ASIA PACIFIC (APAC) CONTRACT LOGISTICS MARKET - GROWTH, TRENDS, AND FORECAST (2020 - 2025)

The market is segmented by Type (Outsourced, Insourced), by End User (Manufacturing & Automotive, Consumer Goods & Retail, High-Tech, Healthcare & Pharmaceuticals, and Other End Users), and by Country.

Market Snapshot

Study Period:

2015-2024

Base Year:

2019

Largest Market:

China

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Market Overview

The market for contract logistics in Asia Pacific region is anticipated to grow at a CAGR of more than 5.5% during the forecast period (2019-2024).

  • Asia Pacific is the leader in the global contract logistics market accounting for a share of more than 30%.
  • The fast-growing economies in the region, growing industrial production, increasing consumer purchasing power, and high young population, fast growing retail markets present significant outlook for the contract logistics market.
  • Warehousing and distribution activities are some of the principal services in the contract logistics market which includes services such as storage, handling, and distribution.
  • The degree of outsourcing in contract logistics is low indicating significant room for growth. Globally, the share of outsourced contract logistics in the total market stands in the range of 10-15% only. Going forward, China and India are two significant potential markets for outsourcing in the Asia Pacific region.
  • The contract logistics market in India is relatively less developed when compared to other countries in the region. ¬†Most of the retail spending in the country goes to the unorganized sector and the possibilities of outsourcing are very less.
  • A lot of new businesses being started or expansion of existing businesses can be observed in the region in the manufacturing and consumer goods sector. This presents a lot of opportunities for the contract logistics market players.
  • Southeast Asia region remains as a huge opportunity for the companies. The high economic growth rates, rapidly developing infrastructure, and rising consumer demand makes the region an attractive destination for companies looking for entry or expansion.

Scope of the Report

A complete background analysis of Asia Pacific contract logistics market, market overview, market size estimation for key segments and emerging trends by segments, and market dynamics are covered in the report.

By Type
Insourced
Outsourced
By End User
Manufacturing & Automotive
Consumer Goods & Retail
High-Tech
Healthcare & Pharmaceuticals
Other End Users
By Country
China
India
Japan
South Korea
Australia
Singapore
Malaysia
Indonesia
Thailand
Rest of Asia Pacific

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Key Market Trends

China to Experience high growth during the Forecast Period

China accounts for major share of the contract logistics market in the region and is expected to maintain its dominance during the forecast period. The share of china in Asia Pacific contract logistics market is estimated to be more than 30%. The growing demand for high-tech products and automobiles is boosting the industrial production in countries such as China and Japan.

Moreover, the ambitious Belt and Road Initiative (BRI) project of the country is expected to boost the trade of the country further. The usage of advanced technologies such as robotics, automation, artificial intelligence in logistics sector is relatively more in China which makes the country a leader in logistics industry.

Consumer goods & retail and automotive are two key end-users of the contract logistics in China. In Aug 2018, Kuehne + Nagel entered into partnership with Sincero, a Chinese automotive logistics group with a nation-wide operation coverage, to invest in a joint venture focusing on contract logistics for the automotive sector.

The rising labor costs has been a challenge for the manufacturing sector in China and a number of manufacturers are considering to move their production bases outside China, especially nearby ASEAN with cheaper labor costs. This drives the contract logistics in the ASEAN region. However, the sector moving up the value chain is expected to result in steady growth and offset the results of high-cost manufacturing.

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Bolstering E-Commerce in the region is stimulating the demand for Contract Logistics Services

APAC is leading the global e-commerce market with high internet and mobile penetration coupled with a large young and middle-class population. The region is also a home to a large number of SMEs which are going online to increase their business opportunities. Contract logistics offers the e-commerce businesses of all sizes advantages such as easy management of business, advanced technological solutions, reduced risk, and scalability.

The region has become the center for global supply chain transformation, and a lot of capital is being put in development of new-generation logistics facilities. The rapid growth in e-commerce is also resulting in high demand for warehousing space. The operators are spending millions of dollars to secure a warehouse in strategic location which allow them to reduce delivery times.

The e-commerce market in the region is expected to grow at a CAGR of more than 10% through the forecast period. All the countries in the region are witnessing high growth in e-commerce generating demand for logistics services. In 2018, the e-commerce penetration rate in South Korea is highest in the world with share of e-commerce sales in total retail sales at 18%.

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Competitive Landscape

The prominent players in the market include DHL, DB Schenker, Ceva Logistics, Kuehne + Nagel, DSV, and Geodis. Having a large market presence and differentiation of products and services is key to service providers to remain competitive in the market. The rising consumer demand in the region is pushing the companies to develop more sophisticated distribution network and strong optimization capabilities.

Consolidation trends within the contract logistics industry are visible and it also results in increased competition. In Feb 2019, DHL finalized a deal to transfer its supply chain operations in China to SF Holding in a ten-year strategic partnership to grow the business in China. This includes an upfront payment of EUR 700 million to DHL and revenue-based partnership fee over the next decade. The co-branded business will be named as SF DHL Supply Chain China.

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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 SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Industry Attractiveness - Porter's Five Force Analysis

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Technological Trends

    7. 4.7 Insights on E-Commerce Industry in the Region (Domestic and Cross-Border)

    8. 4.8 Insights on Contract Logistics in the Context of After-Sales/Reverse Logistics

    9. 4.9 Brief on different services provided by Contract logistics players (Integrated warehousing & transportataion, supply chain services, and other value-added services)

    10. 4.10 Spotlight - Freight Transportation Costs/Freight Rates for Key Routes

    11. 4.11 Brief on Freight Transport Corridors

    12. 4.12 Insights on Key Special Economic Zones (SEZs) and Manufacturing Hubs

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Insourced

      2. 5.1.2 Outsourced

    2. 5.2 By End User

      1. 5.2.1 Manufacturing & Automotive

      2. 5.2.2 Consumer Goods & Retail

      3. 5.2.3 High-Tech

      4. 5.2.4 Healthcare & Pharmaceuticals

      5. 5.2.5 Other End Users

    3. 5.3 By Country

      1. 5.3.1 China

      2. 5.3.2 India

      3. 5.3.3 Japan

      4. 5.3.4 South Korea

      5. 5.3.5 Australia

      6. 5.3.6 Singapore

      7. 5.3.7 Malaysia

      8. 5.3.8 Indonesia

      9. 5.3.9 Thailand

      10. 5.3.10 Rest of Asia Pacific

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Overview (Market Concentration, Major Players)

    2. 6.2 Company Profiles (including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)

      1. 6.2.1 Deutsche Post DHL Group (DHL Supply Chain)

      2. 6.2.2 Kuehne + Nagel International AG

      3. 6.2.3 Schenker AG (DB Schenker)

      4. 6.2.4 CEVA Logistics

      5. 6.2.5 United Parcel Service Inc. (UPS Supply Chain Solutions)

      6. 6.2.6 Hitachi Transport System Ltd.

      7. 6.2.7 CJ Logistics

      8. 6.2.8 Nippon Express Co., Ltd.

      9. 6.2.9 Japan Post Holdings/Toll Group

      10. 6.2.10 Yusen Logistics Co., Ltd.

    3. 6.3 Other companies (Key Information/Overview)

      1. 6.3.1 Hellmann Worlwide Logistics, S.F.Holding Co. Ltd., Kerry Logistics Network Limited, Yamato holdings co.ltd., Leschaco Japan K.K., Agility Logistics Ltd., Rhenus Logistics, GAC, SNCF Logistics/Geodis, Linc Group, BCR Australia Pty Ltd., Silk Contract Logistics, DSV A/S*

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 8. APPENDIX

    1. 8.1 GDP Distribution, by Activity and Region

    2. 8.2 Insights on Capital Flows

    3. 8.3 External Trade Statistics - Export and Import, by Product for key countries

    4. 8.4 Inisghts on Key Export Destinations of key countries

    5. 8.5 Insight on Key Import Origins of key countries

** Subject to Availability

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