Hong Kong Freight And Logistics Market Size

Hong Kong Logistics Market Analysis

The Hong Kong Freight And Logistics Market size is estimated at USD 21.40 billion in 2024, and is expected to reach USD 26.71 billion by 2029, growing at a CAGR of 4.53% during the forecast period (2024-2029).

• To meet the rising demand for their services, third-party logistics (3PL) providers and freight forwarders have been actively seeking solutions. Many businesses aim to increase their digital capabilities, secure longer-term capacity, and transition towards omnichannel integration. Additionally, international businesses are intensifying their investments in the region. For instance, in August 2022, A.P. Moeller Maersk acquired Hong Kong-based contract logistics services provider LF Logistics for USD 3.6 billion. This acquisition allows Maersk to leverage LF Logistics' superior capabilities in omnichannel fulfillment services, e-commerce, and inland transportation for shippers in the Asia-Pacific area.
• The industry is experiencing an emergence of new technologies, companies, customers, and business models. Freight companies are increasingly prioritizing digitization to enhance efficiency, thereby reshaping the marketplace. The growing preference for third-party logistics across various industries is expected to drive industry growth in the near to medium-term future.
• In order to solidify its position as a major global hub for shipping and logistics, Hong Kong plans to establish a new transport bureau. This anticipated government action was made public this week, coinciding with the city's removal from the top five marine cities in the world. The new bureau's challenge lies in enhancing Hong Kong's capabilities as a logistics, maritime, and aviation freight hub. It must ensure the city keeps pace with the latest advancements in the Guangdong-HK-Macao Greater Bay Area, RCEP, and BRI's smart logistics and supply chains, as well as the diversification of manufacturing bases and e-commerce booms.
• Challenges such as the limited presence of an integrated IT system, fragmented warehousing, handling capacity of infrastructure, and multiple regulations are impeding the growth of the freight sector in Hong Kong. However, the increasing digitization and adoption of the Internet of Things by various industries are driving the freight transportation market. Moreover, the freight transportation sector significantly contributes to overall employment in the country, and with growing government support, employment in the sector is forecasted to rise exponentially.