asia pacific third party logistics Market

The APAC Third party logistics market accounted for US$ 298.7 Bn in 2017 and is expected to grow at a CAGR of 5.9% over the forecast period 2018-2027, to account for US$ 467.5 Bn in 2027. Factors including benefits in growing focus of manufacturing companies towards reducing assets and emphasize on core business driving the APAC Third party logistics market. The services offered by 3PL firms add substantial value to the manufacturing companies. These firms help different companies to reduce weak points that outcomes in loss of revenue or profits and further help to assure maximal profitability. 3PL companies specialize in several logistics operations which offers network analysis, mode network optimization, warehousing, management of vendor compliance, and other logistic operations. In contrast with this, it is challenging for the core companies to gain such logistic expertise such as inventory management & storage, contract packaging, assembly needs, or shipping etc. in every business division. Thus, choosing a 3PL firm, company is basically opting for experts in logistics. The market players are focusing on various initiatives to enhance its reach to rural areas and boost its position in the APAC Third party logistics market.

The APAC Third party 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 APAC Third party logistics market further. For instance, In Asia-Pacific, relevant regulations and initiatives in order 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 the government policies. For instance, Framework Act on Logistics Policies in Korea provides benefits to companies delivering integrated services of warehousing, transport, and value-added services. The companies entering in this market has to comply with multiple entry requirements depending on the type of plan they offer. These initiatives are implemented to enhance the technologies that positively impact on the APAC Third party logistics market. These initiative provide various benefits to the Third party logistics based companies located in the region thus, increasing the growth of APAC third party logistics markets. This is further expected to provide the Third party logistics market players to cope up with the rapidly transforming automotive industry. This initiative provides multiple benefits to the companies present in this region and thus increasing the growth of APAC Third party logistics market.

On the basis of Services, the domestic transportation segment is leading the APAC Third party logistics market. However, the Warehousing segment are anticipated to grow at a highest CAGR. Third party logistics (3PL) companies offer warehousing of products, fulfilling orders, and freight forwarding. It manages warehousing and shipping of products which allows manufacturing companies to focus more on production, marketing, selling their products, and other core activities. Warehousing services also involve order fulfilment such as packing, and transportation of inventory. Warehouse stores their client's products until the point of sale and after order comes, the products are packed, and transferred to the designated customer. Currently, the market players are looking ahead to support APAC Third party logistics industry by innovating advanced technological components.

The overall APAC Third party logistics market size has been derived using both primary and secondary source. The research process begins with an exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the APAC Third party logistics market. It also provides the overview and forecast for the Third party logistics market based on all the segmentation provided with respect to APAC region. Also, primary interviews were conducted with industry participants and commentators in order 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 consultant such as valuation experts, research analysts and key opinion leaders specializing in the Third party logistics industry. Some of the players present in Third party logistics market are Deutsche Post AG, Kuehne+Nagel International AG, Nippon Express Co., Ltd., DB Schenker, C.H. Robinson Worldwide, Inc., DSV A/S, XPO Logistics, Inc., Sinotrans Co., Ltd., Geodis, and UPS Supply Chain Solutions among others.