Australia Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Australia Freight and Logistics Market is Segmented by Function (Freight Transport, Freight Forwarding, Warehousing, and Value-added Services and Other Functions) and End User (Manufacturing and Automotive, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, and Forestry, Construction, Distributive Trade (Wholesale and Retail Segments - FMCG Included), and Other End Users (Telecommunications, Pharmaceuticals, and Food and Beverage)). The report offers the market sizes and forecasts in value (USD) for all the above segments.

Market Snapshot

Australia Freight and Logistics Market Overview
Study Period: 2017- 2026
Base Year: 2020
CAGR: >4.5 %
Australia Freight and Logistics Market Key Players

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Market Overview

The Australia freight and logistics market was valued at more than USD 75 billion in 2020, and it is estimated to witness a CAGR of more than 4.5% over the forecast period, 2021-2026. The market is driven by increasing investments in the logistics infrastructure, which has helped boost the country's capacity over the years.

The COVID-19 pandemic has led to an exponential increase in parcel movements, including e-commerce deliveries, putting strain on Australia Post’s pre-existing delivery model. Similarly, the freight and logistics industry has felt these impacts nationwide, particularly through the demand for the home delivery of groceries and medical supplies during the pandemic.

Road freight is the predominant mode of transport for urban, inter-urban, and regional freight, and it is a part of the supply chain for most imports in Australia. ​Even resource industries, which may be heavily reliant on rail or coastal shipping for transport of outputs or key inputs, rely on road freight to transport critical inputs, such as machinery, transport equipment, and other supplies.​​

The threat of new entrants in the market is low due to the high initial set-up cost and intense rivalry among the present players. Also, the government has played an important role in the development of the freight and logistics market by helping improve the freight network throughout Australia.

Scope of the Report

The freight and logistics industry is associated with the movement and transportation of goods, whether by truck, car, rail, ocean liner, or any other form of transportation. The report covers statistics and qualitative analysis on the e-commerce industry, the courier, express, and parcel industry, freight transportation rates, and intermodal transportation in Australia. The market is segmented by function (freight transport, freight forwarding, warehousing, and value-added services and other functions) and end user (manufacturing and automotive, oil and gas, mining, and quarrying, agriculture, fishing, and forestry, construction, distributive trade (wholesale and retail segments - FMCG included), and other end users (telecommunications, pharmaceuticals, and food and beverage)). The report offers the market sizes and forecasts in value (USD) for all the above segments.

By Function
Freight Transport
Shipping and Inland Water
Freight Forwarding
Value-added Services and Other Functions
By End User
Manufacturing and Automotive
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Distributive Trade (Wholesale and Retail Segments - FMCG Included)
Other End Users (Telecommunications, Pharmaceuticals, and Food and Beverage)

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Key Market Trends

Growing Urban Population leads to Busy Urban Freight Transport

Growth in online shopping may affect small goods transportation in the near future. Industry data shows that between 2006 and 2014, the number of light commercial vehicles grew by 35%, almost twice the rate of passenger vehicles (19.1%) and rigid trucks (20.78%). This indicated the importance of urban supply chains in a growing services economy.

The projected population growth and infrastructure demand in all Australian cities are significant concerns for the logistics sector. The Australia Infrastructure Audit found that the capital cities contributed AUD 854 billion to the economy in 2011, and they are projected to contribute AUD 1,621 billion in 2031. The majority of economic activities occur in the major cities, so urban freight may be as important for future growth as traditional long-distance freight.

The scale of potential growth in freight in some urban areas and along some corridors in cities is such that there may be a greater need to operate freight networks much more intensively in off-peak periods. This is likely to encounter strong resistance from the affected communities, which means that the strategy should also provide some guidance on how the industry can establish a ‘license to operate’ in the changing economy, i.e., how operators can strike a balance between meeting the community expectations and customer demand.

Australia Freight and Logistics Market Key Trends

E-commerce is Rapidly Evolving in Australia

Australian e-commerce is rapidly evolving, as consumers have been depending heavily on online buying prior to and during the COVID-19 pandemic. The Australian B2C e-commerce market accounted for USD 22 billion in 2019. lead the list of online stores by net sales (USD 1,402 million) in Australia in 2019. Other large and prominent players in the Australian market are,,, and The top five online stores in Australia accounted for 35% of the net sales of the top 100 online stores in 2019.

E-commerce holds a 1.80% share of Australia’s GDP. Australia ranks second on the global e-government index, 13th in the ease of doing business index, and 16th in the logistics performance index.

As many as 33% of Australian e-shoppers buy from abroad due to better availability of products while 32% buy due to the appealing offers. This makes Australian e-commerce an attractive market for both local and international businesses.

Australia Freight and Logistics Market Growth by Region

Competitive Landscape

The major companies in the country have adopted various modern technologies, such as warehousing management systems, automation, drone delivery, and the transportation management system, which has enabled better planning and tracking facilities, resulting in increased productivity and increased value proposition.

The market is moderately fragmented due to a large number of international players and their intense rivalry to gain market share.

Recent Developments

In August 2020, Aramex Australia (formerly Fastway Couriers) launched Courier Lite, an additional courier franchise model, to support courier franchisees managing the delivery boom without compromising customer service or delivery times. The new Courier Lite model provides an innovative benchmark for other franchise businesses that need to scale up quickly without investing in additional infrastructure expenditure.

In May 2020, Australia Post repurposed and opened 15 new processing facilities and recruited extra staff to manage the growing demand. To speed up services, eight additional freighter flights were chartered, bringing the total number of air freighter services to 17 a day.

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study


    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases



    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 Forces Analysis

    4. 4.4 Value Chain/Supply Chain Analysis

    5. 4.5 Government Regulations and Initiatives

    6. 4.6 Technological Trends (Overview of Industry 4.0 in Australia and its Impact on the Logistics Sector)

    7. 4.7 Insights into the E-commerce Industry (Domestic and Cross-border E-commerce)

    8. 4.8 Insights into Areas such as Courier, Express, and Parcel (CEP) Industry and Contract Logistics (Including Market Sizes)

    9. 4.9 Spotlight - Comprehensive and Progressive Agreement for Trans-Pacific Partnership and its Effect on the Logistics Sector

    10. 4.10 Elaboration on Intermodal Transportation in Australia

    11. 4.11 Brief on Freight Transportation Costs/Freight Rates in Australia

    12. 4.12 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION (Market Size by Value and Volume)

    1. 5.1 By Function

      1. 5.1.1 Freight Transport

        1. Road

        2. Shipping and Inland Water

        3. Air

        4. Rail

      2. 5.1.2 Freight Forwarding

      3. 5.1.3 Warehousing

      4. 5.1.4 Value-added Services and Other Functions

    2. 5.2 By End User

      1. 5.2.1 Manufacturing and Automotive

      2. 5.2.2 Oil and Gas, Mining, and Quarrying

      3. 5.2.3 Agriculture, Fishing, and Forestry

      4. 5.2.4 Construction

      5. 5.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG Included)

      6. 5.2.6 Other End Users (Telecommunications, Pharmaceuticals, and Food and Beverage)


    1. 6.1 Overview (Market Concentration and Major Players)

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

      1. 6.2.1 Deutsche Post DHL Group

      2. 6.2.2 Yusen Logistics Co. Ltd

      3. 6.2.3 DB Schenker

      4. 6.2.4 CEVA Logistics

      5. 6.2.5 Agility Logistics Pvt. Ltd

      6. 6.2.6 Mainfreight Limited

      7. 6.2.7 Kuehne + Nagel International AG

      8. 6.2.8 FedEx Corporation

      9. 6.2.9 DSV

      10. 6.2.10 Hellmann Worldwide Logistics

      11. 6.2.11 Linfox Pty Ltd

      12. 6.2.12 SCT Logistics

      13. 6.2.13 Aurizon Holdings Limited

      14. 6.2.14 Qube Holdings Ltd

      15. 6.2.15 Kings Transport

      16. 6.2.16 Toll Group

      17. 6.2.17 K&S Corporation Limited

      18. 6.2.18 Lindsay Australia

      19. 6.2.19 AirRoad Group

      20. 6.2.20 Glen Cameron Group

    3. 6.3 Other Companies (Key Information/Overview)

      1. 6.3.1 Fastway Couriers, Direct Couriers Pty Ltd, Qantas, Chalmers Ltd, Australian Postal Corporation, Endeavour Delivery Pty Limited, Brambles Ltd, Pacific National, DGL Group Pty Ltd, QLS Group, Invenco Pty Ltd, eStore Logistics*


  8. 8. APPENDIX

    1. 8.1 GDP Distribution, by Activity and Region

    2. 8.2 Insights into Capital Flows

    3. 8.3 Economic Statistics - Transport and Storage Sectors, Contribution to Economy

    4. 8.4 External Trade Statistics - Export and Import, by Product

    5. 8.5 Insights into Key Export Destinations

    6. 8.6 Insights into Key Import Origin Countries

    7. 8.7 List of Prospective Clients for Logistics Service Providers

**Subject to Availability

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Frequently Asked Questions

The Australia Freight and Logistics Market market is studied from 2017 - 2026.

The Australia Freight and Logistics Market is growing at a CAGR of >4.5% over the next 5 years.

The Australia Freight and Logistics Market is valued at 75 Billion USD in 2017.

Deutsche Post DHL Group, Yusen Logistics Co. Ltd, DB Schenker, CEVA Logistics, Agility Logistics Pvt. Ltd are the major companies operating in Australia Freight and Logistics Market.

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