Fairfield Market Research Fifth-Party Logistics (5PL) Market Size, Share, Report, Type 2030

Fifth-Party Logistics (5PL) Market

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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Industry: Automotive & Transport


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Global fifth-party logistics market is likely to exhibit a promising growth curve as far as the short-term outlook is considered. The report will uncover the insights into how the market growth will unfold in the next few years.

Key Report Findings

  • Technological advancements to play a crucial role in boosting 5PL service adoption
  • End-use industries to boost market growth prospects for the fifth-party logistics market
  • Demand for sustainable logistics solutions to fuel growth opportunities in 5PL industry
  • Growing significance of real-time shipment tracking to elevate growth prospects
  • Europe to make immense strides in regional prowess over the forecast period

Market Analysis in Brief

Third-party logistics service providers have been prevalent across industries for more than a decade now. Adoption of 3PL among small and mid-sized businesses besides large companies has been constantly on the rise since then. While 5PL is an infant segment of logistics industry, it holds the promise to cover the widest range of end users with its capabilities of managing the entire supply chain networks. The vendors in fifth-party logistics market are predominantly eying businesses in the proliferating e-Commerce industry. The industry is more likely to demonstrate impressive growth across Europe, and the key markets of Asia, and North America.

Growth Drivers

Increasing Complexity of Supply Chains Across Industries

The global supply chain is becoming increasingly complex, with various logistics service providers involved in managing various aspects of the supply chain. 5PL service providers allow for the streamlining and managing of these complex logistics operations, offering a single point of contact for logistics management. Moreover, various advancements in technology, such as IoT, cloud computing, and big data analytics, continue to make it easier to manage and track the movement of goods across multiple channels. This is another element that is expected to have a major impact on the growth trajectory of the global fifth-party logistics market.

Growing Demand for Real-time Tracking, Visibility, and Sustainable Logistics

The need to optimize the supply chain process and to reduce operational costs, as well as the growing demand for real-time tracking and visibility of shipments to boost customer loyalty and satisfaction are major elements that are expected to play a vital role in fueling growth prospects for the various players engaged in the fifth-party logistics market. Additionally, the demand for sustainable logistics practices, including the improving of supply chain transparency and reducing of carbon emissions are expected to augment market growth opportunities as 5PL providers can aid companies in achieving these goals by managing their logistics operations in a more transparent and sustainable way.

Growth Challenges

Lack of Technological Awareness, and High Implementation Costs

Fifth-party logistics is still relatively new, with many companies not being aware of the benefits associated with using a 5PL provider. This could potentially limit further growth of this global market as many companies may resort to managing their logistics operations in-house or by working with multiple logistics service providers. Additionally, the implementation of 5PL solutions may be costly, specifically for smaller-sized businesses with limited resources. These businesses may need to invest in newer technology and systems to integrate with the 5PL provider. These factors may lower the adoption rates of 5PL solutions, thus hindering the further progression of players in the global fifth-party logistics market.

COVID-19 Impact

The onset of the COVID-19 pandemic resulted in the imposing of restrictions by respective governments on the movement of people and goods, as well as the hampered supply of necessary raw materials, among other operational hurdles. This led to a significant decline in generated revenues for many industries and this was no different for the global fifth-party logistics market. However, as restrictions were gradually relaxed, post the 3rd and 4th waves, the global fifth-party logistics industry regressed to its pre-COVID state of projected operations. Nonetheless, the onset of this pandemic had accelerated the adoption of fifth-party logistics solutions as companies looked for ways to improve their supply chain resilience and adapt to changing market conditions or scenarios.

Growth Opportunities Across Regions

Asia Pacific to Grow Lucrative, Europe to Surge Ahead

Owing to the rapidly increasing demand for efficient logistics operations, as well as the implementation of ongoing technological advancements such as AI, and machine learning, the Asia Pacific region is slated to register the fastest CAGR in the fifth-party logistics market over the forecast period. This region is followed by North America. However, it is projected that the market for fifth-party logistics in Europe is expected to account for one-third of this global market in the coming years.

Fifth-Party Logistics Market: Competitive Landscape   

Major players in the fifth-party logistics market include 5PL Logistics Solutions, Bain & Company Inc., Boston Consulting Group (BCG), Deloitte, DHL International, Maine Pointe, McKinsey & Company, MGL Global Logistics, Renaissance Network Reinvent, and Toll Holdings Limited, to name a few. To gain a competitive edge, various established industry players are now more focused on new product launches, partnerships, collaborations, acquisitions, and alliances.

Recent Notable Developments:

  • In November 2022, Amazon expanded its logistics services to third-party sellers, effectively becoming a 5PL service provider for its platform users

  • In August 2022, UPS launched a new suite of 5PL services designed specifically for the healthcare industry. This would include transportation, warehousing, and regulatory compliance

  • In March 2018, DHL, a logistics giant, announced its partnership with Accenture to create a blockchain-based supply chain prototype

Regional Classification of Global Fifth-Party Logistics Market is Listed Below:

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • Spain
  • U.K.
  • Italy
  • Russia
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

 Latin America

  • Brazil
  • Mexico
  • Rest of Latin America

Middle East and Africa

  • GCC
  • South Africa
  • Rest of Middle East and Africa

1. Executive Summary
    1.1. Global Fifth-Party Logistics Market Snapshot
    1.2. Key Market Trends
    1.3. Future Projections
    1.4. Analyst Recommendations

2. Market Overview
    2.1. Market Definitions and Segmentations
    2.2. Market Dynamics
           2.2.1. Drivers
                 2.2.1.1. Driver A
                 2.2.1.2. Driver B
                 2.2.1.3. Driver C
           2.2.2. Restraints
                 2.2.2.1. Restraint 1
                 2.2.2.2. Restraint 2
           2.2.3. Market Opportunities Matrix
    2.3. Value Chain Analysis
    2.4. Porter’s Five Forces Analysis
    2.5. Covid-19 Impact Analysis
           2.5.1. Pre-Covid and Post-Covid Scenario
           2.5.2. Supply Impact
           2.5.3. Demand Impact
    2.6. Government Regulations
    2.7. Technology Landscape
    2.8. Economic Analysis
    2.9. PESTLE

3. Global Fifth-Party Logistics Market Outlook, 2018 - 2030
    3.1. Global Fifth-Party Logistics Market Outlook, by Type, Value (US$ Mn), 2018 - 2030
           3.1.1. Key Highlights
                 3.1.1.1. Warehousing
                 3.1.1.2. Transportation
                 3.1.1.3. Inventory Management
                 3.1.1.4. Value-added Services
                 3.1.1.5. Other
    3.2. Global Fifth-Party Logistics Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
           3.2.1. Key Highlights
                 3.2.1.1. E-Commerce
                 3.2.1.2. Logistics Company
                 3.2.1.3. Healthcare
                 3.2.1.4. Retail
                 3.2.1.5. Other
           3.2.2. BPS/Market Attractiveness Analysis
    3.3. Global Fifth-Party Logistics Market Outlook, by Mode of Transport, Value (US$ Mn), 2018 - 2030
           3.3.1. Key Highlights
                 3.3.1.1. Roadways
                 3.3.1.2. Seaways
                 3.3.1.3. Airways
                 3.3.1.4. Railways
           3.3.2. BPS/Market Attractiveness Analysis
    3.4. Global Fifth-Party Logistics Market Outlook, by Region, Value (US$ Mn), 2018 - 2030
           3.4.1. Key Highlights
                 3.4.1.1. North America
                 3.4.1.2. Europe
                 3.4.1.3. Asia Pacific
                 3.4.1.4. Latin America
                 3.4.1.5. Middle East & Africa
           3.4.2. BPS/Market Attractiveness Analysis

4. North America Fifth-Party Logistics Market Outlook, 2018 - 2030
    4.1. North America Fifth-Party Logistics Market Outlook, by Type, Value (US$ Mn), 2018 - 2030
           4.1.1. Key Highlights
                 4.1.1.1. Warehousing
                 4.1.1.2. Transportation
                 4.1.1.3. Inventory Management
                 4.1.1.4. Value-Added Services
                 4.1.1.5. Other
    4.2. North America Fifth-Party Logistics Market Outlook, by Mode of Transport, Value (US$ Mn), 2018 - 2030
           4.2.1. Key Highlights
                 4.2.1.1. Roadways
                 4.2.1.2. Seaways
                 4.2.1.3. Airways
                 4.2.1.4. Railways
    4.3. North America Fifth-Party Logistics Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
           4.3.1. Key Highlights
                 4.3.1.1. E-Commerce
                 4.3.1.2. Logistics Company
                 4.3.1.3. Healthcare
                 4.3.1.4. Retail
                 4.3.1.5. Other
    4.4. North America Fifth-Party Logistics Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
           4.4.1. Key Highlights
                 4.4.1.1. U.S.
                 4.4.1.2. Canada
           4.4.2. BPS/Market Attractiveness Analysis

5. Europe Fifth-Party Logistics Market Outlook, 2018 - 2030
    5.1. Europe Fifth-Party Logistics Market Outlook, by Type, Value (US$ Mn), 2018 - 2030
           5.1.1. Key Highlights
                 5.1.1.1. Warehousing
                 5.1.1.2. Transportation
                 5.1.1.3. Inventory Management
                 5.1.1.4. Value-Added Services
                 5.1.1.5. Other
    5.2. Europe Fifth-Party Logistics Market Outlook, by Mode of Transport, Value (US$ Mn), 2018 - 2030
           5.2.1. Key Highlights
                 5.2.1.1. Roadways
                 5.2.1.2. Seaways
                 5.2.1.3. Airways
                 5.2.1.4. Railways
    5.3. Europe Fifth-Party Logistics Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
           5.3.1. Key Highlights
                 5.3.1.1. E-Commerce
                 5.3.1.2. Logistics Company
                 5.3.1.3. Healthcare
                 5.3.1.4. Retail
                 5.3.1.5. Other
    5.4. Europe Fifth-Party Logistics Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
           5.4.1. Key Highlights
                 5.4.1.1. Germany
                 5.4.1.2. France
                 5.4.1.3. U.K.
                 5.4.1.4. Italy
                 5.4.1.5. Spain
                 5.4.1.6. Russia
                 5.4.1.7. Rest of Europe
           5.4.2. BPS/Market Attractiveness Analysis

6. Asia Pacific Fifth-Party Logistics Market Outlook, 2018 - 2030
    6.1. Asia Pacific Fifth-Party Logistics Market Outlook, by Type, Value (US$ Mn), 2018-2030
           6.1.1. Key Highlights
                 6.1.1.1. Warehousing
                 6.1.1.2. Transportation
                 6.1.1.3. Inventory Management
                 6.1.1.4. Value-Added Services
                 6.1.1.5. Other
    6.2. Asia Pacific Fifth-Party Logistics Market Outlook, by Mode of Transport, Value (US$ Mn), 2018 - 2030
           6.2.1. Key Highlights
                 6.2.1.1. Roadways
                 6.2.1.2. Seaways
                 6.2.1.3. Airways
                 6.2.1.4. Railways
    6.3. Asia Pacific Fifth-Party Logistics Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
           6.3.1. Key Highlights
                 6.3.1.1. E-Commerce
                 6.3.1.2. Logistics Company
                 6.3.1.3. Healthcare
                 6.3.1.4. Retail
                 6.3.1.5. Other
    6.4. Asia Pacific Fifth-Party Logistics Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
           6.4.1. Key Highlights
                 6.4.1.1. China
                 6.4.1.2. Japan
                 6.4.1.3. South Korea
                 6.4.1.4. India
                 6.4.1.5. Southeast Asia
                 6.4.1.6. Rest of Asia Pacific
           6.4.2. BPS/Market Attractiveness Analysis

7. Latin America Fifth-Party Logistics Market Outlook, 2018 - 2030
    7.1. Latin America Fifth-Party Logistics Market Outlook, by Type, Value (US$ Mn), 2018 - 2030
           7.1.1. Key Highlights
                 7.1.1.1. Warehousing
                 7.1.1.2. Transportation
                 7.1.1.3. Inventory Management
                 7.1.1.4. Value-Added Services
                 7.1.1.5. Other
    7.2. Latin America Fifth-Party Logistics Market Outlook, by Mode of Transport, Value (US$ Mn), 2018 - 2030
           7.2.1. Key Highlights
                 7.2.1.1. Roadways
                 7.2.1.2. Seaways
                 7.2.1.3. Airways
                 7.2.1.4. Railways
    7.3. Latin America Fifth-Party Logistics Market Outlook, by Application, Value (US$ Mn), 2018-2030
           7.3.1. Key Highlights
                 7.3.1.1. E-Commerce
                 7.3.1.2. Logistics Company
                 7.3.1.3. Healthcare
                 7.3.1.4. Retail
                 7.3.1.5. Other
    7.4. Latin America Fifth-Party Logistics Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
           7.4.1. Key Highlights
                 7.4.1.1. Brazil
                 7.4.1.2. Mexico
                 7.4.1.3. Rest of Latin America
           7.4.2. BPS/Market Attractiveness Analysis

8. Middle East & Africa Fifth-Party Logistics Market Outlook, 2018 - 2030
    8.1. Middle East & Africa Fifth-Party Logistics Market Outlook, by Type, Value (US$ Mn), 2018 - 2030
           8.1.1. Key Highlights
                 8.1.1.1. Warehousing
                 8.1.1.2. Transportation
                 8.1.1.3. Inventory Management
                 8.1.1.4. Value-Added Services
                 8.1.1.5. Other
    8.2. Middle East & Africa Fifth-Party Logistics Market Outlook, by Mode of Transport, Value (US$ Mn), 2018 - 2030
           8.2.1. Key Highlights
                 8.2.1.1. Roadways
                 8.2.1.2. Seaways
                 8.2.1.3. Airways
                 8.2.1.4. Railways
    8.3. Middle East & Africa Fifth-Party Logistics Market Outlook, by Application, Value (US$ Mn), 2018 - 2030
           8.3.1. Key Highlights
                 8.3.1.1. E-Commerce
                 8.3.1.2. Logistics Company
                 8.3.1.3. Healthcare
                 8.3.1.4. Retail
                 8.3.1.5. Other
    8.4. Middle East & Africa Fifth-Party Logistics Market Outlook, by Country, Value (US$ Mn), 2018 - 2030
           8.4.1. Key Highlights
                 8.4.1.1. GCC
                 8.4.1.2. South Africa
                 8.4.1.3. Rest of Middle East & Africa
           8.4.2. BPS/Market Attractiveness Analysis

9. Competitive Landscape
    9.1. Company Market Share Analysis, 2021
    9.2. Competitive Dashboard
    9.3. Company Profiles
           9.3.1. DHL International
                 9.3.1.1. Company Overview
                 9.3.1.2. Product Portfolio
                 9.3.1.3. Financial Overview
                 9.3.1.4. Business Strategies and Development
(*Note: Above details would be available for below list of companies based on availability)
           9.3.2. InstaFreight GmbH
           9.3.3. Snowman Logistics Limited
           9.3.4. 5PL Logistics Solutions
           9.3.5. MGL Global Logistics
           9.3.6. SNECI
           9.3.7. Maine Pointe
           9.3.8. Boston Consulting Group
           9.3.9. Delloite
           9.3.10. Other

10. Appendix
    10.1. Research Methodology
    10.2. Report Assumptions
    10.3. Acronyms and Abbreviations

Our Research Methodology

Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.

View Methodology
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