Singapore, China, Hong Kong and Taiwan Third Party Logistics Market – Industry Trends and Forecast to 2030

Singapore, China, Hong Kong and Taiwan Third Party Logistics Market Analysis and Size

The companies outsource third party logistics services to keep the focus on their main business, such as manufacturing by automotive companies. All the operational logistics for warehousing, transporting, forwarding, and maintaining inventory are outsourced to third party logistics players in the market. The primary advantage of using the third party logistics provider to address logistics, together with packaging, warehousing, and order Fulfilment goods distribution which, is price savings-for instance, the company no longer holds a warehouse or the team or workers to reveal supply chain operations. The documentation work and overall process of supply chain operations are all taken care of by the third party logistics players.

Third party logistics incorporates various services such as supply chain management, domestic transportation management (DTM), warehousing, Fulfilment and distribution (W&D), value-added services, international transportation management, and dedicated carriage or freight forwarding. Supply chain management service involves the management of supply chain activities to maximize customer value and achieve sustainable competitive advantage. It is based on two core ideas-first, every product that reaches an end-user represents the cumulative effort of multiple organizations, and the second idea is supply chains have existed for a long time which is the most important factor in the third party logistics industry. An increase in global trade and the high volume of trade flow has led to the requirement of third party logistics to make the trade flow more convenient and faster, thus boosting the growth of the Singapore, China, Hong Kong & Taiwan third party logistics market.

Data Bridge Market Research analyses that the China third party logistics market is expected to reach USD 462,107.01 million by 2030 from USD 265,902.06 million in 2022, growing with a CAGR of 7.2% in the forecast period of 2023 to 2030. Taiwan third party logistics market is expected to reach USD 10,349.33 million by 2030 from USD 7,630.55 million in 2022, growing with a CAGR of 3.9% in the forecast period of 2023 to 2030. Singapore third party logistics market is expected to reach USD 6,148.33 million by 2030 from USD 4,041.96 million in 2022, growing with a CAGR of 5.4% in the forecast period of 2023 to 2030. Hong Kong third party logistics market is expected to reach USD 4,791.97 million by 2030 from USD 3,752.94 million in 2022, growing with a CAGR of 3.1% in the forecast period of 2023 to 2030.  Providers of third-party logistics (3PL) services have extensive supply chain management expertise, experience, and resources, which is increasing over the years.     

Market Definition

Third Party Logistics (3PL) is a service that allows outsourcing operational logistics for warehousing all the way to delivery and ultimately enables to focus on the main core part of the business. Third party logistics companies provide a varied number of services in regard to the logistics of the supply chain, which includes transportation, warehousing, picking and packing, inventory forecasting, order Fulfilment, and freight forwarding. The primary advantage of third party logistics services such as packing, warehousing, and shipping reduces operating cost for companies and enable the organization to focus on their main business. A third party logistics service is likely to offer better performance on efforts such as shipping the products and helps the organization establish its strong presence in different countries. Suppose any company is selling its products internationally. In that case, third party logistics can take care of documentation, customs, duties, and other issues that come up at the borders that can delay shipments and result in high cost if not done thoroughly.

Singapore, China, Hong Kong & Taiwan Third Party Logistics Market Dynamics

This section deals with understanding the market application, supply chain, sourcing type and type. All of this is discussed in detail below:

DRIVERS

• High benefits offered by third-party logistics

Third party logistics is basically outsourced with operational logistics from warehousing to the delivery, which includes providing number of services in the supply chain such as freight forwarding, packaging, order fulfillment, inventory forecasting, picking and packing, warehousing and transportation. Third party logistics offer a wide range of benefits as it helps business owners to focus more on the other aspects of business, such as product development, marketing and sales. The high benefits offered by third party logistics are therefore acting as the major factor for boosting the growth of Singapore, China, Hong Kong & Taiwan third party logistics market. There are several benefits offered by third-party logistics:-

Expertise and Resources: Providers of third-party logistics (3PL) services have extensive supply chain management expertise, experience, and resources. They are well-versed in regulations, industry best practices, and technological advancements. Businesses can benefit from logistics operations that are both effective and optimized by making use of their expertise.

Cost Savings: Businesses can save a lot of money by outsourcing logistics to a 3PL provider. With transportation companies, warehousing facilities, and other service providers, 3PL providers frequently have established networks and relationships. They can negotiate better rates, consolidate shipments, and optimize routes using these networks, resulting in lower transportation costs.

Scalability and Flexibility: One of the vital benefits of utilizing a 3PL supplier is the capacity to scale strategies and tasks in light of business needs. Providers of third-party logistics (3PL) solutions offer adaptable options that can handle shifts in demand, seasonal variations, and market trends. Based on volume requirements, they have the infrastructure and resources to quickly scale up or down.

Improved Focus on Core Competencies: Businesses can free up internal resources and concentrate on their core competencies by outsourcing logistics functions to a third-party logistics provider. Companies can now devote more time, effort, and resources to strategic planning, product development, customer service, and marketing

• Rising growth in cross-border trade and globalization

Globalization can be referred to as the interdependence of the world’s economies, populations and cultures brought about by cross-border trade in technology, goods and services and flows of people, investment and information. Today, most of the country’s economy is highly dependent on buying and selling of goods among various countries. Asia-Pacific region has been the major player in global trade and has a high volume of trade flow that has increased the requirement of third party logistics to make the flow of trade more convenient and faster, thus boosting the growth of Singapore, China, Hong Kong & Taiwan third party logistics market. 

OPPORTUNITY

• Increasing growth in e-commerce

The growth in digitalization has led to increased growth in the e-commerce industry, with large amounts of goods being transported at the door step of consumers. Amazon is the biggest company in an e-commerce company, delivering products at a faster rate. Consumers now rely on fast delivery of goods without any mismatch of products. This has increased the requirement for faster delivery through a wide distributor network, which is being provided by third party logistics companies, thus creating new growth of opportunities for Singapore, China, and Hong Kong & Taiwan third party logistics market. Here's an explanation of how this growth acts as an opportunity for the 3PL industry.

RESTRAINTS/CHALLENGES

• Congestion associated with trade routes

As traffic volumes and congestion increase on roadways and waterways, freight and transportation service operators face growing challenges in maintaining reliable schedules. This affects supply chains and truck-dependent businesses, each of which is of growing significance for both public coverage and private region operators. Moreover, several accidents on roads or oil spills at sea can act as an unexpected challenge for third party logistics. Here's an explanation of how congestion can affect the 3PL industry

Singapore, China, Hong Kong & Taiwan third party logistics market Scope

The global Third party logistics market is segmented into eight notable segments based service, product, providers, application, business type, function, vertical and retail size. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Service

• Supply Chain Management
• International Transportation Management (ITM)
• Domestic Transportation Management (DTM)
• Warehousing, Fulfillment & Distribution (W&D)
• Dedicated Contract Carriage (DCC)/ Freight Forwarding
• Value-Added Logistics Services (VALS)

Product

• Air Frieght
• Ocean Freight
• Land Transport
• Contract Logistics
• Others

Providers

• Small Frieght Forwarders
• Courier Companies
• Companies Integrating & Offering Subcontracted Logistics
• Transportation Services

Application

• Receiving
• Picking
• Shipping
• Returns

Business Type

• B2B
• B2C

Function

• Supply Chain Management
• Merchandising
• In-Store Operations
• Strategy And Planning
• Customer Management

Vertical

• Ecommerce
• Retail
• Healthcare
• Automotive
• Manufacturing
• Aerospace & Defense
• Consumer Electronics
• Semicon/Solar
• Others

Retail Size

• Small
• Medium
• Large

Singapore, China, Hong Kong & Taiwan Third Party Logistics Market Regional Analysis/Insights

Singapore, China, Hong Kong & Taiwan third party logistics market is analysed, and market size insights and trends are provided by region, service, product, providers, application, business type, function, vertical and retail size as referenced above.

The Singapore, China, Hong Kong & Taiwan third party logistics market is expected to attain lucrative growth due to an upsurge in the adoption of advanced features for 3PL is expected to drive Singapore, China, Hong Kong & Taiwan third party logistics market.

The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the region data.   

Competitive Landscape and Singapore, China, Hong Kong & Taiwan Third Party Logistics Market Share Analysis

Singapore, China, Hong Kong & Taiwan third party logistics market competitive landscape provide details by the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the Singapore, China, Hong Kong & Taiwan third party logistics market.

Some of the major players operating in the Singapore, China, Hong Kong & Taiwan third party logistics market are DHL (Germany), Nippon Express Co., Ltd(Japan), FedEx (U.S.), NYK Line (Japan), CJ Logistics Corporation (Korea), C.H. Robinson Worldwide, Inc.(U.S.), DB Schenker (Germany), DSV (Denmark), KERRY LOGISTICS NETWORK LIMITED (Hong Kong), Kuehne+Nagel (Switzerland), Samudera Shipping Line Ltd (Singapore), SINOTRANS Limited (China), United Parcel Service of America, Inc. (U.S.), XPO, Inc. (U.S.), COSCO SHIPPING Logistics Supply Chain Co., Ltd. (China), CN Logistics International Holdings Limited (Hong Kong), NAF Logistics Group (Hong Kong), among others.

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