At 5.5% CAGR, Asia Pacific Third Party Logistics Market is Projected to be Worth US$ 729.01 Billion by 2030, says Business Market Insights

According to Business Market Insights’ research, the Asia Pacific third party logistics market was valued at US$ 475.14 billion in 2022 and is projected to reach US$ 729.01 billion by 2030, registering a CAGR of 5.5% from 2022 to 2030. Surging adoption of e-commerce and increasing trends of sustainability are among the critical factors attributed to drive the Asia Pacific third party logistics market growth.

Over the last decade, the progress of hardware and the Internet has been directly linked with the adoption of e-commerce. E-commerce has replaced mortar and brick retail in almost all aspects, becoming the preferred medium for marketing, promoting, and purchasing products, goods, and services. As a result, many popular retail stores and brands have launched online shopping platforms. As a result, the volume of overall shipments has increased, ultimately creating demand for shipping services. In the 13 markets evaluated, almost 159 billion packages were transported in 2021, compared to 131 billion packages in 2020, representing a 21% increase.

Third-party logistics is acting as a significant component of e-commerce to manage the issues of inventory, warehousing, packing, tracking, and shipping. In the e-commerce business, third-party logistics providers deliver flexibility and scalability, upgraded technology, and efficiency and specialization. The logistics requirements and services provided by the third-party logistics firms to e-commerce businesses are supply chain management, warehousing, and consolidation services, which help shipping companies in successful order fulfillment. Thus, the growing number of shipments and quality services provided by the provider are driving the third-party logistics market.

On the contrary, reduced control of manufacturer hampers the growth of Asia Pacific third party logistics market.

Based on mode of transports, the Asia Pacific third party logistics market is segmented into roadways, railways, waterways, and airways. The roadways segment held 39.3% market share in 2022, amassing US$ 186.85 billion. It is projected to garner US$ 283.44 billion by 2030 to register 5.3% CAGR during 2022–2030.

In terms of services, the Asia Pacific third party logistics market is segmented into international transportation, warehousing, domestic transportation, inventory management, and others. The domestic transportation segment held 29.2% share of Asia Pacific third party logistics market in 2022, amassing US$ 138.61 billion. It is anticipated to garner US$ 194.69 billion by 2030 to expand at 4.3% CAGR during 2022–2030.

Based on end user, the Asia Pacific third party logistics market is segmented into automotive, healthcare, retail, consumer goods, and others. The retail segment held 33.3% market share in 2022, amassing US$ 158.02 billion. It is projected to garner US$ 235.28 billion by 2030 to register 5.1% CAGR during 2022–2030.

Based on country, the Asia Pacific third party logistics market is categorized into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. Our regional analysis states that China captured 42.6% share of Asia Pacific third party logistics market in 2022. It was assessed at US$ 202.37 billion in 2022 and is likely to hit US$ 325.26 billion by 2030, registering a CAGR of 6.1% during 2022–2030.

Key players operating in the Asia Pacific third party logistics market are C H Robinson Worldwide Inc, DB Schenker, DSV AS, GEODIS SA, Kuehne + Nagel International AG, Nippon Express Co Ltd, Sinotrans Ltd, and United Parcel Service Inc, among others.

• In February 2022, Infor, the industry cloud company, and DB Schenker, a leader in supply chain management and logistics solutions, today announced a strategic partnership. The agreement will see DB Schenker’s Logistics Service Provider (LSP) business leverage Infor Nexus technology to deliver a comprehensive supply chain solution to customers.
• In May 2021, Kuehne+Nagel has completed the acquisition of Apex International Corporation (“Apex”), following the satisfaction of all closing conditions, including the receipt of unconditional regulatory approvals from the competent authorities. Apex is one of Asia’s leading freight forwarders, especially on the transpacific and intra-Asia trade routes. In 2020, the company generated turnover of CHF 2.2 billion, gross profit of CHF 296 million and earnings before taxes of CHF 126 million and ranked seventh in terms of global air freight forwarding volume. In the first quarter of 2021, Apex has continued to perform strongly with turnover of CHF 556 million, gross profit of CHF 109 million and earnings before tax of CHF 64 million.

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