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The Indonesia freight logistics market size is forecast to increase by USD 25.57 billion at a CAGR of 7.7% between 2023 and 2028. The market is experiencing significant growth due to several key drivers. Firstly, the increasing export-import activities are fueling the demand for efficient and reliable logistics solutions. Secondly, the burgeoning e-commerce industry is driving the need for faster and more convenient delivery services. However, the market also faces challenges, including high infrastructure costs and complex regulatory environment. To mitigate these challenges, market participants are investing in technology and partnerships to improve operational efficiency and reduce costs. Additionally, the government's initiatives to improve infrastructure and streamline regulations are expected to further boost the market growth. Overall, the market is poised for vigorous growth in the coming years, driven by these market trends and challenges.
The market is experiencing significant growth due to the country's strong economic activities in various sectors. Agriculture, fishing, forestry, construction, manufacturing, oil and gas, mining and quarrying, and courier, express, and e-commerce industries are major contributors to the market's expansion. Subsidized fuels have made road transport an affordable option for domestic shipments, while rail, sea, and air freight are preferred for international shipments. Industries such as pharmaceuticals and textiles require specialized logistics solutions, including cold storage and industrial warehousing. Trade relations with key global markets have boosted the demand for sea freight, making Indonesia an essential player in the global supply chain. The oil and gas and mining sectors' increasing production has led to a surge in demand for heavy-duty logistics services. Overall, the Indonesian freight logistics market is expected to grow steadily, driven by the country's diverse economic activities and strategic location.
The market research report provides comprehensive data, with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The transportation segment is estimated to witness significant growth during the forecast period. The market is primarily driven by the transportation segment, which encompasses the movement of goods via various modes such as air freight, sea freight, and road freight. Indonesia's strong trade relations with major economies like China, India, the US, Australia, Europe, and Southeast Asian nations like Thailand and Vietnam, underpin the significance of freight transportation in the country. With a large agricultural sector producing commodities like palm oil, coffee, and rubber, as well as a thriving fishing industry, forestry, construction, oil and gas, and a burgeoning e-commerce sector, the demand for freight logistics services is diverse and expansive. Moreover, the logistics ecosystem in Indonesia is witnessing substantial growth due to factors like port efficiency, foreign direct investment, and the development of ferry ports, ships, airports, and rail and road transport infrastructure.
Key growth enablers include subsidized fuels, the warehousing sector's expansion, and the increasing demand for cold storage facilities for perishable goods like pharmaceuticals and industrial and agricultural products. The freight forwarding and courier, express, parcel (CEP) sectors also play a crucial role in the logistics ecosystem, facilitating both domestic and international shipments through maritime and air freight transportation.
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The transportation segment was valued at USD 24.09 billion in 2018 and showed a gradual increase during the forecast period.
Our market 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.
Growing export-import activities is the key driver of the market. Indonesia's economy is poised for recovery following the effective control of the COVID-19 pandemic, with projected GDP growth of up to 5.94% in 2022. The country's mighty trade and export sector has been instrumental in driving this growth, with high commodity prices, particularly in coal and crude palm oil (CPO), contributing to significant trade surpluses in 2021. Exports have been a primary growth driver for Indonesia, with international trade experiencing a revival due to the post-pandemic global economic recovery and the ongoing conflict in Ukraine. Key sectors such as Agriculture, Fishing, Forestry, Construction, Oil and Gas, and Manufacturing have seen increased export activity. The Logistics ecosystem in Indonesia, including Courier, Express, Parcel, Freight Forwarding, and Freight Transport, have been crucial in facilitating both Domestic and International shipments. Warehousing and Storage have also been in high demand, with a focus on Cold storage for Pharma and Industrial goods.
Further, the Warehousing sector has seen growth due to the wave in E-commerce, leading to an increased need for efficient warehousing and logistics solutions. The Indonesian government's subsidized fuels have supported the Freight transportation sector, including Maritime freight, Air freight, and Trucking services. The country's Port efficiency, Ferry ports, Ships, and Airports have played a significant role in facilitating International freight transportation, Export, and Import. The growth enablers for the Indonesian logistics sector include Foreign Direct Investment and the development of Rail transport infrastructure. Indonesia's trade relations with key partners have also strengthened, further boosting the country's logistics sector.
The growing e-commerce industry is the upcoming trend in the market. The market has experienced significant growth, particularly in sectors such as Agriculture, Fishing, Forestry, Construction, Oil and Gas, and the growing industries of Courier, Express, Parcel (CEP), Freight Forwarding, and Freight Transport. The logistics ecosystem in Indonesia has been bolstered by the country's strategic location, with efficient port operations at ferry ports, ships, and airports, as well as vital road, rail, and maritime freight transport systems. Foreign Direct Investment (FDI) in the warehousing and storage sector has also played a crucial role in enhancing port efficiency and supporting the growth of export and import activities. Subsidized fuels and government initiatives have encouraged the expansion of the warehousing sector, leading to the development of cold storage facilities for perishable goods, including Pharma, Industrial, Agricultural, and E-commerce products.
Moreover, the domestic and international shipment of these goods has been facilitated by the growth of Sea freight and Air freight services. The Indonesian economy's strong trade relations with various countries have further fueled the growth of international freight transportation. The growth enablers for the Indonesian freight logistics market include the increasing demand for Trucking services, the rise of e-commerce, and the expansion of Industrial and Agricultural sectors. The country's large population of over 260 million people, with millions of new buyers added every year, presents a vast market for both domestic and international shipments. The Indonesian freight logistics market is expected to continue its growth trajectory during the forecast period.
High infrastructure cost is a key challenge affecting the market growth. The market is witnessing significant growth due to the increasing demand for intermodal transportation in various sectors such as Agriculture, Fishing, Forestry, Construction, Oil and Gas, Courier, Express, Parcel, Freight Forwarding, and Freight Transport. To facilitate efficient freight transportation, substantial investments are being made in infrastructure, including port efficiency and the expansion of ferry ports, ships, airports, and warehousing and storage facilities. Foreign Direct Investment (FDI) is playing a crucial role in the development of the logistics ecosystem, with an emphasis on improving port efficiency and enhancing the capabilities of the warehousing sector. Subsidized fuels and the availability of various modes of transport, such as sea freight, air freight, trucking services, maritime freight, and international freight transportation, are growth enablers for the market.
Additionally, the Pharmaceutical, Industrial, and Agricultural sectors, particularly those requiring cold storage, are significant consumers of logistics services. E-commerce and domestic and international shipments are also driving the demand for efficient and reliable freight transportation. The warehousing sector is witnessing significant growth due to the increasing demand for warehousing and storage facilities. The government's focus on improving port efficiency and expanding infrastructure is expected to further boost the market's growth. Rail and road transport are essential for the seamless movement of goods between various modes of transport, and investments in these sectors are necessary to ensure their efficient operation. Overall, the market is poised for strong growth due to the favorable business environment and the increasing demand for efficient and reliable logistics services.
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.
BSA Logistics Indonesia: The company offers freight logistics for domestic and international transport through Air freight, Sea freight, and Rail freight.
The market research and growth report 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 market is witnessing significant growth due to the country's strong economy and increasing demand from various sectors such as agriculture, fishing, forestry, construction, oil and gas, and manufacturing. The logistics ecosystem in Indonesia is comprised of courier, express, parcel, freight forwarding, and freight transport services. Warehousing and storage play a crucial role in the logistics sector, with the country having a well-developed warehousing sector, including cold storage facilities for perishable goods. Port efficiency and foreign direct investment are key growth enablers for the freight transportation market in Indonesia. The country has several ferry ports, ships, airports, and road and rail transport networks that facilitate both domestic and international shipments.
The growth of e-commerce and the pharmaceutical industry is driving the demand for air freight and sea freight, respectively. Subsidized fuels and government initiatives are also supporting the growth of the logistics sector. The export and import of industrial and agricultural goods continue to be significant contributors to the international freight transportation market in Indonesia. The country's trade relations with other countries are also expected to boost the growth of the market in the coming years.
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Market Scope |
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Report Coverage |
Details |
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Page number |
153 |
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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 7.7% |
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Market Growth 2024-2028 |
USD 25.57 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
7.24 |
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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. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
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 Application
8 Market Segmentation by Type
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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