**Asia-Pacific**: The logistics market is set to grow significantly, with a projected increase of USD 159.1 million from 2025 to 2029, driven by e-commerce expansion and sustainability efforts, despite facing challenges like infrastructure costs and labour shortages.
The logistics market in the Asia-Pacific (APAC) region is projected to see significant growth over the next few years, with a market size increase estimated at USD 159.1 million from 2025 to 2029, according to research firm Technavio. The market’s growth rate is expected to reach a compound annual growth rate (CAGR) of approximately 5.2% during this forecast period.
This expansion is being driven predominantly by rapid growth in the e-commerce sector and a shift towards sustainable practices in logistics. However, the industry also faces considerable challenges, chief among them being the rising costs associated with inadequate transportation infrastructure. It is reported that logistics costs in developing countries within the region can be up to three to four times higher than expected, mainly due to the reliance on poorly maintained road networks, with an alarming 75% of roads in less than optimal condition.
APAC is a critical region for logistics, contributing around 9% of global carbon dioxide emissions from freight and logistics. In response, many logistics firms are adopting greener practices. For example, Deutsche Post DHL Group is focusing on sustainability through innovations such as their electric delivery vehicle, the StreetScooter, and a significant infrastructure project in Kolkata, India, which aims to improve transportation efficiency with a USD 105 million investment.
The research highlights the importance of technological advancements in the industry. The adoption of Internet of Things (IoT) and blockchain technology is enabling real-time tracking and secure data sharing, which are essential for managing complex supply chains. In addition, many logistics players are shifting towards third-party logistics (3PL) and fourth-party logistics (4PL) services to enhance supply chain visibility and operational efficiency.
Consumer demands, particularly from the booming e-commerce sector, are also influencing market dynamics. There is a notable push for increased investment in container ports and commercial motor vehicles to accommodate rising mobility demand. However, the report points out that logistics companies are bracing for challenges posed by ongoing labor shortages and shifts toward digital sales, necessitating a re-evaluation of existing infrastructure.
The APAC logistics market is described as fragmented, with key players including Agility Public Warehousing Co. K.S.C.P, FedEx Corp., and DSV AS, among others. These companies are actively competing to bolster their positions in a rapidly evolving landscape defined by increased technological integration and sustainability efforts.
The findings from Technavio underline the complex interplay between growth opportunities and challenges within the APAC logistics market, indicating that while the future may hold promising developments, significant hurdles remain to be addressed for sustained growth.
Source: Noah Wire Services
