ASEAN Warehousing and Distribution Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The ASEAN Warehousing and Distribution Logistics Market is estimated to witness a strong growth during the forecast period, owing to the demand from the expanding e-commerce sector. The market is segmented by Country (Singapore, Thailand, Malaysia, Vietnam, Indonesia, the Philippines, and Rest of ASEAN).

ASEAN Warehousing and Distribution Logistics Market Snapshot

ASEAN Warehousing and Distribution Logistics Market
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 0 %

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Market Overview

The ASEAN warehousing and distribution logistics market is estimated to witness a strong growth in the forecast period, owing to the demand from expanding e-commerce sector. The factors driving the growth of the market are high demand from the last mile logistics and rapidly improving transportation infrastructure. Singapore is a major country in the ASEAN region, due to the large presence of international players and the initiatives taken by government, like Adapt and Grow, Go Digital, for SMEs and the logistics sector to improve.

  • Singapore is a fast-growing country in the ASEAN region, due to the geographical advantage and the strong freight and logistics market. Large players in the country have largely contributed to the warehousing infrastructure.
  • Local governments have been instrumental in supporting the infrastructural growth of the region. Logistics and trade facilitation master plan by the Malaysian government, smart cities planned by the ASEAN committee, and the push to become the global e-commerce hub are allowing the market to develop rapidly. 

Scope of the Report

The ASEAN warehousing and distribution logistics market covers different aspects, like warehousing technology, different segments of warehousing, like general, dangerous goods, and refrigerated warehousing, along with insights on free zones and industrial parks and effects of e-commerce.

BY COUNTRY
Singapore
Thailand
Malaysia
Vietnam
Indonesia
Philippines
Rest of ASEAN

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Key Market Trends

Warehousing Opportunity in Indonesia

The majority of real estate is present in Jakarta, which is the capital and largest city of Indonesia, located among the heavily populated islands of Java. Furthermore, warehousing real estate can be located in Surabaya. A large share of warehousing infrastructure is still in the traditional ‘gudang’ style. These legacy warehousing centers are generally made of wooden or reinforced concrete, with clear heights of between 5-6 meters, no or few loading docks, and false floor loading data.

Land cost is a major factor holding back the development of the warehousing sector. Charges in Greater Jakarta, for instance, float around USD 6-7 per square meter, and are expected to enjoy modest, single-digit growth in the coming years. The concern being that the land prices have risen by 300% in recent years, making building on speculation a potentially risky business.

FMCG, pharmaceuticals and e-commerce are the major economic sectors among Indonesia’s top performing industries. Their expansion is expected to necessitate contracting and construction of new logistics hubs and warehouses.

Total e-commerce sales amounted to around USD 8 billion in 2017, with USD 5 billion of that from e-tailing in Indonesia. This has generated a long-term demand for distribution centers, logistics hubs, and 3PL services, to ensure timely, cost-effective delivery of goods ordered online.

In the FMCG sector, numerous huge facilities have been constructed on built-to-suit arrangements for top companies. Unilever, Dutch-British consumer goods giant, built its own 90,000 sq m distribution center in 2011, in anticipation of Indonesia’s retail market growth.

Pharmaceutical industry is another Indonesian sector expanding briskly. As of 2017, the sector was estimated to be worth USD 5 billion. The industry relies on temperature-sensitive transportation and storage. Cold chain is even less developed in Indonesia than warehousing, creating the opportunity for international firms to supply not only specialist chilled warehousing facilities, but general warehousing infrastructure as well.

ASEAN Warehousing and Distribution Logistics Market

Insights on Effect of E-commerce Growth

There are more than 330 million internet users in the ASEAN region, e-commerce in the region is estimated to become a major industry in the coming years. It is estimated that the ASEAN internet economy reached USD 72 billion in gross merchandise value, in 2018. Around 3.8 million new users are estimated to come online each month in the region, making ASEAN the fastest-growing internet market in the world between 2015 and 2020. Additionally, an expanding young population, increasing disposable incomes (all six major countries in the region are expected to break the estimated USD 3,000 GDP per capita barrier), and greater availability of online payment systems, are likely to allow the growth of the internet economy, which is estimated to grow to USD 240 billion by 2025.

The growth of e-commerce puts a pressure on the developing warehousing and logistics sector in the region. E-commerce asks for demand and quick delivery, along with a strong inventory. This is possible only through the development of the warehousing sector. A large number of players in the ASEAN region, like Yusen logistics, CEVA, and CWT Logistics, among others, have been continuously developing their warehousing infrastructure to cater to the intensifying pressure from the e-commerce sector.

ASEAN Warehousing and Distribution Logistics Market

Competitive Landscape

The warehousing and distribution market in ASEAN region is fragmented with a large number of players trying to grab a significant chunk of the developing market. Some of the countries in the ASEAN region, like Indonesia and Philippines, are moderately growing with the presence of large number of local players and some major players. However, Singapore, Vietnam, and Thailand are the highly competitive markets, with the presence of large number of international players.

CEVA, Yusen Logistics, Kerry Logistics, and DHL are among the major players present in the region. Increasing pressure from e-commerce and international trade has allowed the players to develop large number of warehouses in the region. Local players and distributes have been able to compete with international players, due to long-term domestic presence.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMERY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Government Regulations in ASEAN Countries

    3. 4.3 Technological Development in Warehousing

    4. 4.4 Insights on Warehousing Rents

    5. 4.5 Insights on General Warehousing

    6. 4.6 Insights on Dangerous Goods Warehousing

    7. 4.7 Insights on Refrigerated Warehousing

    8. 4.8 Insights on Effect of E-commerce Growth

    9. 4.9 Insights on Free Zones and Industrial Parks

    10. 4.10 Market Dynamics

      1. 4.10.1 High Demand from Last Mile Logistics

      2. 4.10.2 Developing Transportation Infrastructure

      3. 4.10.3 Rising Land Cost*

  5. 5. MARKET SEGMENTATION

    1. 5.1 BY COUNTRY

      1. 5.1.1 Singapore

      2. 5.1.2 Thailand

      3. 5.1.3 Malaysia

      4. 5.1.4 Vietnam

      5. 5.1.5 Indonesia

      6. 5.1.6 Philippines

      7. 5.1.7 Rest of ASEAN

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 MARKET COMPETITION OVERVIEW

    2. 6.2 Company Profiles

      1. 6.2.1 DHL Supply Chain

      2. 6.2.2 Ceva Logistics

      3. 6.2.3 CJ Century Logistics

      4. 6.2.4 DB Schenker

      5. 6.2.5 APL Logistics

      6. 6.2.6 Agility

      7. 6.2.7 Kuehne + Nagel

      8. 6.2.8 Yusen Logistics

      9. 6.2.9 Toll Logistics

      10. 6.2.10 Kerry Logistics

      11. 6.2.11 Linfox

      12. 6.2.12 Rhenus Logistics

      13. 6.2.13 CWT Ltd

      14. 6.2.14 Gemadept

      15. 6.2.15 Tiong Nam Logistics

      16. 6.2.16 C & P Holdings Pte Ltd

      17. 6.2.17 Ych Group

      18. 6.2.18 Singapore Post

      19. 6.2.19 Prologis

      20. 6.2.20 Global Logistic Properties

      21. 6.2.21 Ticon Industrial Connection PCL

      22. 6.2.22 PT Mega Manunggal Property Tbk (MMP)

      23. 6.2.23 WHA Corp.

      24. 6.2.24 Keppel Corp.

      25. 6.2.25 Cache Logistics Trust*

    3. *List Not Exhaustive
    4. 6.3 6.3 Insights on Large-scale Distributors**

  7. 7. DISCLAIMER

  8. 8. ABOUT US

**Subject to Availability
**(Ex: DKSH, PT PUTRA JAYA, PT. PARIT PADANG GLOBAL., Selatan Jaya Makmur., KC Vietnam Service Co., Ltd, Song Ma Retail Company Ltd )

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Frequently Asked Questions

The ASEAN Warehousing and Distribution Logistics Market market is studied from 2016 - 2026.

The ASEAN Warehousing and Distribution Logistics Market is growing at a CAGR of 0% over the next 5 years.

Agility Logistics, DB Schenker Logistics, DHL Group, Linfox, CJ Century Logistics are the major companies operating in ASEAN Warehousing and Distribution Logistics Market.

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