Market Size of LAOS Freight And Logistics Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 8.47 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Laos Freight and Logistics Market Analysis
The Laos freight and logistics market is estimated to be valued at USD 497.46 million in 2018 and is estimated to grow at a CAGR of 8.47 % during the forecast period.
- Laos is one of the fastest-growing economies in the ASEAN region. The country has witnessed economic growth of more than 7% in recent years.
- With a population of just more than 6.5 million, the logistics sector in the country is less developed, when compared to other countries in the region. The logistics infrastructure is weak in the country, which results in high logistics costs. For instance, according to industrial sources, more than 30% of the business costs in the motor fuels retail and supply in Laos were related to logistics.
- The contribution of the transport and storage sector in the country is estimated to be around 5% of the GDP, which is lower than the average contribution for developing countries of 8%. This can be attributed to the low level of participation of Lao companies in international transport and the high level of informal employment in the Lao transport industry.
- The Laos government has allocated a huge budget for developing and improving the infrastructure facilities to link with the neighboring countries. The country has signed bilateral trade agreements with neighboring countries, which include Cambodia, Vietnam, and Thailand.
- In addition to this, to boost the trade activity, Laos has also signed multilateral agreements, such as Laos-Vietnam-Thailand, Laos-Vietnam-Cambodia, the Great Mekong Sub-Regional Cross-Border Transport Agreement (GMS CBTA), and the ASEAN Framework Agreement.
- The country is located at a strategic geographic location bordering the major countries of China, Thailand along with Vietnam, Myanmar, and Cambodia. Moreover, the Mekong River that flows across the country presents a huge opportunity for reducing the logistics costs.
Laos Freight and Logistics Industry Segmentation
A complete background analysis of the Laos freight and logistics market, which includes an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and logistics spending by the end-user industries are covered in the report.
| BY FUNCTION | ||||||
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| Freight Forwarding | ||||||
| Warehousing | ||||||
| Value-added Services and Others |
| BY END USER | |
| Manufacturing and Automotive | |
| Oil and Gas, Mining, and Quarrying | |
| Agriculture, Fishing, and Forestry | |
| Construction | |
| Distributive Trade (Wholesale and Retail Segments - FMCG included) | |
| Other End Users (Telecommunications, Pharmaceuticals, etc.) |
LAOS Freight And Logistics Market Size Summary
The Laos freight and logistics market is experiencing growth, largely due to the country's rapidly expanding economy. Despite being less developed compared to other countries in the ASEAN region, the logistics sector in Laos is gradually improving, with the government investing significantly in infrastructure development to facilitate better links with neighboring countries. Additionally, Laos has signed various bilateral and multilateral trade agreements to boost trade activity. The country's strategic geographical location and the Mekong River that runs through it present significant opportunities for reducing logistics costs. The market is dominated by land transport, with road transport being the most common mode of freight transportation. The country has been improving its road density and has numerous cross-border linkages with its neighbors. Despite the rail services in Laos being almost non-existent, the country is a priority in the Belt and Road Initiative of the Chinese government, which includes a key project of a railway connecting China to Singapore through Laos, Thailand, and Malaysia. The logistics services also play a crucial role in supporting the growth of the agriculture sector in Laos. The freight and logistics market in Laos is expected to witness significant growth from other end-users such as manufacturing and construction.
Explore MoreLAOS Freight And Logistics Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Current Market Scenario
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.2 Restraints
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1.2.3 Opportunities
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1.3 Government Regulations and Initiatives
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1.4 Insights on the E-commerce Industry
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1.5 Insights On Greater Mekong Sub-region (GMS) and Other Transport Agreements And Initiatives
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1.6 Insights on Key Transport Corridors
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1.7 Insights on Special Economic Zones (SEZs)
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2. MARKET SEGMENTATION
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2.1 BY FUNCTION
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2.1.1 Freight Transport
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2.1.1.1 Road
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2.1.1.2 Inland Water
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2.1.1.3 Air
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2.1.1.4 Rail
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2.1.2 Freight Forwarding
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2.1.3 Warehousing
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2.1.4 Value-added Services and Others
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2.2 BY END USER
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2.2.1 Manufacturing and Automotive
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2.2.2 Oil and Gas, Mining, and Quarrying
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2.2.3 Agriculture, Fishing, and Forestry
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2.2.4 Construction
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2.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)
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2.2.6 Other End Users (Telecommunications, Pharmaceuticals, etc.)
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LAOS Freight And Logistics Market Size FAQs
What is the current LAOS Freight And Logistics Market size?
The LAOS Freight And Logistics Market is projected to register a CAGR of 8.47% during the forecast period (2024-2029)
Who are the key players in LAOS Freight And Logistics Market?
Nippon Yusen Kabushiki Kaisha (Yusen Logistics Co. Ltd.), Linfox Pty Ltd, Bolloré Transport & Logistics, Savan Logistics and Sayfon Logistics are the major companies operating in the LAOS Freight And Logistics Market.
