The North America fourth party logistics market accounted for US$ 15.19 Bn in 2018 and is expected to grow at a CAGR of 4.1% over the forecast period 2019-2027, to account for US$ 21.54 Bn in 2027. The technological advancements in the manufacturing sector and the emergence of Industry 4.0 is the key driver that is propelling the growth of the fourth party logistics market. Moreover, the retail and consumer electronics sector focus on adopting dynamic logistics and rising demand for inbound procurement and supplier collaborations by the manufacturing industry are the factors that are expected to boost the fourth party logistics market growth in the forecast period. Industry 4.0 has led to a complete digital overhaul of the manufacturing sector paving the way for a powerful integration of 4PL. Harnessing the power of sophisticated digital technologies, fourth party logistics market players provide a competitive edge to their client companies by streamlining various supply chain processes. A majority of the logistics customers and in particular the industrial manufacturing sector today seeks for logistics service providers who are capable of managing their inbound procurement as well as supplier collaborations. Provisioning of inbound raw material supplier solution demands for a multi-tier solution that is capable of computing all required raw material as well as packaging needs. A 4PL solution includes the entire procure-to-pay process, which is managed as a part of their multi-party and multi-echelon network. Further, a 4PL solution also provisions supply operations planning to its customer that empowers the customer with forwarding forecast planning in the creation of production schedules and raw material plans for each factory that includes third-party co-packers and also contract manufacturers. Thus, an opportunity for the fourth party logistics market players is created with the manufacturing industry anticipated to prosper in the coming years. The fourth party logistics market players are focusing on various initiatives to enhance their capabilities and boost their position in the market.

The fourth party logistics market is fragmented with the presence of several industries, and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the fourth party logistics market further. For instance, the North American Free Trade Agreement (NAFTA) is an agreement signed between the US, Canada, and Mexico. This has reduced most tariff and non-tariff barriers to free trade and investment between the three countries. This has further helped in increasing the trade and investment level in North American countries. The NAFTA has benefitted the transportation & logistics industry. Further, the decentralization of large industries in the US, setting up their manufacturing bases in Mexico has further led to increased transportation & logistics activities within the North American region. Any logistic service provider needs to take into considerations the regulations under the domain of NAFTA. Any changes in the regulations are certain to have an impact on the operations of 4PL service providers. These initiative provide various benefits to the fourth party logistics-based companies located in the region, thus, increasing the growth of the fourth party logistics market.
On the basis of end-user, the retail segment is leading the fourth party logistics market and is expected to continue its dominance during the forecast period. In retail, e-commerce, and fast moving consumer goods (FMCG) are considered. Increase in the diverse and complex product demands from customers, super-competitive markets, rising product customizations, and multi-channel retailing are some of the high profile challenges faced by the retail sector. The other problems faced by the retailers include management and fulfillment of e-commerce transactions, a supply of goods to the airports, shopping malls, and various retail centers inside the city. The portfolio of services under the retail sector provided by lead logistics spans across all various retail outlets, including hypermarkets, supermarkets, convenience stores, kiosks, e-tailers, and department stores.
The overall fourth party logistics market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the fourth party logistics market. It also provides an overview and forecast for the fourth party logistics market based on all the segmentation provided with respect to the North America region. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultant such as valuation experts, research analysts and key opinion leaders specializing in the fourth party logistics industry. Some of the players present in fourth party logistics market are Allyn International Services Inc., CEVA Logistics AG, DAMCO, DB Schenker, Deutsche Post AG, GEFCO Group, GEODIS, Logistics Plus Inc., UPS Supply Chain Solutions, and XPO Logistics, Inc. among others.