Report Overview

Asia-Pacific Fourth Party Logistics (4PL) Market - Industry Trends & Forecast Report, 2029

Asia-Pacific fourth party logistics (4PL) market size was estimated at USD 19.69 billion in 2022. During the forecast period between 2023 and 2029, the size of Asia-Pacific fourth party logistics (4PL) market is projected to grow at a CAGR of 6.6% reaching a value of USD 30.79 billion by 2029. Major growth drivers for the Asia-Pacific fourth party logistics (4PL) market include the increasing economic growth and rising expansion of supply chain intricacies. Also, the adoption of dynamic logistics services by retail and consumer electronics end-users, alongside manufacturers' pursuit of improved inbound procurement and supplier collaboration management, are anticipated to further bolster the 4PL market in the foreseeable future. The advent of the 4PL concept marks a substantial stride in addressing the aforementioned challenges within the increasingly complex supply chain landscape. Notably, these developments intersect with various governmental initiatives aimed at boosting the e-commerce sector, contributing to the overall evolution and competitiveness of the 4PL market in the Asia Pacific region. Notably, governments in various economies, including India (such as Startup India, Make in India, Digital India, and Skill India), ASEAN nations (such as the ASEAN ICT Master Plan 2015 and ASEAN Broadband Corridor), and China (with multiple initiatives to enhance cross-border e-commerce administration and logistics), have undertaken measures to support e-commerce growth. These initiatives, in conjunction with the expanding 4PL landscape, are shaping the future of logistics and supply chain management in the region.

Asia-Pacific Fourth Party Logistics (4PL) Market – Overview

Fourth party logistics (4PL) services are also referred to as "supply-chain-as-a-service (SCaaS)." In this arrangement, 4PL service providers seamlessly integrate themselves with the logistics department of their client companies. This strategic alignment empowers players in the fourth-party logistics market to adopt a comprehensive, hands-on approach to managing the entire spectrum of supply chain operations, encompassing tasks ranging from order management and warehousing to regulatory compliance and supplier coordination. Essentially, a 4PL service provider assumes the pivotal role of serving as the singular point of contact between numerous supply chain participants and the client organization. Within this framework, the 4PL service provider takes charge of all operations, employing advanced resources and expertise to optimize processes and deliver enhanced value to its customers.

Asia-Pacific Fourth Party Logistics (4PL) Market

Growth Drivers

Increasing Demand for an Easy and Effective Supply Chain System

Asia-Pacific fourth party logistics (4PL) market is experiencing significant growth propelled by the increasing demand for streamlined and efficient supply chain systems. Businesses in the region are increasingly recognizing the benefits of outsourcing their logistics operations to 4PL providers, who offer a comprehensive approach to supply chain management. This surge in demand is driven by the need for cost-effective, integrated, and agile solutions to navigate the complexities of modern supply chains. As a result, the Asia-Pacific 4PL market is expanding rapidly to cater to these evolving logistics needs, positioning itself as a pivotal player in facilitating seamless and effective supply chain operations.

Restraints

High Cost of 4PL Services

The growth of the Asia-Pacific fourth party logistics (4PL) market may be hindered by the substantial cost associated with 4PL services. While 4PL providers offer comprehensive supply chain solutions, the expenses involved in implementing and maintaining such services can be prohibitive for some businesses. These costs encompass technology investments, operational fees, and ongoing management expenditures. As a result, many companies, particularly smaller enterprises, may find it challenging to justify the high expenditure, thereby limiting the adoption of 4PL services. Addressing the cost issue will be essential for the market to reach its full potential and cater to a broader range of businesses in the Asia-Pacific region.

Impact of COVID-19 on Asia-Pacific Fourth Party Logistics (4PL) Market

COVID-19 pandemic adversely affected the Asia-Pacific fourth party logistics (4PL) market. Initially, it was affected by supply chain disruptions and reduced demand in various industries. However, the market subsequently experienced a surge in demand for agile and resilient supply chain solutions. The crisis highlighted the importance of robust logistics and the need for 4PL services to adapt quickly to unforeseen challenges. Many companies began outsourcing logistics to navigate the complexities of the pandemic, fueling the market's growth. Also, the adoption of technology-driven solutions, such as real-time tracking and digital platforms, accelerated, reshaping the Asia Pacific 4PL market to meet the evolving demands of a post-pandemic world.

Asia-Pacific Fourth Party Logistics (4PL) Market

Segmental Coverage

Asia-Pacific Fourth Party Logistics (4PL) Market – By Type

By type, the Asia-Pacific fourth party logistics (4PL) market is bifurcated into Industry Innovator Model and Solution Integrator Model Synergy Plus Operating Model segments. The solution integrator model synergy plus operating model segment is expected to hold a higher share in the Asia-Pacific Fourth Party Logistics (4PL) market during the forecast period by type. This model, often referred to as the core 4PL model, entails 4PL providers taking on the responsibility of operating and overseeing a holistic end-to-end supply chain solution for a single client. Under this 4PL business model, resources, technology, and capabilities are harnessed from both the 4PL entity and complementary service providers to deliver a comprehensive supply chain solution, creating substantial value for their clientele. The Solution Integrator model is particularly favored by B2B enterprises seeking to optimize their supply chains and provide exemplary customer service. Notably, customers in the Food & Beverage and Retail sectors tend to prefer this type of collaborative business arrangement with their 4PL service providers.

Asia-Pacific Fourth Party Logistics (4PL) Market – By End User

On the basis of end user, the Asia-Pacific Fourth Party Logistics (4PL) (4PL) market is divided into Aerospace & Defense, Automotive, Consumer Electronics, Food & Beverages, Industrial, Retail, and Healthcare segments. The retail segment held the highest share in the Asia-Pacific Fourth Party Logistics (4PL) market by end user. The swift expansion of the e-commerce industry, combined with rising consumer expectations for tailored products and services, has driven the adoption of lead logistics providers within the retail supply chain. Fourth-party logistics (4PL) plays a pivotal role by offering a strategic perspective and enhancing inventory visibility, allowing retailers to efficiently allocate stocks and meet customer demands. A, 4PL facilitates the restocking of stores by strategically positioning inventory in smaller retail outlets, which often face constraints in terms of storage space to accommodate their inventory requirements.

Asia-Pacific Fourth Party Logistics (4PL) Market – By Region

Regionally, the Asia-Pacific Fourth Party Logistics (4PL) Market is divided into China, India, Japan, South Korea, Indonesia, Vietnam, Malaysia, and Rest of Asia Pacific. China is expected to dominate the Fourth Party Logistics (4PL) market within the Asia Pacific region throughout the forecast period, with the rest of the Asia Pacific following suit. China boasts the status of being the world's foremost manufacturer, ranging from shoes to heavy machinery. It holds a prominent global position in manufacturing passenger cars, commercial vehicles, and electronic product assembly. Consequently, Chinese manufacturing facilities are increasingly inclined to embrace 4PL services to efficiently manage their entire spectrum of supply chain operations, ultimately reducing capital expenditures. The rest of the Asia Pacific region encompasses countries such as Australia, Singapore, Malaysia, and others. The emerging Asian markets within this region are witnessing a growing demand for consumer electronics, stimulating the manufacturing sector to adopt innovative technologies to align with evolving consumer expectations. This shift is expected to foster the expansion of the Fourth Party Logistics market in the Asia Pacific region.

Competitive Landscape

Major players operating in the Asia-Pacific Fourth Party Logistics (4PL) market include Allyn International Services Inc., CEVA Logistics AG, DAMCO, DB Schenker, Deutsche Post AG, GEFCO Group, GEODIS, and Logistics Plus Inc. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Development

• In August 2023 - Janio, headquartered in Southeast Asia, is transforming the global e-commerce landscape with cutting-edge technology and innovative solutions. Their vision is to become the ultimate 4PL partner of choice for e-commerce brands, logistics service providers, and marketplaces by leveraging supply chain expertise, advanced analytics, and automation. With a digital-first approach and exceptional customer service, Janio is redefining 4PL and leading the way in shaping the future of e-commerce logistics.

Scope of the Report

By Type

• Industry Innovator Model

• Solution Integrator Model Synergy Plus Operating Model

By End User

• Aerospace & Defense

• Automotive

• Consumer Electronics

• Food & Beverages

• Industrial

• Retail

• Healthcare

By Country

• China

• India

• Japan

• South Korea

• Indonesia

• Vietnam

• Malaysia

• Rest of Asia Pacific

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Asia-Pacific Fourth Party Logistics (4PL) Market Insights
   1. Industry Value Chain Analysis
      1. DROC Analysis
   2. Growth Drivers
      1. 1. Increase in demand for an easy and effective supply chain system
         2. Rise in demand for customized solutions
      2. Restraints
         1. High cost of 4PL services
      3.  Opportunities
         1. Growth in the e-commerce market
      4. Challenges
         1. Lack of standardization
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Asia-Pacific Fourth Party Logistics (4PL) Market Overview
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Industry Innovator Model
         2. Solution Integrator Model Synergy Plus Operating Model
      2. By End User
         1. Aerospace & Defense
         2. Automotive
         3. Consumer Electronics
         4. Food & Beverages
         5. Industrial
         6. Retail
         7. Healthcare
         8. Others
      3. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Indonesia
         6. Vietnam
         7. Malaysia
         8. Rest of Asia Pacific
5. China Fourth Party Logistics (4PL) Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By End User
6. India Fourth Party Logistics (4PL) Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By End User
7. Japan Fourth Party Logistics (4PL) Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By End User
8. South Korea Fourth Party Logistics (4PL) Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By End User
9. Indonesia Fourth Party Logistics (4PL) Market
   1. Market Size & Forecast, 2019-2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
      2. By End User
10. Vietnam Fourth Party Logistics (4PL) Market
    1. Market Size & Forecast, 2019-2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By End User
11. Malaysia Fourth Party Logistics (4PL) Market
    1. Market Size & Forecast, 2019-2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By End User
12. Rest of Asia-Pacific Fourth Party Logistics (4PL) Market
    1. Market Size & Forecast, 2019-2029
       1. By Value (USD Million)
    2. Market Share & Forecast
       1. By Type
       2. By End User
13. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Asia-Pacific Fourth Party Logistics (4PL) Company Market Share Analysis, 2022
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
14. Impact of Covid-19 on Asia-Pacific Fourth Party Logistics (4PL) Market
15. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Allyn International Services Inc.
    2. CEVA Logistics AG
    3. DAMCO
    4. DB Schenker
    5. Deutsche Post AG
    6. GEFCO Group
    7. GEODIS
    8. Logistics Plus Inc.
    9. Other Prominent Players
16. Key Strategic Recommendations
17. Research Methodology
    1.  Qualitative Research
       1.  Primary & Secondary Research
    2.  Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Country
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Asia-Pacific Fourth Party Logistics (4PL) Systems Segmentation 

Figure 2       Asia-Pacific Fourth Party Logistics (4PL) Systems Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Asia-Pacific Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029        

Figure 5       Asia-Pacific Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 6       Asia-Pacific Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 7       Asia-Pacific Fourth Party Logistics (4PL) Systems Market Share, By Country, By Value, 2019-2029 

Figure 8       China Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029 

Figure 9       China Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 10     China Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 11     India Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029 

Figure 12     India Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 13     India Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 14     Japan Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029 

Figure 15     Japan Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 16     Japan Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 17     South Korea Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029        

Figure 18     South Korea Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 19     South Korea Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 20     Australia & New Zealand Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Figure 21     Australia & New Zealand Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029      

Figure 22     Australia & New Zealand Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029

Figure 23     Indonesia Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029        

Figure 24     Indonesia Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 25     Indonesia Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 26     Malaysia Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029        

Figure 27     Malaysia Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 28     Malaysia Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 29     Singapore Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029        

Figure 30     Singapore Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 31     Singapore Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 32     Vietnam Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029        

Figure 33     Vietnam Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 34     Vietnam Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

Figure 35     Rest of APAC Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029        

Figure 36     Rest of APAC Fourth Party Logistics (4PL) Systems Market Share, By Type, By Value, 2019-2029 

Figure 37     Rest of APAC Fourth Party Logistics (4PL) Systems Market Share, By End User, By Value, 2019-2029 

List of Tables

Table 1        Asia-Pacific Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 2        Asia-Pacific Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 3        Asia-Pacific Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 4        Asia-Pacific Fourth Party Logistics (4PL) Systems Market Size, By Country, By Value, 2019-2029

Table 5        China Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 6        China Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 7        China Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 8        India Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 9        India Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 10      India Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 11      Japan Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 12      Japan Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 13      Japan Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 14      South Korea Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 15      South Korea Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 16      South Korea Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 17      Australia & New Zealand Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 18      Australia & New Zealand Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 19      Australia & New Zealand Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 20      Indonesia Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 21      Indonesia Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 22      Indonesia Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 23      Malaysia Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 24      Malaysia Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 25      Malaysia Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 26      Singapore Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 27      Singapore Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 28      Singapore Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 29      Vietnam Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 30      Vietnam Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 31      Vietnam Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 32      Rest of APAC Fourth Party Logistics (4PL) Systems Market Size, By Value (USD Million), 2019-2029

Table 33      Rest of APAC Fourth Party Logistics (4PL) Systems Market Size, By Type, By Value, 2019-2029

Table 34      Rest of APAC Fourth Party Logistics (4PL) Systems Market Size, By End User, By Value, 2019-2029

Table 35      Allyn International Services Inc. Company Overview

Table 36      Allyn International Services Inc. Financial Overview

Table 37      CEVA Logistics AG Company Overview

Table 38      CEVA Logistics AG Financial Overview

Table 39      DAMCO Company Overview

Table 40      DAMCO Financial Overview

Table 41      DB Schenker Company Overview

Table 42      DB Schenker Financial Overview

Table 43      Deutsche Post AG Company Overview

Table 44      Deutsche Post AG Financial Overview

Table 45      GEFCO Group Company Overview

Table 46      GEFCO Group Financial Overview

Table 47      GEODIS Company Overview

Table 48      GEODIS Financial Overview

Table 49      Logistics Plus Inc. Company Overview

Table 50      Logistics Plus Inc. Financial Overview