How Thailand Warehousing Market is
positioned?
Warehouses Operating
in Thailand are not just
simply storage spaces, but instead host multiple value-adding processes, like
just-in-time packaging, assembly, product customization and others. In the
past, warehouse was known as a cost center but now organizations in Thailand
use warehouse as a place to add value by doing many related jobs such as
labeling and packaging. Due to lingering price disparity in the country, the
modern way of handling warehousing or distribution centers is commonly targeted
for premium products and the conventional way is frequently utilized and is
used by the rate-conscious firms.
The
demand of the warehousing in Thailand comes from logistics firm, distribution
and trading and other industry sources. The increase in demand can be
attributed to the consumers which need fast, accurate and safe
Delivery
of goods. In terms of revenue generation, the warehousing market in Thailand
was evaluated
Raising
living standard in the country and sizeable young population coupled with
flourishing tourism in Thailand has attracted a host of international brands,
thus driving the demand for warehousing services in the country. The
attractiveness of the market conditions has led to increased competition from
growing players in domestic and foreign markets with more companies aiming to
become end to end suppliers for logistics and warehousing services in the
country. Thailand warehousing market reached its highest revenues worth USD ~
billion in the year 2017, thus growing at a five year CAGR of ~% for the review
period 2012-2017.
Thailand Warehousing Market
Segmentation
By Warehouse Space
Most
of warehouse space is located in Samutprakarn province, with a total area of
~sqm or ~% of entire market. Samutprakarn still remain the most popular
location for logistic service providers. This is mainly because this province
is located not far from Bangkok, the capital city of Thailand, and the
Suvarnabhumi Airport. Chonburi takes the second highest amount of warehouse
area in Thailand contributing almost ~ sqm which equals about ~% of the overall
warehousing market in Thailand mainly due to the lower rates for warehousing
compared to the city of Bangkok and the convenient location of Chonburi.
Ayyuthaya contributes the third highest share in terms of warehouse area
available In Thailand with a share of about ~%
By End User
The
FMCG sector drives significant investment and value for Thailand warehousing
market by capturing revenue share worth ~% in the year 2017. The fast moving
consumer goods sector in Thailand has had a slow pace recently in terms of
growth. The marginal growth it has had over the last 5 years has been caused
mainly due to the increase in
The
second major sector contributing to the warehousing sector is automotive. The
growth in the number of passenger vehicles has led to an increased demand for
vehicle parts and service equipment leading to the automotive sector having a
market size of THB ~ Billion. The electronics sector takes the next highest
market share as the demand for high grade electrical and electronic equipment
is constantly on the rise in developing countries. Remaining sectors varied from
textiles to consumer durables to pharmaceuticals cumulatively contributing THB
~ Billion to the Warehousing industry in Thailand
By Type of Ownership
3PL
(Third Party Logistics) make up the primary warehousing services market
contributing a share of about ~% to the total market. The overall contribution
is of about THB ~Billion. Most of the warehousing service providers in Thailand
have their own physical warehouses. In-house warehousing contributes about THB
~Billion to the warehousing market. The companies with their own warehousing
facilities are rarely located within the city in Thailand.
Thailand Warehousing Market
Segmentation
By Business Model
The
industrial / retail freight segment dominated overall Thailand warehousing
market with a massive revenue share of ~% in the year 2017. The rising retail
sector in Thailand has elevated the requirement of warehouses in the country
majorly due to increasing demand for storage of processed packaged foods and
beverages, as modern food retailing businesses expanded their operations in
order to meet the consumer requirements. The use of containers in export
shipments makes the transport and goods handling easier and faster.
Additionally, the containers are designed to facilitate the carriage of goods
without intermediate reloading. The cold storage segment in Thailand
warehousing market captured revenue share worth ~% in the year 2017 owing to
the rise in products requiring cold storage. Major selling cold storage
products in Thailand include the pharmaceutical products such as vaccines and
injections which have a requirement of being stored in a temperature controlled
environment.
Comparative Landscape in Thailand
Warehousing Market
The
market encompasses a mix of unorganized and organized players. The companies in
the country are competing with each other on the basis of the size and location
of the warehouse. The location of the warehouse has to be appropriate to the
needs of the customer which reduces extra cost of transportation and increases
time efficiency. The other important factors which influence the choice of
warehouse are technologies/automation used in the warehouses; value added
services, GDP-certified temperature and humidity-controlled environment and
others. Though there is high initial cost in terms of investment while adopting
these technologies, players know that it will reap huge benefits in the long
term in terms of competitive advantage over other players and efficiency in
operations.
Thailand Warehousing Market Future
Outlook and Projections
The
key drivers behind the boost in growth rate are to be the increase in the
standard of living of the Thai population causing more businesses to enter into
Thai markets increasing the demand for warehousing facilities and increasing
the price of warehousing in prime locations significantly. The market is forecasted to grow at a CAGR of
~% from a size of about THB ~Billion to almost THB ~Million. It is expected
that approximately ~ square meters of warehouse supply will enter to the
market. The future supply of warehouse has increased, especially in the areas
that were affected by the government’s Eastern Economic Corridor policy (EEC)
and a “Thailand 4.0” policy, such as Chonburi and Chachoengsao provinces. The
secondary reason is the increase in investment towards development of lower
tier cities in Thailand to make them equivalent to the current status of
Bangkok which is one the most critical cities in Thailand and is the biggest
individual contributor to the economy of Thailand.
For more information on the research
report, refer to below link:
Related Reports
Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
+91-9015378249
No comments:
Post a Comment