5PL Solutions Market by Type and Geography - Forecast and Analysis 2022-2026

The 5PL solutions market share is expected to increase by USD 326.32 million from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 6.02%.

This Fifth Party Logistics (5PL) Solutions Market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the 5PL solutions market segmentation by type (transportation, warehousing, and others) and geography (APAC, North America, Europe, South America, and the Middle East and Africa). The 5pl solutions market report also offers information on several market vendors, including 5PL Logistics Solutions, AP Moller Maersk AS, C.H. Robinson Worldwide Inc., CMA CGM Group, DACHSER SE, DB Schenker, Deutsche Post AG, DSV Panalpina AS, Expeditors International of Washington Inc., FedEx Corp., GEODIS, Hemisphere Freight Services Ltd., Hitachi Transport System Ltd., Kuehne Nagel Management AG, Nippon Express Holdings Inc., Toll Holdings Ltd., Unique 5PL Services India Pvt. Ltd., United Parcel Service Inc., XPO Logistics Inc., and Schultz Shipping Group among others.

What will the 5PL Solutions Market Size be During the Forecast Period?

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5PL Solutions Market: Key Drivers, Trends, and Challenges

The research studied the historical data considered for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the 5PL Solutions market.

Key 5PL Solutions Market Driver

The rise in global containerized cargo trade is one of the key factors driving the global 5PL solutions market growth. The shift in global trade patterns toward containerized seaborne and air cargo-based trade has increased in recent years. To facilitate the smooth transportation of containerized goods, there is an increase in demand for 5PL logistics services. In addition, the rise in the number of free-trade agreements is the major factor driving the volume of containerized cargo trade. Moreover, the growing economic prosperity in Asian countries is also expected to increase the volume of containerized cargo. The containerized cargo trade involves a highly complex supply chain with a huge number of intermediaries. 5PL players can provide information technology-based supply chain solutions, such as coordinating with intermediaries for time-definite delivery. Therefore, the growth in global containerized cargo trade and the number of free-trade agreements is expected to increase the demand for 5PL logistics services during the forecast period.

Key 5PL Solutions Market Trend

The emergence of Industry 4.0 will fuel the global 5PL solutions market growth. Industry 4.0 is a combination of the physical and digital use of advanced technologies. It is expected to transform the manufacturing sector. The Industry 4.0 concept incorporates the IoT, cloud computing, cognitive computing, and cyber-physical systems. It will change the manufacturing industry by streamlining operations, reducing business risks, and ensuring business growth. The evolution of Industry 4.0 in the manufacturing industry will increase the manufacturing output globally. Industrial manufacturers are expanding their locations globally. Industry 4.0 ensures higher connectivity to all these locations. Industry 4.0 offers network flexibility and the advantage of shifting operations among different facilities as per the requirements. Using 5PL logistics services, manufacturers can improve supply chain efficiency by monitoring and planning production or demand fluctuations.

Key 5PL Solutions Market Challenge

The adoption of three-dimensional (3D) printing in the manufacturing industry is the major challenge to the global 5PL solutions market growth. With the use of 3D printing, manufacturers of automotive spare parts and electronic spare parts can achieve same-day production and shipments. Instead of producing spare parts in bulk and storing them in inventory, spare part manufacturers are moving toward on-demand manufacturing to reduce packaging and inventory management costs. Maintaining inventories of spare part components that are only ordered occasionally will increase the inventory cost for both manufacturers and suppliers. Thus, spare part manufacturers store the digital blueprint of such components. The company manufactures a 3D-printed part and directly ships the part to customers when there is demand for it. By adopting 3D printing in spare parts manufacturing, manufacturers not only can save inventory costs but also save time and labor costs by eliminating additional activities such as manufacturing, storing, packaging, and transportation. The adoption of 3D printing is increasing in manufacturing industries, such as electronic and automotive spare parts, as well as workshop tools. Thus, the adoption of 3D printing in the manufacturing industry is expected to reduce the need for logistics functions, including 5PL solutions.

This Fifth Party Logistics (5PL) Solutions Market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global fifth-party logistics (5PL) solutions market as a part of the global air freight and logistics market within the global transportation market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the 5pl solutions market during the forecast period.

Who are the Major 5PL Solutions Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• 5PL Logistics Solutions
• AP Moller Maersk AS
• C.H. Robinson Worldwide Inc.
• CMA CGM Group
• DACHSER SE
• DB Schenker
• Deutsche Post AG
• DSV Panalpina AS
• Expeditors International of Washington Inc.
• FedEx Corp.
• GEODIS
• Hemisphere Freight Services Ltd.
• Hitachi Transport System Ltd.
• Kuehne Nagel Management AG
• Nippon Express Holdings Inc.
• Toll Holdings Ltd.
• Unique 5PL Services India Pvt. Ltd.
• United Parcel Service Inc.
• XPO Logistics Inc.
• Schultz Shipping Group

This statistical study of the 5PL solutions market encompasses successful business strategies deployed by the key vendors. The 5PL solutions market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• xpo.com - The company offers 5PL solutions under the brand name United Parcel, which provide effective inventory management, delivery operations, and order fulfillment.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.

The vendor profiles are designed to help clients improve their market position, and information on production and sustainability along with this the report provides a detailed analysis of several leading Companies.

5PL Solutions Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the 5PL solutions market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global transportation market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for 5PL Solutions Market?

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40% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for the 5PL solutions market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The rise in global containerized cargo trade will facilitate the 5PL Solutions Market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID-19 Impact and Recovery Analysis

In 2020, the outbreak of COVID-19 slowed down the growth of the 5PL solutions market in APAC. Governments of various countries in the region, such as China, India, and Japan, imposed nationwide lockdowns, which resulted in the shutdown of manufacturing units of various end-user industries, including automotive, transportation, and industrial machinery. Thus, the regional demand for logistics solutions declined. In 2021, the introduction of vaccines led to the lifting of COVID-19-related restrictions in the region. Furthermore, the Indian Government is focusing on increased spending to stimulate the growth of the logistics sector and ensure an economic recovery from the negative impact of the COVID-19 pandemic. Due to these factors, the 5PL solutions market in APAC is expected to witness growth during the forecast period.

What are the Revenue-generating Type Segments in the 5PL Solutions Market?

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The 5PL solutions market share growth in the transportation segment will be significant during the forecast period. Increasing government initiatives to improve the logistics infrastructure globally (especially in developing countries) are also driving the growth of 5PL transportation service providers. For instance, in India, a scheme for expressways will be formulated in 2022-2023 to facilitate the faster movement of people and goods. This will have a positive influence on the growth of the transportation segment of the global 5PL solutions market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the 5PL solutions market size and actionable market insights on the post-COVID-19 impact on each segment.

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What are the Key Data Covered in this 5PL Solutions Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive 5pl solutions market growth during the next five years
• Precise estimation of the 5pl solutions market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the 5pl solutions industry across APAC, North America, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of 5pl solutions market vendors

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