Market Size of APAC Contract Logistics Industry
|Base Year For Estimation||2022|
|Market Size (2023)||USD 246.69 Billion|
|Market Size (2028)||USD 318.59 Billion|
|CAGR (2023 - 2028)||5.25 %|
*Disclaimer: Major Players sorted in no particular order
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APAC Contract Logistics Market Analysis
The Asia Pacific (APAC) Contract Logistics Market size is estimated at USD 246.69 billion in 2023, and is expected to reach USD 318.59 billion by 2028, growing at a CAGR of 5.25% during the forecast period (2023-2028).
- China's logistics demand increased at a rather quick rate in the first three quarters of 2021, 9.4% higher than in the same period in 2020, despite the reappearance of COVID-19 and power disruptions. The market for contract logistics services benefits from the growth of e-commerce due to the rise in demand for these services brought on by the retail e-commerce boom. Moreover, services offered by e-commerce companies are growing in the area. This is expected to drive the market as e-commerce companies will benefit from the improved technology solutions, reduced risk, and scalability that contract logistics offers.
- To stay competitive and meet increasing consumer expectations for on-time and accurate deliveries, e-commerce retailers are outsourcing mission-critical components of their distribution and fulfillment operations to logistics companies. The degree of outsourcing in contract logistics is low indicating that there are opportunities for the growth of this industry. Going forward, China and India are two significant potential markets for outsourcing in the Asia Pacific region.
- Due to its rapid economic growth and vibrant business environment, Asia-Pacific is the fastest-emerging region in this market. Asia-Pacific has surpassed Europe to take the lead in the worldwide market for contract logistics. Strong economic growth, expanding retail enactment, and rising disposable income are all driving the growth in this region.
- In addition, an increase in the middle class population and urbanization have boosted domestic consumption of luxury products, household goods, and fast-moving consumer goods. As a result, the expansion of the contract logistics market in Asia-Pacific is being aided by an increase in retail sales in the region. Numerous new non-asset companies and established players are being drawn to this region by the booming e-commerce sector followed by the increase of foreign direct investment is boosting the contract logistics market.