Growing emphasis towards achieving improved operational efficiencies coupled with the rise in popularity of outsourcing logistics operations and selected supply chain process for reducing the operational costs has gained significant traction across various industries. Moreover, the emergence of third-party logistics and fourth party logistics provider has further boosted the demand for logistics service providers regionally. Currently, some of the primary services rendered by the leading logistics provider include freight forwarding, freight management, consulting, route optimization, network analysis, project management, inventory & storage management, and supply chain consultancy among others.
Manufacturing sector has been one of ASEAN’s key economic growth drivers. One key factor propelling demand in this sector is a 640 million strong regionwide consumer base with a growing middle-income segment. Rising incomes shifting consumption trends have also contributed to growth in this sector. Besides that, economies in the region have low operating costs which attract businesses from larger manufacturing bases. ASEAN member states already have an inherent strategic advantage as an automotive production and export hub catering to the wider Asia-Pacific region. With Thailand and Indonesia leading the way, the region is positioning itself as a cost-effective production hub for new energy vehicles powered by electric and hybrid systems. The growth in the manufacturing and automotive industry in many of the Asia-Pacific countries is a factor the has seen the logistics industry riding this growth wave. Additionally, it is observed that the manufacturing and automotive industry is a major end-user for the logistics industry. Asia-Pacific freight and logistics market is fragmented with many players competing in the logistics space. The market is dynamic and observed the presence of major players as well as startups that are trying to disrupt the market by digital tools. With the Asia-Pacific region being the fastest-growing region globally the competition to maintain the market share as well as expand to new regions is fierce.