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Japan Freight and Logistics Market Size

The Japan Freight and Logistics Market is experiencing significant growth, driven by increasing demand in international express and e-commerce shipping sectors, particularly in East Asia. Collaborations, such as the one between DHL Express and Japan Airlines, are enhancing connectivity and expanding networks to meet this demand. Additionally, substantial investments in public infrastructure are being made to support this growth, with a focus on combating infrastructure deterioration. The rise of cross-border e-commerce, especially with major partners like the United States and China, is further propelling the market, as online retailers work to improve the consumer experience in Japan.

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Market Size of japan freight and logistics Industry

Japan Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 320.1 Billion
svg icon Market Size (2030) USD 406.7 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 4.07 %
svg icon Fastest Growing by Logistics Function Courier, Express, and Parcel (CEP)
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Japan Freight and Logistics Market Analysis

The Japan Freight and Logistics Market size is estimated at 320.1 billion USD in 2024, and is expected to reach 406.7 billion USD by 2030, growing at a CAGR of 4.07% during the forecast period (2024-2030).

320.1 Billion

Market Size in 2024 (USD)

406.7 Billion

Market Size in 2030 (USD)

4.14 %

CAGR (2017-2023)

4.07 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

5.03 %

Projected CAGR, Air, 2024-2030

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JAL's low-cost carrier unit, Spring Japan, is set to commence operations with three Airbus A321 converted freighters in 2024, initially operating 21 flights daily across four key routes.

Largest CEP Market by Destination

64.17 %

value share, Domestic, 2023

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E-commerce has been the key catalyst for the growth of the domestic CEP segment. The e-commerce market in Japan grew by 6.8% YoY and reached USD 155.1 billion in 2023.

Largest Market by End User Industry

41.98 %

value share, Wholesale and Retail Trade, 2023

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The e-commerce market in Japan is expected to grow at a CAGR of 9.75% during the period 2023-2027, driving the wholesale and retail trade end-user segment.

Largest Warehousing Market by Temperature Control

92.15 %

value share, Non-Temperature Controlled, 2023

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Mitsubishi Estate unveiled plans to invest USD 3.3 billion in the logistics sector till 2033. Their focus lies in developing warehouses tailored for automobile batteries and self-driving trucks.

Fastest Growing Warehousing Market by Temperature Control

3.91 %

Projected CAGR, Temperature Controlled, 2024-2030

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Japan witnessed a rise in its cold storage warehouse capacity in recent years. In April 2023, GLP Pte Ltd initiated the construction of two fully refrigerated cold storage facilities, spanning 55,000 sq. m.

Rising demand for road freight services due to increasing e-commerce sales and structural changes in Japan

  • In December 2023, DHL Express and Japan Airlines (JAL) forged a long-term partnership centered around JAL's Boeing 767-300 freighters. This collaboration aims to tap into the surging demand in the international express and e-commerce shipping sectors, particularly in East Asia. By teaming up with DHL, JAL is bolstering its efforts to establish key connections between Japan, Seoul, Shanghai, and Taipei, leveraging the Boeing 767-300ER freighters. Notably, DHL plans to expand its intra-East Asia network by leveraging the routes introduced by JAL starting in February 2024.
  • Investments in public road construction and maintenance reached approximately USD 61.71 billion in FY 2019, marking a rise from the previous fiscal year's USD 56.3 billion. Notably, construction expenditures surpassed maintenance costs by over USD 11.92 billion. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) projects a 40% increase in its annual spending on public infrastructure until around FY 2044, compared to 2018 levels, to combat infrastructure deterioration.
  • Global cross-border e-commerce has been a key catalyst for the international courier, express, and parcel (CEP) industry. Japan's cross-border e-commerce with the United States and China alone reached JPY 373 billion (USD 251 billion) in 2021. These two nations emerged as dominant players in cross-border B2C transactions, with Chinese giants like Alibaba and American e-commerce platforms like Amazon leading the way. Recognizing the growth potential, online retailers are actively enhancing the Japanese consumer experience, further fueling the shift toward online shopping. With e-commerce projected to hit USD 225 billion by 2027, the demand trajectory remains robust.
Japan Freight and Logistics Market

Japan Freight and Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

  • In December 2023, DHL Express and Japan Airlines (JAL) forged a long-term partnership centered around JAL's Boeing 767-300 freighters. This collaboration aims to tap into the surging demand in the international express and e-commerce shipping sectors, particularly in East Asia. By teaming up with DHL, JAL is bolstering its efforts to establish key connections between Japan, Seoul, Shanghai, and Taipei, leveraging the Boeing 767-300ER freighters. Notably, DHL plans to expand its intra-East Asia network by leveraging the routes introduced by JAL starting in February 2024.
  • Investments in public road construction and maintenance reached approximately USD 61.71 billion in FY 2019, marking a rise from the previous fiscal year's USD 56.3 billion. Notably, construction expenditures surpassed maintenance costs by over USD 11.92 billion. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) projects a 40% increase in its annual spending on public infrastructure until around FY 2044, compared to 2018 levels, to combat infrastructure deterioration.
  • Global cross-border e-commerce has been a key catalyst for the international courier, express, and parcel (CEP) industry. Japan's cross-border e-commerce with the United States and China alone reached JPY 373 billion (USD 251 billion) in 2021. These two nations emerged as dominant players in cross-border B2C transactions, with Chinese giants like Alibaba and American e-commerce platforms like Amazon leading the way. Recognizing the growth potential, online retailers are actively enhancing the Japanese consumer experience, further fueling the shift toward online shopping. With e-commerce projected to hit USD 225 billion by 2027, the demand trajectory remains robust.
End User Industry
Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others
Logistics Function
Courier, Express, and Parcel (CEP)
By Destination Type
Domestic
International
Freight Forwarding
By Mode Of Transport
Air
Sea and Inland Waterways
Others
Freight Transport
By Mode Of Transport
Air
Pipelines
Rail
Road
Sea and Inland Waterways
Warehousing and Storage
By Temperature Control
Non-Temperature Controlled
Temperature Controlled
Other Services
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Japan Freight and Logistics Market Size Summary

The Japan Freight and Logistics Market is poised for significant growth, driven by strategic partnerships and technological advancements. A notable collaboration between DHL Express and Japan Airlines aims to enhance international express and e-commerce shipping capabilities, particularly in East Asia. This partnership leverages JAL's Boeing 767-300 freighters to strengthen connections between Japan and key cities like Seoul, Shanghai, and Taipei. The transportation and storage sector in Japan has seen substantial growth, attributed to investments in automation, artificial intelligence, and robotics, which have improved logistics efficiency and service quality. The country's robust logistics industry is essential for supporting its large manufacturing sector, with major companies like Yamato Holdings leading the market.

The market landscape is characterized by a fragmented structure, with leading players such as Mitsui O.S.K. Lines, Nippon Express Holdings, NYK Line, SG Holdings, and Yamato Holdings holding a significant share. The sector is also witnessing innovations like Nippon Express's expansion of its digital forwarding service and DHL's sustainable transportation initiatives. Japan's infrastructure investments, particularly in public road construction, are set to increase, supporting the logistics industry's growth. Additionally, the rise in cross-border e-commerce, especially with the United States and China, is a key driver, as online retailers enhance the Japanese consumer experience, further boosting the demand for logistics services.

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Japan Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

Japan Freight and Logistics Market Size FAQs

The Japan Freight and Logistics Market size is expected to reach USD 320.09 billion in 2024 and grow at a CAGR of 4.07% to reach USD 406.70 billion by 2030.

In 2024, the Japan Freight and Logistics Market size is expected to reach USD 320.09 billion.

Japan Freight and Logistics Market Report Snapshots

Japan Freight and Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030