ASEAN Warehousing and Distribution Logistics Market Size

ASEAN Warehousing and Distribution Logistics Market Analysis

The ASEAN Warehousing and Distribution Logistics Market size is estimated at USD 63.5 billion in 2024, and is expected to reach USD 85.78 billion by 2029, growing at a CAGR of 6.20% during the forecast period (2024-2029).

• Since the pandemic began in early 2020, ASEAN leaders have been forced to apply social distancing measures and lockdown cities on occasion due to the spread of COVID-19. Traditional retail has been put under duress because of the massive closures of physical stores and dwindling consumer demand. While the pandemic has caused great instability for brick-and-mortar retailers and has also accelerated the shift to online shopping channels in ASEAN countries.
• Due to the high growth rate of the e-commerce sector, the ASEAN warehousing and distribution logistics market is expected to grow rapidly throughout the forecast period. High demand from last-mile logistics and rapidly developing transportation infrastructure are driving the market's expansion. The strong presence of foreign firms and government efforts such as Adapt and Grow and Go Digital coupled with the growing logistics industry is driving the region's warehousing and distribution market. Singapore is a major country in the ASEAN region and due to its geographical advantage and strong freight and logistics business, Singapore is a fast-growing country in the ASEAN area. Further, significant players in the country have substantially funded the warehouse infrastructure.
• There has been an increase in warehousing demand in certain areas primarily due to rise in e-commerce sales. Throughout 2020-2021, BW, Vietnam's largest industrial for-rent developer specializing in developing warehouses and factories for rent, received a huge volume of requests. The company's long-term development plan enabled it to seize these short-term opportunities efficiently by building light and modern industrial warehouses to meet expanding manufacturing demand and exploding e-commerce expansion.
• Demand for cold storage continues to rise, forcing cold storage businesses to adapt their supply chain models. According to an industry report, international investors are showing a lot of interest in constructing cold storage in Vietnam to take advantage of the urbanization and retail modernization processes, transforming the way Vietnam's large cities acquire new food sources. The supply lines are expected to be relieved in the future due to considerable infrastructure investment and expansion, such as the development of Long Thanh International Airport.