Logistics - Industry - Asia Pacific Market, Share and Trends 2023-2028

Summary of Logistics

The Asia Pacific region is home to nearly 60% of the world’s population and includes massively productive economies as well as rapidly developing nations experiencing strong GDP growth. Major established logistics hubs like – China, Japan, South Korea, Singapore, Australia and India have long supported extensive domestic and international supply chain networks. Based on our estimates, we can say that Europe’s regional logistics industry is forecasted to be a $4750.27 billion industry in 2029 from $3440.8 billion in 2023 with a CAGR of 5.40%.

Meanwhile– the ASEAN bloc of Southeast Asian countries has emerged as a global manufacturing powerhouse in industries like electronics, automotive, machinery and garments production. Countries such as Vietnam, Indonesia, the Philippines and Thailand in particular have seen industrialization accelerate dramatically over the past decade, with foreign direct investment pouring into new export-oriented factories. This manufacturing expansion has driven immense demand for reliable logistics services to transport raw materials and ship finished goods both regionally and intercontinentally.

Rising standards of living across Asia Pacific have also fueled growth in e-commerce and consumer goods markets. As internet access and smartphone adoption increase, more residents of China, India and Southeast Asia are shopping online for everything from apparel to appliances to groceries. This boom in digital commerce is placing immense pressure on logistics networks to support fulfillment and delivery operations at massive new scales.

Major Asia Pacific economies are now dedicating extensive resources towards modernizing ports, roads, rail lines, airports and other infrastructure to facilitate the seamless flow of goods through this dynamic region. Trillions of dollars in investments planned over the coming decades aim to maximize efficiency across integrated supply chains and capitalize on the enormous opportunities presented by Asia Pacific’s expanding industries and consumer markets.

Recent Trends and Insights

China remains the largest logistics market– accounting for over 25% of the $4.6 trillion Asia Pacific industry in 2023. Infrastructure investments are enhancing connectivity between major cities and ports.

India’s logistics industry is projected to reach $390 billion by 2030 due to initiatives like the National Logistics Policy aimed at modernizing supply chain infrastructure. Southeast Asian countries like – Vietnam, Indonesia, the Philippines and Thailand are seeing strong annual logistics industry growth of 6-9% on average.

E-commerce is fueling demand for fulfillment centers, delivery fleets and supply chain automation across both developed and emerging Asia Pacific markets. Adoption of technologies like warehouse robotics, fleet telematics, transportation management systems and data analytics solutions is gaining momentum.

Labor constraints are driving automation investments– especially in rapidly industrializing nations. This is helping boost productivity and optimize logistics operations. Sustainability is an increasing priority for firms targeting net-zero emissions goals through fleet electrification, carbon offset programs and reducing packaging waste.

Product Insights

Rapidly growing markets like India, Southeast Asia, Australia and New Zealand are seeing increased TMS implementation to optimize complex multi-modal supply chains.

WMS solutions tailored for high-density warehouses are in high demand in major logistics hubs like China, Japan and South Korea to maximize space and productivity.

Fleet tracking technologies are gaining popularity in Asia Pacific to improve fleet utilization and safety. This is especially prevalent in emerging markets experiencing rising road congestion.

 Automated sorting systems, AGVs, autonomous mobile robots and goods-to-person order picking are being deployed extensively in new large-scale fulfillment centers across Asia to address labor constraints and meet rising e-commerce volumes.

Data-driven supply chain planning tools utilizing IoT, machine learning and predictive algorithms are helping Asia Pacific logistics firms address capacity challenges through demand forecasting and dynamic route optimization.

Key Companies

Some major players within this vast domain of industry are

• Deutsche Post DHL Group (DHL Supply Chain)
• Kuehne + Nagel International AG
• Schenker AG (DB Schenker
• Nippon Express
• Yusen Logistics Co., Ltd
• Hitachi Transport System Ltd
• CJ Logistics.
• Toll Group
• APL Logistics
• Kerry Logistics

Regional Analysis

China remains the largest regional market, with major hubs like Beijing, Shanghai, Guangzhou and Shenzhen experiencing extensive infrastructure investment and innovation adoption.

India’s logistics industry is growing rapidly to support the country’s manufacturing expansion and rising e-commerce sector. Major cities like Mumbai, Delhi and Bangalore are developing advanced supply chain capabilities.

Southeast Asian nations like Singapore, Malaysia, Thailand, Vietnam and Indonesia have emerged as important logistics hubs due to strategic locations and business-friendly policies attracting foreign investment. South Korea, Taiwan and Hong Kong have highly efficient logistics networks supporting advanced electronics and automotive industries.

Developed markets like Japan, Australia and New Zealand rely on sophisticated transportation and warehousing systems for domestic needs and international trade links. Regional integration under ASEAN and trade agreements like RCEP are enhancing connectivity between Asia Pacific nations and their access to global markets.

Market Segmentation

By Type:

• Transportation management systems
• Warehouse management systems
• Fleet management solutions
• Asset tracking technologies
• Order management software

By End user:

• Third-party logistics providers
• Manufacturers
• E-commerce retailers
• Wholesalers

By Enterprise Size:

• Large logistics companies
• Small parcel and LTL carriers
• Startups innovating new solutions

By Country:

• China
• India
• Japan
• Indonesia
• South Korea
• Australia

Our Methodology

We have offered a well-founded review of Asia-Pacific’s regional logistics market along with ongoing trends and upcoming projections to highlight proximate investment opportunities in this report. Moreover, an extensive analysis of any future prospects, challenges, competitors, or navigating aspects is also provided. A methodical detailed regional examination is presented.

Primary Research  

Our multi-pronged research approach includes interviews with industry leaders and a global survey of advanced manufacturing professionals to gain qualitative insights. We utilize our proprietary databases encompassing key performance indicators worldwide in order to collate relevant data points. A multivariate forecasting framework considering historical performance, current dynamics and qualitative factors are utilized to develop market sizing and growth projections through 2029.

We supplement our primary research with a careful examination of secondary materials such as– case studies, news stories and references from other sources. Organizations can benefit from the strategic advice and conclusions offered because they will be better equipped to respond to the dynamic nature of this industry and seize emerging possibilities.

We employ a comprehensive and iterative research methodology focused on minimizing deviation to provide the most accurate market estimates. Our research utilizes a combination of bottom-up and top-down approaches across segments and utilizes databases, primary research insights and industry experts for analysis.

Raw data is obtained from multiple sources and thoroughly filtered to ensure only authenticated and validated sources are considered. We collect data from raw material suppliers, industry associations, technology providers, and buyers to gain a holistic perspective.

Quantitative Analysis

Our market estimates are derived through statistical models, beginning with collection of historical data and analysis of macro- and micro-economic factors influencing the market. Gathered information on market dynamics, technology and pricing trends are utilised to build the models.

Econometric and technological models are applied to project short- and long-term market potential respectively. A bottom-up approach is preferred to minimize errors. Key parameters considered include market drivers and restraints, material pricing trends, regulatory scenarios, and capacity additions.

Weights are assigned to these parameters based on impact analysis and market forecasting is performed via statistical tools and techniques. We believe this methodology results in an accurate and realistic market picture.