Asia Pacific Third Party Logistics Market Forecast to 2030 - Regional Analysis - by Mode of Transports, Services, and End user

The Asia Pacific third party logistics market was valued at US$ 475.14 billion in 2022 and is expected to reach US$ 729.01 billion by 2030; it is estimated to register a CAGR of 5.5% from 2022 to 2030.

Increasing Trends of Sustainability Boost Asia Pacific Third Party Logistics Market

Many large and medium-sized organizations are taking initiatives to optimize their business processes to reduce carbon footprints. The transportation and logistics sector is among the major contributors to carbon emissions, accounting for approximately 27% of the total emissions. Many third-party logistics firms are helping shippers improve mobility by planning more effective routes, using environmentally friendly modes of transportation, and occupying key places.

Third-party logistics providers such as Borderline help reduce carbon emissions during the transportation stage of distribution by raising the fill rate per transport unit per tank of fuel, using higher-capacity vehicles, and performing routine maintenance of transport vehicles. While historically, the engineering of packing technologies has prioritized economic effectiveness and secure shipping over sustainability, many third-party logistics providers are rapidly moving to eco-friendly packaging to reduce their environmental impact. As recycled waste is used in the creation of eco-friendly packaging, fewer harmful resources are used, which lower overall carbon emissions.

Initiatives like these that focus on reducing carbon footprints are aligning with organizations' business strategy, ultimately driving the third-party logistics industry. In addition, governments of developed nations are compelling organizations to adopt greener practices. As a result, many manufacturing companies are searching for third-party logistics providers that have introduced eco-friendly efforts in light of this trend. Some of the practices involve minimizing waste production, lowering the carbon footprint of transportation, and adopting recyclable or environmentally friendly packaging.

Asia Pacific Third Party Logistics Market Overview

Continuously growing economies and penetration of e-commerce are driving the market. Owing to growth in the industrial, manufacturing, and agriculture sectors in developing economies such as India, Malaysia, and Singapore, the logistics activities in the region are increasing. Further, government initiatives to promote the logistics sector and develop infrastructure are some supporting factors for the market growth. In 2022, the Asian Development Bank (ADB) authorized a $ 250 million policy-based loan to help the Indian government's goal of strengthening the country's logistics infrastructure and lowering costs.

The factors mentioned above are anticipated to drive the market in the near future. With factors such as favorable government regulations, excellent road, rail, and transportation infrastructure, a vast network of warehousing and storage facilities, and a strong IT infrastructure, China is progressively emerging as one of the world's strongest players in logistics and transportation. A new era in China's economic history has begun as a result of the country's e-commerce sector's rapid growth. More than 38% of China's GDP was derived from its e-commerce sector. Furthermore, nearly one-fourth of Chinese goods were available online in 2020. This amount is significantly higher than the global average of 18%. Last year, more than half of all retail e-commerce sales worldwide were made with Chinese goods. Furthermore, owing to digitalization and automation in the industry, the nation's overall logistics sector has shown notable development. Thus, due to the factors mentioned above, the country's overall adoption of 3PL services has increased significantly.

Asia Pacific Third Party Logistics Market Revenue and Forecast to 2030 (US$ Billion)

Asia Pacific Third Party Logistics Market Segmentation

The Asia Pacific third party logistics market is categorized into mode of transports, services, end user, and country.

Based on mode of transports, the Asia Pacific third party logistics market is segmented into roadways, railways, waterways, and airways. The roadways segment held the largest market share in 2022.

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 the largest market share in 2022.

Based on end user, the Asia Pacific third party logistics market is segmented into automotive, healthcare, retail, consumer goods, and others. The others segment held the largest market share in 2022.

By country, the Asia Pacific third party logistics market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. China dominated the Asia Pacific third party logistics market share in 2022.

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 are among the leading companies operating in the Asia Pacific third party logistics market.

Reasons to Buy:

• Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the Asia Pacific third party logistics market.
• Highlights key business priorities in order to assist companies to realign their business strategies.
• The key findings and recommendations highlight crucial progressive industry trends in the Asia Pacific third party logistics market, thereby allowing players across the value chain to develop effective long-term strategies.
• Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
• Scrutinize in-depth Asia Pacific market trends and outlook coupled with the factors driving the Asia Pacific third party logistics market, as well as those hindering it.
• Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing, and distribution.