Indonesia - Freight Logistics Market size to grow by USD 28.7 billion from 2022 to 2027, Growing export-import activities to drive the growth - Technavio

NEW YORK, Oct. 2, 2023 /PRNewswire/ -- The Indonesia freight logistics market size is expected to grow by USD 28.7 billion from  2022 to 2027. However, the growth momentum of the market will decelerate at a CAGR of 9.45% during the forecast period. The market is segmented by service (transportation, warehousing, and others), type (3PL and 4PL), and application (manufacturing, automotive, consumer goods, retail industry, and others). The growing export-import activities are the key factor driving the market growth. Imports jumped by 30.85% YOY to USD 21.97 billion in March 2022, mostly due to an increase in raw materials and capital goods because of higher oil prices, the increasing demand for industrial products, and enterprises expanding their activities. During the forecast period, due to increased prices of exporting commodities such as coal and CPO offset by higher import costs, particularly for oil products, a rise in commodity prices worldwide will have a positive impact on Indonesia's trade. Hence, these factors are expected to drive market growth during the forecast period. The report analyses the market size and growth and provides accurate predictions on the growth of the market. View a Free PDF Sample 

Key Highlights:

• The report recognizes the following as some of the key players in the freight logistics market in Indonesia: BSA Logistics Indonesia, Deutsche Post AG, Dimerco Express Corp., DSV AS, PT. Cipta Mapan Logistik, Pancaran Group, POS Indonesia, PT Bhanda Ghara Reksa, PT CIPTA KRIDA BAHARI, PT CLI and Traffic Monitoring, PT. Dunia Express Transindo, PT. Kamadjaja Logistics, PT. Multimodatrans Indonesia, PT. Siba Surya, PT. Tiki Jalur Nugraha Ekakurir, Puninar Logistics, Samudera Indonesia Tangguh, SF Express Co. Ltd., DB Schenker, and Kuehne Nagel Management AG
• The freight logistics Market in Indonesia is fragmented in nature.
• Market to observe 11.41% YOY growth in 2023.

Market Dynamics:

Major Trend

• The growing e-commerce industry is a major trend in the market.
• The growth of the country's e-commerce market has largely been driven by its basic development in industry and the national economy during the last couple of years.
• The availability of inexpensive phones and the Internet has contributed to an increase in consumer uptake, enabling them to use several e-commerce platforms that are more easily available when compared with access to physical stores.
• Furthermore, in 2021, Indonesia will remain one of the most internet-using countries in the region with slightly more than 72.87% penetration.
• In addition, because of the incredible growth in Internet access through cellular phones, there is an increasing consumer base for e-commerce businesses.
• Hence, these factors are expected to drive market growth during the forecast period.

Significant Challenge

• High infrastructure cost is a significant challenge restricting market growth.
• Intermodal transport of goods requires a high investment in infrastructure.
• Investments shall cover the installation of gantry cranes which are indispensable for lifting containers at different port facilities, in addition to changing modes of transport.
• Moreover, necessary investments are also needed to improve rail and road access.
• For instance, a rail link should exist at the port to allow goods to be carried by railways from and out of the port.
• As a result, the demand for freight logistics is negatively impacted by these large investments because they usually delay and take up too much time.
• Hence, these factors are expected to restrict market growth during the forecast period.

The report also covers information on upcoming trends and challenges. Explore detailed information by purchasing a report

Keg Segments:

• The Indonesia freight logistics market share growth by the transportation segment will be significant during the forecast period. The paid process of transporting goods, merchandise, and other objects from one place to another using wheeled vehicles is called freight transport. There are three main types of freight available to shippers in Indonesia, which are air freight, sea freight, and road freight. Strong trade relationships exist between Indonesia and the US, Australia, Europe, and neighboring Southeast Asian countries such as Thailand and Vietnam. Due to geographical restrictions, this land cannot be used for international cargo transportation. In addition, air freight is much more expensive than any other method of transporting goods and is often used for express shipments. Hence, these factors are expected to drive segment growth during the forecast period.

 Get a glance at the market contribution of the segments, Request a Free Sample

The Asia Pacific (APAC) Logistics Market size is estimated to grow at a CAGR of 5.25% between 2022 and 2027. The market size is forecast to increase by USD 145.4 million.

The intermodal freight transportation market size is estimated to grow at a CAGR of 6.64% between 2022 and 2027. The market size is forecast to increase by USD 56.12 billion.

Executive Summary

Market Landscape

Market Sizing

Historic Market Sizes

Five Forces Analysis

Market Segmentation by Service

Market Segmentation by Type

Market Segmentation by Application

Market Segmentation by Geography

Customer Landscape

Geographic Landscape

Drivers, Challenges, & Trends

Company Landscape

Company Analysis

Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focus on emerging market trends and provide actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com

SOURCE Technavio