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Indonesian logistics Market Research Report to 2021: Ken Research by Ankur Gupta

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Indonesian logistics Market Research Report to 2021: Ken Research by
Article Posted: 01/04/2018
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Indonesian logistics Market Research Report to 2021: Ken Research

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 For more information on the research report, refer to below link: Related Reports by Ken Research Contact Us: Ken Research Ankur Gupta, Head Marketing & Communications +91-124-4230204

Related Articles - International domestic revenue Indonesia logistics, Growth Indonesia Express Logistics Industry, Cold Storage Warehouses in Indonesia, Cold Transport,

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