Australia Logistics Sector, Transport, Warehousing Market Outlook to 2021: Ken Research


How Australia Logistics and Warehousing market is performing?

The Australia logistics market revenue has been estimated at AUD ~ billion in FY’2016 accounting for ~% of the GDP. The market is driven by modern infrastructure facilities, increasing government investment, use of modern technology for a sustainable logistics supply chain and increase in trading activities. The major end users of logistics services in Australia are manufacturing, Retail, Wholesale, Construction, Agriculture and Mining. These sectors have accounted for ~% of the road freight transport revenue in FY’2016. The Australia logistics industry has seen robust growth in express delivery services supported by development in e-commerce industry which offers various value added services such as one day delivery and door to door services. This has further led to the development of 3PL services as international players entered the market. The major companies in the country have adopted various modern technologies such as Warehousing management systems, automation, drone delivery and Transportation Management System which has enabled better planning and tracking facilities resulting in increased productivity and increased value proposition.

By Service Mix: Freight forwarding has accounted for the largest share in Australia logistics market in FY’2016 with ~% revenue share in FY’2016 with revenue estimated at AUD ~ billion. Value added services have taken ~% of the revenue share in Australian logistics in 2016 with revenue estimated at AUD ~billion.  The postal courier pickup and delivery services have accounted for ~% of the revenue share in FY’2016. The revenue has remained fairly constant due to increasing preference of email over postal services.

By Geography: New South Wales (NSW) has accounted for ~% of the freight forwarding market in FY’2015 with revenue estimated at AUD ~ billion. This was followed by Victoria with ~%. This region’s revenue is majorly driven by the booming industrial sector. Queensland and South Australia have together contributed ~% in the revenue share in FY’2015.

How is Australia Warehousing Industry Performing?

The Australia warehousing market revenue was estimated at AUD ~ billion in FY’2016. The market was driven by strong demand fundamentals from the automotive, consumer and construction sectors are being actively addressed by the planned expansion of the country’s logistics capabilities. Majority of the warehouses in Australia are located around industrial and manufacturing hubs, sea ports and logistics park. The market is dominated by unorganized players due to the rising number of family owned warehousing business. The expanding e-tail companies in the country have also triggered the growth of the warehousing industry in the country. Online stores have become popular in the country these days. The major reason for their popularity is the convenience of placing an order by sitting at home and getting the product delivered on the door step. The warehousing industry has witnessed increasing use of automation and modern technology to enhance their capabilities and efficiency in storage and maintenance of goods. Furthermore, the warehousing companies are expanding their services offering by opening specialized cold storage facilities to assist the growing food & beverages, pharmaceuticals industry. The major warehousing companies in Australia include McPhee Distribution services, MJ Logistics, Adelaide Warehouse and Distribution Services, QLS Group and Yusen Logistics. There are 700+ warehousing companies in Australia.

By Type of Warehousing: The industrial warehousing market has contributed ~% in the revenue share in the overall Australia warehousing market in FY’2016. The industrial warehouses have a more complex infrastructure designs which can handle greater loads, larger cubic capacity and higher bays with greater use of robotics and high-tech picking systems as the requirements differ The container freight/inland container depot has accounted for ~% of the revenue share in FY’2016. The container freight market is driven by growth in imports and exports. Cold storage has accounted for ~% in the Australia warehousing market revenue in FY’2016. Companies from industries such as Automotive, Manufacturing, Oil and Gas based industries have invested in the country.

How Is Australia Express Logistics Industry Evolving?

The express logistics market revenue has increased from AUD ~ billion in 2011 to AUD ~ billion in FY’2016 at a CAGR of ~%. Express logistics industry is a premium segment of the logistics industry, providing logistics services for movement of time perceptive shipments

Earlier express logistics was mainly driven by B2B customers for delivering urgent business documents and parcels. Road transport is majorly used for express delivery services due to greater flexibility and door to door services followed by air transport. The market has seen growth in the last five years majorly due to increase in e-commerce activities and changing consumer preferences as they are willing to spend more for faster delivery. By creating an integrated supply chain including multi-modal transport modes, both air and surface, express industry has fine-tuned the logistics process for time-bound deliveries of shipments across domestic and international regions. The market has been further supported by development in the country’s infrastructure.

The major players in the segment are TNT Australia, Toll Holdings, Fed Ex, Star Track Express and DHL. The market has seen rise in startups exploiting new technologies such as cloud platforms and cloud sharing which can enable platform solutions such as virtual freight forwarding. Digitally integrated value chain has benefitted from significantly improved forecasting to scale capacity up or down and plan routes. Adding machine learning and artificial intelligence techniques to data analytics has enabled companies to deliver dynamic routing. The express logistics market is expected to reach AUD ~billion by FY’2021 growing at a CAGR of ~% during FY’2017 to FY’2021

By Air and Ground Express: The express logistics market has been led by air express with ~% revenue share in FY’2016. The presence of proper airline infrastructure and well established network within the country and the rest of the world have facilitated the air express market. Ground express delivery has accounted for a smaller share of ~% in the revenue share in the Australia Express logistics market in FY’2016. Majority of the express delivery on ground is through roadway due to better reach of road transport remote locations and well connected roads in the country

By Market Structure: The B2B express market has accounted for a majority share of ~% in the Australia express logistics market in FY’2016. B2B includes the delivery of trade samples, contracts, and other time sensitive deliveries transported through a scheduled network with door-to-door track-and-trace of individual items /consignments. B2C express market has accounted for ~% of the market share in Australia express logistics market in FY’2016. This market is driven by the rise in e-commerce industry. C2C services are customer to customer express services and it includes the deliveries made from one customer to another which has accounted for ~% in the revenue share in FY’2016

Australia 3PL Market

The Australia 3PL Market revenue increased from AUD ~ billion in FY’2011 to AUD ~billion in FY’2016 at a CAGR of ~%. Shippers looking to gain an overall competitive advantage have shown significant interest in supply chain transformation by collaborating with 3PL service provider. The Australian logistics markets consist of numerous unorganized fleet operators, well-established local units and global companies. In this scenario, third party logistics (3PL) has gained prominence as it offers a total range of solutions at a single stop that can help companies reduce their overall cost. While smaller logistics companies are likely to continue catering to the local markets, the medium and larger ones, focusing on offering value-added services are opting for mergers and acquisitions. As a result, the markets’ structure at the base level is very fragmented while it is more coordinated at the top levels. With the increasing number of international participants in Australia, the companies are more forthcoming about handing over their logistics requirements to the 3PL service providers which allows the manufacturing companies to concentrate solely on their core competencies, eventually bringing down their operational costs, reducing lead time for raw materials and finished products, and vastly improving their process efficiency. Further, outsourcing to 3PL companies saves a great deal of time, and expenses otherwise incurred in maintenance and training the personnel. The major companies in the 3PL market are Australian Post, Exel, Linfox, TNT Logistics and Toll Logistics. The Australia 3PL market is expected to grow at a CAGR of ~% during FY’2011- FY’2016

Australia Logistics and Warehousing Market Future Outlook and Projections

The Australia logistics and warehousing industry is expected to increase at a CAGR of ~% during FY’2016 to FY’2021. The revenue is expected to increase from AUD ~ billion in 2016 to AUD ~ billion in FY’2021.

The freight forwarding market will continue to dominate the Australia logistics and warehousing industry with ~% market share by FY’2021. The government has launched various programs in order to develop the infrastructure of the country hence facilitating the logistics market growth in the future years. The freight forwarding industry in Australia is projected to grow at a CAGR of ~% during FY’2016- FY’2021. The warehousing market revenue is expected to increase from AUD ~ billion in FY’2016 to AUD ~billion in FY’2021 with an impressive CAGR of ~%. The Australia express logistics market revenue is expected to increase from AUD ~billion in FY’2016 to AUD ~billion in FY’2021 at a CAGR of ~%. The Australia cold chain market is expected to increase from AUD ~billion in 2016 to AUD ~billion in FY’2021 at a CAGR of ~% during FY’2016-FY’2021.

Key Topics Covered in the Report:

Logistics News Australia

Australia Logistics Sector

Air Express Delivery Australia

Australian Logistics Industry

Number of Cold Storages in Australia

Australian Transport and Logistics Industry

Companies Cited in the Report

List of Companies                                Companies Covered in the Report

Toll Holdings


TNT Australia

SCT Logistics

Qube Holdings                                       Major Players

Aurizon Holdings


Hapag Lloyd


Maersk Line

Yusen logistics

Australia Post

QLS Group

For more information on the market research report please refer to the below link:

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Ken Research

Ankur Gupta, Head Marketing & Communications



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