Fifth-party (5PL) Logistics Market is predicted to reach USD 14.98 Billion at a CAGR of 6.5% during the forecast period

Market Research Future (MRFR) has published a cooked research report on the “Global Fifth-party (5PL) Logistics Market” that contains information from 2022 to 2030. The Global Fifth-party (5PL) Logistics Market is estimated to register a CAGR of 6.5% during the forecast period of 2022 to 2030.

MRFR recognizes the following companies as the key players in the Global Fifth-party (5PL) Logistics Market Bain & Company Inc, 5PL Logistics Solutions, Deloitte, Boston Consulting Group (BCG), Maine Pointe, DHL International, MGL Global Logistics, McKinsey & Company, Toll Holdings Ltd, Renaissance Network Reinvent.

Fifth Party 5pl Logistics Market Highlights

The Global Fifth-party (5PL) Logistics Market is accounted to register a CAGR of 6.5% during the forecast period and is estimated to reach USD 14.98 Billion by 2030.

The Fifth-Party Logistics (5PL) Market refers to the global industry that involves the outsourcing of logistics and supply chain management services to a fifth-party logistics provider. In the 5PL model, the logistics provider acts as a strategic partner, overseeing and coordinating the entire supply chain process, including transportation, warehousing, inventory management, order fulfillment, and other logistics activities. The 5PL market has witnessed significant growth in recent years as businesses seek more sophisticated and holistic solutions to manage their supply chains efficiently and respond effectively to the dynamic global market demands.

Segment Analysis

The Global Fifth-party (5PL) Logistics Market has been segmented based on Type, and Application.

Based on Type, the market is segmented into Transportation, Warehousing, Other Services the transportation category stands out as the largest revenue generator, contributing 44% of the market revenue. The growth in demand for multimodal transportation techniques, which optimize route planning while minimizing transportation costs, has been a significant factor in driving the expansion of this segment.

Based on Application, the Market has been segmented E-commerce, Traders, Logistics Company, Others. the e-commerce segment dominates the global market, accounting for 38% of the total market revenue (amounting to $3.2 billion). This dominance can be attributed to the rise of omnichannel retailing, multi-channel distribution, and the increasing number of online customers. 5PL providers play a crucial role in the e-commerce sector, offering value-added services such as order fulfillment, packaging, and product return management, which are essential for meeting customer expectations in the fast-paced e-commerce environment.

Regional Analysis

The Global Fifth-party (5PL) Logistics Market, based on region, has been divided into North America, Europe, Asia-Pacific, and Rest of the World. North America consists of US and Canada. The Europe Global Fifth-party (5PL) Logistics Market comprises Germany, France, the UK, Italy, Spain, and the rest of Europe. The Global Fifth-party (5PL) Logistics Market in Asia-Pacific has been segmented into China, India, Japan, Australia, South Korea, and the rest of Asia-Pacific. The Rest of the World's Global Fifth-party (5PL) Logistics Market comprises of Middle East, Africa, and Latin America.

In 2022, the Asia Pacific fifth-party (5PL) logistics market recorded a total value of USD 3.89 billion and is projected to experience substantial growth with a significant CAGR during the study period. This expansion in the regional market can be attributed to several factors. First, there has been an upswing in trade activity, as the Asia Pacific region is witnessing increased business and commercial exchanges, which in turn drive the demand for efficient logistics services.

In terms of global market share, the European fifth-party (5PL) logistics market holds the second-largest position, mainly driven by the presence of well-established industries such as automotive, pharmaceuticals, and retail. The region is also witnessing a growing demand for 5PL logistics services due to the increasing adoption of advanced technologies like blockchain and the Internet of Things (IoT) in the logistics sector.

The North America fifth-party (5PL) logistics market is anticipated to exhibit the fastest compound annual growth rate (CAGR) from 2023 to 2032, supported by its robust infrastructure, strong regulatory framework, and highly mature logistics industry. The region is experiencing a rising demand for 5PL logistics services due to the presence of established players and a well-developed e-commerce sector.

Key Findings of the Study

·         The Global Fifth-party (5PL) Logistics Market is expected to reach USD 14.98 Billion by 2032, at a CAGR of 6.5% during the forecast period.

·         The U.S. fifth-party (5PL) logistics market held the largest market share, and the Canada fifth-party (5PL) logistics market was the fastest-growing market in the North American region.

·         Based on Type, the Market has been segmented into Transportation holding the largest market in 2022.

·         Svenska Kullager fabriken AB, NTN Corporation, Schaeffler Group, NSK Ltd., The Timken Company, JTEKT Corporation, Robert Bosch GmbH, The Danaher Corporation, GKN plc., and Minebea Mitsumi, Inc.