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Fifth-party Logistics (5pl) Solution Market

Fifth-Party Logistics (5PL) Solution Market by Type (Transportation, Warehousing, and Other Services), and Application (Electronic Commerce, Traders, Logistics Company, and Others): Global Opportunity Analysis and Industry Forecast, 2021–2030

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Feb 2022 | 272 Views
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Pandemic disrupted the entire world and affected many industries.

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The modern supply chain & the logistics industry are becoming highly complicated. This increase in complexities have made businesses to outsource the logistics management. The 5PL handles all the logistics needs of the company. It acts as a close strategic partner to the clients and works closely with the in-house teams. The 5PL solutions adapt the Third-Party Logistics (3PL) and Fourth-Party Logistics (4PL) solutions with improvisation.

The companies in 3PL support the process of outsourcing transportation resources, and 4PL handles the entire supply chain. The 5PL solutions are used to plan, organize, and implement logistics solutions for contract-based companies that primarily focus on cutting-edge technologies such as the Internet of Things (IoT) and logistics information. Owing to the robust IT system, businesses can analyze data faster to gain critical insights and achieve high efficiencies in the supply chain. Furthermore, 5PL solutions allow companies to realize alternative models through the integration of economic logistics solutions and consumer-centered demands that helps to enhance service offerings and achieve superior sustainability. Thus, an increase in competition has diverted the focus of the manufacturers to promote respective specializations in production & distribution.

Market Scope and Structure Analysis:

Report Metric


  Market size available for years


  Base year considered


  Forecast period


  Forecast unit

  Value (USD)

 Segments covered

  Type, and Application

  Companies covered


Deutsche Post AG, DB Schenker, CEVA Logistics AG, United Parcel Service Inc., FedEx, DHL, C.H.Robinson, XPO Logistics, Hitachi Transport System, Ltd., and Toll Holdings Limited.


COVID-19 Impact Analysis

The COVID-19 outbreak had a significant impact on the logistics industry. Temporary production halts caused economic crises throughout the industrial supply chain due to lockdowns, night curfews, & flight cancellations. The logistics market has faced increased uncertainty due to a lack of manufacturing confidence and reduced demand for raw materials & commodities. Moreover, changes in consumer purchase behavior due to pandemic uncertainties significantly impacts the growth of the 5PL solutions market.   

Top Impacting Factors

  • Rise in the global cargo trade, increase in authentic transparency, surge in the national & international trade activities, and growth in demand for digital transformation drive the growth of the 5PL solutions market.
  • However, lack of awareness, stringent regulations of government, high initial investment, and operational expenditures hinder the 5PL solutions market. 
  • On the contrary, increase in demand for m-commerce penetration, internet penetration, and e-commerce growth, and rise in the emerging market growth & requirement for green logistics boost the opportunities for 5PL market growth. 

The 5PL Solution Market Trends are as Follows:

Rise in Global Cargo Trade:

The economy and market conditions are the key factors driving the current market trend toward globalization. The shift in the global trade pattern facilitates the smooth transportation of goods, leads to an increase in the demand for 5PL logistics services.  Thus, the increase in free trades provides many opportunities for the manufacturers to enter other developed and developing economies. These free trades are expected to stimulate the volume shipment of various manufacturing industries such as electronics, increasing the further requirements of 5PL solutions. However, due to the advanced manufacturing of electronics & automotive components, the 5PL solutions are glimpsing rapid growth, resulting in significant demand for 5PL logistics solutions. 

E-commerce Growth:

The global logistics & supply chain management has become increasingly complex, diverse, and sophisticated. Due to the popularity of e-commerce and globalization, 5PL has become the preferred choice compared to previous business models. The 5PL model tends to meet the needs of future logistics companies and has significant impact on the development of  Internet of things (IoT). The 5PL online payment function simplifies the transaction & the convenience for the customer to respond directly regarding the quality of the service. Market innovators like Amazon, Walmart, Uber, Airbnb, and AWS have ushered the “On-demand economy” by offering extremely high-level services such as “24-hr delivery”, “1-hr delivery”, and “on-demand server space” while maintaining complete visibility of the process among the customer. Therefore, customer satisfaction is the touch-point between a company & its customer. Hence, the exponential growth of E-commerce businesses has become vital since it is the “company face” that consumers see. Thus, the rise in the E-commerce sector increases the demand of 5PL solution market.      

Key Benefits of the Report:

  • This study presents the analytical depiction of the 5PL solution market along with the current trends and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and opportunities along with challenges of the 5PL solution market.
  • The current market is quantitatively analyzed from 2020 to 2030 to highlight the growth scenario of the 5PL solution market.
  • The report provides a detailed 5PL solution market analysis based on competitive intensity and the competition that will take shape in upcoming years.

Questions Answered in the 5PL Solution Market Research Report:

  • Who are the leading market players active in the 5PL solution market?
  • What would be the detailed impact of the COVID-19 on the market?
  • What are the current trends that would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the 5PL solution market?
  • What are the future projections that would help in taking further strategic steps? 

Key Market Segments

Segments Sub-segments
  • Transportation
  • Warehousing
  • Other Services
  • Electronic Commerce
  • Traders
  • Logistics Company
  • Others
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
    • Latin America
    • Middle East
    • Africa
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