Japan Contract Logistics Market Outlook
According to the report by Expert Market Research (EMR), the Japan contract logistics market size reached a value of USD 54.74 billion in 2023. Aided by the advanced logistics infrastructure, strategic geographical location, and the push towards digital transformation, the market is projected to further grow at a CAGR of 4.3% between 2024 and 2032 to reach a value of USD 80.65 billion by 2032.
Contract logistics refers to the comprehensive process where a company outsources its supply chain management and logistics operations to a third party. This service can encompass a wide array of activities beyond basic transportation and warehousing, including but not limited to inventory management, order fulfilment, freight forwarding, packaging, and assembly services, as well as more specialised services tailored to specific sector needs.
Japan contract logistics market growth is significantly influenced by the country’s emphasis on technological innovation, efficiency in supply chain management, and the growing need for specialised logistics solutions. The integration of cutting-edge technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and blockchain within the logistics sector has not only optimised operations but also enhanced transparency and reliability in supply chain management.
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The increasing focus on sustainability and green logistics practices is another crucial trend boosting the Japan contract logistics market expansion. Japanese companies are actively exploring eco-friendly logistics solutions to reduce carbon footprints, aligning with global environmental standards and consumer expectations for sustainable practices.
E-commerce has been a formidable growth driver for contract logistics in Japan. The surge in online shopping, especially post-pandemic, has necessitated advanced logistics solutions to manage inventory, fulfilment, and last-mile delivery effectively. This demand is further amplified by Japan’s ageing population, which relies more on online platforms for purchasing goods, including daily necessities and healthcare products.
As per the Japan contract logistics market analysis, the strategic importance of Japan in the Asia-Pacific region as a logistics hub has been instrumental in market growth. Its proximity to major markets like China and South Korea, coupled with its advanced port facilities and air freight services, supports regional and global trade, benefiting the contract logistics market.
The integration of digital technologies in logistics operations, such as IoT, AI, and advanced analytics, is transforming traditional logistics models into smart logistics. As per the Japan contract logistics market outlook, these technologies enable real-time tracking, predictive analytics for demand forecasting, and optimised route planning, enhancing operational efficiency and customer satisfaction. Recent global disruptions have underscored the importance of resilient supply chains. Japanese companies are increasingly focusing on building flexible and responsive logistics networks that can withstand disruptions, such as natural disasters or global supply chain shocks. This involves diversifying supply sources, investing in disaster preparedness, and adopting flexible logistics strategies.
The Japan contract logistics market is characterised by the presence of both international players and strong local companies. To stay competitive, companies are focusing on expanding their service offerings, investing in technology-driven solutions, and forming strategic partnerships and collaborations. Innovations in logistics models, such as shared warehousing and omnichannel logistics solutions, are also shaping the competitive dynamics of the market.
Technological advancements, changing consumer preferences, and the global push towards sustainability are contributing to the Japan contract logistics market share. The ongoing digitalisation of the logistics sector, coupled with innovations in green logistics, presents a promising avenue for market growth. As companies adapt to these trends, the market is expected to offer enhanced efficiency, reduced costs, and more sustainable logistics solutions, positioning Japan as a key player in the global logistics landscape.
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Japan Contract Logistics Market Segmentation
The market can be divided based on mode, type, service, and end use.
Market Breakup by Mode
- Railways
- Airways
- Roadways
- Waterways
Market Breakup by Type
- Insourced
- Outsourced
Market Breakup by Service
- Transportation
- Warehousing
- Distribution
- Others
Market Breakup by End Use
- Consumer Goods and Retail
- Manufacturing
- Automotive
- Healthcare
- Metal
- Others
Competitive Landscape
The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Japan contract logistics market. Some of the major players explored in the report by Expert Market Research are as follows:
- Deutsche Post AG
- Schenker AG
- Nippon Express Holdings Inc.
- CMA CGM Group (CEVA Logistics)
- Daifuku Co., Ltd
- Kuehne + Nagel International AG
- Yamato Transport Co., Ltd.
- SG Holdings Co., Ltd.
- LOGISTEED Ltd.
- Japan Post Co., Ltd.
- Others
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