Added Services |
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0.57% |
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Consumer experience is a major factor in the logistics market for growth. The players are always striving hard to improve the consumer experience by providing them with the support during logistics and real-time information about products. This has been further advanced to reverse logistics which not only caters to the consumer issues but also focuses on recycling of the material and products, improving the profitability of company. |
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Industrial |
0.67% |
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Ecosystem Report – Table of Content
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