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The Asia Pacific (APAC) Logistics Market size is forecast to increase by USD 145.4 million and is estimated to grow at a CAGR of 5.25% between 2022 and 2027. In the Asia Pacific (APAC) region, the market is experiencing significant expansion, driven by various key factors. Trade relations between India and China are strengthening, leading to increased commerce and the need for efficient solutions. Retail sales in APAC are on an upward trend, necessitating streamlined distribution networks to meet consumer demand. Furthermore, the e-commerce sector's exponential growth is fueling the need for reliable and swift services to ensure timely delivery of goods. These factors collectively contribute to the dynamic and growing market in APAC. Our report examines historic data from 2017 to 2021, besides analyzing the current market scenario.
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The market is experiencing significant growth and transformation fueled by various factors. Brick and mortar retailers in the region are increasingly turning to technology solutions to enhance their operations and meet the evolving demands of 3PL customers. Connectivity infrastructure planning and maintenance operations are vital for supporting transport projects and infrastructure work across the region, attracting investments and facilitating equity offering deals. The market landscape depends on the logistics sectors, gas to oil switching, oil exporters, macroeconomic environment. Road freight and air freight are key components of the logistics sector, with a focus on decarbonizing freight transport to reduce environmental impact. Investments in container ports and surface freight transport flows are driving growth, despite challenges such as outdated existing facilities and road-dominated traffic. International freight transport remains crucial, with global uncertainties influencing market dynamics, including shifts in energy sources like coal, natural gas, and oil. Macroeconomic factors such as global interest rates, inflation, fiscal balances, and gasoline prices further shape the logistics landscape in APAC, highlighting the need for strategic planning and adaptation to changing market conditions. Our researchers analyzed the data with 2022 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 trade between India and China is notably driving the market. In the emerging global economy, India-China trade growth saw global attention as these two countries are the primary markets. For instance, in H1 2022, China's exports to India increased by USD 57.51 billion, up by 34.5%, as compared to H1 2021. As compared to 2021, trade between India and China stood at USD 67.08 billion in H1 2022, which increased by 16.5%. To ensure good trade flow, the countries themselves create barrier flexibility. For instance, the Chinese government shows interest in India's high-speed rail projects and provides Chinese expertise to Indian universities for support and development. These initiatives are anticipated to bring a smooth trade relationship between India and China which may positively impact the market growth.
Moreover, expanding trade in both developing countries will pave the way for the growth of the project logistics and warehousing market. Because of the rapid growth in trade between India and China, the air cargo sector has a higher advantage. The smooth growth of air cargo relies on different external factors such as political support, expanded productivity via technological diffusion, and flexible supply chain barriers. Therefore, the rising trade between India and China will fuel the growth of project logistics during the forecast period. As trade volumes increase between these countries, the demand for efficient and specialized project logistics services, including transportation, warehousing, and distribution of goods, is expected to rise.
The use of blockchain with logistics is an emerging trend shaping the market. Blockchain technology is a decentralized distributed network. Blockchain technology comprises encrypted information and a pointer for the previous block, which makes it hard to change the data without modifying the whole chain. They store the record of stakeholders involved in the process and the specific details of the products associated with each movement as the blocks are linked together. Also, it enhances security as each transaction is recorded and validated by an independent third party. companies offering transport and logistics services are partnering with blockchain technology providers to develop platforms that will increase security and transparency in the logistics industry due to the numerous benefits of blockchain technology.
In addition, blockchain will also improve the efficiency of business operations in the trucking industry by lowering the requirement for checking business transactions and improving visibility by assuring that capacity planning operates smoothly which can largely contribute to the market growth. Such factors augment the adoption of blockchain technology in the transportation and logistics industry in APAC across different countries, such as India, China, and Australia, thereby propelling the growth of the market in the region during the forecast period.
The threat of entry of real estate players in the warehousing sector is a significant challenge hindering market growth. The growing e-commerce in the region is a strong accelerating agent for the growth of warehousing. The rising demand from e-commerce, along with government initiatives like the implementation of goods and service tax, will improve trade. This will expand the need for warehousing in APAC. Such initiatives make numerous regional and unorganized players enter the warehousing sector. Many real estate players have also entered into warehousing in recent times. They are lending the unoccupied space for warehousing at a lower rate. Such factors are a major threat to the logistics players that are providing warehousing services.
For example, a Singapore-based real estate player, Assetz Property, one of the leading real estate players in South Asia, invested around USD100 million in setting up warehouses across South Asia, in India. The incorporation of real estate players in warehousing operations is anticipated to rise in the future which may negatively impact the market growth. Therefore, the threat of entry of real estate players in warehousing is a major challenge that is expected to impede the market growth 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.
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.
Agility Public Warehousing Co. K.S.C.P - The company offers logistics services through Menzies Aviation, Agility logistics parks, Shipa, and Shipa freight.
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 3PL is estimated to witness significant growth during the forecast period. The market is witnessing an increase in demand from various industries such as manufacturing, retail, and e-commerce for different services like transportation, warehousing, freight forwarding, and cross-docking. The development across many enterprises in APAC is the major factor driving the demand for 3PL logistics.
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The 3PL was the largest segment and was valued at USD 407.61 million in 2017. 3PL logistics players deliver customized services to their customers in terms of warehouse space management, mode of transportation, and trade permit documentation. For instance, Verizon, the US-based telecommunications company, has outsourced its logistics operation to New Breed Marketing (one of the prominent 3PL players) and FedEx. New Breed Marketing ships around 20,000 consumer orders for Verizon on a daily basis with 100% accuracy. The last-mile delivery of Verizon is handled by FedEx. Such 3PL players are delivering real-time tracking of inventory with precise shipment details of Verizon. Such advantages of 3PL logistics, along with the demand in APAC, will drive the market in the region to grow significantly during the forecast period.
Based on the end-user, the market has been segmented into manufacturing, automotive, food and beverage, and others. The manufacturing segment will account for the largest share of this segment. The need for logistics services is mainly from the manufacturing industries such as pharma, healthcare, and telecommunications. The market is driven by the expansion of many established drug makers in the region. However, the expansion of the manufacturing sector will augment the demand for logistics in transporting telecom products such as fixed broadband, intercoms, and landlines. Also, owing to the easy accessibility through e-commerce, the delivery of consumer products directly to consumers' homes may fuel the growth of the market in focus during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market is witnessing a transformative phase driven by technological advancements and sustainability initiatives. Companies like Royal Mail, Sendle, and Instatruck are embracing IoT, machine learning, and artificial intelligence to enhance supply chain visibility and fleet management while reducing CO2 emissions. Sustainability initiatives are gaining traction as logistics companies and retailers aim to minimize their environmental impact. Investment in transport infrastructure and connectivity planning is crucial for addressing labor shortages and meeting the demands of the e-commerce sector. With deals involving equity offerings and co-financing, the logistics sector in APAC is poised for growth over the next twelve months. However, challenges such as labor shortages and outdated facilities need to be addressed to keep up with consumer demands and digital sales. Policy measures, loans, and global economic uncertainties also play a significant role in shaping the logistics landscape in APAC, particularly for net oil importers and exporters. As the region's connectivity and domestic freight transportation continue to evolve, logistics companies like Expeditors International are strategically positioned to navigate these changes and capitalize on emerging opportunities.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 5.25% |
Market growth 2023-2027 |
USD 145.4 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.58 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agility Public Warehousing Co. K.S.C.P, BCR Australia Pty Ltd., C H Robinson Worldwide Inc., CJ CheilJedang Corp., CMA CGM SA Group, Deutsche Bahn AG, Deutsche Post AG, DFDS AS, DSV AS, FedEx Corp., Hellmann Worldwide Logistics SE and Co KG, Hitachi Ltd., Japan Post Holdings Co. Ltd., Kuehne Nagel Management AG, Nippon Express Holdings Inc., Nippon Yusen Kabushiki Kaisha, RETHMANN SE and Co. KG, SF Express Co. Ltd., United Parcel Service Inc., and XPO Inc. |
Market dynamics |
Parent market analysis, market report, market trends, market growth analysis, market research and growth, Market forecasting, 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 Type
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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