PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1511325
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1511325
Fifth-party Logistics Market Forecasts to 2030 - Global Analysis By Service Type, Application and By Geography
According to Stratistics MRC, the Global Fifth-party Logistics (5PL) Market is accounted for $9.8 billion in 2024 and is expected to reach $15.5 billion by 2030 growing at a CAGR of 7.8% during the forecast period. Fifth-party logistics (5PL) are logistics providers that aggregate and manage the supply chain services of multiple third-party logistics (3PL) and fourth-party logistics (4PL) providers. They utilize advanced technologies and big data analytics to optimize and integrate the entire supply chain network, ensuring seamless and efficient operations. 5PL providers focus on strategic supply chain planning, leveraging extensive data and analytics to enhance decision-making, cost-efficiency, and overall supply chain performance for their clients.
According to the International Transport Forum (ITF), global freight transport is expected to grow by 3.4% annually until 2050.
Market Dynamics:
Driver:
Increasing complexity of global supply chains
The increasing complexity of global supply chains is a significant driver for the fifth-party logistics (5PL) market. As supply chains become more intricate with multiple stakeholders, diverse geographies, and varying regulations, the need for advanced logistics solutions grows. 5PL providers leverage cutting-edge technologies like AI, IoT, and blockchain to manage and optimize these complex networks, ensuring efficiency and cost-effectiveness. This complexity necessitates a higher level of integration and coordination, which 5PL providers are uniquely positioned to offer, driving market growth.
Restraint:
Limited availability of qualified 5PL service providers
The limited availability of qualified 5PL service providers is a notable restraint on market growth. The advanced nature of 5PL services requires specialized knowledge and expertise in managing complex supply chain networks and integrating advanced technologies. The scarcity of providers with the necessary skills and experience can hinder the adoption of 5PL solutions. Additionally, the high initial investment and technological infrastructure required to offer 5PL services further limit the number of qualified providers, slowing market expansion.
Opportunity:
Development of innovative 5PL service offerings
The development of innovative 5PL service offerings presents a substantial opportunity for market growth. As technology advances, 5PL providers can offer more sophisticated and tailored logistics solutions, such as real-time tracking, predictive analytics, and automated supply chain management. These innovations enhance supply chain visibility, efficiency, and responsiveness, meeting the evolving needs of businesses. By continuously innovating and expanding their service portfolios, 5PL providers can attract a broader range of clients and drive market growth.
Threat:
Geopolitical instability and trade wars
Geopolitical instability and trade wars pose significant threats to the 5PL market. Political tensions and trade conflicts can disrupt global supply chains, leading to increased costs, delays, and uncertainty. These disruptions can affect the smooth operation of 5PL services, as providers must navigate changing regulations, tariffs, and trade barriers. The unpredictability of geopolitical events can also impact investment decisions and long-term planning for 5PL providers, posing a challenge to market stability and growth.
Covid-19 Impact:
The Covid-19 pandemic had a profound impact on the 5PL market. It highlighted the importance of resilient and flexible supply chains, accelerating the adoption of 5PL services. While the pandemic caused initial disruptions, it also drove demand for advanced logistics solutions to manage increased e-commerce activity and supply chain complexities. The need for real-time tracking, visibility, and efficient logistics operations became more critical, boosting the 5PL market.
The warehousing and distribution management segment is expected to be the largest during the forecast period
The warehousing and distribution management segment is anticipated to be the largest due to its critical role in ensuring efficient storage, handling, and distribution of goods. As e-commerce and global trade expand, the demand for sophisticated warehousing solutions that can handle high volumes and ensure timely delivery increases. 5PL providers offer advanced warehousing and distribution management services, leveraging technology to optimize space utilization, inventory management, and order fulfillment, driving the growth of this segment.
The E-commerce segment is expected to have the highest CAGR during the forecast period
The E-commerce segment is expected to experience the highest CAGR, driven by the rapid growth of online shopping and the need for efficient logistics solutions to handle increased order volumes. 5PL providers offer comprehensive logistics services tailored to the unique demands of e-commerce, including real-time tracking, fast delivery, and returns management. The integration of advanced technologies such as AI and IoT enhances the efficiency and responsiveness of e-commerce logistics, contributing to the high growth rate of this segment.
Region with largest share:
The Asia Pacific region is expected to dominate the 5PL market due to its robust manufacturing base, rapid e-commerce growth, and significant investments in logistics infrastructure. Countries like China, India, and Japan are leading the adoption of advanced logistics solutions to manage complex supply chains and meet the demands of a growing consumer base. The region's focus on technological innovation and the expansion of international trade further support its dominant market position.
Region with highest CAGR:
The Asia Pacific region is also projected to have the highest CAGR, driven by the increasing adoption of 5PL services to manage the complexities of expanding e-commerce and manufacturing activities. The region's investment in technology-driven logistics solutions, such as AI, IoT, and blockchain, enhances supply chain efficiency and transparency. The growing trend of outsourcing logistics services to specialized 5PL providers further accelerates market growth in this region.
Key players in the market
Some of the key players in Fifth-party Logistics (5PL) Market include DHL Supply Chain, Kuehne + Nagel, DB Schenker, Nippon Express, C.H. Robinson, XPO Logistics, CEVA Logistics, DSV Panalpina, Ryder System, Inc., Sinotrans, Agility Logistics, UPS Supply Chain Solutions, Expeditors International, J.B. Hunt Transport Services, Penske Logistics, Yusen Logistics, Bollore Logistics, Kintetsu World Express and Hellmann Worldwide Logistics.
Key Developments:
In April 2024, XPO Logistics continues to expand logistics footprint, growing its warehousing business in France 42% in 2023 compared to the previous year. With its warehousing network currently comprising 315,000 m2 across 20 sites in France, the company intends to offer a growing array of value-added logistics that complement its broad range of transport services to provide true end-to-end supply chain solutions.
In October 2023, DHL Supply Chain committed EUR 350 million to expand its warehousing capacity, workforce, and sustainability initiatives in Southeast Asia. This investment aims to strengthen supply chain resiliency and support the growth of DHL's customers in the region.
Service Types Covered:
- Supply Chain Design and Strategy
- Network Optimization and Management
- Transportation Management
- Warehousing and Distribution Management
- Customs Brokerage and Trade Compliance
- Other Services
Applications Covered:
- E-commerce
- Manufacturing
- Healthcare
- Retail
- Automotive
- Other Applications
Regions Covered:
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- UK
- Italy
- France
- Spain
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia
- New Zealand
- South Korea
- Rest of Asia Pacific
- South America
- Argentina
- Brazil
- Chile
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- UAE
- Qatar
- South Africa
- Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
- Company Profiling
- Comprehensive profiling of additional market players (up to 3)
- SWOT Analysis of key players (up to 3)
- Regional Segmentation
- Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
- Competitive Benchmarking
- Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
- 2.1 Abstract
- 2.2 Stake Holders
- 2.3 Research Scope
- 2.4 Research Methodology
- 2.4.1 Data Mining
- 2.4.2 Data Analysis
- 2.4.3 Data Validation
- 2.4.4 Research Approach
- 2.5 Research Sources
- 2.5.1 Primary Research Sources
- 2.5.2 Secondary Research Sources
- 2.5.3 Assumptions
3 Market Trend Analysis
- 3.1 Introduction
- 3.2 Drivers
- 3.3 Restraints
- 3.4 Opportunities
- 3.5 Threats
- 3.6 Application Analysis
- 3.7 Emerging Markets
- 3.8 Impact of Covid-19
4 Porters Five Force Analysis
- 4.1 Bargaining power of suppliers
- 4.2 Bargaining power of buyers
- 4.3 Threat of substitutes
- 4.4 Threat of new entrants
- 4.5 Competitive rivalry
5 Global Fifth-party Logistics (5PL) Market, By Service Type
- 5.1 Introduction
- 5.2 Supply Chain Design and Strategy
- 5.3 Network Optimization and Management
- 5.4 Transportation Management
- 5.5 Warehousing and Distribution Management
- 5.6 Customs Brokerage and Trade Compliance
- 5.7 Other Services
6 Global Fifth-party Logistics (5PL) Market, By Application
- 6.1 Introduction
- 6.2 E-commerce
- 6.3 Manufacturing
- 6.4 Healthcare
- 6.5 Retail
- 6.6 Automotive
- 6.7 Other Applications
7 Global Fifth-party Logistics (5PL) Market, By Geography
- 7.1 Introduction
- 7.2 North America
- 7.2.1 US
- 7.2.2 Canada
- 7.2.3 Mexico
- 7.3 Europe
- 7.3.1 Germany
- 7.3.2 UK
- 7.3.3 Italy
- 7.3.4 France
- 7.3.5 Spain
- 7.3.6 Rest of Europe
- 7.4 Asia Pacific
- 7.4.1 Japan
- 7.4.2 China
- 7.4.3 India
- 7.4.4 Australia
- 7.4.5 New Zealand
- 7.4.6 South Korea
- 7.4.7 Rest of Asia Pacific
- 7.5 South America
- 7.5.1 Argentina
- 7.5.2 Brazil
- 7.5.3 Chile
- 7.5.4 Rest of South America
- 7.6 Middle East & Africa
- 7.6.1 Saudi Arabia
- 7.6.2 UAE
- 7.6.3 Qatar
- 7.6.4 South Africa
- 7.6.5 Rest of Middle East & Africa
8 Key Developments
- 8.1 Agreements, Partnerships, Collaborations and Joint Ventures
- 8.2 Acquisitions & Mergers
- 8.3 New Product Launch
- 8.4 Expansions
- 8.5 Other Key Strategies
9 Company Profiling
- 9.1 DHL Supply Chain
- 9.2 Kuehne + Nagel
- 9.3 DB Schenker
- 9.4 Nippon Express
- 9.5 C.H. Robinson
- 9.6 XPO Logistics
- 9.7 CEVA Logistics
- 9.8 DSV Panalpina
- 9.9 Ryder System, Inc.
- 9.10 Sinotrans
- 9.11 Agility Logistics
- 9.12 UPS Supply Chain Solutions
- 9.13 Expeditors International
- 9.14 J.B. Hunt Transport Services
- 9.15 Penske Logistics
- 9.16 Yusen Logistics
- 9.17 Bollore Logistics
- 9.18 Kintetsu World Express
- 9.19 Hellmann Worldwide Logistics
List of Tables
- Table 1 Global Fifth-party Logistics (5PL) Market Outlook, By Region (2022-2030) ($MN)
- Table 2 Global Fifth-party Logistics (5PL) Market Outlook, By Service Type (2022-2030) ($MN)
- Table 3 Global Fifth-party Logistics (5PL) Market Outlook, By Supply Chain Design and Strategy (2022-2030) ($MN)
- Table 4 Global Fifth-party Logistics (5PL) Market Outlook, By Network Optimization and Management (2022-2030) ($MN)
- Table 5 Global Fifth-party Logistics (5PL) Market Outlook, By Transportation Management (2022-2030) ($MN)
- Table 6 Global Fifth-party Logistics (5PL) Market Outlook, By Warehousing and Distribution Management (2022-2030) ($MN)
- Table 7 Global Fifth-party Logistics (5PL) Market Outlook, By Customs Brokerage and Trade Compliance (2022-2030) ($MN)
- Table 8 Global Fifth-party Logistics (5PL) Market Outlook, By Other Services (2022-2030) ($MN)
- Table 9 Global Fifth-party Logistics (5PL) Market Outlook, By Application (2022-2030) ($MN)
- Table 10 Global Fifth-party Logistics (5PL) Market Outlook, By E-commerce (2022-2030) ($MN)
- Table 11 Global Fifth-party Logistics (5PL) Market Outlook, By Manufacturing (2022-2030) ($MN)
- Table 12 Global Fifth-party Logistics (5PL) Market Outlook, By Healthcare (2022-2030) ($MN)
- Table 13 Global Fifth-party Logistics (5PL) Market Outlook, By Retail (2022-2030) ($MN)
- Table 14 Global Fifth-party Logistics (5PL) Market Outlook, By Automotive (2022-2030) ($MN)
- Table 15 Global Fifth-party Logistics (5PL) Market Outlook, By Other Applications (2022-2030) ($MN)
- Table 16 North America Fifth-party Logistics (5PL) Market Outlook, By Country (2022-2030) ($MN)
- Table 17 North America Fifth-party Logistics (5PL) Market Outlook, By Service Type (2022-2030) ($MN)
- Table 18 North America Fifth-party Logistics (5PL) Market Outlook, By Supply Chain Design and Strategy (2022-2030) ($MN)
- Table 19 North America Fifth-party Logistics (5PL) Market Outlook, By Network Optimization and Management (2022-2030) ($MN)
- Table 20 North America Fifth-party Logistics (5PL) Market Outlook, By Transportation Management (2022-2030) ($MN)
- Table 21 North America Fifth-party Logistics (5PL) Market Outlook, By Warehousing and Distribution Management (2022-2030) ($MN)
- Table 22 North America Fifth-party Logistics (5PL) Market Outlook, By Customs Brokerage and Trade Compliance (2022-2030) ($MN)
- Table 23 North America Fifth-party Logistics (5PL) Market Outlook, By Other Services (2022-2030) ($MN)
- Table 24 North America Fifth-party Logistics (5PL) Market Outlook, By Application (2022-2030) ($MN)
- Table 25 North America Fifth-party Logistics (5PL) Market Outlook, By E-commerce (2022-2030) ($MN)
- Table 26 North America Fifth-party Logistics (5PL) Market Outlook, By Manufacturing (2022-2030) ($MN)
- Table 27 North America Fifth-party Logistics (5PL) Market Outlook, By Healthcare (2022-2030) ($MN)
- Table 28 North America Fifth-party Logistics (5PL) Market Outlook, By Retail (2022-2030) ($MN)
- Table 29 North America Fifth-party Logistics (5PL) Market Outlook, By Automotive (2022-2030) ($MN)
- Table 30 North America Fifth-party Logistics (5PL) Market Outlook, By Other Applications (2022-2030) ($MN)
- Table 31 Europe Fifth-party Logistics (5PL) Market Outlook, By Country (2022-2030) ($MN)
- Table 32 Europe Fifth-party Logistics (5PL) Market Outlook, By Service Type (2022-2030) ($MN)
- Table 33 Europe Fifth-party Logistics (5PL) Market Outlook, By Supply Chain Design and Strategy (2022-2030) ($MN)
- Table 34 Europe Fifth-party Logistics (5PL) Market Outlook, By Network Optimization and Management (2022-2030) ($MN)
- Table 35 Europe Fifth-party Logistics (5PL) Market Outlook, By Transportation Management (2022-2030) ($MN)
- Table 36 Europe Fifth-party Logistics (5PL) Market Outlook, By Warehousing and Distribution Management (2022-2030) ($MN)
- Table 37 Europe Fifth-party Logistics (5PL) Market Outlook, By Customs Brokerage and Trade Compliance (2022-2030) ($MN)
- Table 38 Europe Fifth-party Logistics (5PL) Market Outlook, By Other Services (2022-2030) ($MN)
- Table 39 Europe Fifth-party Logistics (5PL) Market Outlook, By Application (2022-2030) ($MN)
- Table 40 Europe Fifth-party Logistics (5PL) Market Outlook, By E-commerce (2022-2030) ($MN)
- Table 41 Europe Fifth-party Logistics (5PL) Market Outlook, By Manufacturing (2022-2030) ($MN)
- Table 42 Europe Fifth-party Logistics (5PL) Market Outlook, By Healthcare (2022-2030) ($MN)
- Table 43 Europe Fifth-party Logistics (5PL) Market Outlook, By Retail (2022-2030) ($MN)
- Table 44 Europe Fifth-party Logistics (5PL) Market Outlook, By Automotive (2022-2030) ($MN)
- Table 45 Europe Fifth-party Logistics (5PL) Market Outlook, By Other Applications (2022-2030) ($MN)
- Table 46 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Country (2022-2030) ($MN)
- Table 47 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Service Type (2022-2030) ($MN)
- Table 48 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Supply Chain Design and Strategy (2022-2030) ($MN)
- Table 49 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Network Optimization and Management (2022-2030) ($MN)
- Table 50 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Transportation Management (2022-2030) ($MN)
- Table 51 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Warehousing and Distribution Management (2022-2030) ($MN)
- Table 52 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Customs Brokerage and Trade Compliance (2022-2030) ($MN)
- Table 53 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Other Services (2022-2030) ($MN)
- Table 54 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Application (2022-2030) ($MN)
- Table 55 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By E-commerce (2022-2030) ($MN)
- Table 56 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Manufacturing (2022-2030) ($MN)
- Table 57 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Healthcare (2022-2030) ($MN)
- Table 58 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Retail (2022-2030) ($MN)
- Table 59 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Automotive (2022-2030) ($MN)
- Table 60 Asia Pacific Fifth-party Logistics (5PL) Market Outlook, By Other Applications (2022-2030) ($MN)
- Table 61 South America Fifth-party Logistics (5PL) Market Outlook, By Country (2022-2030) ($MN)
- Table 62 South America Fifth-party Logistics (5PL) Market Outlook, By Service Type (2022-2030) ($MN)
- Table 63 South America Fifth-party Logistics (5PL) Market Outlook, By Supply Chain Design and Strategy (2022-2030) ($MN)
- Table 64 South America Fifth-party Logistics (5PL) Market Outlook, By Network Optimization and Management (2022-2030) ($MN)
- Table 65 South America Fifth-party Logistics (5PL) Market Outlook, By Transportation Management (2022-2030) ($MN)
- Table 66 South America Fifth-party Logistics (5PL) Market Outlook, By Warehousing and Distribution Management (2022-2030) ($MN)
- Table 67 South America Fifth-party Logistics (5PL) Market Outlook, By Customs Brokerage and Trade Compliance (2022-2030) ($MN)
- Table 68 South America Fifth-party Logistics (5PL) Market Outlook, By Other Services (2022-2030) ($MN)
- Table 69 South America Fifth-party Logistics (5PL) Market Outlook, By Application (2022-2030) ($MN)
- Table 70 South America Fifth-party Logistics (5PL) Market Outlook, By E-commerce (2022-2030) ($MN)
- Table 71 South America Fifth-party Logistics (5PL) Market Outlook, By Manufacturing (2022-2030) ($MN)
- Table 72 South America Fifth-party Logistics (5PL) Market Outlook, By Healthcare (2022-2030) ($MN)
- Table 73 South America Fifth-party Logistics (5PL) Market Outlook, By Retail (2022-2030) ($MN)
- Table 74 South America Fifth-party Logistics (5PL) Market Outlook, By Automotive (2022-2030) ($MN)
- Table 75 South America Fifth-party Logistics (5PL) Market Outlook, By Other Applications (2022-2030) ($MN)
- Table 76 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Country (2022-2030) ($MN)
- Table 77 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Service Type (2022-2030) ($MN)
- Table 78 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Supply Chain Design and Strategy (2022-2030) ($MN)
- Table 79 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Network Optimization and Management (2022-2030) ($MN)
- Table 80 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Transportation Management (2022-2030) ($MN)
- Table 81 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Warehousing and Distribution Management (2022-2030) ($MN)
- Table 82 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Customs Brokerage and Trade Compliance (2022-2030) ($MN)
- Table 83 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Other Services (2022-2030) ($MN)
- Table 84 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Application (2022-2030) ($MN)
- Table 85 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By E-commerce (2022-2030) ($MN)
- Table 86 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Manufacturing (2022-2030) ($MN)
- Table 87 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Healthcare (2022-2030) ($MN)
- Table 88 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Retail (2022-2030) ($MN)
- Table 89 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Automotive (2022-2030) ($MN)
- Table 90 Middle East & Africa Fifth-party Logistics (5PL) Market Outlook, By Other Applications (2022-2030) ($MN)
