DUBLIN, April 15, 2022–(BUSINESS WIRE)–The “ASEAN Warehousing and Distribution Logistics Market- Growth, Trends, Covid-19 Impact, And Forecasts (2022 – 2027)” report has been added to ResearchAndMarkets.com’s offering.
The ASEAN warehousing and distribution logistics market was valued at more than USD 300 billion in 2021 and is expected to grow at a CAGR of more than 10.5% during the forecast period.
Since the pandemic began in early 2020, ASEAN leaders have been forced to apply social distancing measures and lockdown cities on occasion due to the spread of Covid-19. Because of the massive closures of physical stores and dwindling consumer demand, traditional retail has been put under duress.
While the epidemic has caused a period of great instability for brick-and-mortar retailers, it has also accelerated the shift to online shopping channels that were already beginning in ASEAN countries.
Due to the sheer rising e-commerce sector, the ASEAN warehousing and distribution logistics market is expected to grow rapidly throughout the forecast period. High demand from last-mile logistics and rapidly developing transportation infrastructure are driving the market’s expansion.
Due to the strong presence of foreign firms and government efforts such as Adapt and Grow, Go Digital, encouraging SMEs, and the logistics industry to grow, Singapore is a major country in the ASEAN region. Due to its geographical advantage and strong freight & logistics business, Singapore is a fast-growing country in the ASEAN area. The warehouse infrastructure has been substantially funded by significant players in the country.
The pandemic has boosted warehousing demand in certain areas due rise in e-commerce sales. Throughout the pandemic, BW, Vietnam’s largest industrial for-rent developer specializing in the development of warehouses and factories for rent, received a huge volume of requests.
The company’s long-term development plan enabled it to efficiently seize these short-term opportunities: it built light, modern, industrial warehouses to meet expanding manufacturing demand and exploding e-commerce expansion.
As a result of the Covid-19 pandemic, demand for cold storage continues to rise, forcing cold storage businesses to adapt their supply chain models.
According to an industry report, international investors are showing a lot of interest in constructing cold stores in Vietnam to take advantage of the urbanization and retail modernization processes, which will transform the way Vietnam’s large cities acquire new food sources. The supply lines will be relieved in the future as a result of considerable infrastructure investment and expansion, such as the Long Thanh International Airport.
Key Market Trends
Increase in Warehousing Space in Thailand:
In Thailand, warehouses are more than just storage rooms; they also house different value-adding operations such as just-in-time packing, assembly, and product customization.
Over the last five years, Thailand has experienced a phenomenal e-commerce surge. In Bangkok, an e-commerce warehouse cluster may be found between 15 and 23 kilometers along Bang Na-Trat Road. Thailand has seen a tremendous retail market expansion in recent years, with a steady increase in organized retail or modern shopping all around the country.
The improving level of life in Thailand, as well as the country’s large young population and thriving tourism industry, have all attracted a slew of foreign brands, driving up demand for warehousing services.
Insights on Effect of E-commerce Growth:
With quality items, innovation, creativity, and new customer experiences, Asean e-commerce will progress from its infancy to a more mature stage. By 2025, online shopping in ASEAN is expected to be worth USD 172 billion, or 2.8 times what it was in 2020.
In 2020, Asean had added 40 million additional internet users, bringing the total number of internet users to 70% of the region’s population. ASEAN has a huge young population, and its high GDP growth has quickly expanded the middle class, which is good news for the region’s retail sector, which is expected to grow at a 5% annual rate through 2025. Consumers are beginning to buy higher-priced things online with a far higher level of trust as the e-commerce business matures.
Malaysia’s industrial market has been steadily growing in recent years, owing to greater e-commerce penetration rates, which have resulted in increased storage space requirements to accommodate the surge in last-mile delivery as well as the structural move towards omnichannel retailing.
International retailers are progressively developing warehouses in Malaysia to increase delivery times, customer service, and product availability. IKEA, Nestle, Tesco, Zalora, and Lazada are among the global firms investing in Malaysian distribution hubs to grow their e-commerce footprint in the country.
COVID-19 has accelerated the growth in e-retailing businesses in both the warehousing and logistics sectors, and investors are actively looking at this strong asset class as an all-time favorite investment.
Companies Mentioned
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DHL Supply Chain
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Ceva Logistics
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CJ Century Logistics
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DB Schenker
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Agility
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Kuehne + Nagel
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Yusen Logistics
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Kerry Logistics
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CWT Ltd
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Gemadept
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Tiong Nam Logistics
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Ych Group
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Singapore Post
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WHA Corp.
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Keppel Logistics
For more information about this report visit https://www.researchandmarkets.com/r/1vahkw
View source version on businesswire.com: https://www.businesswire.com/news/home/20220415005080/en/
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