US Fourth-Party Logistics (4PL) Market Size

US Fourth-Party Logistics (4PL) Market Analysis

The United States Fourth-Party Logistics Market size is estimated at USD 15.16 billion in 2024, and is expected to reach USD 20.30 billion by 2029, growing at a CAGR of 6.01% during the forecast period (2024-2029).

• During the forecast period, it is predicted that the US will dominate the fourth-party logistics market in North America. Demand for logistics is anticipated to increase in the future years as a result of the US's strong macroeconomic development, which corporate tax cuts and a stable labor market have fueled. Growing imports and exports are another issue that will have a substantial impact on the fourth-party logistics business. Additionally, Mexico is home to a number of industries, including food and beverage, chemicals, oil, and petroleum, ranking it tenth among the world's largest economies.
• Due to Mexico's affordable labor, a number of US-based and foreign companies are moving their manufacturing operations there, which expands the opportunities for import-export commerce and logistical operations. Positive prospects for the fourth-party logistics market in the upcoming years are suggested by the growing concentration of manufacturing industries and Mexico's expanding trade links with other nations of the world.
• Today's businesses generate a wide variety of items and do business globally. The management of the manufacturing supply chain has become extremely difficult as a result of all of this. In order to satisfy their client's expectations, these outside providers (4PL) develop imaginative and comprehensive services. The necessity for an effective and user-friendly supply chain system is increasing as corporate operations get more complex, and this is why the fourth-party logistics market is expanding. Additionally anticipated to fuel market expansion is a surge in demand for customized solutions. However, factors such as businesses' reluctance to outsource the logistics function and changes in the law are anticipated to hinder the market's growth.
• The logistics, transportation, and e-commerce sectors are gradually adapting their methods to provide a pertinent, responsible logistics solution that emits less carbon as a result of consumer demand for eco-friendly solutions. The use of recyclable materials to reduce waste, the use of solar, wind, and other renewable energy sources, the construction of hybrid assembly lines, and the creation of efficient workstations are some methods for achieving this. According to reports, 80% of consumers prefer to make repeat purchases from businesses that recycle their garbage. Supply networks and how to break them have never been the most crucial issue since the outbreak of the epidemic. To ensure that commodities are delivered from the point of manufacture to the point of use and satisfy customer expectations, transportation and logistics are crucial.
• At present, the United States represents one of the key markets for logistics in the world, with a highly integrated supply chain network that links producers and consumers through multiple transportation modes, such as air and express delivery services, freight rail, maritime transport, and truck transport.