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The APAC contract logistics market size is forecast to increase by USD 53.9 billion at a CAGR of 8.08% between 2023 and 2028. The market is experiencing exponential growth, with an estimated CAGR of 16.4% from 2020 to 2025. This expansion is driven by increasing consumer preferences for convenience, affordability, and a wide range of products available online. In response, a surge in e-commerce startups has emerged, each vying for a share of this burgeoning market. However, to remain competitive, these businesses must prioritize efficient logistics operations. With the rise in parcel volume and the need for faster delivery times, logistics providers are investing in technology solutions such as automation, real-time tracking, and last-mile optimization. These advancements aim to streamline operations, reduce delivery times, and enhance the overall customer experience. By focusing on logistics efficiency, e-commerce startups can differentiate themselves in a crowded market and build customer loyalty.
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The Market is witnessing significant growth due to the increasing manufacturing output in emerging manufacturing hubs and the growing consumer demand in various sectors such as automotive and electronics. The market is driven by various factors including GDP growth, CNY depreciation, and the implementation of free trade agreements like the RCEP Agreement. Advancements in technology are also playing a crucial role in the market's growth. AI, cloud computing, and machine learning are being integrated into logistics operations to optimize supply chain management and improve efficiency. Motor vehicle manufacturers like Intel are also investing in contract logistics to streamline their distribution channels and meet customer demand. Cainiao Network, a logistics arm of Alibaba Holding, and Deutsche Post E-commerce are some of the key players in the market. The Belt and Road Initiative and the Post ECommerce are also expected to provide significant opportunities for growth. However, macroeconomic upheavals and inflation levels can pose challenges to the market. Rate hikes can also impact the market's growth trajectory. Overall, the market is expected to continue its growth trajectory in the coming years. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growth in e-commerce market in APAC is notably driving the market. The market is experiencing significant growth due to the increasing e-commerce sales and the shift towards online transactions. According to the United States Census Bureau, e-commerce sales in the third quarter of 2021 accounted for 13% of total retail sales, which increased by 13.1% compared to the same period in 2020.
Moreover, this trend is expected to continue as consumer behavior evolves and manufacturing hubs in emerging economies, such as ASEAN, continue to drive manufacturing output. Contract logistics vendors are responding to this demand by investing in advanced technologies, including AI, cloud computing, and machine learning, to enhance their service offerings. Thus, such factors are driving the market during the forecast period.
Emergence of big data analytics is the key trend in the market. Contract logistics companies are utilizing big data analytics to extract valuable insights from extensive data sets, thereby gaining a competitive edge in the industry. By implementing big data analytics solutions, logistics firms can identify trends and patterns to inform strategic initiatives, such as customizing services, enhancing market responsiveness, and adopting a flexible business model.
However, the logistics sector faces substantial IT infrastructure challenges in implementing big data analytics. Big data analytics offers significant advantages in various domains within the logistics industry, including operational efficiency and customer experience. It optimizes core activities, such as resource utilization, delivery time, and geographical coverage, enabling companies to adapt to macroeconomic upheavals, inflation levels, rate hikes, energy prices, and climate disasters. Thus, such trends will shape the market during the forecast period.
Increased lead time and supply-demand imbalance is the major challenge that affects the growth of the market. The logistics sector has experienced significant challenges due to the global impact of the pandemic, leading to disruptions in distribution networks and increased pressure on transportation resources. The imbalance between supply and demand, insufficient last-mile fulfillment services, and labor shortages have all hindered logistics activities. Domestic transportation services have been affected by pandemic-induced restrictions, resulting in an imbalance between incoming and outgoing freight in restricted areas.
Moreover, contract logistics vendors have encountered complications due to evolving regulations in various APAC countries, causing delays in lead times. Moreover, lead times have been extended from the manufacturers' end due to raw material shortages, limited workforces, and lockdowns. The emerging manufacturing hubs in the Asia Pacific region, such as ASEAN and the Belt and Road Initiative, have seen manufacturing output growth in sectors like automotive, electronics, medicine, and consumer retail. Hence, the above factors will impede the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
CEVA Logistics: The company offers contract logistics solutions such as assembly, asset disposal scrap, and consumables management.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The retail segment is estimated to witness significant growth during the forecast period. The logistics market is experiencing significant growth, particularly in emerging manufacturing hubs along the Belt and Road Initiative, as well as in the ASEAN region, due to the increasing manufacturing output and GDP growth in these areas.
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The retail segment was the largest segment and valued at USD 30.40 billion in 2018. The retail segment, which includes consumer goods, clothing and accessories, pharmacies and drugs, food and beverage stores, electronics and appliances, furniture, and more, is expected to grow substantially during the forecast period. This growth is driven by the rise in digital sales channels in APAC, fueled by the adoption of multiple payment facilities, including mobile wallets and net banking. E-commerce retail products move via various modes of transport, such as rail, air, water, and roadways. Hence, such factors are fuelling the growth of this segment during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
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The market is witnessing dynamic growth driven by factors such as a surge in activity during peak periods and adaptations to lockdown periods. With the rise of online shopping and digital consumers, logistics operators are optimizing distribution channels and enhancing space inventory management. Meeting these demands requires significant manpower resources and efficient handling of logistics assets to manage fuel costs and ensure continuous evolution in operations. Amidst competition and structural undersupply challenges, the market is buoyed by quality assets and strategic spatial planning to meet spatial requirements efficiently. As occupiers seek to optimize transaction volumes and enhance revenue growth, firms like Ninja Van are pivotal in navigating the evolving landscape, supported by insights from Boston Consulting on consumer spending decisions and real income impacts.
Contract logistics is an essential component of the global supply chain, particularly in emerging manufacturing hubs where GDP growth and manufacturing output are on the rise. The logistics sector is witnessing significant advancements with the integration of AI, cloud computing, and machine learning to optimize operations and meet customer demand. Motor vehicles, electronics, medicine, and consumer retail are key industries driving the growth of contract logistics. Companies like Intel, Cainiao Network, Alibaba Group Holding, Deutsche Post E-commerce, and CNH Industrial are leading players in this market. The Belt and Road Initiative, RCEP Agreement, and Post E-commerce are significant macroeconomic developments impacting the contract logistics industry. Corporate leaders are emphasizing business growth through strategic partnerships and investments in Industry 4.0 technologies. Macroeconomic upheavals such as inflation levels, rate hikes, and energy prices can impact the rent performance of logistics facilities. Climate disasters and distribution channel disruptions are also challenges that the logistics sector must address. Market research firms like Capgemini Research, Investment Research, Coupa Software, and others provide insights into the strong fundamentals of the market. The future of contract logistics lies in its ability to adapt to changing market conditions and customer needs.
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Market Scope |
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Report Coverage |
Details |
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Page number |
151 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.08% |
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Market growth 2024-2028 |
USD 53.9 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.31 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
BCR Australia Pty Ltd., C H Robinson Worldwide Inc., CEVA Logistics, CJ Logistics Corp., DB Schenker, Deutsche Post AG, DSV AS, GEODIS, Gulf Agency Co. Ltd., Hellmann Worldwide Logistics SE and Co KG, Hitachi Transport System Ltd., Kuehne Nagel Management AG, Lexzau Scharbau GmbH and Co. KG, PT. Cipta Mapan Logistik, Rhenus SE and Co. KG, SF Express Co. Ltd., Silk Contract Logistics Pty Ltd., Toll Holdings Ltd., United Parcel Service Inc., and Yamato Holdings Co. Ltd. |
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Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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