Asia Pacific's Dominance in Logistics Market Driven by E-commerce and Developing Economies: Key Developments in Hong Kong, Singapore, South Korea, Japan, and Egypt

The Asia Pacific region has maintained its position as the largest logistics market in the world, with developing economies driving growth. With China leading the manufacturing sector and India as one of the world's most populous nations, the region's demand for third-party logistics (3PL) services is on the rise. The growth of e-commerce has also been a significant driver, with China and India accounting for the majority of e-commerce transactions globally.

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According to a report by UNCTAD, the Asia Pacific region enjoyed more than 50% of the global share of retail e-commerce sales in 2020, with China being the global market leader. Asian countries, including China, Japan, South Korea, and India, also dominated the list of top ten revenue-generating countries in the global e-commerce business.

China has reserved the top spot globally in the Agility Emerging Market Index in 2019, followed by India and the UAE, with both India and China driving the logistics domestic and international markets sub-indices. The US currently tops the 3PL market, with China ranking second. However, China is focusing on increasing its cross-border trade and expanding its supply chain capabilities, which is expected to boost the Chinese 3PL market in the coming years.

The Bahrain logistics market is also witnessing strong growth, with a CAGR of 4% during 2017-2021. Despite negative growth in 2020, demand for the transport and logistics industry is increasing, with the Bahrain International Airport (BIA) handling 300,205 tonnes of cargo in 2020, an increase of 3.2% from the previous year.

Egypt's prime location in the North African region provides transportation and logistics companies with unmatched access to a growing regional clientele across Europe, the Middle East, and Africa, offering the fastest turnaround times for freight and the quickest transit periods between seaport, airport, and industrial zones. Egypt's strategic geographic location and proximity to Europe, the Middle East, and Asia also means it has strong trade relations through its ports, with 8%-10% of global freight passing through the Suez Canal. The country's logistics expenditures are expected to surpass USD 30 billion by 2024.

The third-party logistics market faces high logistics costs due to low penetration rates and fragmentation. The sluggish adoption of updated technologies by Chinese 3PL companies further intensifies the problem, with some retailers and manufacturers complaining about a lack of innovation from 3PL firms. On the other hand, some retailers and manufacturers aim to reduce 3PL firms' profit margins, exacerbating the problem and driving up logistics costs.

To motivate 3PL service providers to adopt new technologies, Hong Kong SAR extended subsidies amounting to USD 44.5 million to 3PL players in February 2020. Singapore has launched a Logistics Industry Transformation Map, aiming to transform the supply chains through digitalization since 2017. South Korea also invested USD 132 million to introduce a blockchain-based inter-terminal transportation system in 2019 at Busan Port.

The Japanese logistics market is the third-largest 3PL market in terms of revenue after the US and China, with a CAGR of 5% during 2016-2021. Japan secures the fourth position in the global e-commerce market after China, the UK, and the US.

In summary, the Asia Pacific region continues to be the driving force behind the global logistics market. The growth of e-commerce is expected to continue to be a significant driver in the coming years, with China and India leading the way. Governments and businesses across the region are focusing on adopting new technologies to improve supply chains and reduce logistics costs, and the Bahrain logistics market and Egypt's strategic

Asia Pacific Related Reports:-
https://www.makreo.com/report/egypt-transportation-and-logistics-market-size-to-2028

https://www.makreo.com/report/bahrain-logistics-market-future-outlook-to-2027

https://www.makreo.com/report/asia-pacific-third-party-logistics-market-revenue-and-forecast-2016-2027

https://www.makreo.com/report/india-e-commerce-logistics-market-report

https://www.makreo.com/report/asia-pacific-third-party-logistics-market-revenue-and-forecast-2016-2027

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