Latest News- Freight Logistics Market in Indonesia: Transportation is expected to lead the Service segment during 2025-2029

The Freight Logistics Market in Indonesia is being driven by Growing export-import activities

The Freight Logistics Market in Indonesia is expected to grow at a CAGR of 8.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 28053.5 million. The Indonesian e-commerce market has experienced significant growth over the past five years, driven by key factors such as the proliferation of fintech and alternative financing options, high internet and mobile penetration rates, and the expanding middle class. With a population of over 280 million people, Indonesia's e-commerce industry has seen the addition of millions of new online buyers each year, despite being less developed than neighboring countries like Malaysia and Singapore. The sector's expansion can primarily be attributed to fundamental developments within the industry and the national economy. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Service
  • Transportation
  • Warehousing
  • Others
• Application
  • Manufacturing
  • Automotive
  • Consumer goods
  • Retail industry
  • Others
• Type
  • 3PL
  • 4PL
• Geography
  • Indonesia

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing export-import activities
• Growth in manufacturing sector
• Increasing demand for food, perishable, and medical supplies deliveries

However, the market also witnesses some limitations, which are as follows:

• High infrastructure cost
• Weak transportation infrastructure
• Lack of digital technologies in supply chain and logistics

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Market Scope in Freight Logistics Market in Indonesia Research Report

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Research Analysis Overview

The Freight Logistics Market in Indonesia experiences significant growth due to increasing demands from sectors like Agriculture, Fishing, Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Courier, Express, and Pharmaceuticals industry. Subsidized fuels, Warehousing, Sea freight, Air freight, and Cold storage are key services in demand. E-commerce, Domestic shipment, and International shipment are growing sectors. Trade relations influence the use of road, rail, sea, and air transport. The textiles industry also contributes to the market, with pharmaceuticals and industrial sectors utilizing specialized logistics solutions.

Market Research Overview

The Freight Logistics Market in Indonesia encompasses various sectors such as Agriculture, Fishing, Forestry, Construction, Oil and Gas, Courier, Express, Parcel, Freight Forwarding, and Freight Transport. According to Technavio, the global cargo ground transportation market's size is determined by the consolidated revenue generated by enterprises functioning in the freight and goods transportation industry, which includes trucking, carriers, campers, buses, vans, and motorbikes companies. The market's expansion will be fueled by the continuous increase in the volume of goods transported, particularly in emerging economies, with Indonesia experiencing a significant logistics boom.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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