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ASIA PACIFIC (APAC) CONTRACT LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The Asia-Pacific contract logistics market (henceforth, referred to as the market studied) was valued at USD 220. 21 billion in 2021. It is expected to reach USD 302. 21 billion by 2027, registering a CAGR of 5.
New York, April 22, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "ASIA PACIFIC (APAC) CONTRACT LOGISTICS MARKET - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)" - https://www.reportlinker.com/p06271884/?utm_source=GNW
42% during the forecast period.
Despite the resurgence of COVID-19 cases, extreme weather conditions, and power outages, China’s logistics demand grew at a relatively rapid pace in the first three quarters of 2021, 9.4% higher than the same period last year.
The contract logistics market benefits from the expansion of eCommerce, in response to increased demand for contract logistics services as a result of the retail e-commerce boom, logistics Companies are expanding their services in the region rapidly. Contract logistics provides superior technological solutions, decreased risk, and scalability to such businesses.
To stay competitive and meet increasing consumer expectations for on-time and accurate deliveries, more e-commerce retailers are outsourcing mission-critical components of their distribution and fulfillment operations to logistics companies.? The degree of outsourcing in contract logistics is low indicating significant room for growth. Going forward, China and India are two significant potential markets for outsourcing in the Asia Pacific region.
Key Market Trends
Demand From Automotive Sector Is Driving The Market
Automotive is one of the most important areas in contract logistics, especially in places such as China, which has the world’s largest automotive industry. Kuehne+Nagel has been steadily expanding its presence in China. India, the world’s fourth-largest automotive industry, is expected to rise by 10% in 2022 due to solid underlying demand reflecting the global economic recovery and customers’ preference for personal vehicles over public transportation. In 2021, India grew at a rate of 27%.
For the full year of 2021, new vehicle sales in the Chinese market increased by 3.8% year-over-year (y/y) to 26,275,000 units (on a factory-shipped basis, including exports), marking the first full-year increase in four years, despite a monthly y/y decline since May 2021 Despite the pandemic, carmakers in the region have kept the pace going with the introduction of new models. BMW Indonesia, for example, organized a virtual debut of the M2 Edition by Futura 2000, in keeping with the necessity for social distance for safety. As a precaution, the firm supplied a brand-new automobile unit in container-sized boxes.
Nissan and Mazda also launched new cars amid the restricted movement in Indonesia, while Honda saw launches in Malaysia, the Philippines, Thailand, and Toyota was not one to be outdone with launches in Vietnam, Malaysia, and the Philippines. Meanwhile, the growing interest in electric cars was spotted in Singapore, as the netizens actively participated in discussions comparing the offerings of electric car manufacturers such as Tesla and BYD, besides the new launches of traditional manufacturers such as BMW.
Bolstering E-Commerce in the region is stimulating the demand for Contract Logistics Services
APAC is leading the global e-commerce market with high internet and mobile penetration coupled with a largely young and middle-class population. The region is also home to a large number of SMEs which are going online to increase their business opportunities. Contract logistics offers e-commerce businesses of all sizes advantages such as easy management of the business, advanced technological solutions, reduced risk, and scalability.
Asia is at the forefront of global eCommerce, and this trend is expected to continue in 2022. Asia accounted for roughly 60% of worldwide online retail sales in early 2021, with Chinese consumers alone making more than a third of all online transactions.
Due to the ongoing pandemic, internet platforms have become the key medium for business for everyone from startups to huge merchants. In addition to the advent of new trade agreements like the Regional Comprehensive Economic Partnership, which went into force in 2022, rising disposable incomes and increasing internet access across Asia are supporting the region’s rapid e-commerce boom and burgeoning digital economy.
Since the outbreak of the pandemic, online shopping has grown dramatically, with an additional 70 million digital consumers added in Southeast Asia alone. By 2027, digital transformation is anticipated to be worth more than USD1.3 trillion in Asia alone. The rapid growth in e-commerce is also resulting in high demand for warehousing space. The operators are spending millions of dollars to secure a warehouse in strategic location which allow them to reduce delivery times.
Competitive Landscape
The Asia-Pacific Contract logistics market is fragmented in nature, 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 the presence of a large number of local players and some major 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.?
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
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