South Africa Contract Logistics Market Size and Forecast 2021 - 2031, Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type, Services, and End User

The South Africa contract logistics market was valued at US$ 1,800.71 million in 2023 and is projected to reach US$ 2,787.43 million by 2031; the market is expected to register a CAGR of 5.6% during 2023-2031.

Moreover, factors such as the increase in the e-commerce sector growth rate and enhanced focus on supply chain risk management in uncertain political scenarios are projected to generate remarkable growth opportunities for the contract logistics industry players. After a slowdown in the real-estate prices since the mid of 2017, the real-estate market has displayed remarkable growth in the Gauteng province. Gauteng, being an economic powerhouse of South Africa, is attracting numerous international business executives. The lower interest rates in South Africa have favored the growth of the real estate market, which creates potential demand for contract logistics services for warehousing activities.

The South Africa contract logistics market is segmented on the basis of type, services, and end user. Based on type, the market is divided into insourcing and outsourcing. Furthermore, the outsourcing segment is the dominant segment as many companies are shifting to outsourcing logistics services. By services, the market is categorized into transportation, distribution, warehousing, packaging processes and solutions, production logistics, aftermarket logistics, and others. In terms of end user, the market is segmented into aerospace, e-commerce & retail, automotive, industrial, pharmaceutical & healthcare, and others. Furthermore, the e-commerce & retail segment dominated the market in 2023 and is also expected to maintain its dominance during the forecast period.

The South Africa contract logistics market analysis is carried out by identifying and evaluating key players in the market. Cargo Carriers (Pty) Limited, DHL Group, CEVA Logistics, DB Schenker, Gulf Agency Company Ltd (GAC), DP World, United Pharmaceutical Distributors (Clicks Group), Value Logistics, DSV A/S, and the GEODIS SA Ltd are among the key players analyzed in the South Africa contract logistics market report. The South Africa contract logistics market report also includes growth prospects in light of current South Africa contract logistics market trends and driving factors influencing the market growth.

The contract logistics service providers are focusing on aftermarket logistic services to remain competitive in the market. The product returning process, or reverse logistics, is a major part of the contract logistics process. Most of the contract logistics services include an assessment of the returned goods for any damage. An efficient reverse or aftermarket logistics process reduces the operational time in making unmanaged products available again.

Companies operating in the South Africa contract logistics market highly adopt inorganic strategies such as mergers and acquisitions. The market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. The players present in the market are mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings to increase their South Africa contract logistics market share.

Reasons to Buy

• Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the South Africa contract 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 South Africa contract 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 market trends and outlook coupled with the factors driving the 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