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The APAC - electronics parts forward logistics market size is forecast to increase by USD 1.84 billion, at a CAGR of 8.76% between 2023 and 2028. The growth rate of the market depends on several factors such as the growing electronic parts trade between China and India, the increasing hardware spending in APAC, and the growing government support for the logistics industry in China.
The report includes a comprehensive outlook on the APAC - Electronics Parts Forward Logistics Market, offering forecasts for the industry segmented by Service, which comprises transportation, warehousing, and value-add service. Additionally, it categorizes End-user into industrial, consumer electronics, and others. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
APAC Electronics Parts Forward Logistics Market Forecast 2024-2028
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The government of China provides liberal tax policies and easy financing options to encourage various infrastructure projects. Such encouragement has paved the way for the public-private partnership (PPP) model in logistics and transportation infrastructure projects. The adoption of the PPP model in warehouse management and container logistics will propel the demand for logistics services in China. In 2021, more than 382 transportation infrastructure PPP projects were implemented in China.
Moreover, the Chinese government has also focused on upgrading the logistics infrastructure through the development of new roads and highways. Such initiatives by the Chinese government support the growth of project logistics players in APAC, as China was a key contributor to the Asia-Pacific electronics parts forward logistics market in 2021. Thus, the growing government support for the logistics industry in China will drive the growth of project logistics during the forecast period. These infrastructure developments not only enhance transportation efficiency but also facilitate the movement of machinery, equipment, and materials essential for large-scale projects.
Many regional players are struggling to sustain in terms of revenue generation due to competitive pressure. Consequently, regional players are resorting to consolidating with big players. Acquisitions are expected to bring a minimum of around 5% revenue growth in the Asia-Pacific electronics parts forward logistics market within two years. However, expected growth can decline in case of inappropriate acquisitions.
For instance, in August 2021, Deutsche Post DHL Group announced it inked an agreement to acquire Mainz, Germany-based global ocean freight forwarding services provider J.F. Hillebrand Group and its related subsidiaries for roughly USD 1.5 billion, global logistics services provider Deutsche Post DHL Group (DPDHL) said today the deal is now official. Thus, an increase in mergers and acquisitions activities will drive market growth during the forecast period.
Growing trade is the key reason behind this growth, which is attracting many logistics players to enter the market in the region. Besides logistics players, other diversified vendors are also planning to enter the logistics market in APAC through acquisitions to capitalize on market opportunities. In addition, the entry of numerous players in the logistics market will make the market more fragmented and increase the competition among logistics players in APAC in terms of pricing and service offerings.
Furthermore, Asia-Pacific electronics parts forward logistics market fragmentation will also increase the bargaining power of buyers due to increased options during vendor selection, thus lowering the switching cost for buyers. Therefore, logistics players in APAC are expected to resort to pricing adjustments and create customer loyalty through service customization to sustain in the logistics market. Thus, high competition in the market will impede the growth of the market during the forecast period.
The transportation segment will account for a major share of the market's growth during the forecast period.? APAC has emerged as a manufacturing hub for electronics, with countries like China, Japan, South Korea, and Taiwan leading the way in production. The transportation of electronic parts from manufacturing facilities to various destinations within and outside the region is vital for the electronics industry's smooth functioning. One key factor driving the transportation segment in the electronics parts forward logistics market in APAC is the extensive network of transportation infrastructure in the region.
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The transportation segment was valued at USD 1.14 billion in 2018. Additionally, the timely delivery of electronic parts to distributors, retailers, and end consumers is crucial to meet market demands and maintain customer satisfaction. The transportation segment ensures that electronics parts reach their intended destinations efficiently, contributing to the overall success of the electronics industry in APAC, which in turn will drive the growth of the APAC - electronics parts forward logistics market during the forecast period.
End-user Segment Analysis
Based on end-user, the market has been segmented into industrial, consumer electronics, and others. The industrial?segment will account for the largest share of this segment.?The industrial segment includes the use of electronic components in fire and safety devices, transportation, vending machines, power and energy equipment, and testing equipment in the construction industry. Furthermore, the growth of the intelligent transport system market will increase the requirements for electronic components such as data readers, receivers, analog to digital converters, and other integrated circuits. The growing demand for such electronic components will increase the demand for integrated logistics solutions in APAC, which in turn will drive the growth of the market during the forecast period.
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.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
CMA CGM SA Group, DB Schenker, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., FedEx Corp., Hitachi Transport System Ltd., Kuehne Nagel Management AG, Seashell Logistics Pvt Ltd, United Parcel Service Inc., XPO Inc., and AP Moller Maersk AS
Technavio electronics parts forward logistics market in APAC research report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The APAC electronics parts forward logistics market analysis and report forecasts market growth by revenue and analyzes the latest trends and growth opportunities from 2018 to 2028.
APAC Electronics Parts Forward Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.76% |
Market Growth 2024-2028 |
USD 1.84 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
8.1 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
CEVA Logistics S A, CMA CGM SA Group, DB Schenker, Deutsche Post AG, DSV AS, Expeditors International of Washington Inc., FedEx Corp., Hitachi Transport System Ltd., Kuehne Nagel Management AG, Seashell Logistics Pvt Ltd, United Parcel Service Inc., XPO Inc., and AP Moller Maersk AS |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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