Fifth party logistics market in terms of revenue, the transportation segment is expected to dominate the global market in 2025. The E commerce segment is expected to lead the market during the forecast period. Europe contributed the most revenue in 2025, and is expected to maintain its dominance by the end of the forecast period.
According to a recent report published by Allied Market Research, titled, โFifth Party Logistics Market by Type, and Application: Global Opportunity Analysis and Industry Forecast, 2025โ2035,โ The global fifth party logistics market is expected to be valued at $9.21 billion in 2025, and is projected to reach $17.30 billion in 2035, registering a CAGR of 6.5%.
Europe dominates the market, in terms of revenue, followed by North America, Asia-Pacific, and LAMEA. Europe is expected to dominate the global market, owing to increase in demand for better logistics services. Moreover, strong demand for online retail and rapid economic growth is driving the growth of this market.
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U.S. is expected to dominate the global fifth party logistics market share in 2025, the growing e-commerce industry in United States support the fifth party logistics market due to the rising demand of efficient supply chain by manufacturing companies, as well as 3PL and 4PL companies. With the growth of the e-commerce sector in the U.S., start-ups related to on-demand and cloud-based warehousing, such as Stord, Flexe, and Flowspace, are gaining popularity. These companies are also being awarded long-term projects by their customers and some companies also offer fulfillment services. For instance, in December 2020, Flexe, an on-demand warehousing and technology platform used by retailers, such as Walmart, has raised $70 million in funding to make logistics networks more elastic in the U.S.
The prominent factors that drive the growth of the fifth party logistics market include rise in the global trade and increasing efficiency of supply chain. Moreover, technological advancement and introduction of blockchain is expected to propel the growth of the fifth party logistics market. The countries such as China, India, and Brazil are growing economies. Thus, the demand for end to end supply chain network management is witnessing prominent growth in these countries, which is expected to provide lucrative opportunities for the growth of the fifth party logistics market in the region.
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The market of the fifth party logistics is closely associated with the logistic activities across the globe. The COVID-19 crisis is causing uncertainty in the logistic market by delaying supply chains, hampering business growth and generating uncertain demand scenarios.
By type, the fifth party market is segregated into transportation, warehousing and other services. The transportation segment accounted for the highest revenue in 2025, as companies are continuously fifth party logistics solutions for supply chain optimization and minimizing the transportation cost.
COVID-19 Impact Analysis
The COVID impact on the logistics market is unpredictable and it is expected to remain in force till the second quarter of 2021.
The COVID-19 outbreak forced governments across the globe to implement strict lockdowns and made social distancing mandatory to contain the spread of the virus. This led to a sudden downfall in global trade, which further reduced the demand for logistics across the world.
Moreover, the nationwide lockdown forced the logistics service providers to partially or completely shut their operations which resulted in delays in the supply chain activities.
Rise in pharmaceutical and e-commerce sales owing to the pandemic has increased the demand for the logistics market
Key Findings Of The Study
By type, the warehousing segment is expected to register a significant growth during the forecast period.
On the basis of application, the logistics companies segment is anticipated to exhibit significant growth in future.
Region wise, Asia-Pacific is anticipated to register the highest CAGR during the forecast period.
The key players operating in the global fifth party logistics market includeย 5PL Logistics Solutions,ย TOLL HOLDINGS LTD,ย Toll Group,ย DHL,ย Renaissance Network Reinvent,ย MGL Global,ย Maine Pointe,ย Deloitte,ย Bain & Company,ย Boston Consulting Group (BCG), andย McKinsey & Company.