The Logistics Market in China is advancing rapidly in its road, air, international and domestic transportation segments.
With a growing trend of outsourcing and strategic tie-ups, the Logistics Market in China is expected to post an impressive CAGR of 11.67 percent from 2014-2019.
Logistics: Lifeline of The Chinese Economy
Apart from being the second largest economy in the world, China is also home to a growing population with a voracious appetite.
A significant increase in demand for crops and agricultural products is expected to boost the market further during the forecast period.
Also, online consumption remains heavily dependent on the logistics and transportation. With a thriving population looking to consume more, the logistics industry is playing a pivotal role in providing warehousing infrastructure for goods in China.
Making New Inroads to Improve Infrastructure
The Chinese government is focused on upgrading the countries physical logistics infrastructure through new roads and highways.
Investing a staggering US$64 billion annually, a massive expansion of China’s railways is on the cards. The Chinese government has plans to introduce new high-speed trains in its five-year Plans.
In addition, the government has also planned to extend the highway network to 50,952.43 miles.
Intense Competition from Chinese Service Providers
The market in China consists of more than 19,000 logistics service providers and these players occupy more than 70 percent of the market.
The Logistics market in China is characterized by its unorganized structure and is dominated by local vendors who provide logistics-specific solutions.
As the cost of logistics is pretty high, local service providers have the upper hand in terms of better know-how of the market. They liaise with second-party logistics service providers to increase their customer base.
The entry of large and small-scale vendors in the market has significantly increased M&A opportunities and broadened the scope for innovation.
