Contract Logistics Market
The Asia-Pacific Contract Logistics market accounted for US$ 80,963.7 Mn in 2017 and is expected to grow at a CAGR of 4.6% over the forecast period 2018-2025, to account for US$ 126,102.9 Mn in 2025.
Factors including the benefits of managing seasonal variations of products driving the Asia-Pacific Contract Logistics market. Many of the businesses experience seasonal fluctuation in customer demand, and it is essential to handle such swings in the industry to maintain efficiency in operations. Contract-based logistics helps seasonal businesses to benefit from a smoother transition between market lows and highs with utilizing more warehouse space and logistic resources.
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Contract logistics service providers manage the company’s warehousing, distribution, and fulfillment services that help the company’s resources to manage seasonal swings. Thus, the role of contract logistics becomes much more critical are expected to drive the Asia-Pacific market for Contract Logistics. The market players are focusing on various initiatives to enhance its reach to rural areas and boost its position in the Asia-Pacific Contract Logistics market.
The Asia-Pacific Contract Logistics market is fragmented with the presence of several industries and the competitive dynamics in the market is expected to change during the upcoming years. In addition to this, various initiatives are undertaken by the governmental bodies to accelerate the Asia-Pacific Contract Logistics market further. For instance, In Asia-Pacific, relevant regulations and initiatives to improve professional standard by industry & government play an important role in logistics operations. The range of logistics services are subject to logistic industry regulations and policies; moreover, the expansion of such services is also driven by government policies. For instance, the Framework Act on Logistics Policies in Korea provides benefits to companies delivering integrated services of warehousing, transport, and value-added services. The companies entering this market have to comply with various entry requirements depending on the type of plan they offer. These initiatives are implemented to enhance the technologies that positively impact on the Asia-Pacific Contract Logistics market. These initiative provide various benefits to the Contract Logistics based companies located in the region thus, increasing the growth of Asia-Pacific Contract Logistics markets. This is further expected to give the Asia-Pacific Contract Logistics market players to cope up with the rapidly transforming automotive industry. This initiative offers multiple benefits to the companies present in this region and thus increasing the growth of Asia-Pacific Contract Logistics market.
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Based on end user, the retail segment is leading the Asia-Pacific Contract Logistics market whereas the automotive sector is anticipated to grow at the highest CAGR. Automotive industries are highly dependent on strategic logistic services to ensure effective & efficient operations and for allocating resources in other operations. Automotive products are large in sizes and heavier which makes this industry as one of the leading users of integrated logistics systems and services. The logistics services commonly used in the auto industry are express services, inbound material flow management, reverse logistics, just-in-time delivery, cross-docking, and warehousing. Currently, the market players are looking ahead to support the Asia-Pacific Contract Logistics industry by innovating advanced technological components.
The overall Asia-Pacific Contract Logistics market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the Asia-Pacific Contract Logistics market. It also provides an overview and forecast for the Contract Logistics market based on all the segmentation provided with respect to the Asia-Pacific region. Also, primary interviews were conducted with industry participants and commentators to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the Contract Logistics industry. Some of the players present in Contract Logistics market are Deutsche Post AG, XPO Logistics Inc., Kuehne + Nagel International AG, CEVA Logistics AG, DB Schenker, Hitachi Transport System Ltd, Geodis, Neovia Logistics Services, UPS Supply Chain Solutions, and Ryder System among others.
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