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The Indonesia - freight logistics market size is estimated to grow at a CAGR of 7.7% between 2023 and 2028. The market size is forecast to increase by USD 25.57 billion. The accelerated growth of the market is due to various factors, including the growing export-import activities, growth in the manufacturing sector, and the increasing demand for food, perishable, and medical supplies deliveries.
The report includes a comprehensive outlook on the Indonesia freight logistics market, offering forecasts for the industry segmented by Service, which comprises transportation, warehousing, and others. Additionally, it categorizes Application into manufacturing, automotive, consumer goods, retail industry, and agriculture and others, and covers Type, including 3PL and 4PL. 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.
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Our researchers analyzed the data with 2023 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing export-import activities are the key factor driving market growth. As a result of higher oil prices, rising industry demand, and businesses expanding operations, imports increased by 30.85% (YOY) to USD 21.97 billion in March 2022, driven mostly by a rise in raw materials and capital goods. In November 2021, exports reached a record high of USD 22.84 billion, while imports reached a record high of USD 21.35 billion.
Moreover, rising global commodity prices are expected to have a positive impact on Indonesia's trade during the forecast period, as rising prices of export commodities such as coal and CPO outweigh the rising costs of imports, especially crude oil. As of March 2022, China remains Indonesia's largest export destination, with non-oil and gas exports worth USD 5.48 billion. Therefore, increasing import and export activities in the country will increase the demand for supply chain and logistics improvements, driving the growth of the Indonesian freight logistics market during the forecast period.
The growing e-commerce industry is the main trend driving the growth of the Indonesian freight logistics market. Indonesia's population is over 260 million, and although the country's absolute growth rate is high, with millions of new online shoppers visiting each year, the e-commerce industry is not as developed as Malaysia or Singapore. Over the past few years, fundamental developments in the sector and the national economy have mostly been responsible for the country’s e-commerce market expansion.
Moreover, among the key factors, the accessibility of inexpensive mobile phones and the Internet has increased consumer penetration and allowed them to use a variety of e-commerce platforms more easily than accessing an offline and physical store. Indonesia has one of the highest Internet penetrations in the region, with nearly 72.87% in 2021. Thus, rising e-commerce activities in the country will spur the demand for improved and technologically advanced logistics and supply chain solutions, which, in turn, will boost the growth of the freight logistics market in Indonesia during the forecast period.
High infrastructure cost is a challenge that affects market growth. High investments in infrastructure are required to ship goods through intermodal transportation. Investments include the installation of gantry cranes and other heavy-duty cranes necessary to lift the containers at different ports while changing the mode of transport. For instance, whenever the container arrives at a seaport, it needs to be transferred on either a flatbed, rail, or truck.
In addition, necessary investments for rail and road access are also required. Also, roads are necessary so that trucks can easily access these ports. The high investments are often delayed and time-consuming, thus harming the demand for freight logistics. Hence, these high infrastructure cost requirements are expected to impede the growth of the market during the forecast period.
The market research 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 growth strategies.
Indonesia Freight Logistics Market 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 transportation segment is estimated to witness significant growth during the forecast period. The paid process of carrying goods, cargo, and other things from one location to another using wheeled vehicles is known as freight transportation. There are three major types of freight transportation available for shippers in Indonesia, which include air freight, sea freight, and road freight. Given the industry's significant import and export activity with Asian nations such as China and India, sea and land freight movements dominate the freight transportation segment in Indonesia.
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The transportation segment was the largest segment and was valued at USD 24.09 billion in 2018. Due to Indonesia's geographical limitations, land cannot be used for international freight. The Indonesian road freight transport sector mostly comprises industries such as construction, textiles and apparel, machinery and equipment, electrical items, non-containerized commodities, electronics, and automobiles. Hence, such factors will facilitate Indonesia - freight logistics market growth during the forecast period.
The Indonesia freight logistics market report forecasts market growth by revenue and analyzes the latest trends and growth opportunities from 2018 to 2028.
Indonesia Freight Logistics Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.7% |
Market Growth 2024-2028 |
USD 25.57 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
7.24 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BGR Logistik Indonesia, BSA Logistics Indonesia, DB Schenker, Deutsche Post AG, Dimerco Express Corp., DSV AS, Dunex Inc., Kuehne Nagel Management AG, LNJ Logistics, Logistics Plus Inc., Nippon Yusen Kabushiki Kaisha, Pancaran Group, POS Indonesia, PT CIPTA KRIDA BAHARI, PT. Cipta Mapan Logistik, PT. Kamadjaja Logistics, PT. Multimodatrans Indonesia, PT. Siba Surya, PT. Tiki Jalur Nugraha Ekakurir, Puninar Logistics, Rhenus SE and Co. KG, Samudera Indonesia Tangguh, and SF Express Co. Ltd. |
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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