APAC Contract Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 259.64 Billion |
| Market Size (2029) | USD 335.32 Billion |
| CAGR (2024 - 2029) | 5.25 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Contract Logistics Market Analysis
The APAC Contract Logistics Market size is estimated at USD 259.64 billion in 2024, and is expected to reach USD 335.32 billion by 2029, growing at a CAGR of 5.25% during the forecast period (2024-2029).
The region's ability to weather the storm of economic instability strengthens its position as a preferred destination for investors and companies looking for more stability. Enhancing regional economic integration and providing access to a larger market, the ASEAN-led Regional Comprehensive Economic Partnership Agreement, taking effect in January 2022, would help the ASEAN countries recover from the recent epidemic while spurring economic growth.
Asia-Pacific is the area that is gaining ground the fastest in this market due to its quick economic development and thriving business climate. Asia-Pacific has eclipsed Europe to take the top spot in the global market for contract logistics. The region's growth is fueled by robust economic expansion, rising retail enactment, and increasing disposable income.
For the seventh year in a row, China held the title of largest logistics market in the world in 2022, generating a revenue of CNY 12.7 trillion (about USD 1.83 trillion) from the country's logistics industry. The country's infrastructure is being developed with significant funding from the Chinese government. China will soon become the global leader in the logistics and transportation sectors thanks to the Belt and Road Initiative's execution: 5.2% and 5.3% of the region's GDP growth in emerging Asia in 2022 and 2023, respectively.
However, the rate of recovery differs amongst subregions. However, domestic demand in economies is still catching up to their pre-pandemic trend, particularly in South Asia, which supports regional growth. Growth in South Asia remained robust in 2022 at 7.0% before soaring to 7.4% in 2023. The growth rates in East Asia are normalized at 4.5% in 2023.
APAC Contract Logistics Market Trends
Demand From The Manufacturing And Automotive Sector Is Driving The Contract Logistics Services
Asia-Pacific is one of the world's manufacturing hubs, accounting for almost 48.5% of global manufacturing output. Today, more countries worldwide are building advanced manufacturing capabilities to support Industry 4.0 growth. Industry 4.0 is revolutionizing the way global manufacturers produce and distribute their products. AI, cloud computing, analytics, AI, and machine learning are just a few technologies leading businesses looking to incorporate into their operations.
In 2022, China exported around USD 9.88 trillion worth of motor vehicles for transporting goods, representing a growth of about 50.57%. Vietnam has also become an increasingly attractive market for manufacturers due to the country's regional centrality, high market integration, and low production costs. Samsung, Apple, Nintendo, LG, Panasonic, and Intel are all based in Vietnam. Vietnam is also making progress in the value chain by positioning itself as an attractive market for mid-tech due to its electronic sector.
In March 2023, China's industrial output increased by 3.9% YoY in the first quarter of 2023, according to the NBS, indicating a slight improvement in the country's economic recovery in the wake of the COVID-19 pandemic. Value-added industrial output grew by 3% Y-o-Y, representing a YoY increase of 0.3 percentage points compared to the previous quarter. In 2022, Chinese car manufacturers produced 27.02 million units, an increase of 3.4% YoY, while sales rose 2.1% Y-o-Y to 26.86 million. China is consolidating its position as the world's most attractive manufacturing hub, while Thailand benefits from cost profile improvements.
China Is Leading The Way In The Contract Logistics Market
Companies are pressed to create more advanced distribution channels as customer demand in China grows. It is due to the increased demand for higher-priced consumer goods and perishable foods that require logistics management, including better security and handling. It is only one of the more profound changes in these economies that point to a significant growth in the demand for high-end services in China and developing countries over the next few years.
China is expected to lead the Asia-Pacific contract logistics market. The contract logistics market in China is growing steadily. This has created new challenges for the sector, such as the need to expand product and service offerings, the need for more efficient networks, and the need to control variable costs.
The Chinese contract logistics market is mainly concentrated in consumer retail, automotive, medicine, electronics, and other industries, with the consumer retail industry making up about 50%.
In February 2023, Cainiao Network, a logistics arm of e-commerce giant Alibaba Group Holding, announced a new agreement to build Poland's most extensive parcel locker network with German courier giant Deutschlandpost DHL Group. The agreement with Deutsche Post ECommerce Solutions, a Deutsche Post E-commerce Group division, provides a foothold for the Chinese technology giant into one of Europe's fastest-growing e-commerce markets. According to the agreement, Deutsche Post ECommerce Group (DHL) and Cainiao Network (the logistics arm of Alibaba Group Holding) will jointly invest EUR 60 million (USD 64.75 million) in the construction of parcel lockers throughout Poland. The two companies will combine their existing networks to provide consumers with more convenient access to parcel lockers, which will be installed at critical locations with modern, easy-to-use interfaces. DHL's parcel shop network in Poland has already reached 1,200 locations, and DHL's parcel lockers have tripled in quality and speed in the past three years.
APAC Contract Logistics Industry Overview
The Asia-Pacific Contract logistics market is fragmented, 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 many local players and some major international 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.
APAC Contract Logistics Market Leaders
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Deutsche Post DHL Group (DHL Supply Chain)
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CJ Logistics
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DB Schenker
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United Parcel Services Inc.
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Nippon Express Co. Ltd
*Disclaimer: Major Players sorted in no particular order
APAC Contract Logistics Market News
May 2023: Kuehne+Nagel opened two fulfillment centers for Elanco, an animal healthcare company, in Chengdu, West China; the new facilities include a 3000-meter square production warehouse and a 12,000-meter square distribution center for the final product, which is increasing surface and storage capacities using improved racking system.
January 2023: Both Big C Supercenter, a supermarket retailer in Thailand, and DHL Supply Chain Thailand, a provider of contract logistics, recently announced the introduction of electric trucks for product delivery, first at Big C locations in Bangkok and then at the Big C Wangnoi Delivery Center. In order to move Big C products to stores in various locations in the near future, more electric truck models are being looked into for the fleet.
APAC Contract Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 E-commerce Growth
4.2.1.2 Global Trade and Supply Chain Resilience
4.2.2 Restraints
4.2.2.1 High Initial Investment
4.2.3 Opportunities
4.2.3.1 Cross-Border E-commerce
4.3 Industry Attractiveness - Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Threat of Substitute Products
4.3.3 Bargaining Power of Buyers/Consumers
4.3.4 Bargaining Power of Suppliers
4.3.5 Intensity of Competitive Rivalry
4.4 Value Chain / Supply Chain Analysis
4.5 Government Regulations and Initiatives
4.6 Technological Trends
4.7 Insights into E-Commerce Industry in the Region (Domestic and Cross-Border)
4.8 Insights into Contract Logistics in the Context of After-Sales/Reverse Logistics
4.9 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-added Services)
4.10 Spotlight on Freight Transportation Costs/Freight Rates for Key Routes
4.11 Brief on Freight Transport Corridors
4.12 Insights into Key Special Economic Zones (SEZs) and Manufacturing Hubs
4.13 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Insourced
5.1.2 Outsourced
5.2 By End User
5.2.1 Manufacturing and Automotive
5.2.2 Consumer Goods and Retail
5.2.3 High-Tech
5.2.4 Healthcare and Pharmaceuticals
5.2.5 Other End Users
5.3 By Country
5.3.1 China
5.3.2 India
5.3.3 Japan
5.3.4 South Korea
5.3.5 Australia
5.3.6 Singapore
5.3.7 Malaysia
5.3.8 Indonesia
5.3.9 Thailand
5.3.10 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration, Major Players)
6.2 Company Profiles
6.2.1 Deutsche Post DHL Group
6.2.2 DB Schenker
6.2.3 Ceva Logistics
6.2.4 United Parcel Services Inc.
6.2.5 Logisteed Ltd
6.2.6 CJ Logistics
6.2.7 Nippon Express Co. Ltd
6.2.8 Toll Group
6.2.9 Nippon Express Co. Ltd
6.2.10 Yusen Logistics Co. Ltd*
- *List Not Exhaustive
6.3 Other companies (Key Information/Overview)
6.3.1 Hellmann Worldwide Logistics, S.F.Holding Co. Ltd, Kerry Logistics Network Limited, Yamato holdings Co. Ltd, Leschaco Japan K.K., Agility Logistics Ltd, Rhenus Logistics, GAC, Geodis, Linc Group, BCR Australia Pty Ltd, Silk Contract Logistics, DSV A/S*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
8.1 GDP Distribution, By Activity and By Region
8.2 Insights on Capital Flows
8.3 External Trade Statistics - Export and Import, By Product For Key Countries
8.4 Insights on Key Export Destinations of Key Countries
8.5 Insight on Key Import Origins of Key Countries
APAC Contract Logistics Industry Segmentation
Contract logistics refers to a long-term partnership that includes a variety of services, from the transportation of goods or replacement parts to the delivery of goods to the final client. The service offerings of contract logistics include the following: warehouses, personnel, appropriate equipment, stock management, dispatch follow-up, and after-sales service, among others. A complete background analysis of the African cold chain logistics market, including the 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 geographical trends, and COVID-19 impact, is covered in the report.
The Asia-Pacific (APAC) contract logistics market is segmented by type (outsourced and insourced), end user (manufacturing & automotive, consumer goods & retail, high-tech, healthcare & pharmaceuticals, and other end users), and country (China, India, Japan, South Korea, Australia, Singapore, Malaysia, Indonesia, Thailand, and Rest of Asia-Pacific). The report offers market size and forecasts for all the above segments in value (USD).
| By Type | |
| Insourced | |
| Outsourced |
| By End User | |
| Manufacturing and Automotive | |
| Consumer Goods and Retail | |
| High-Tech | |
| Healthcare and Pharmaceuticals | |
| Other End Users |
| By Country | |
| China | |
| India | |
| Japan | |
| South Korea | |
| Australia | |
| Singapore | |
| Malaysia | |
| Indonesia | |
| Thailand | |
| Rest of Asia-Pacific |
APAC Contract Logistics Market Research FAQs
How big is the APAC Contract Logistics Market?
The APAC Contract Logistics Market size is expected to reach USD 259.64 billion in 2024 and grow at a CAGR of 5.25% to reach USD 335.32 billion by 2029.
What is the current APAC Contract Logistics Market size?
In 2024, the APAC Contract Logistics Market size is expected to reach USD 259.64 billion.
Who are the key players in APAC Contract Logistics Market?
Deutsche Post DHL Group (DHL Supply Chain), CJ Logistics, DB Schenker, United Parcel Services Inc. and Nippon Express Co. Ltd are the major companies operating in the APAC Contract Logistics Market.
What years does this APAC Contract Logistics Market cover, and what was the market size in 2023?
In 2023, the APAC Contract Logistics Market size was estimated at USD 246.01 billion. The report covers the APAC Contract Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the APAC Contract Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia Pacific Warehousing and Distribution Services Industry Report
Statistics for the 2024 APAC Contract Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Contract Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
