Fourth Party Logistics Market Report 2025

The fourth party logistics market size has grown strongly in recent years. It will grow from $64.88 billion in 2024 to $71.05 billion in 2025 at a compound annual growth rate (CAGR) of 9.5%. During the historical period, expansion was driven by greater need for comprehensive supply chain visibility, increasing complexity in global logistics networks, pressure to cut costs and enhance profit margins, heightened attention to supply chain resilience and risk mitigation, and growing compliance with regulatory and sustainability standards.

The fourth party logistics market size is expected to see strong growth in the next few years. It will grow to $100.83 billion in 2029 at a compound annual growth rate (CAGR) of 9.1%. In the forecast period, growth is expected to be driven by the need for scalable operations and seasonal adaptability, the increasing adoption of strategic outsourcing and focus on core competencies, rising demand for omnichannel solutions and last-mile delivery optimization, expanding global trade, and greater emphasis on customer experience and faster fulfillment. Key trends anticipated include the adoption of blockchain and digital ledger systems, innovations in autonomous vehicles and drone delivery, progress in warehouse automation and robotics, deployment of cloud-based supply chain platforms, and the use of digital twin technology for enhanced supply chain management.

The growth of the e-commerce sector is expected to drive the fourth-party logistics market. E-commerce involves buying and selling goods or services over the internet. Its growth is fueled by the convenience of online shopping, allowing consumers to browse, compare, and purchase products anytime without visiting physical stores. Fourth-party logistics supports e-commerce by managing and integrating the entire supply chain, combining logistics, technology, and data insights to enable faster, more efficient, and cost-effective deliveries. For example, in February 2025, the US Census Bureau reported that e-commerce sales in Q4 2024 increased by 9.4% compared to the same period in 2023. This growth surpassed the overall retail sales increase of 3.8% and accounted for 16.4% of total retail sales.

Companies in the fourth-party logistics market are developing advanced solutions such as fast-track digitalization to integrate supply chain partners quickly, streamline data flows, and enhance end-to-end visibility. Fast-track digitalization refers to the accelerated adoption and integration of digital technologies across supply chain operations to improve efficiency and connectivity in a shorter timeframe. For instance, in June 2023, Oregon International Air Freight, a US-based supply chain company, launched a cloud-based supply chain orchestration platform powered by Orkestra. The platform consolidates siloed data, integrates with ERP, TMS, OMS, and WMS systems, and provides real-time monitoring, scenario simulation, and proactive management of shipments, enabling businesses to optimize operations, reduce costs, and respond quickly to disruptions.

In March 2024, CMA CGM, a France-based container transportation and shipping company, acquired Bolloré Logistics for $5.2 billion. This acquisition allows CMA CGM to expand its global logistics capabilities, enhance its service offerings, and strengthen its position as a leading integrated transport and logistics provider. Bolloré Logistics SAS is a France-based fourth-party logistics service provider.

Major players in the fourth party logistics market are United Parcel Service Inc., A.P. Moller - Maersk, Accenture Plc, Kuehne + Nagel International AG, Nippon Express Co. Ltd., XPO Logistics Inc., Ekart Logistics Pvt. Ltd., Logistics Plus Inc., 4flow AG, De Rijke Group, 4PL Central Station AG, UPS Supply Chain Solutions Inc., Allyn International Services Inc., DHL Supply Chain, Hellmann Worldwide Logistics SE & Co. KG, WHS Logistics Pte. Ltd., EZ Logistics LLC, Pan Lloyd Logistics Private Limited, Cogent Supply Chain Solutions Pvt. Ltd., and Ethics Group of Companies.

North America was the largest region in the fourth party logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in fourth party logistics report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the fourth party logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The swift increase in U.S. tariffs and the ensuing trade tensions in spring 2025 are significantly affecting the transport services sector by driving up costs for vehicles, spare parts, and fuel, key inputs often sourced from tariff-affected regions. Freight operators, logistics providers, and public transportation systems are facing squeezed profit margins as higher equipment and maintenance costs coincide with limited ability to pass on these expenses to customers due to competitive pressures. The uncertainty has also delayed fleet modernization and the adoption of greener, more efficient vehicles, slowing progress toward sustainability goals. To adapt, transport firms are optimizing route planning, investing in fuel efficiency technologies, renegotiating supplier contracts, and exploring collaborative logistics models to share costs and mitigate the impact of higher tariffs.

Fourth-party logistics (4PL) represents a sophisticated supply chain approach in which a single integrator oversees the full logistics process, coordinating multiple service providers, technologies, and resources. The focus is on planning, managing, and optimizing supply chain strategies to improve operational efficiency, transparency, and seamless workflow. Unlike traditional logistics providers, the 4PL acts as a central management hub, offering comprehensive end-to-end solutions rather than just transportation or storage services.

The main categories within fourth-party logistics include freight forwarding, warehousing and distribution, customs handling, value-added services, and consulting and management support. Freight forwarding involves arranging and managing the movement of goods across various locations using multiple carriers and transport modes on behalf of clients. It leverages technologies such as automated logistics systems, blockchain, IoT, AI and machine learning, and cloud-based platforms. Transportation methods include road, rail, air, and sea, serving industries such as aerospace and defense, automotive, consumer electronics, food and beverages, industrial, retail, healthcare, and more.

The fourth party logistics market research report is one of a series of new reports that provides fourth party logistics market statistics, including the fourth party logistics industry global market size, regional shares, competitors with the fourth party logistics market share, detailed fourth party logistics market segments, market trends, and opportunities, and any further data you may need to thrive in the fourth party logistics industry. This fourth party logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The fourth party logistics market includes revenues earned by entities by providing services such as supply chain design, transportation management, integrated logistics management, and order fulfillment. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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