The global 5PL solutions market is expected to post a CAGR of almost 4% during the period 2019-2023, according to the latest market research report by Technavio.
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A key factor driving the growth of the market is the rise in global containerized cargo trade. The shift in the global trade pattern toward containerized sea-borne and air-borne trade has increased in the recent years. Thus, to facilitate the smooth transportation of these containerized goods, there is an increase in demand for 5PL logistics services. In addition, the rise in trade agreements and the growing positive economic condition of Asian countries are the major factors driving the volume of containerized cargo trades. Furthermore, the 5PL players are increasingly providing information technology-based supply chain solutions such as coordinating the intermediaries for time-definite delivery. Therefore, the growth in the global containerized cargo trade and trade agreements is expected to increase the demand for 5PL logistics services.
As per Technavio, the penetration of blockchain in logistics market will have a positive impact on the market and contribute to its growth significantly over the forecast period. This global 5PL solutions market 2019-2023 research report also analyzes other important trends and market drivers that will affect market growth over 2019-2023.
Global 5PL solutions market: Penetration of blockchain in logistics market
Blockchain is a technology that helps in increasing transparency and reducing the possibilities of data corruption or data alteration during the transaction between two parties. As a service provider, 5PL solution providers are also expected to gain from blockchain technology. 5PL solutions comprise a huge number of documentation such as charter party agreements, bill of lading (BoL), letters of credit, and sales contracts. These documents must be passed through a long chain of parties, which makes the process time-consuming. By adopting the blockchain technology, the documentation process in 5PL solutions becomes accurate and quick, thereby offering complete transparency and security. Thus, many countries are also seen taking initiatives to increase the adoption of blockchain technology in logistics operation.
“With the e-commerce market growing, the demand for 5PL solutions are expected to grow as it can consolidate the requirements of 3PL and 4PL services and negotiate favorable tariffs for cost efficient e-commerce order fulfillment. Thus, it is expected that with internet and smartphone penetration accelerating the growth of e-commerce, the demand for 5PL will also increase over the next few years,” says a senior analyst at Technavio.
Global 5PL solutions market: Segmentation analysis
This market research report segments the global 5PL solutions market by geographical regions (APAC, North America, Europe, MEA, and South America).
The APAC region led the market in 2018, followed by North America, Europe, MEA, and South America respectively. During the forecast period, the APAC region is expected to continue dominating the global market as well as register the highest incremental growth due to various countries in APAC investing in the development of logistics infrastructure.
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Some of the key topics covered in the report include:
- Market ecosystem
- Market characteristics
- Market segmentation analysis
- Market definition
- Market size and forecast
Five Forces Analysis
- Regional comparison
- Key leading countries
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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