ASIA PACIFIC (APAC) CONTRACT LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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

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Study Period: 2018-2027
Base Year: 2021
CAGR: 5.42 %

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Market Overview

The Asia-Pacific contract logistics market (henceforth, referred to as the market studied) was valued at USD 220.21 billion in 2021. It is expected to reach USD 302.21 billion by 2027, registering a CAGR of 5.42% during the forecast period.

Despite the resurgence of COVID-19 cases, extreme weather conditions, and power outages, China's logistics demand grew at a relatively rapid pace in the first three quarters of 2021, 9.4% higher than the same period last year.

The contract logistics market benefits from the expansion of eCommerce, in response to increased demand for contract logistics services as a result of the retail e-commerce boom, logistics Companies are expanding their services in the region rapidly. Contract logistics provides superior technological solutions, decreased risk, and scalability to such businesses.

To stay competitive and meet increasing consumer expectations for on-time and accurate deliveries, more 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 significant room for growth. Going forward, China and India are two significant potential markets for outsourcing in the Asia Pacific region.

Scope of the Report

The Asia-pacific Contract Logistics market report provides insights into the current market scenario, technology development in the contract logistics market, impact of the COVID-19 pandemic on the market for both the short-term and long-term periods.

Furthermore, Porter’s five force analysis, along with market dynamics (market drivers, restraints, and opportunities), and key insights into the e-commerce industry of the country.

The report also provides a detailed analysis of Different Services Provided by Contract Logistics. 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. 

Additionally, the report also provides company profiles to understand the competitive landscape of the market and outlook.

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

Demand From Automotive Sector Is Driving The Market

Automotive is one of the most important areas in contract logistics, especially in places such as China, which has the world's largest automotive industry. Kuehne+Nagel has been steadily expanding its presence in China. India, the world’s fourth-largest automotive industry, is expected to rise by 10% in 2022 due to solid underlying demand reflecting the global economic recovery and customers’ preference for personal vehicles over public transportation. In 2021, India grew at a rate of 27%.

For the full year of 2021, new vehicle sales in the Chinese market increased by 3.8% year-over-year (y/y) to 26,275,000 units (on a factory-shipped basis, including exports), marking the first full-year increase in four years, despite a monthly y/y decline since May 2021 Despite the pandemic, carmakers in the region have kept the pace going with the introduction of new models. BMW Indonesia, for example, organized a virtual debut of the M2 Edition by Futura 2000, in keeping with the necessity for social distance for safety. As a precaution, the firm supplied a brand-new automobile unit in container-sized boxes.

Nissan and Mazda also launched new cars amid the restricted movement in Indonesia, while Honda saw launches in Malaysia, the Philippines, Thailand, and Toyota was not one to be outdone with launches in Vietnam, Malaysia, and the Philippines. Meanwhile, the growing interest in electric cars was spotted in Singapore, as the netizens actively participated in discussions comparing the offerings of electric car manufacturers such as Tesla and BYD, besides the new launches of traditional manufacturers such as BMW.

APAC Contract Logistics 1

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

Asia is at the forefront of global eCommerce, and this trend is expected to continue in 2022. Asia accounted for roughly 60% of worldwide online retail sales in early 2021, with Chinese consumers alone making more than a third of all online transactions.

Due to the ongoing pandemic, internet platforms have become the key medium for business for everyone from startups to huge merchants. In addition to the advent of new trade agreements like the Regional Comprehensive Economic Partnership, which went into force in 2022, rising disposable incomes and increasing internet access across Asia are supporting the region's rapid e-commerce boom and burgeoning digital economy.

Since the outbreak of the pandemic, online shopping has grown dramatically, with an additional 70 million digital consumers added in Southeast Asia alone. By 2027, digital transformation is anticipated to be worth more than USD1.3 trillion in Asia alone. 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.

APAC Contract Logistics 2

Competitive Landscape

The Asia-Pacific Contract logistics market is fragmented in nature, with a mix of major international and local companies. Some of the countries in the region, like Indonesia and the Philippines, are moderately growing, with the presence of a large number of local players and some major players. However, Singapore, Vietnam, and Thailand are highly competitive markets, with the presence of a large number of international players. Companies are constantly under pressure to minimize costs and optimize operational efficiency.​In the wake of investment shifts and diversification of global supply chains, international investors are increasingly interested in mergers and acquisitions in the APAC logistics market.​

Recent Development

In Dec 2021, DHL Global Forwarding launched a two-way rail freight service between Kunming, China, and Vientiane, Laos, via the China-Laos railway. The rail service is first-of-its-kind in the market, shortening transit time between Kunming and Vientiane from two days via road to about 20 – 24 hours.

In Nov 2021, Diageo became one of the first clients at the CEVA Logistics Ruhale Taguig warehouse in southeast Manila. CEVA planned to manage full distribution center operations for Diageo’s range of products, including a temperature-controlled section for domestic distribution throughout the Philippines. CEVA will also provide tax stamping and labeling of more than four million bottles each year.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 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 & transportation, supply chain services, and other value-added services)

    10. 4.10 Spotlight On 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

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

  8. 8. APPENDIX

    1. 8.1 GDP Distribution, By Activity and By 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 Insights 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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Frequently Asked Questions

The APAC Contract Logistics Market market is studied from 2018 - 2027.

The APAC Contract Logistics Market is growing at a CAGR of 5.42% over the next 5 years.

The APAC Contract Logistics Market is valued at 234 Billion USD in 2018.

The APAC Contract Logistics Market is valued at 302 Billion USD in 2027.

Deutsche Post DHL Group (DHL Supply Chain), CJ Logistics, Hitachi Transport System Ltd., DB Schenker, Yusen Logistics Co., Ltd. are the major companies operating in APAC Contract Logistics Market.

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