New York, June 21, 2023 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Asia Pacific Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" - https://www.reportlinker.com/p06465955/?utm_source=GNW
The size of Asia Pacific (APAC) Contract Logistics Market is USD 231.2 billion in the current year and is anticipated to register a CAGR of over 5% over the forecast period.
Key Highlights
China’s logistics demand increased at a rather quick rate in the first three quarters of 2021, 9.4% higher than in the same period in 2020, despite the reappearance of COVID-19 and power disruptions. The market for contract logistics services benefits from the growth of e-commerce due to the rise in demand for these services brought on by the retail e-commerce boom. Moreover, services offered by e-commerce companies are growing in the area. This is expected to drive the market as e-commerce companies will benefit from the improved technology solutions, reduced risk, and scalability that contract logistics offers.
To stay competitive and meet increasing consumer expectations for on-time and accurate deliveries, 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 that there are opportunities for the growth of this industry. Going forward, China and India are two significant potential markets for outsourcing in the Asia Pacific region.
Due to its rapid economic growth and vibrant business environment, Asia-Pacific is the fastest-emerging region in this market. Asia-Pacific has surpassed Europe to take the lead in the worldwide market for contract logistics. Strong economic growth, expanding retail enactment, and rising disposable income are all driving the growth in this region.
In addition, an increase in the middle class population and urbanization have boosted domestic consumption of luxury products, household goods, and fast-moving consumer goods. As a result, the expansion of the contract logistics market in Asia-Pacific is being aided by an increase in retail sales in the region. Numerous new non-asset companies and established players are being drawn to this region by the booming e-commerce sector followed by the increase of foreign direct investment is boosting the contract logistics market.
APAC Contract Logistics Market Trends
Demand from the Automotive Sector is Driving the Contract Logistics Services
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 grow by 10% in 2022 due to solid underlying demand reflecting the economic growth of the country and customers’ preference for personal vehicles over public transportation. In 2021, India grew at a rate of 27%.
In 2021, new vehicle sales in the Chinese market increased by 3.8% Y-o-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-o-Y decline since May 2021. Despite the pandemic, carmakers in the region have kept pace going with the introduction of new models.
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. These factors are expected to play a key role in driving the market for APAC contract logistics market.
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 many small and medium enterprises that are going online to increase their business opportunities. Contract logistics offers e-commerce businesses advantages such as easy management of the business, advanced technological solutions, reduced risk, and scalability.
Asia is at the forefront of global e-commerce, and this trend is expected to continue in 2022. Asia accounted for roughly 60% of online retail sales worldwide in early 2021, with Chinese consumers making more than a third of all online transactions worldwide.
Due to the ongoing pandemic, internet platforms have become the key medium to perform business. 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 APAC are supporting the region’s rapid e-commerce boom and burgeoning digital economy.
Since the COVID-19 outbreak, 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. Moreover, the contract logistic operators are spending millions of dollars to secure a warehouse in a strategic location, reduce delivery times, and increase their respective market share.
APAC Contract Logistics Industry Overview
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 international 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
Read the full report: https://www.reportlinker.com/p06465955/?utm_source=GNW
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