Asia-Pacific Contract Logistics Market Analysis, Size, and Share by 2025

Contract Logistics market in Asia-Pacific is expected to grow from US$ 80,963.7 Mn in 2017 to US$ 126,102.9 Mn by the year 2025. This represents a CAGR of 5.8% from the year 2018 to 2025.

The burgeoning needs for achieving cost efficiency, task optimizations and technological integrations pertaining to supply chain activities are fueling the Asia-Pacific Contract Logistics market. The contract logistics service providers generally have a distributed network of carriers as well as fleets that empowers them of reaching any destination within a given time frame easily and that too at minimal costs. Scaling up and down functions of a supply chain is also accessible as the service is majorly outsourced. Accountability of the goods being transported, quicker moves towards any technological changes and adding on network partners consistently are all managed by the outsourced logistics service provider thereby empowering the customer to achieve cost optimizations on the product until it reaches the last mile, thus driving the Contract Logistics market in Asia-Pacific. This factor has created a potential market space for Asia-Pacific Contract Logistics market.

The strong focus on risk management in the supply chains is anticipated to fuel the Asia-Pacific Contract Logistics market growth., the adoption of the RFID enabled devices is expected to store data for easy transport that will also simplify tracking & identification of products. Software related to transportation management system will reduce the inefficiency and costs with saving time for operations. Moreover, the implementation of speech recognition software in warehouse management system communications will support order turn-around and inventory records with reducing employee-training requirements. These initiative by the market player are enhancing the growth of Asia-Pacific Contract Logistics market.

China has anticipated to leads the Contract Logistics market across the Asia-Pacific region through the forecast period. India is one of the leading markets for contract logistics in Asia-Pacific. India’s contract logistics market is witnessing a constant growth. This has resulted in new challenges for the industry such as demand for expansion of product and services portfolio, availability of more efficient networks, as well as attainment of control over volatile costs. Moreover, the market is highly fragmented, which provides a huge room for growth of contract logistics players in India. Also, the growth of end-user industries, as well as increasing demand for complex logistics solutions with dedicated value-added services, are propelling the growth in this sector. This bolsters the Asia-Pacific Contract Logistics market in the forecast period. The figure given below highlights the revenue share of the Rest of Asia-Pacific in the Asia-Pacific Contract Logistics market in the forecast period:

Rest of Asia-Pacific Contract Logistics Market Revenue and Forecasts to 2027 (US$ Bn)

ASIA-PACIFIC CONTRACT LOGISTICS – MARKET SEGMENTATION

By Type

• Outsourcing • Insourcing

By Services

• Transportation• Warehousing• Packaging Processes and Solutions• Distribution• Production Logistics• Aftermarket Logistics

By End User

• Aerospace• Automotive• Consumer• High-Tech• Industrial• Pharma & Healthcare• Retail• Others

By Country

• Australia• China• India• Japan• Rest of Asia-Pacific

Companies Mentioned

• Deutsche Post AG• XPO Logistics Inc.• Kuehne + Nagel International AG• CEVA Logistics AG• DB Schenker• Hitachi Transport System Ltd• Geodis• Neovia Logistics Services• UPS Supply Chain Solutions• Ryder System

Asia-Pacific Contract Logistics Report Scope