Third-party logistics (3PL) enterprises offer a wide range of services related to supply chain logistics, such as transportation, warehousing, picking and packing, inventory forecasting, order fulfillment, and freight forwarding. By outsourcing operational logistics for warehousing to delivery, third-party logistics (3PL) services allow businesses to concentrate on their core competencies.
Asia-Pacific Third Party Logistics Market Driving Factors and Challenges
Drivers: Ascend Demand for amenities that provide comfort, safety, and convenience
Because people are demanding more safety, aesthetics, and aesthetics, vehicle technology has evolved dramatically. Installing sunroofs to increase airflow is one example. Demand for the third-party logistics market is likely to rise over the course of the anticipated year due to the hatchback category's growing demand for comfort and convenience features as a result of the worldwide audience's desire for sunroofs. Additionally, the market is being driven by steadily expanding economies and the increasing use of e-commerce. The expansion of the manufacturing, industrial, and agricultural sectors in developing nations like Singapore, Malaysia, and India has led to a rise in logistical activity in the region. Government programs to advance the logistics industry and build infrastructure are other drivers of market expansion. The Asian Development Bank (ADB) approved a policy-based loan of $250 million in 2022 to support the Indian government's efforts to improve the nation's logistics infrastructure and cut expenses. It is expected that the aforementioned factors will propel the market in the near future.
Challenges: The region's wide geographic scope, which includes a variety of nations with differing degrees of infrastructure development, is one of its main challenges. The complexity of logistics operations caused by this geographical variation results in problems including delayed transportation, uneven service quality, and increased prices. Moreover, legislative intricacies among the several nations in the area present difficulties about taxes, customs, and compliance standards, impeding smooth logistics operations. Additionally, there is an increased demand for effective and scalable logistics solutions as a result of the Asia-Pacific region's e-commerce industry's explosive rise. The competition among logistics providers has increased as a result of the rise in online shopping, necessitating ongoing innovation and technological investment to keep up with changing client expectations.
Impact of COVID-19 on Asia-Pacific Third Party Logistics Market
Third-party logistics in the Asia-Pacific region experienced problems due to the unanticipated COVID-19 pandemic outbreak. The Asia-Pacific region's governments imposed a lockdown that halted the activities of important businesses, such as manufacturing and e-commerce, resulting in a dramatic decline in the requirement for third-party logistics. The temporary prohibitions on the selling of non-essential commodities and the closure of transportation networks, particularly highways, had a negative impact on the Asia-Pacific third-party logistics sector. Nonetheless, the delivery of PPE kits and vaccines, among other medical necessities, saw a sharp increase in the usage of third-party logistics in the healthcare sector, which significantly boosted the market during this period.
Asia-Pacific Third Party Logistics Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players are; C.H. Robinson Worldwide, Inc., CJ Logistics Corporation, DHL International GmbH (a subsidiary of Deutsche Post AG), DSV, Expeditors International of Washington, Inc., FedEx, Kintetsu World Express, Inc., Kuehne+Nagel, Nippon Express Co., Ltd., Samudera Shipping Line Ltd, Schenker AG, Singapore, SNCF, Toll Holdings Limited (a subsidiary of Japan Post Holdings Co.,Ltd.), United Parcel Service of America, Inc., XPO Logistics, Inc.
Asia-Pacific Third Party Logistics Market Segmentation:
By Service: Based on the Service, Asia-Pacific Third Party Logistics Market is segmented as; Dedicated Contract Carriage (DCC)/Freight forwarding, Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing &Distribution (W&D), Value Added Logistics Services (VALs).
By Transport: Based on the Transport, Asia-Pacific Third Party Logistics Market is segmented as; Roadways, Railways, Waterways, Airways.
By End User: Based on the End User, Asia-Pacific Third Party Logistics Market is segmented as; Manufacturing, Retail, Healthcare, Automotive, Others.
By Region: This research also includes data for Australia, China, India, Japan, South Korea, Rest of Asia-Pacific.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.