Press release
Australian Logistics and Warehousing Market: Thriving in the Era of E-Commerce and Technological Advancements
The logistics and warehousing market is the backbone of Australian enabling the transportation of goods over vast distances and connecting businesses to global markets. This industry is currently experiencing a substantial transformation due to technological advancements and shifting consumer expectations. Additionally, the surge in e-commerce has emerged as a key catalyst for growth in the logistics sector. The increasing popularity of online shopping has created a heightened demand for efficient last-mile delivery solutions. Furthermore, Australia holds a significant position in international trade, exporting various commodities such as minerals, agricultural products, and natural resources.► Market Overview:
In 2022, the Australian Freight and Logistics market experienced robust growth, with a notable increase of 13.50%. This growth can be attributed to Australia's advantageous geographical position and its active involvement in international trade. Australia heavily relies on international trade, particularly with key trading partners such as China, the United States, Japan, and various Asian nations. Consequently, the performance of the freight and logistics sector is intricately linked to global trade patterns and the demand for Australian exports.
Furthermore, the ascent of e-commerce has exerted a substantial influence on the logistics industry, creating a pressing demand for quicker and more efficient last-mile delivery services. The incorporation of cutting-edge technologies like automation, IoT (Internet of Things), and data analytics has played a pivotal role in streamlining supply chains and enhancing overall operational efficiency.
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Australia Logistics and Warehousing Market Size and Forecast (2018-2028)
https://www.makreo.com/report/australia-logistics-warehousing-market-size-forecast-2018-2028
► Rail Freight Dominate the Market:
Rail freight holds a dominant market share of over 50% and stands as the primary mode of freight transportation in Australia. It is the preferred choice for conveying large quantities of goods across extensive distances, playing a pivotal role in Australia's import and export operations. In 2022, the Australian rail network encompassed a total of 32,929 kilometers (20,461 mi) of tracks, categorized into three major track gauges: 18,007 kilometers (11,189 mi) of standard gauge (1435 mm / 4 ft 81⁄2 in), 2,685 kilometers (1,668 mi) of broad gauge (1600 mm / 5 ft 3 in), and 11,914 kilometers (7,403 mi) of narrow gauge (1067 mm / 3 ft 6 in) lines.
► Australia Postal Service Showcasing Steady Growth: Consistent year-on-year growth characterizes Australia's parcel service market, with annual growth rates ranging from 7% to 10% between 2018 and 2022. This sustained growth signifies a robust expansion within the parcel service sector. While the COVID-19 pandemic has left its mark on all Australian industries, the Courier, Express, and Parcel (CEP) market within the e-commerce sector witnessed significant growth. In 2021, as lockdown measures were eased, every facet of the CEP market enjoyed increased demand and expansion. Australia distinguished itself with the third-highest revenue per parcel in 2020, trailing behind only France and the United States. This exceptional growth can be attributed to a confluence of factors, including the surge in e-commerce activities, evolving consumer preferences, urbanization trends, technological advancements, and enhanced supply chain and delivery logistics.
► Third-Party Logistics Market in Australia is an ever-evolving sector: The Third-party Logistics (3PL) market in Australia is a dynamic and ever-evolving sector that plays a pivotal role in the country's overall supply chain and logistics framework. In 2022, it demonstrated remarkable year-on-year growth, surging by an impressive 33.4%. This growth can be attributed to the increasing recognition among businesses of the benefits of outsourcing non-core functions, which has significantly propelled the 3PL market in Australia. In addition to the overall surge in online retail, specific sectors like takeout food have experienced remarkable growth as well. As of January 2023, the takeaway food category from domestic merchants in the online retail sector saw a notable increase of around 11.5% compared to the previous year. At the same time, the growth rate for international merchants in the same category reached an impressive 135.6%. The scope of the Australian 3PL market extends well beyond traditional logistics functions. It encompasses a diverse array of services, including but not limited to warehousing, transportation, inventory management, order processing, packaging, and value-added services.
► Warehousing and Cold Chain Market Showcased Remarkable Acceleration: The warehousing sector holds a prominent position within the logistics industry, and in Australia, a country known for its vast resources, this sector has undergone significant transformation. The Australian warehousing and cold chain market have adapted to focus on factors such as preserving product quality, optimizing supply chains, and addressing evolving consumer preferences, resulting in notable shifts in revenue performance over the years. The most remarkable growth within this sector occurred in 2022, where it experienced a substantial surge of 18.5%. This impressive growth underscores the sector's adaptability and capacity for innovation in response to changing market dynamics. Investments in technology, infrastructure, and the streamlining of operations likely played a pivotal role in driving this surge.
► Accelerated Shift to Online Shopping in Australia: The year 2022 witnessed significant and robust expansion in Australia's eCommerce sector, with sales projected to exceed USD 40 billion in 2023. This upward trajectory is expected to persist over the next five years. The surge in online shopping among Australians has reached unprecedented levels, offering promising opportunities for emerging retail businesses looking to enter the Australian market. Throughout 2022, the transition of Australian consumers towards online shopping gained even greater momentum. According to a survey conducted by Australia Post, the eCommerce and online shopping sectors experienced remarkable growth, with a staggering rate of 23.4%.
► Key Findings
■ Development of Logistics Parks: In 2021, a consortium of prominent investors, including LOGOS, completed the acquisition of Moorebank Logistics Park (MLP) for a substantial sum of USD 1.67 billion. MLP stands as Australia's largest intermodal freight facility and serves as Sydney's foremost industrial logistics estate.
■ National Freight and Supply Chain Strategy: The National Freight and Supply Chain Strategy is a comprehensive framework that outlines a unified approach to prepare Australia's multimodal freight supply chains for the challenges of the next two decades and beyond. Australia is experiencing a notable increase in its freight requirements, which is resulting in a series of intricate challenges within the industry. As the forecast predicts a 26% growth in freight volumes from 2020 to 2050, it underscores Australia's robust and adaptable transport and logistics system.
■ Government Policies: The Australian government has made significant investments in road transport, notably through projects like "Roads of Strategic Importance." Additionally, they have allocated more than USD 150 million towards the Remote Roads Upgrade Pilot Program. Moreover, the Australian government has committed a substantial investment of over USD 120 billion in an infrastructure pipeline spanning a decade.
■ Challenges: Digital transformation is equipping the supply chain industry with improved capabilities to handle disruptions. However, it is also opening doors for cybercriminals, who now have more opportunities to breach company systems. The supply chain operating networks remain intricate and divided, featuring various data-sharing platforms, devices, software, and protocols. This complexity exposes businesses to several vulnerabilities, including:
1. Cyberattacks stemming from interoperability problems among different IoT devices lacking a standard protocol.
2. Challenges in integrating with software vendors due to the diverse Electronic Data Interchange (EDI) formats and systems employed by shippers
The study conducted by Makreo Research on the "Australia Logistics and Warehousing Market Analysis Forecast (2018-2028) - Segmentation by Type of Services, by Freight Forwarding Market, and by Mode of Transportation" provides a comprehensive analysis of the market, encompassing a wide range of factors. The report takes into account both qualitative and quantitative factors, indicating a well-rounded approach to analysis. The inclusion of both qualitative and quantitative factors in the study ensures that readers gain a more complete understanding of the Australian Logistics & Freight Forwarding Market. It goes beyond mere numbers and incorporates insights into consumer behavior, industry trends, and market dynamics. This holistic approach enhances the overall analysis and makes the study a valuable resource for individuals or organizations interested in exploring the logistics, warehousing, 3PL, cold chain, and express logistics markets in Qatar. Moreover, the report's focus on past and present performance, as well as potential growth opportunities in the future, enables readers to identify key areas of interest and investment.
■ Period of Study:
2018-2022 : Past and Present Scenario
2022: Base Year
2023-2028 : Future Outlook of the industry
■ Market Assessment:
The report examines opportunity for the Australia Logistics and Warehousing market on various grounds including
1. Logistics and Warehousing Market revenue and performance,
2. 3PL Market revenue and performance
3. Warehousing Market revenue and performance
4. Parcel Service Market revenue and performance
5. eCommerce logistics performance
■ Countries Assessed: Australia
■ Competitive landscape:
1. Competitive Landscape
2. Mergers/Acquisition/Investment
3. Company Profiles
■ Company's Covered:
DHL Group
Linfox
FedEx Corporation
DB Schenkar
Aramex
Ceva Logistics
United Parcel Service
Toll Group
Brambles
For more information on the research report, refer to the below link:
Australia Logistics and Warehousing Market Size and Forecast (2018-2028)
https://www.makreo.com/report/australia-logistics-warehousing-market-size-forecast-2018-2028
Related Reports:
Australia Logistics Market Competitive Landscape - Edition 2023
https://www.makreo.com/report/australia-logistics-market-competitive-landscape-edition-2023
Australia's Freight Forwarding Market Analysis by Mode of Transportation (Air, Sea and Land)
https://www.makreo.com/report/australia-freight-forwarding-market-analysis-mode-transportation-air-sea-land
Makreo Research and Consulting
801, Trishul Goldmine, Palm Beach, Sector 15, Belapur, Navi Mumbai, Maharashtra 400614
Contact us at:
Meetu Bhasin, Director of Research and Operations
Phone Number
+91-9619699069
Email Address
info@makreo.com
Makreo Research is a market research and consulting firm that works closely with business conglomerates worldwide to assist them in many aspects of driving their businesses.
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