Asia Pacific Third Party Logistics Market Revenue and Forecast (2016-2027)-Country Level Assessment (China, Japan, India, South Korea, Australia)
Third Party Logistics is an outsourcing operation that involves managing the flow of goods in a company's supply chain and ensuring that things are delivered on time from the manufacturer to the consumer. The Asia Pacific Third party logistics market has recorded growth of on an average 8% year on year and even managed positive trend in 2020 by recording decline in revenues by 5-6%. The dominance of China in the manufacturing sector, the existence of the world's most populous countries (China and India), the presence of the world's largest e-commerce market, and an increase in foreign investments in Indonesia, Philippines, and India are all factors contributing to the Asia Pacific Third Party logistics growth. Construction of trading and logistics centres in places such as Hong Kong SAR, Shanghai, Singapore, and Busan, which can serve as future-ready hubs for regulating regional supply chains, has progressed.
Asia's e-commerce market registered growth of 35.2% in 2020, bringing 40 million new Internet users and raising the number of Internet users in the region to more than 70%. Moreover, the Asia Pacific E-commerce market accounts for 63% of the total revenues of the global E-commerce market in 2021.
Impact of Covid-19
The COVID-19 pandemic has slowed down the economic growth of all countries. However, with record vaccination and consumption returning to pre-pandemic levels in 2021 and 2022, the outlook for economic progress across most countries is optimistic. Growth in the Asia-Pacific region still remains strong, after all it is the most dynamic region in the world. The emergence of the COVID-19 pandemic in 2020 impacted practically the entire 3PL market in Asia pacific region, causing supply chain disruptions due to lockdowns.
Performance of 3PL Market by Asian Countries
China Third Party Logistics Market
China is the second largest third-party logistics market worldwide and is the largest 3PL market in Asia Pacific. Demand for logistics services such as inventory management and express delivery is predicted to rise with rise in e-commerce adoption. Most firms, with the exception of the largest e-commerce companies, are reluctant to invest and create their own logistics systems. As a result, 3PL service providers are likely to see a large increase in demand, particularly in third- to sixth-tier cities where demand for logistics services is increasing.
Japan Third Party Logistics Market
Across the world, after the US and China, Japan is the third largest third-party logistics (3PL) market in terms of revenue. During the period 2016-2021, the Japanese 3PL market has increased at a 5% CAGR, owing to advancements in the manufacturing sector and vehicle trade, with E-commerce later picking up market growth. Because of the global spread of COVID-19, third-party logistics revenues in Japan fell in 2020, but remained stable because their role is not confined to non-essential product distribution. Medical supplies, medications, F&B retail, and electronics all played a significant part.
India Third Party Logistics Market
India The 3PL logistics market has shown considerable growth in the past, with a growth rate of 9% predicted for 2020. Businesses prefer to focus on their core competencies and rely on third-party logistics providers to handle their transportation needs. Because countries' decisions to open up to trade in 2020 caused supply disruptions, 3PL companies' inventory management needs to be improved to reduce the unforeseen future load. As a result of the pandemic when everything moved online, internet shopping became ingrained in the lives of many people and grew in popularity. As a result, during the third quarter of 2020, 3PL exports increased by 70%.
South Korea Third Party Logistics Market
South Korea's third-party logistics market is ranked fourth among the top five Asian countries. South Korean manufacturing and wholesale enterprises have spent the last decade focused on improving the internal and external efficiency of their supply chains, resulting in lower transportation costs. The country's logistics market is on an upward trend, thanks to improvements in the supply chain. The country's e-commerce business has changed structurally, resulting in an increase in the online grocery market.
Australia Third Party Logistics Market
As businesses increasingly focus on offering value services to be competitive, the arrival of 3PL firms into the market has revolutionized the foundation of supply chains in Australia. As a result, quality logistics, including such warehouses, distribution networks, and technical expertise, are essential for 3PL companies to compete in a competitive market. Express delivery services in Australia have steadily increased since e-commerce enterprises introduced the concept of same-day and door-to-door delivery. Rising investments in logistics infrastructure have enabled Australia's capacity grow over time, propelling the country's logistics industry forward.
Scope of the Study
The following synopsis is based on the report "Asia Pacific Third Party Logistics Market Revenue and Forecast (2016-2027)-Country Level Assessment (China, Japan, India, South Korea, Australia)" published by Makreo Research and Consulting. The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.
Companies covered in the Asia Pacific Third Part Logistics Report:
Kuehne + Nagel International AG
C.H. Robinson Worldwide
The report helps the reader to gain information on following areas:
How Asia Pacific third party logistics market is performing after the virus outbreak?
What is the expected future performance for Asia Pacific third party logistics market?
How express logistics market performed in Asian countries in recent past?
Who are the leading players in the market and what is their present financial performance?
What are the major contributing countries in Asia Pacific 3PL market?
What are the major factors driving the market performance and how these factors are position to influence the future growth of the industry?
How China 3PL market has performed in the past and what is the expected future growth?
At what rate India 3PL market is growing and what is the expected future outlook?
How Philippines, Malaysia, South Korea and Japan 3PL markets are positioned?
What are the investment prospects in Asian countries?
How technological developments are shaping up the Asia Pacific 3PL market.
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