How
Logistics Market is positioned in Indonesia?
Indonesian logistics industry is defined as an
industry which, by function or business segment, is related to cargo
transportation, storage, and off-loading, packaging and related activities. The
Indonesian logistics market has been continuously growing. In recent years, the
market shares of first-party logistics and second-party logistics have been
declining, whereas that of third-party logistics has been growing at a
tremendous rate in the country.
Indonesia logistics industry has shown a remarkable growth in past five
years recording a CAGR of ~% owing to the country strongly investing in
upgrading its transportation services and being open to collaboration. The freight forwarding sector is the leading
segment towards the revenues of the logistics industry. The logistics industry
encompasses with several components such as Freight, warehousing, and value
added services in Indonesia.
Indonesia
logistics industry
has shown a tremendous growth in past five years recording a CAGR of ~%. The
market grew from USD ~ billion in 2011 to USD ~ billion in 2016. This growth
occurred due to the country strongly investing in upgrading its transportation
services, being open to collaboration, investments in infrastructure, various
developments made by companies, government issuing ~ logistics policies
packages, rise in logistics center and elevated e-commerce industry. It was
observed that ~% of the country’s GDP is spent on logistics. Freight forwarding
segment has dominated the Logistics industry in Indonesia and has grown at a
five year CAGR of ~% during the period 2011-2016. Value Added service has shown
an incline of ~% during 2011-2016.
Indonesia logistics industry has number of leading players in the organized
market such as DHL, Agility Logistics, Ceva Logistics, Keppel Logistics, Yusen
Logistics and others.
Freight forwarding segment has dominated the
Logistics industry in Indonesia and has grown at a five year CAGR of ~% during
the period 2011-2016. This is due to the increase in demand for transportation
of goods from one place to another. The increase in the export and import value
has positively impacted the freight forwarding industry in the country. The
freight forwarding industry has witnessed the surfacing of a number of players,
both domestic as well as global in recent years. Currently, there are
approximately ~ freight forwarders and 8 freight consolidators in the country.
The leading players in the industry are DHL, CEVA Logistics, Yusen Logistics,
Agility Logistics and others.
How Freight
forwarding Market of Indonesia is performing?
Indonesia freight forwarding market was
majorly dominated by road freight in terms of revenues and is growing at a CAGR
of ~% during 2011-2016. The freight forwarding market size has increased with
the boost in air freight and sea freight, the development of transportation
infrastructure, increase in number of freight forwarders, increasing industrial
activities, growing FMCG market and rising e-commerce industry.
Road freight has the highest share owing to
the high number of deliveries that take place through roads. Moreover, the
deliveries that are done by air, sea or rail are further transferred to the
destination by road transport from port or station. Air freight had the second
largest share in the country freight forwarding market growing at a CAGR of ~%
during 2011-2016.
What is the
Role of Warehousing Market in Indonesia?
The warehousing industry in the country has
observed a tremendous growth in terms of revenues as well as the volume handled
by these warehouses in past few years owing to the growth in three economic
sectors including FMCG and e-commerce. The expansion in the FMCG sector has
been a major factor for the increase in the retail market growth leading to a
positive impact on the Indonesia warehouse market by the rising demand from
this sector. The warehousing market in Indonesia grew at a five year CAGR of
6.1% growing from USD 24.6 billion in 2011 to USD 33.0 billion in 2016. Modern
technologies which have influenced the Indonesia warehouse market include
Automatic store and retrieval System, Warehouse Management System, Cross
Docking, Vendor Managed inventory and Efficient Consumer Response. In case of
renting a warehouse, land prices cause an issue. For example, rents in Greater
Jakarta account to USD 6.0 – USD 7.0 per square meter. The country is
experiencing a major rise in warehousing service demand and the major companies
operating in the space include Keppel Logistics, OOCL Logistics and Samudera.
Industrial/Retail sector has contributed majorly in the revenues of warehousing
industry with the share of ~ % in 2016 followed by container freight and cold
storage.
What is the
Role of Express Delivery market in Indonesia logistics industry?
In the starting, the logistics market had freight
system for delivering the products. With the growing industrialization and busy
lifestyles of people, the customers felt a requirement of faster delivery. This
gave the logistics industry an opportunity to launch a new service vertical
named express logistics which was a faster way of delivery compared to the
normal delivery.
The express delivery logistics has witnessed a
tremendous growth in past few years growing at a CAGR of ~% during 2011-2016 in
Indonesia. The market increased from USD ~ billion in 2011 to USD ~ billion in
2016 due to rising prominence of online shopping, increase in international
cross border trade, shopping online for perishable items and elevated
e-commerce industry.
The major players of Express logistic in
Indonesia include DHL, FEDEX, First Logistics and JNE Express. The express
logistics is a part of the overall logistics industry which deals with time
bound logistics services. It involves the movement and transport of documents,
parcels, goods, materials and products which includes activities including
freight, storage, packaging and inventory management.
Cold Chain
Market
The Indonesia cold chain market grew at a five
year CAGR of ~% from USD ~ billion in 2011 to USD ~ billion in 2016 due to the
increasing contribution from the e-commerce industry with rising population
opting for online grocery and food delivery, increase in the pharmaceutical
industry, elevated agricultural market with rising population for consumption,
increased demand of frozen foods and beverages, rise in the franchises in the
country and the increased smart phone users and internet penetration.
Cold chain market in Indonesia is a
concentrated market. PT. Diamond Cold Storage, Maersk Line, Wahana and GAC are
the leading companies in the industry. Indonesia cold chain industry is
expected to grow at a five year CAGR of ~% during 2016-2021 owing to the
nascence and emerging demand due to increasing demand for perishable items
including frozen food, pharmaceutical, meat, sea food and dairy products in the
country.
Third party
Logistics Market
Third party logistics segment has witnessed a
robust growth in past few years in Indonesia. The market is growing at a CAGR
of ~% during 2011-2016. The revenues have increased from USD ~ billion in 2011
to USD ~ billion in 2016 due to 3PL outsourcing gaining importance in the
country. The leading companies in the segment are CEVA Logistics, Combi
Logistics, Mitsui, APL Logistics, Kerry Logistics and others.
3PL market in Indonesia is expected to
increase at a five year CAGR of ~% during the period 2016-2021 owing to the
increasing focus of manufacturers on their core businesses and sub-contracting
the activities where they have less expertise.
Future
Growth of Indonesia Logistics Industry
Indonesia logistics market is expected to
increase at a CAGR of ~% during 2016-2021 owing to the country’s plans to turn
in a logistics hub. The imports of the country is expected to incline from USD
~ billion in 2016 to USD ~ billion in 2021 whereas the exports are anticipated
to increase from USD ~ billion in 2016 to USD ~ billion in 2021. The rising
demand of the products online due to e-commerce market is also anticipated to
raise the logistics market as with high demand of products, the shipping will
increase. New players are expected to enter the market and the existing players
are expected to expand their market by increasing their offices owing to the
increase in industrial activities in the country. Additionally, the rise of
demand of perishable products and fast delivery will raise both express
logistics and cold chain market leading to increase in Indonesia logistics and
warehouse market.
Freight forwarding services will increase at a
five year CAGR of 9.2% during 2016 to 2021 and is expected to be the major
contributor of the logistics market in future. This incline in the freight
forwarding market is expected due to the government plans of increasing the
number of ports, airports, highways and rail road. Warehousing segment will
increase at a five year CAGR of 2.5% during 2016 to 2021 due to further
investment by the government in development of logistics infrastructure. In
addition to this, expanding e-commerce and manufacturing industry in the
country will also positively impact the size of the warehousing industry. Fully
equipped warehouses with modern technologies will drive the future growth of
the warehousing market in the country.
Key Topics Covered in
the Report:
Indonesia Logistics Market
Logistic Cost in Indonesia
Sea Freight Forwarding Market
Air Freight Forwarding Industry
Revenue Growth Agility Freight Forwarding
Market Share Logistics Players Indonesia
Logistics Flow Corridors Indonesia
Express Delivery Market Indonesia
Warehousing Industry Revenue Indonesia
Logistics Growth Indonesia
Trends in E-commerce Logistics Indonesia
Cold Chain Market Indonesia
Cold Storage Industry Indonesia
3PL Logistics Market Indonesia
Third Party Logistics Market Indonesia
Competition Logistics Indonesia
Future Logistics Revenue Indonesia
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information on the research report, refer to below link:
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