According to the latest market research study released by Technavio, the third party logistics market in China is expected to grow at a CAGR of close to 9% during the forecast period 2017-2021.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the third-party logistics market in China based on end-user:
Third party logistics market in China share by end-user 2016
|
Manufacturing |
18.45% |
|
Automotive |
17.12% |
|
Retail |
16.56% |
|
Consumer Goods |
15.37% |
|
Food and Beverage |
9.45% |
|
Others |
23.05% |
Source: Technavio
The top three revenue contributing product segments are discussed below:
3PL market in China by manufacturing industry
The manufacturing units in China are creating more opportunities in the market by shifting business strategies. The labor-intensive manufacturing industries are shifting to lower cost locations to produce more innovative products at cheaper operational costs. This shift to new locations will increase the demand for third party logistics in the market of this region. The products designed by these manufacturing units are especially for the Chinese consumers and helps these vendors to stay in the competition in the market.
“The government in China are taking initiatives to make China the manufacturing hub that produces technologically advanced products rather than low-cost and often counterfeit merchandise. The government launched the “Made in China 2025” campaign to facilitate this objective and boosting the demand for 3PL in the market. The manufacturing companies need to be efficient in shifting and upgrading their logistics supply to meet the changing demand in the region,” says Abhay Sinha, a lead analyst at Technavio for research on logistics.
3PL market in China by automotive industry
The availability of both international and national passenger cars brands in China will lead to growth in this market segment. It is predicted that the total production and sales of vehicles annually will be more than 30 million units by 2020, contributing to the growth of the 3PL market in this region. The price wars in the market are leading the manufacturers to adopt efficient and cost-effective logistics services to keep the product prices low. The automotive OEMs are expanding their production and distribution centers across the country which will require multimodal routes and services in China, including rail, short-sea shipping, and barge movements. The demand for 3PL services with advanced benefits is expected to increase during the forecast period.
3PL market in China by retail industry
The changing lifestyles and increase in disposable income have led to increasing the consumption of retail goods in China and the need for better logistic systems. The vendors in the market are developing e-commerce in rural areas through smartphones and creating links between rural producers and urban consumers which will result in a growing requirement for better 3PL services in the market. The vendors improve customer relationship and create a loyal customer base through efficient logistics services from source to destination, which will deliver the goods to the customers on time.
The top leading vendors operating in the third-party logistics market in China are:
- CEVA Logistics
- China, China, and CMA CGM
Other prominent vendors in the market include Annto Logistics, China Air Express, China Deppon Logistics, Collyer Logistics, Deutsche Post DHL, FedEx, Jiangsu DTW International Transportation, Kerry Logistics Network, Logwin, Menlo Worldwide Logistics, Penske Logistics, Schneider Logistics, Sinotrans, SF Express, UPS, and Yusen Logistics.
A more detailed analysis is available in the Technavio report titled, ‘Third Party Logistics Market in China 2017-2021’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Third-party Chemical Distribution Market 2016-2020
- Global Third-Party Chemical Distribution Market 2016-2020
- Logistics Market in the APAC Region 2016-2020
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