Japan E-commerce Logistics Market Size

Japan E-commerce Logistics Market Analysis

The Japan E-commerce Logistics Market size is estimated at USD 22.42 billion in 2024, and is expected to reach USD 27.91 billion by 2029, growing at a CAGR of 4.95% during the forecast period (2024-2029).

The e-commerce industry in Japan has witnessed remarkable growth in recent years. With a tech-savvy population and a strong digital infrastructure, Japan has become a major player in the global e-commerce market. Consequently, the demand for efficient and reliable logistics services has also surged.

One of the key factors driving the growth of e-commerce in Japan is the increasing penetration of the Internet and smartphones. Japan’s mobile internet penetration was about 93.8% in 2023 and is expected to reach nearly 95.6% by 2028. Japan’s population is projected to decline from approximately 123.6 m in 2023 to approximately 122.1 m in 2028.

This shift in consumer behavior has created immense opportunities for e-commerce businesses but has also posed challenges for logistics providers.

To meet the demand of the booming e-commerce market, logistics companies in Japan have been investing heavily in technology and infrastructure. They adopt advanced sorting facilities and real-time tracking systems to ensure efficient order processing and delivery.

Sagawa Express, a Japanese logistics and delivery service provider, has partnered with Sumitomo Corporation, a subsidiary of SG Holdings Co. Ltd, and Dexterity Inc., a subsidiary of Dexterity, to power robots powered by Artificial Intelligence (AI) that can load parcel trucks with random boxes. Sagawa Express and Dexterity, one of the world’s leading logistics and delivery services providers, will use Dexterity’s AI to power robots that can load trucks with boxes. Before scaling deployment, the DexR’s dual-arm robot learns from Sagawa Express’s logistics operations, seamlessly integrating into Sagawa’s existing logistics infrastructure.

Last-mile delivery has been a particular focus for logistics providers in Japan. The country's dense urban areas and complex address systems make last-mile delivery challenging. However, companies have been leveraging innovative solutions to overcome these challenges. For instance, they are utilizing crowdsourced delivery networks, partnering with local convenience stores for parcel pick-up, and exploring using drones and autonomous vehicles for delivery in certain areas.

For example, Amazon offers last-mile delivery on a wide range of products in major cities such as Tokyo, Osaka, and Nagoya. The company has invested heavily in logistics infrastructure in Japan, including building new warehouses and delivery centers.

Japan Post offers a same-day delivery service called Yu-Pack Tokkyu. This service is available nationwide and can be used to deliver packages weighing up to 25 kilograms. The growing infrastructure in Japan is making it possible for same-day delivery companies to operate more efficiently and effectively. This is helping to drive the growth of the same-day delivery market in Japan.