The warehouse and storage market in China was valued at USD12 billion in 2015 and is expected to surpass USD15 billion by 2020, says Technavio.
Technavio has announced its latest market research report on warehouse and storage in China for the forecast period, 2016-2020. This market analysis, under the warehouse and storage vertical, discusses the major drivers and key emerging trends that will influence the growth of the warehouse and storage market in China during the forecast period. Some of the top vendors listed in this industry analysis include GLP, Agility Logistics, UPS, CEVA Holdings, DB Schenker, Americold Logistics, John Swire & Sons, Deutsche Post DHL, and Preferred Freezer Services.
“China’s growth in the e-commerce market is propelling the demand for warehouse facilities in the region. As land in major cities has become scarce and expensive, particularly in key commerce centers such as Shanghai and Beijing, rental rates for logistics spaces are expected to increase over 5% in the next few years. Developers are expected to add more floors to warehouse units as a countermeasure during the forecast period,” says Sharan Raj, a lead analyst at Technavio for research on warehouse and storage.
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The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Rise in number of cold chain storage units
Cold chain warehouse logistics services are of great demand in China currently. The market for cold chain warehouse logistics grew at a CAGR of around 15% in 2014 and is expected to reach a capacity of 24 million metric tons oevr the next four years. In comparison, the growth rate in 2012 was 7% and in 2013 it was 10%. In China, refrigerated storage space per capita increased by more than 17 liters from 53 liters in 2011 to reach approximately 70 liters in 2014. However, the number is still lower than that of the US, which had 372 liters of refrigerated storage space per capita in 2014, implying that there is immense potential for growth for refrigerated storage and warehouse units in China.
Emergence of new segments such as reverse logistics
Specialized segments such as reverse logistics are emerging with the growth of the logistics market in China. As per consumer protection laws implemented in China during 2014, a consumer has the right to return most commodities purchased via the Internet within seven days upon receipt of the goods without giving any reason. This is augmenting the demand for reverse logistics and is spurring the growth of the warehouse market in the region.
Increase in presence of third-party logistics providers
The growth of the e-commerce market in China, which is expected to reach USD1 trillion by 2019, is propelling the demand for third-party logistics providers in the region. As a growing number of companies require the use of efficient supply chain management services, they rely on third-party providers specialized in logistics functions. This allows manufacturing companies to better channel their resources and eliminate the need to operate in-house logistics operations, thus also reducing costs.
Some of the other prominent vendors identified in this report are APL Logistics, China Chengtong Group, DACHSER, Damco, Expeditors International of Washington, Kerry Logistics, Logwin Logistics, Sinotrans & CSC Holdings, Toll, XPO Logistics, and Yusen Logistics.
This research report includes an in-depth analysis, market shares, and sizes of the sub-segments and geography. It provides a comprehensive analysis of the key companies, including their market shares, business overview, and key financials. The market study also offers a detailed analysis of key drivers, challenges, and opportunities influencing this market.
A more detailed analysis is available in the Technavio report titled, ‘Warehouse and Storage Market in China 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
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