Japan Contract Logistics Market Size and Share Outlook: Forecast Trends and Growth Analysis Report (2026-2035)

Key Trends in the Market

Contract logistics refers to the outsourcing of supply chain management tasks such as order processing, inventory management, manufacturing and distribution management, and logistics, among others. Companies can outsource these tasks to a third-party contract logistics firm to make their supply chains more efficient.

• The growing demand for healthcare logistics, due to the rise in the geriatric population of the country, is one of the crucial Japan contract logistics market trends. Healthcare contract logistics ensure the timely delivery of medical and pharmaceutical products as well as contain a dedicated team of experts who offer valuable healthcare and pharmaceutical insights and can address any related queries.

• Several businesses are relying on contract logistics to gain access to the latest technologies, avoid overhead costs on warehousing and transportation, among other resource management tasks, as well as stay ahead of their competitors.

• The rising shortage of labour, coupled with the growth of online retailers in Japan, has fuelled the demand for automation in contract logistics. The high usage of autonomous vehicles in warehouses for transportation and distribution, automated storage systems for fast storage of goods, and drones for inventory management are expected to increase operational speed and support the overall Japan contract logistics market growth.

• Growing partnerships and agreements between market players and companies for optimising logistics operations is also a prominent trend in the Japanese market. For example, in April 2023, DHL, a global contract logistics provider, renewed its agreement with the Nitto Denko Corporation, a Japan-based advanced material company for providing logistics services and enhancing the visibility of logistics costs, operations, and quality.

Market Analysis

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Market Share by Type

Outsourced contract logistics occupies a significant portion of the Japan contract logistics market share as a large number of Japanese companies are increasingly relying on third-party logistics (3PL) for cost-efficient and effective logistics services. Small and medium businesses do not have distribution centres in every part of the country, which fuels the demand for 3PL to facilitate fast and timely deliveries.

Additionally, by outsourcing various tasks of supply chain management, businesses can solely focus on their core operation and avoid overhead costs.

Market Share by Service

As per the Japan contract logistics market analysis, transportation accounts for a major market share, due to the growing demand for an efficient transportation solution that can offer fast deliveries. Contract logistics can also aid businesses by offering one-day delivery, which has emerged as a prominent trend in recent years.

Furthermore, the integration of advanced technology such as AI and data analytics for real-time delivery updates and route optimisation to avoid traffic jams also fuels the segment’s growth.

Competitive Landscape

Other Japan contract logistics market players include CMA CGM Group (CEVA Logistics), Daifuku Co., Ltd, Kuehne + Nagel International AG, Yamato Transport Co., Ltd., SG Holdings Co., Ltd., LOGISTEED Ltd., and Japan Post Co., Ltd., among others.