Aramex, CEVA Logistics, Deutsche Post DHL Group, FedEx, and SF Express are the leading players in the e-commerce logistics market in APAC, according to a new report from London-based market research company Technavio. Other prominent vendors in the market include C.H. Robinson, Gati, Kerry Logistics, Kuehne + Nagel, Nippon Express, Panalpina, Rhenus, and Sinotrans.
The Technavio report said that the e-commerce logistics market in APAC will grow at a compounded annual growth rate (CAGR) of more than 11% until the end of 2021 with cross-border e-commerce
driving market growth.
The report noted that one of the key drivers for growth in the e-commerce logistics market in APAC is the increase in mergers and acquisition activities, which will enable vendors to increase their global presence and expand their product portfolio. The expansion in geographical presence and product portfolio will also help them to deliver services at all points of the supply chain management (SCM).
Increasing need to outsource services
The APAC e-commerce logistics market is highly fragmented because of the presence of several small and medium-sized players. These vendors are increasingly focusing on the development of modern technologies to stay abreast of the emerging technologies to sustain and survive in this competitive market.
The report noted that last year, the transportation segment accounted for the major share of the region's e-commerce logistics market. As a result, the market is witnessing an increasing need to outsource services because the transportation services require large capital investments and expertise.
The main e-commerce players also require timely transportation of goods due to the presence of several domestic contract logistics providers.
This will drive the demand for transportation services in the e-commerce logistics market, the report concluded.
Nol van Fenema