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South Africa Freight and Logistics Market Size

The South Africa Freight and Logistics Market is experiencing significant growth, with its market size projected to expand substantially over the forecast period. This growth is driven by various factors, including the entry of new players in the freight sector, such as inDrive.Freight, which offers innovative parcel dispatch services with flexible cost negotiations. The market is also witnessing a trend towards increased convenience in parcel delivery, exemplified by the expansion of point pickups and drop-offs through smart lockers and extensive pickup networks established by companies like Pargo. Additionally, the e-commerce boom is contributing to the rising demand for logistics services, further influencing the market's expansion.

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Market Size of south africa freight and logistics Industry

South Africa Freight and Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 13.79 Billion
svg icon Market Size (2030) USD 19.9 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 6.29 %
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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South Africa Freight and Logistics Market Analysis

The South Africa Freight and Logistics Market size is estimated at 13.79 billion USD in 2024, and is expected to reach 19.9 billion USD by 2030, growing at a CAGR of 6.29% during the forecast period (2024-2030).

13.79 Billion

Market Size in 2024 (USD)

19.9 Billion

Market Size in 2030 (USD)

4.84 %

CAGR (2017-2023)

6.29 %

CAGR (2024-2030)

Fastest Growing Market by Mode of Transport

11.72 %

Projected CAGR, Pipelines, 2024-2030

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The African Renaissance Pipeline project spans an impressive 2600 km. This pipeline is slated for completion in 2025 on the Mozambican side and 2026 on the South African side.

Largest CEP Market by Destination

64.85 %

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 grew by 8.4% YoY and reached USD 6.4 billion in 2023.

Largest Market by End User Industry

39 %

value share, Wholesale and Retail Trade, 2023

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With the launch of Amazon.co.za planned for early 2024, Amazon confirmed its entry into the South African retail market. The entry of Amazon to South Africa is expected to improve online offerings by local retailers.

Largest Warehousing Market by Temperature Control

91.90 %

value share, Non-Temperature Controlled, 2023

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In February 2024, M24 Logistics unveiled a state-of-the-art warehouse in Montague Gardens. Spanning 30,000 sq. m, this facility is tailored to cater to major players in the e-commerce sector.

Fastest Growing Warehousing Market by Temperature Control

6.04 %

Projected CAGR, Temperature Controlled, 2024-2030

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The pharmaceutical sector boosts the temperature-controlled segment. In 2023, the revenue from South Africa's OTC pharmaceutical market stood at USD 898.35 million.

Most developed economy with advanced infrastructure in the Sub-Saharan Africa

  • In Q4 2023, the e-hailing giant inDrive made its foray into South Africa's freight landscape, debuting its services in Cape Town and Johannesburg. Branded as inDrive.Freight, this new platform empowers users to dispatch parcels with direct cost negotiations with drivers. The platform boasts a diverse fleet, catering to both personal and commercial needs, facilitating deliveries of parcels weighing up to 20,000kg within its network.
  • A prominent trend in the domestic CEP market is the rise of specific point pickups and drop-offs. For instance, PUDO (Pick Up Drop Off) deployed 300 smart lockers in 2020, a number that surged to 1,100 by 2022, driven by the growing popularity and convenience of the service. These lockers enable seamless transfers of items weighing up to 20 kg, spanning from city centers to remote regions. Additionally, in 2022, Pargo, a smart logistics player, forged partnerships with over 3,000 local stores, spaza shops, and retail chains, establishing an extensive pickup network across South Africa. This move caters to the surging demand, largely fueled by the e-commerce boom, projected to hit USD 9.97 billion by 2027.
  • In February 2024, M24 Logistics, a division of Media24 specializing in warehousing and distribution for African B2B and B2C merchants, unveiled a state-of-the-art warehouse in Montague Gardens. Spanning 30,000 sq. m, this facility is tailored to serve major players in both the B2B and e-commerce realms while also accommodating small and medium-sized enterprises (SMEs). With a distribution network spanning over 30 African countries, M24 Logistics takes pride in its fine-picking capabilities.
South Africa Freight and Logistics Market

South Africa 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 Q4 2023, the e-hailing giant inDrive made its foray into South Africa's freight landscape, debuting its services in Cape Town and Johannesburg. Branded as inDrive.Freight, this new platform empowers users to dispatch parcels with direct cost negotiations with drivers. The platform boasts a diverse fleet, catering to both personal and commercial needs, facilitating deliveries of parcels weighing up to 20,000kg within its network.
  • A prominent trend in the domestic CEP market is the rise of specific point pickups and drop-offs. For instance, PUDO (Pick Up Drop Off) deployed 300 smart lockers in 2020, a number that surged to 1,100 by 2022, driven by the growing popularity and convenience of the service. These lockers enable seamless transfers of items weighing up to 20 kg, spanning from city centers to remote regions. Additionally, in 2022, Pargo, a smart logistics player, forged partnerships with over 3,000 local stores, spaza shops, and retail chains, establishing an extensive pickup network across South Africa. This move caters to the surging demand, largely fueled by the e-commerce boom, projected to hit USD 9.97 billion by 2027.
  • In February 2024, M24 Logistics, a division of Media24 specializing in warehousing and distribution for African B2B and B2C merchants, unveiled a state-of-the-art warehouse in Montague Gardens. Spanning 30,000 sq. m, this facility is tailored to serve major players in both the B2B and e-commerce realms while also accommodating small and medium-sized enterprises (SMEs). With a distribution network spanning over 30 African countries, M24 Logistics takes pride in its fine-picking capabilities.
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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South Africa Freight and Logistics Market Size Summary

The South Africa Freight and Logistics Market is poised for significant growth, driven by advancements in technology and infrastructure. The introduction of platforms like inDrive.Freight, which allows users to negotiate delivery costs directly with drivers, highlights the increasing integration of digital solutions in the logistics sector. The rise of smart logistics players such as Pargo, which has established a vast pickup network through partnerships with local stores and spaza shops, underscores the growing demand for efficient delivery systems. This demand is largely fueled by the e-commerce boom, which is expected to continue its upward trajectory, further stimulating the logistics market. The development of state-of-the-art facilities, such as M24 Logistics' new warehouse, reflects the sector's response to the burgeoning e-commerce and B2B/B2C markets, catering to both large corporations and SMEs.

The South African logistics landscape is characterized by a dominant road transport sector, supported by government initiatives like the National Development Plan and the National Infrastructure Plan 2050. These plans aim to enhance the country's transportation infrastructure, addressing the needs of a rapidly growing economy. Despite challenges such as high fuel prices, which are influenced by international and local factors, the market remains fragmented with key players like Dachser, DSV A/S, and Imperial Logistics leading the charge. Strategic partnerships and innovations, such as Kuehne + Nagel's decarbonization solutions and supply chain orchestration services, are shaping the future of logistics in South Africa, aiming to improve efficiency and sustainability across the supply chain.

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South Africa 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

South Africa Freight and Logistics Market Size FAQs

The South Africa Freight and Logistics Market size is expected to reach USD 13.79 billion in 2024 and grow at a CAGR of 6.29% to reach USD 19.90 billion by 2030.

In 2024, the South Africa Freight and Logistics Market size is expected to reach USD 13.79 billion.

South Africa Freight and Logistics Market Report Snapshots

South Africa Freight and Logistics Market Report - Industry Analysis, Size & Forecast up to 2030