Asia Pacific Logistics Market Report and Forecast 2024-2032

Asia Pacific Logistics Market Outlook

The Asia Pacific logistics market size was valued at USD 4565.84 billion in 2023. The market is further projected to grow at a CAGR of 6.1% between 2024 and 2032, reaching a value of USD 7,779.6 billion by 2032.

Key Takeaways

• The Asia Pacific logistics market growth depends on several factors such as the growth in trade between India and China, the growing retail sales in APAC, and the rapid growth in the e-commerce industry.

• As per industry reports, the market is driven by several factors, including the increasing demand from the manufacturing sector, the expected resumption in space take-up by the e-commerce sector, and the region's surging freight demands driven by global seaborne trade.

• Investments in cold storage properties and decarbonising freight transport through modal shifts to rail are significant trends in the market.

• In 2018, Kuehne+Nagel expanded its Asia presence with the acquisition of Wira Logistics, an Indonesian logistics company, for USD 2 million.

The growth in trade between India and China is notably driving the market growth. For instance, in H1 2022, China's exports to India increased by USD 57.51 billion, up by 34.5%, as compared to H1 2021. As compared to 2021, trade between India and China stood at USD 67.08 billion in H1 2022, which increased by 16.5%. The expanding trade in both developing countries will pave the way for the growth of the logistics and warehousing market for all industries.

Moreover, driven by a shortage of new supply, outdated existing facilities, and rapidly changing consumer demands created by increased online retail, investments in cold storage properties in the Asia-Pacific is expected to experience robust demand for logistics.

The market is segmented based on type, with the 3PL segment dominating the market due to the demand for logistics services from manufacturing, retail, and e-commerce industries. The manufacturing segment is expected to account for the largest Asia Pacific logistics market share, with the need for logistics services mainly from manufacturing industries such as pharma, healthcare, and telecommunications.

Companies in the region are increasingly adopting advanced technologies like AI, Machine Learning, and the Internet of Things (IoT) to enhance supply chain efficiency and optimise logistics operations. For example, DHL Asia Pacific has implemented AI-powered solutions for predictive analytics, route optimisation, and inventory management, leading to improved cost-effectiveness and streamlined processes.

The logistics sector in the region is increasingly focusing on sustainability, with companies implementing green logistics practices and investing in eco-friendly technologies to reduce carbon emissions and environmental impact. For example, FedEx Express Asia Pacific has implemented a range of sustainability initiatives, including the use of electric vehicles and renewable energy sources.

Market Segmentation

Asia Pacific Logistics Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Model Type

• 1 PL

• 2 PL

• 3 PL

• Others

Market Breakup by Transportation Mode

• Roadways

• Seaways

• Railways

• Airways

Market Breakup by End User

• Manufacturing

• Consumer Goods and Retail

• Food and Beverages

• IT Hardware and Telecom

• Healthcare

• Chemicals

• Construction

• Automotive

• Oil and Gas

• Others

Market Breakup by Country

• China

• Japan

• India

• ASEAN

• Australia

• Others

Competitive Landscape

Market players are focusing on expanding their presence in the region through partnerships, collaborations, and acquisitions.

• FedEx Corporation

• United Parcel Service, Inc.

• Schenker AG

• C.H. Robinson Worldwide Inc.

• Deutsche Post AG

• DSV A/S

• CMA CGM Group (CEVA Logistics SA)

• Kuehne + Nagel International AG

• Nippon Express Co., Ltd.

• Expeditors International of Washington, Inc.

• Kintetsu World Express Inc.

• GXO Logistics, Inc.

• A.P. Møller – Mærsk A/S

• Others

Key Highlights of the Report