APAC Logistics Market Size 2024-2028

The APAC logistics market size is forecast to increase by USD 175.10 million, at a CAGR of 5.97% between 2023 and 2028. The market is experiencing significant growth, driven by several key trends and challenges. One of the primary growth factors is the rapid expansion of the commerce industry, which has led to an increase in demand for efficient and reliable logistics solutions. Another trend is the emergence of green logistics, as companies seek to reduce their fueling and carbon footprint and adopt more sustainable practices. Road freight transport and air freight are key components of the logistics sector, with a focus on decarbonizing freight transport to reduce environmental impact. However, the market is also facing challenges, including increased transportation costs due to poor road construction and infrastructure and the need for greater supply chain visibility and optimization. To stay competitive, logistics providers must adapt to these trends and challenges, leveraging technology and innovation to improve efficiency, reduce costs, and enhance customer service.

What will be the size of the APAC Logistics Market During the Forecast Period?

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APAC Logistics Market Segmentation

The APAC logistics market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Type Outlook 
  • 3PL
  • 4PL

• End-user Outlook 
  • Manufacturing
  • Automotive
  • Food and beverage
  • Others

• Region Outlook 
  • APAC
    • China
    • India 

Type Analysis

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 420.20 million in 2018.  3PL logistics players deliver customized services to their customers in terms of warehouse space management, mode of transportation, and trade permit documentation. 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.

End-user Analysis

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 is mainly driven by 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 APAC logistics market growth during the forecast period.

APAC Logistics Market Dynamics

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. 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.

The market has also seen a significant increase in deal value and deal volume, as 3PL customers, brick-and-mortar retailers, and e-commerce platforms focus on optimizing freight and passenger traffic. Retailers are increasingly relying on technology to manage the environmental impact of their operations while aligning with sustainability initiatives. Transport infrastructure improvements and strategic investments ensure that logistics companies can meet the growing demand for mobility while maintaining operational efficiency and environmental responsibility in the APAC region.

Key Market Driver

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 APAC logistics 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 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. Hence, such factors are driving APAC logistics market growth during the forecast period.

Significant Market Trend

The use of blockchain with logistics is an emerging trend shaping the market. Blockchain technology is a decentralized distributed network. It 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 this 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 driving APAC logistics market growth during the forecast period.

Major Market Challenge

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.

Moreover, 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. 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 APAC logistics market growth during the forecast period. 

Customer Landscape

The APAC logistics 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 APAC logistics market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Market Customer Landscape

Who are the Major APAC Logistics Market Companies?

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 APAC logistics market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• 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.
• XPO Inc.

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.

Market Analyst Overview

The market is witnessing a transformative phase driven by technological advancements and sustainability initiatives. 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 12 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 are strategically positioned to navigate these changes and capitalize on emerging opportunities.

The APAC logistics market is evolving rapidly with the integration of IoT, machine learning, and artificial intelligence, enhancing fleet management and providing better supply chain visibility for logistics companies. The rise in freight and passenger volumes, coupled with increasing mobility demand, is driving commercial motor vehicles to adapt to technology solutions that optimize available capacity and reduce CO2 emissions. Sustainability initiatives are a priority for logistics companies and retailers, as they seek to minimize environmental impact through smart transport infrastructure and connectivity infrastructure planning. These efforts are further supported by co-financing, equity offering deals, and strategic investments in transport projects and infrastructure work, which enhance maintenance operations and overall transport efficiency.

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What are the Key Data Covered in this APAC Logistics Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the market  size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behaviour
• Growth of the market across APAC
• A thorough market growth and forecasting analysis of the market's competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of market companies

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