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 a positive trend in 2020 by recording a 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 centers 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 a 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 the 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 Firm. 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 capitalize 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:
Table of Content
Objective of the Study
Data Collection Methods
4. Asia Pacific Overview-Economic, Political, Technological & Demographic Factors (EPTD)
Region Overview- EPTD Analysis
5. Asia-Pacific Third Party Logistics Market– Impact of COVID-19
COVID-19 Cases in Asia Pacific
6. Asia-Pacific Third Party Logistics Market - Trade Performance
Trade Performance of Asia Pacific – Pre-Covid Scenario
Trade Performance of Asia Pacific –Impact of Covid-19
Trade Performance of Asia Pacific – Impact of Covid-19 Over Exports by Region
Trade Performance of Asia Pacific – Post-Covid Scenario
7. Asia Pacific Third Party Logistics Market Revenue and Forecast
Asia Pacific Logistics Industry- An Overview
Asia Pacific Parcel Delivery Service
Asia Pacific E-commerce Market Performance
Asia Pacific Third Party Logistics Market- Geographic Distribution
Asia Pacific Third Party Logistics Market Performance and Future Outlook
Asia Pacific Third Party Logistics Market - Factors to Contribute in Future
8. Japan Third Party Logistics Market Revenue and Forecast
Japan Third Party Logistics Industry – An Overview
Japan Third Party Logistics Industry – Key Players
Japan Parcel Delivery Service – Key Facts
Japan Logistics Industry - Impact of COVID-19
Japan Logistics Industry – Government Measures Amid COVID-19
Role of E-commerce in Japan Third Party Logistics Market
Factors Contributing to Japan 3PL Market
Japan Third Party (3PL) Logistics Revenue and Forecast
9. China Third Party Logistics Market Revenue and Forecast
China Logistics Industry- Key Facts: China Retail & Logistics
China Logistics Industry - Impact of COVID-19
Impact of Shipping Crisis over China
Rentals in Logistics
China Freight Forwarding Market Segmentation by Mode of Transportation
China Freight Forwarding Market By Freight Movement
Role of E-commerce in China Logistics Market
Factors Contributing to China Third Party Logistics Market
China Third Party Logistics Market Performance
China Third Party Logistics (3PL) Market Revenue and Future Outlook
Factors to Contribute in Future Growth of China Third Party Logistics Market (1/2)
China Express Parcel Delivery Volume
10. India Third Party Logistics Market Revenue and Forecast
India Third Party Logistics (3PL) Market Performance
India Third Party Logistics Market– Driving Forces
Impact of Covid-19 over India Third Party Logistics Industry
Impact of COVID-19 over Mode of Transportation & Recovery
India Freight Forwarding Market by Mode of Transportation
India Third Party Logistics (3PL) Market Revenue and Future Outlook
Factors Contributing to the Growth of India Third Party Logistics Market
Future of India Third Party Logistics is Digital
India Express Delivery Market Performance & Outlook
India Express Delivery Market- By Domestic and International Logistics
Factors to Drive Future Performance of India Express Delivery Services
11. South Korea Third Party Logistics Market Revenue and Forecast
South Korea Third Party Logistics (3PL) Market Performance
Role of E-commerce in South Korea 3PL Logistics Market
South Korea Third Part Logistics (3PL) Market – Future Growth Factors
South Korea Third Party (3PL) Logistics Market Revenue and Forecast
12. Australia Third Party Logistics Market Revenue and Forecast
Australia Third Party Logistics (3PL) Market Performance
Australia Third Party Logistics Market - Government Initiatives
Role of E-commerce in Australia Third Party Logistics Market
Factors Contributing to the Growth of Australia Third Party Logistics Market
Australia Third Party Logistics (3PL) Market Revenue and Future Outlook
13. Asia Pacific Third Party Logistics Market Dynamics
Asia Pacific 3PL Market: Market Drivers
Asia Pacific 3PL Market: Trends and Developments
Asia Pacific 3PL Market: Challenges
14. Asia Pacific Third Party Logistics Market– Macro Economic Factors
15. Asia Pacific Third Party Logistics Market - Mergers & Acquisition
Mergers & Acquisition
16. Asia Pacific Third Party Logistics Market - Company Profile
Company Profile – Deutsche Post Group (DHL)
Company Profile – FedEx Corporation
Company Profile – United Parcel Service, Inc.
Company Profile – DSV A/S
Company Profile – Kuehne + Nagel International AG
Company Profile – Nippon Express Co., Ltd.
Company Profile – DB Schenker
Company Profile – C.H. Robinson Worldwide, Inc
Company Profile –Mærsk A/S
Company Profile – XPO Logistics, Inc.
17. Limitations of the Study