The APAC contract logistics market is set to expand by USD 53.9 billion at a CAGR of 8.08% between 2023 and 2028. The rise of digital consumers and the rapid expansion of e-commerce are driving demand for logistics providers that can efficiently manage inventory, manpower, and warehouse space. The increasing reliance on logistics outsourcing and third-party providers is reshaping distribution networks, enabling businesses to enhance inventory management and optimize freight services. The adoption of automation tools is improving vendor performance, driving efficiency in retail logistics, and enhancing operational efficiency. Additionally, companies are investing in fulfillment solutions to meet growing e-commerce demand. However, the industry faces challenges such as competition, rent growth, and a shortage of quality logistics assets. Despite these constraints, occupiers continue to invest in logistics real estate to secure their supply chains. With Industry 4.0 technologies, AI, cloud computing, and machine learning transforming operations, the market remains poised for steady growth, especially within the automotive, retail, and pharmaceutical sectors.
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The market is segmented based on application and type.
Outsourcing
Insourcing
The retail segment is anticipated to experience significant growth during the forecast period. In APAC, e-commerce retail is booming, leading to increased demand for seamless and efficient delivery solutions. The segment includes a wide range of products such as consumer goods, clothing, electronics, furniture, food & beverages, and pharmaceuticals. To meet growing demand, logistics companies are investing in multi-modal transportation solutions, including rail, air, water, and road networks.
Government investments in logistics infrastructure and the expansion of digital sales channels—such as mobile wallets and online banking—are further fueling retail growth. The retail contract logistics market in APAC was valued at USD 30.40 billion in 2018 and has shown steady expansion over the years.
The APAC contract logistics market is expanding due to robust GDP growth and the establishment of manufacturing hubs in emerging economies. These hubs, particularly in the motor vehicles, electronics, and consumer retail sectors, are driving demand for advanced logistics solutions. AI, cloud computing, and machine learning are enabling real-time tracking, predictive maintenance, and optimized distribution channels.
The contract logistics market is evolving with rapid advancements in third-party logistics, warehousing, and transportation. As demand for freight forwarding, distribution, and inventory management grows, businesses are increasingly turning to outsourcing logistics to enhance efficiency. The rise of e-commerce logistics is further driving investments in logistics solutions, particularly in fulfillment services and last-mile delivery. Cold chain logistics and reverse logistics are also gaining prominence as companies focus on supply chain resilience.
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The APAC contract logistics market features major players specializing in transportation, warehousing, and supply chain management. Key companies include:
Technological advancements in automation logistics, logistics contracts, and vendor management are reshaping the industry. AI-powered logistics technology is improving operational efficiency, while blockchain solutions are enhancing transparency in logistics contracts. The expansion of logistics providers in APAC is being driven by the demand for fast, cost-effective distribution networks. With increasing investments in transportation infrastructure, warehousing automation, and supply chain optimization, the contract logistics market is set for sustained growth.
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