To enable smoother transportation, roadways mode is gaining maximum attention by the logistics and transportation companies

Latest market study on "Third Party Logistics Market to 2025 by Mode of Transport (Roadways, Railways, Waterways, and Airways), Services (International Transportation, Warehousing, Domestic Transportation, and Inventory Management), End-User (Automotive, Healthcare, Retail, and Consumer Goods) - South East Analysis and Forecast", the third party logistics market is estimated to reach US$ 55.7 Bn by 2025 from US$ 36.4 Bn in 2017. The report include key understanding on the driving factors of this growth and also highlights the prominent players in the market and their developments. The relative advantages associated with the adoption of roadways is encompassed with end-to-end pick-up & delivery process, extensive routes, and it is fairly fast with high reliability.

The third party logistics experiencing a steady growth with regards to the research and development activities, product innovations, investments, and technological integrations, and deployment in the current scenario and is anticipated to rise exponentially in the coming years. The market for third party logistics consists of some well-established players across the globe that caters varied diversified industries. The countries of South East Asia is experiencing a high growth in the third party logistics market and this region is expected to continue its lead during the forecast period. Where, Indonesia holds a highest market share followed by Thailand and Vietnam. The South East Asia region is contributing to the highest revenue due to robust economic growth along with growing retail enactment owing to the rising disposable income in this region. Further, fast growth in e-commerce sector and rise in foreign direct investment are boosting the market for third party logistics in this region. The selection criteria of mode of transport is depends on the physical characteristics of goods and supplies. In certain situations, environmental factors such as destruction of roads and railways may have a considerable impact on the mode of selection. The factors considered in mode of selection would be speed which the mode exhibits, flexibility that the mode offers, and comparative unit cost.

Currently, roadways are the leading mode of transport segment, whereas airways are expected to grow at a higher rate during the forecast period. Airways is often considered as an alternative for other mode of transport especially in case of flooding and conflict situations. The factors that influence the selection for airway mode of transport are availability & cost of different types of aircraft, the distance to be travelled & possible constraints on certain airspace, and securing landing & over-flight permission. The solutions deployed for third party logistics have graduated from being highly expensive to inexpensive solutions over the years.

The South East Asia market for third party logistics is segmented on various parameters such as mode of transport, services, end-user, and geography. Based on mode of transportation, roadways segment dominates the entire third party logistics market and is expected to continue its dominance throughout the forecast period from 2018 - 2025. On the basis of services, other services including freight forwarding, customs brokerage, distribution, and value-added services is expected to witness a significant increase in market share in the coming years, however, warehousing services is projected to be the fastest growing segment. Third party logistics market operates in an extremely fragmented industry with huge number of smaller players capturing the market. Key players operating in the market are introducing attractive services and solution which is helping the companies to gain customer traction. The major companies offering third party logistics to different industries include Deutsche Post AG, Nippon Express Co., Ltd., C.H. Robinson Worldwide, Inc., Kuehne + Nagel International AG, XPO Logistics, Inc., DB Schenker, DSV A/S, Geodis, Sinotrans Co., Ltd., and UPS Supply Chain Solutions among others. Several other companies are also offering these services to different industries which is facilitating the third party logistics market to propel over the years.

The report segments the South East Asia third party logistics market as follows:

South East Asia Third Party Logistics Market - By Mode of Transport

South East Asia Third Party Logistics Market - By Services
International Transportation
Domestic Transportation
Inventory Management

South East Asia Third Party Logistics Market - By Country

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