Supply chain network and logistics operations are critical retailers, irrespective of the size of enterprises. Most industries in Australia rely on logistics and transport to some extent. Low-cost logistics and transportation services enable exporters in Australia to successfully reach key markets. Thus, the adoption of 4PL solutions is anticipated to grow in the country in the coming years. The growth of the logistics industry in Australia is also attributed to the proliferation of e-commerce businesses offering one-day delivery and door-to-door services, among other value-added services. As a result, many international competitors are entering into Australia 4PL market, which is contributing to advancements in these services. To acquire a competitive advantage, large corporations focus on offering value-added services. With the growth in the number of Australia 4PL market players, good infrastructures such as warehouses, distribution networks, and technology capabilities become essential. The COVID-19 pandemic resulted in a massive rise in parcel movements, particularly e-commerce deliveries, straining the present service model of Australia Post. Similarly, the pandemic put pressure on the freight & logistics industry across the country as there was a high demand for the home delivery of food and medical supplies. The government's collaboration with the states of New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Northern Territory, and the Australian Capital Territory is intended to aid different land transportation infrastructure projects. The Australian government is likely to investing US$ 77 billion in land transport infrastructure across the country from 2021 to 2022, as part of its rolling infrastructure pipeline, with the majority of the money coming from the infrastructure investment programs. This initiative is part of the government's bigger aim to decrease traffic congestion, improve regional connectivity, address the national freight crisis, get Australians home faster and safer, and build a stronger and more resilient nation.
The Australia 4PL market is segmented on the basis of type, application, and geography. Based on type, the 4PL market is segmented into synergy plus operating model, solution integrator model, and industry innovator model. Based on application, the Australia 4PL market is segmented into aerospace and defense, automotive, consumer electronics, food and beverage, industrial, healthcare, retail, and others.
The COVID-19 pandemic resulted in a massive rise in parcel movements, particularly e-commerce deliveries, straining the current service model of the Australia Post. Similarly, the pandemic put pressure on the freight and logistics industry across the country as there was a high demand for home delivery of food and medical supplies. E-commerce in Australia grew unexpectedly, as retailers and buyers alike had to change how things were sold and acquired. While uncertainties associated with COVID-19 harmed much of Australia's economy, it aided in the acceleration of e-commerce adoption, creating demand for high-quality, well-located warehouse space. Furthermore, a rebound in local food processing and a rise in incentives by governments in the housing and infrastructure sector are fueling the demand for logistics services in the manufacturing and construction sectors in Australia. In 2022, the industrial & logistics sector would continue to grow with many investors looking to rebalance their portfolios to take advantage of this demand, while landlords anticipate a robust surge in rent from a growing tenant base. Hence, the COVID-19 pandemic had a minimal impact on the Australia 4PL market.
The growth of the Australia 4PL market is attributed to government investments in the development of road, rail, air, and water transportation infrastructure. The collaborations of Australian government with the states of New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Northern Territory, and the Australian Capital Territory are intended to aid different land transportation infrastructure projects. As part of its rolling infrastructure pipeline, the Australian government is investing US$ 120 billion in transport infrastructure across the country over the next 10 years from 2022 to 2023. The infrastructure investment programs are a part of the government's bigger aim to decrease traffic congestion, improve regional connectivity, address national freight crisis, get Australians home faster and safer, and build a stronger and more resilient nation. As part of its stimulus measures to support employment during the post-pandemic period, the government announced the investment of US$ 10.6 billion for the next 10 years for road, rail, and community infrastructure projects. New infrastructure projects authorized under the most recent budget are expected to generate over 30,000 direct and indirect jobs. Thus, increasing investments in the development of infrastructure is driving the demand for 4PL solutions in Australia.
Based on type, the Australia 4PL market is categorized into synergy plus operating model, solution integrator model, and industry innovator model. The supply chain is strategically viewed by a fourth-party logistics provider. Businesses outsource their whole logistics operations and management to Australia 4PL providers. Companies are pushing industrial units to use logistics contractors by offering lower total operating costs, better customer service, and greater flexibility.
In terms of end user, the Australia 4PL market is segmented into aerospace and defense, automotive, consumer electronics, food and beverages, industrial, healthcare, retail, and others. The Australia 4PL industry is growing due to the rising demand from manufacturers and distributors for a simple supply chain approach. The Australia 4PL market is being driven by the rising demand for inbound logistic services from the industrial sector. While basic, the Australia 4PL market business model is reshaping logistics for small and large firms. Outsourced service providers save time, money, and investment for their clients, allowing them to focus on other priorities.
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 824.35 Million |
| Market Size by 2028 | US$ 1,106.70 Million |
| Global CAGR (2021 - 2028) | 4.4 % |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | Australia
|
| Market leaders and key company profiles |