In the third-party logistics (3PL) market, risk mitigation is a pivotal advantage. By outsourcing logistics functions to 3PL providers, businesses can tap into established expertise and networks that are well-equipped to navigate supply chain disruptions, such as natural disasters and regulatory changes. These providers often have robust contingency plans, ensuring continuity even in unforeseen events. This risk mitigation strategy is particularly valuable in the 3PL market, where providers specialize in efficient and adaptable logistics solutions. Leveraging the 3PL market allows companies to transfer the burden of risk management to experts, fostering resilience and maintaining operational stability in the face of uncertainties.
According to Data Bridge Market Research analyses that the Southeast Asia Third Party Logistics Market which was USD 1,196.51 million in 2022, is expected to reach USD 1,794.91 million by 2030, and is expected to undergo a CAGR of 5.20% during the forecast period of 2023-2030.
"Rise in sales of foreign goods boosts the market growth"
The Southeast Asia third-party logistics (3PL) market is experiencing growth driven by a surge in sales of foreign goods and the rise of cross-border e-commerce activities. The increased adoption of Internet of Things (IoT) technology in the region further facilitates online purchases, enhancing supply chain visibility and efficiency. This interconnected ecosystem enables consumers to buy products online with ease. As foreign goods gain popularity, the demand for robust logistics services to manage cross-border transactions increases. The integration of IoT contributes to optimized warehouse operations and real-time tracking.
What restraints the growth of Southeast Asia third party logistics market?
“Lack of infrastructure hinders the market growth”
The Southeast Asia third-party logistics market faces a substantial constraint due to deficient infrastructure, including subpar road networks, insufficient ports, and limited air transport capabilities. These issues hinder logistics firms, causing challenges in timely and efficient goods delivery. Poor road conditions and constrained ports lead to elevated operational costs, while shipment delays impact financial viability and erode customer trust. The inadequate infrastructure poses a significant barrier to the competitiveness of logistics service providers in the region.
Segmentation: Southeast Asia Third Party Logistics Market
The Southeast Asia third party logistics market is segmented on the basis of service, product, providers, application, business type, function, and application.
- On the basis of service, the Southeast Asia third party logistics market is segmented into international transportation management (ITM), domestic transportation management (DTM), warehousing, fulfilment and distribution (WandD), dedicated contract carriage (DCC)/ freight forwarders, and value-added logistics services (VALS)
- On the basis of product, the Southeast Asia third party logistics market is segmented into air freight, ocean freight, land transport, and contract logistics
- On the basis of providers, the Southeast Asia third party logistics market is segmented into companies integrating and offering subcontracted logistics, courier companies, small freight forwarders, and transportation services
- On the basis of application, the Southeast Asia third party logistics market is segmented into shipping, receiving, returns, and picking
- On the basis of business type, the Southeast Asia third party logistics market is segmented into B2C, and B2B
- On the basis of function, the Southeast Asia third party logistics market is segmented into supply chain management, customer management, in-store operations, strategy and planning, and merchandising
- On the basis of application, the Southeast Asia third party logistics market is segmented into retail and e-commerce, healthcare, automotive, manufacturing, aerospace and defense, consumer electronics, semicon/solar and others
Regional Insights: Singapore dominates Southeast Asia Third Party Logistics Market
Singapore dominates the third-party logistics (3PL) market due to its extensive port network and a robust ecosystem of companies, excelling in both traditional retail and online shopping, particularly in air freight. The city's strategic location and advanced infrastructure make it a preferred global hub for logistics operations. The synergy between its ports, diverse logistics firms, and the thriving retail and e-commerce sectors positions Singapore at the forefront of the dynamic 3PL market, meeting the evolving demands of efficient logistics and air freight services.
Vietnam is expected to secure the second position in the Southeast Asia third-party logistics (3PL) market. This is attributed to the country's increasing industrialization and a growing demand for reverse logistics, particularly in the air freight segment. The rapid industrial growth in Vietnam has heightened the need for efficient logistics services, and the prominence of reverse logistics underscores its role in sustainable practices.
To know more about the study visit, https://www.databridgemarketresearch.com/zh/reports/southeast-asia-third-party-logistics-market
Recent Developments in Southeast Asia Third Party Logistics Market
- In January 2021, Nippon Express Co., Ltd. expanded its business by signing a Memorandum of Understanding (MoU) with Jointown Pharmaceutical Group Logistics Co., Ltd., a leading Chinese pharmaceutical distributor. This strategic move enhances their market presence and bolsters their market share in the pharmaceutical distribution sector
The Prominent Key Players Operating in the Southeast Asia Third Party Logistics Market Include:
- United Parcel Service of America, Inc. (U.S.)
- DHL International GmbH (Germany)
- FedEx (U.S.)
- XPO Logistics, Inc (U.S.)
- Kuehne+Nagel (Switzerland)
- Schenker AG (Germany)
- DSV (Denmark)
- Expeditors International of Washington, Inc. (U.S.)
- C.H. Robinson Worldwide, Inc. (U.S.)
- Nippon Express Co., Ltd. (Japan)
- Toll Holdings Limited (Japan)
- CJ Logistics Corporation (South Korea)
- Kintetsu World Express, Inc. (Japan)
- Samudera Shipping Line Ltd (Singapore)
- KERRY LOGISTICS NETWORK LIMITED (Hong Kong)
- SINOTRANS Limited (China)
- Hitachi Transport System, Ltd. (Japan)
- Whitebox Singapore (Sinagapore)
- International Press Softcom Limited (Singapore)
- Lalamove (Malaysia)
Above are the key players covered in the report, to know about more and exhaustive list of Southeast Asia third party logistics market companies contact, https://www.databridgemarketresearch.com/zh/contact
Research Methodology: Southeast Asia Third Party Logistics Market
Data collection and base year analysis are done using data collection modules with large sample sizes. The market data is analyzed and estimated using market statistical and coherent models. In addition, market share analysis and key trend analysis are the major success factors in the market report. The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market, and primary (industry expert) validation. Apart from this, data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Company Market Share Analysis, Standards of Measurement, global vs Regional and Vendor Share Analysis. Please request analyst call in case of further inquiry.
