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Fifth-party (5PL) Logistics Market Research Report Information By Application (E-commerce, Traders, Logistics Company, Others), By Type (Transportation, Warehousing, Other Services), And By Region (North America, Europe, Asia-Pacific, and Rest Of The World) –Market Forecast Till 2032


ID: MRFR/PNT/10153-HCR | 128 Pages | Author: Tejas Chaudhary| July 2024

Global Fifth-party (5PL) Logistics Market Overview


Fifth-party (5PL) Logistics Market Size was valued at USD 8.5 billion in 2022. The fifth-party (5PL) logistics market is projected to grow from USD 9.05 Billion in 2023 to USD 14.98 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.5% during the forecast period (2023 - 2032). The major market drivers promoting the growth of the fifth-party (5PL) logistics industry include rising demands for supply chain visibility and transparency, increased adoption of advanced technologies, growing need for cost-effective and efficient logistics solutions, and emerging globalization of business operations.


Fifth-party (5PL) Logistics Market Overview


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


Fifth-party (5PL) Logistics Market Trends




  • Rise of omnichannel retailing and the e-commerce industry to propel market growth




The increase in the efficiency of supply chain and management systems, the expansion of the e-commerce industry, and the increase in international trade drive the fifth-party (5PL) logistics market CAGR. In the current scenario, the e-commerce industry is emerging rapidly due to internet penetration. Multiple benefits associated with e-commerce, like the facility of home delivery, upgradation in logistics services, and ease of payments, have made it an ideal platform for purchasing. For example, in May 2021, according to UNCTAD, a United Nations Conference on Trade & Development expert, the share of the global e-commerce sector's retail sales increased dramatically from 17% to 20% in 2020. Similarly, according to the India Brand Equity Foundation (IBEF), India's e-commerce is expected to reach USD 99 billion by 2024, growing at 27% compared to 2019–2024, with food and fashion apparel likely to be major products.


Omnichannel retailing is a market trend characterized by the seamless integration of online and offline channels, allowing customers to interact with retailers via various touchpoints. The rise of e-commerce has fueled this trend, as people increasingly prefer to shop online for convenience and a greater product selection. The advent of omnichannel shopping and e-commerce has also raised the need for efficient and flexible logistics solutions, such as fifth-party (5PL) logistics, to handle the complex supply chains required to meet customer demands. Third-party logistics service providers have been commonplace across industries for over a decade. Since then, the use of 3PL among small and mid-sized organizations and large corporations has been steadily increasing. While 5PL is a newer segment of the logistics industry, it has the potential to serve a broad range of end users due to its ability to manage entire supply chain networks. The providers in the fifth-party logistics market are mostly interested in expanding e-commerce firms. The industry is expected to grow rapidly across Europe, Asia, and North America.


With multiple logistics service providers participating in handling various components of the supply chain, the global supply chain is getting increasingly complex. 5PL service providers simplify and manage these complicated logistics operations by providing a single point of contact for logistics management. Furthermore, technological advancements such as IoT, cloud computing, and big data analytics make it easier to manage and track the movement of goods across multiple channels. This is another factor that is likely to have a significant impact on the growth trajectory of the fifth-party (5PL) logistics market revenue.


Fifth-party (5PL) Logistics Market Segment Insights


Fifth-party (5PL) Logistics Type Insights


The Fifth-party (5PL) Logistics Market segmentation includes transportation, warehousing, and other services based on type. The transportation category generated the most market revenue (44%). This is due to a growth in demand for multimodal transportation techniques that provide optimal route planning while minimizing transportation expenses. This sector comprises forms of transportation such as air, road, sea, and rail. This sector comprises forms of transportation such as air, road, sea, and rail. The growing need for faster and more dependable transportation services for goods and products has expanded this segment in the fifth-party (5PL) logistics industry. Integrating different modes of transport via sophisticated technologies such as the IoT and AI is predicted to fuel the growth of transportation services in the global 5PL logistics market.


Fifth-party (5PL) Logistics Application Insights


The Fifth-party (5PL) Logistics Market segmentation based on application includes e-commerce, traders, logistics company, and others. The e-commerce segment dominated the global market, accounting for 38% of market revenue (3.2 billion). The advent of omnichannel retailing, multi-channel distribution, and the number of online customers can all be attributed to this segment expansion. 5PL suppliers provide value-added services such as order fulfillment, packaging, and product return management, which are critical for e-commerce businesses to meet customer expectations. The rise of omnichannel retailing, in which businesses sell through physical and online shops, increases the demand for 5PL logistics solutions that can connect these channels effectively. Moreover, the COVID-19 pandemic has accelerated the shift towards e-commerce, as lockdowns and social distancing measures have increased online shopping. Thus, the e-commerce segment is likely to continue driving the expansion of the fifth-party (5PL) logistics market share in the coming years.


Figure 1: Fifth-party (5PL) Logistics Market by Application, 2022 & 2032 (USD billion)


Fifth-party (5PL) Logistics Market by Application


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


The logistics company category is expected to grow at the fastest CAGR in the fifth-party (5PL) logistics industry in the coming years. One of the primary growth factors is the increasing complexity of supply chain operations. As supply chains become more complicated, businesses increasingly turn to 5PL providers to manage their logistics operations, including inventory management, transportation management, and warehousing. Furthermore, 5PL providers provide advanced technological solutions, such as warehouse management systems, transportation management systems, and supply chain visibility tools, to efficiently manage these complex logistics operations.


Fifth-party (5PL) Logistics Regional Insights


By Region, the report provides market insights into Europe, North America, Asia-Pacific, and the Rest of the World. The Asia Pacific fifth-party (5PL) logistics market accounted for USD 3.89 billion in 2022 and will likely exhibit a significant CAGR growth in the study period. This regional market expansion can be attributed to increased trade activity, rising disposable income, and developing e-commerce sectors in China and India. In addition, the region is expected to see an increase in demand for 5PL logistics services due to the ongoing trend of outsourcing logistics operations to third-party providers.


Also, the major countries studied in the market report are the U.S., German, Canada, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.


Figure 2: FIFTH-PARTY (5PL) LOGISTICS MARKET SHARE BY REGION 2022 (%)


FIFTH-PARTY (5PL) LOGISTICS MARKET SHARE BY REGION


Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review


The European fifth-party (5PL) logistics market accounts for the second-largest global market share owing to the presence of established industries such as automotive, pharmaceuticals, and retail. The region is also expected to witness an increase in demand for 5PL logistics services due to the rising adoption of advanced technologies, such as blockchain and IoT, in the logistics sector. Further, the German fifth-party (5PL) logistics market held the largest market share, and the U.K. fifth-party (5PL) logistics market was the fastest-growing market in the European region.


The North America Fifth-party (5PL) Logistics Market is expected to grow at the fastest CAGR from 2023 to 2032 due to well-established infrastructure, robust regulatory framework, and a highly mature logistics industry. Moreover, the region is experiencing an increase in demand for 5PL logistics services, owing to the presence of established players and a highly developed e-commerce sector. Furthermore, the U.S. fifth-party (5PL) logistics market held the largest market share, and the Canada fifth-party (5PL) logistics market was the fastest-growing market in the North American region.


Fifth-party (5PL) Logistics Key Market Players & Competitive Insights


The global fifth-party logistics (5PL) industry is fiercely competitive, with numerous local and international competitors. Leading market players are working on developing innovative solutions, expanding their geographical reach, and strengthening their service offerings to obtain a competitive advantage. Recent key market developments include launching new services & solutions, strategic partnerships, and mergers & acquisitions.


Major players in the fifth-party logistics (5PL) market, such as CEVA Logistics, XPO Logistics Inc, Deloitte, DHL International GmbH, and McKinsey & Company, are also investing in advanced technologies such as blockchain, IoT, and AI to improve supply chain efficiency, reduce operational costs, and increase customer satisfaction. Moreover, key players in the fifth-party (5PL) logistics industry focus on providing value-added services such as reverse logistics, order management, and customs clearance to differentiate their offers and enhance client retention.


Agility Logistics is a logistics firm established in Kuwait that offers various logistics services, such as freight forwarding, warehousing, and supply chain management solutions. The company was established in 1979 and is based in Sulaibiya, Kuwait. Agility Logistics has a global footprint, operating in over 100 countries and employing over 26,000 people worldwide. In 2021, the company introduced Shipa Freight, a new digital platform that offers real-time freight prices and online booking for international shipments. This technology is intended to improve customer visibility and control over their shipments by streamlining the logistics process.


XPO Logistics is a transportation and logistics firm based in the United States that offers supply chain solutions to various industries, including aerospace, automotive, and retail. XPO Logistics announced the completion of its separation of GXO Logistics, a new pure-play logistics company, in August 2021. Moreover, in September 2021, XPO Logistics announced the acquisition of Shift Freight, a last-mile logistics provider.


Key Companies in the fifth-party (5PL) logistics market include



  • Bain & Company Inc

  • 5PL Logistics Solutions

  • Deloitte

  • Boston Consulting Group (BCG)

  • Maine Pointe

  • DHL International

  • MGL Global Logistics

  • McKinsey & Company

  • Toll Holdings Ltd

  • Renaissance Network Reinvent


Fifth-party (5PL) Logistics Industry Developments


November 2022: Amazon extended its logistics services to third-party vendors, transforming itself into a 5PL service provider for its platform customers.


August 2022: UPS has introduced a new set of 5PL services built exclusively for the healthcare market. This would include warehousing, transportation, and regulatory compliance.


June 2019: XPO Logistics Inc, one of the world's major transportation solutions providers, announced the acquisition of Conway Inc, a leading North American provider of less-than-truckload transportation services. This acquisition should help XPO Logistics expand its North American logistics market presence.


Fifth-party (5PL) Logistics Market Segmentation


Fifth-party (5PL) Logistics Type Outlook



  • Transportation

  • Warehousing

  • Other Services


Fifth-party (5PL) Logistics Application Outlook



  • E-commerce

  • Traders

  • Logistics Company

  • Others


Fifth-party (5PL) Logistics Regional Outlook



  • North America

    • The U.S.

    • Canada



  • Europe

    • Germany

    • France

    • The U.K.

    • Italy

    • Spain

    • Rest of Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific



  • Rest of the World

    • Middle East

    • Africa

    • Latin America



Report Attribute/Metric Details
Market Size 2022 USD 8.5 billion
Market Size 2023 USD 9.05 billion
Market Size 2032 USD 14.98 billion
Compound Annual Growth Rate (CAGR) 6.5% (2023-2032)
Base Year 2022
Market Forecast Period 2023-2032
Historical Data 2018-2022
Market Forecast Units Value (USD Billion)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Type, Application, and Region
Geographies Covered Europe, Asia Pacific, North America, and the Rest of the World
Countries Covered The U.S., Canada, German, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled Bain & Company Inc, 5PL Logistics Solutions, Deloitte, Boston Consulting Group (BCG), Maine Pointe, DHL International, MGL Global Logistics, McKinsey & Company, Toll Holdings Ltd, Renaissance Network Reinvent
Key Market Opportunities Technological developments will be important in increasing the usage of 5PL services
Key Market Dynamics Increasing demands for real-time visibility, tracking, and long-term Logistics


Frequently Asked Questions (FAQ) :

The Fifth-party (5PL) Logistics Market size was valued at USD 8.5 Billion in 2022.

The global market is estimated to grow at a CAGR of 6.5% over the forecast period, 2023-2032.

Asia Pacific had the largest revenue share of the global market.

The key players in the market are Bain & Company Inc, 5PL Logistics Solutions, Deloitte, Boston Consulting Group (BCG), Maine Pointe, DHL International, MGL Global Logistics, McKinsey & Company, Toll Holdings Ltd, and Renaissance Network Reinvent.

The transportation category dominated the market in 2022.

E-commerce had the largest share of the global market.

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