The Australia freight and logistics market is estimated to witness a growth rate of 2. 5% over the forecasted period of 2019 to 2024. The market is driven by increasing investment in the logistics infrastructure which has helped boost the country’s capacity over the years.


New York, Dec. 07, 2020 (GLOBE NEWSWIRE) -- announces the release of the report "AUSTRALIA FREIGHT AND LOGISTICS MARKET - GROWTH, TRENDS, AND FORECAST (2020 - 2025)" -

- Threat of new entrants in the market is low due to the high initial setup cost and intense rivalry among the present players.
- Government has played an important role in development of the freight and logistics market by helping improve the freight network throughout Australia.

Key Market Trends
Growing Urban Population Reasons for Busy Urban Freight Transport

Growth in online shopping may affect the small goods’ transportation in the near future. Industry data shows that between 2006 and 2014, the number of light commercial vehicles grew by 35%, almost twice the rate of passenger vehicles (19.1%) and rigid trucks (20.78%). This indicated the importance of urban supply chains in a growing services economy.
The projected population growth and infrastructure demand in all Australian cities are significant concerns for the logistics sector. The Australia Infrastructure Audit found that the capital cities contributed AUD 854 billion to the economy in 2011, and are projected to contribute AUD 1,621 billion in 2031. Majority of economic activities occur in the major cities, so urban freight may be as important for future growth as the traditional long-distance freight.
The scale of potential growth in freight in some urban areas and along some corridors in cities is such that there may be a greater need to operate freight networks much more intensively in off-peak periods. This is likely to encounter strong resistance from the affected communities, which means that the strategy should also provide some guidance on how the industry can establish a ‘license to operate’ in the changing economy, that is, how operators can strike a balance between meeting the community expectations and customer demand.

E-commerce is Rapidly Evolving in Australia

Australian e-commerce is rapidly evolving, as consumers might fall further in love with online buying. As many as 4.6 million Australians accessed Amazon US, in October 2017. Amazon US ranked second, in terms of unique visitors, while Woolworths was visited by 6.7 million Australians.
E-commerce holds a 1.80% share in Australia’s GDP. Australia ranks second on the global e-government index, 13th in the ease of doing business index, and 16th in the logistics performance index.
As many as 33% of Australian e-shoppers buys from abroad, due to better availability of products, while 32% buys due to the appealing offers. This makes Australian e-commerce an attractive market for both local and international businesses.
Between now and 2020, the value of Australian e-commerce sales is anticipated to grow by 50%, and this is a major factor that driver the freight and logitics market due to increasing volume of international cross-border trade.

Competitive Landscape
The major companies in the country have adopted various modern technologies, such as warehousing management systems, automation, drone delivery, and Transportation Management System, which has enabled better planning and tracking facilities resulting in increased productivity and increased value proposition.

The market due to the large number of international players and intense rivalry to gain market is observed to be moderately fragmented.

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