Fourth-Party Logistics Market Regional Analysis:
North America Market Forecast
North America industry is expected to hold largest revenue share of 36.5% by 2035. The presence of industry giants, growth in the port trade, and a boom in the e-commerce sector are fuelling the need for advanced 4PL logistics in the region. The rise in port trade activities is increasing the demand for 4PL logistics that offer reliable and effective transportation and storage facilities. with effective outsourcing of transportation, warehousing, and distribution.
The U.S. 4PL logistics market is expected to increase at a healthy CAGR during the projected period. The digital shift in several organizations is driving the adoption of logistic solutions with advanced technologies. As advanced logistics mitigates errors and optimizes the supply chain, many organizations are employing these technologies, leading to 4PL logistics market growth.
In Canada, international trade is gaining a boom particularly due to agreements such as the United States-Canada- Mexico Agreement (USMCA). This economic relationship is boosting cross-border trade and simultaneously necessitating the demand for advanced and reliable 4PL logistic solutions. The 4PL logistics market players are finding lucrative opportunities as local companies are turning to 4PL logistics to aid in managing complex supply chains across multiple borders, ensuring compliance and optimized transportation.
Asia Pacific Market Statistics
Asia Pacific is one of the rapidly expanding 4PL logistics market owing to the rapid urbanization, increasing industrial activities, and digitalization trend. Many individuals in the region are migrating towards urban areas in search of job opportunities, trade, education, and more. This urban shift directly influences several sectors such as healthcare, food and beverages, and manufacturing, which subsequently fuels the demand for advanced 4PL in these industries for seamless supply chain and deliveries.
India is the burgeoning consumer market and continuous advancements in this sector are majorly driving the need for advanced logistics solutions. The swift digitalization among topmost businesses in India is creating a reliable and efficient supply chain environment in the country. India’s ambition to participate in the global value chain is to increase its participation from 40% to 50% and for that digital technologies are playing a vital role. Considering this trend, many logistic solution producers are entering the 4PL logistics market to earn high profits and strengthen the country’s supply chain through digital technologies.
China is well known for its robust e-commerce sector and the increasing demand from cross-borders is necessitating companies to adopt innovative and reliable logistic services. According to the International Trade Administration (IEA) report, China generates around 50% of global e-commerce transactions. This underscores that high e-commerce sales require advanced and reliable logistics services such as 4PL logistics for effective supply chain management and deliveries.
