Infrastructure development and rise in foreign companies opening up their manufacturing and regional logistics hub have aided the demand for logistics and warehousing services in Australia.
The report titled “Australia Logistics and Warehousing Market by Sector (Freight Forwarding, Warehousing, VAS), By Domestic & International Services – Outlook to 2021” by Ken Research suggested a robust CAGR of 3.1% in revenue of the Australia Logistics and Warehousing market by 2021 with changing customer preferences and infrastructure investment driving the revenues of this market in the future.
The Australia Logistics and Warehousing market has seen an increase in use of technology and modern methods of integration of the logistics supply chain to increase productivity and efficiency leading to improved customer satisfaction. Some modern technologies used include GPS tracking, Warehousing management Systems, transportation Management Systems and many others. Further the use of robots in warehouses has led to reduction of warehousing and labour cost. The market was characterized by changing consumer preferences as consumers were willing to pay more for faster services with increased focus on quality of products. Modern consumers demand instant delivery of products and services along with visibility into order status, tracking and delivery. Such factors have pushed the logistics industry to invest in new technology.
Online shopping is a major growth driver of freight forwarding market. With increasing internet penetration and use of smartphones, ecommerce industry has seen significant growth during the last five years. Further, the express logistics market has seen increase in demand as the e-commerce companies have increased the consumer expectations by offering faster delivery, door to door services and order tracking facilities. Freight forwarding has accounted for the largest share in Australia logistics market in 2016 driven by changing consumer preference, rise in e-commerce and growing trade activities. Logistics industry has seen major growth in B2B and B2C services in domestic and international markets as the desire for same-day or instant delivery increased. Various e-commerce companies have launched models for faster delivery of products.
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. 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 expanding e-tail companies in the country have also triggered the growth of the warehousing industry in the country. 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.
Key Topics Covered in the Report:
3PL Market Australia
Logistics News Australia
Courier Market Australia
Sea Freight Market Australia
Australia Logistics Sector
Australian Logistics Industry
Freight Movement Market Australia
Number of Cold Storages in Australia
Air Express Delivery Australia
Cold Storage Industry Australia
Cold Storage Warehousing in Australia
Australian Transport and Logistics Industry
Parcel Market Australia
For more information on the market research report please refer to the below link:
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Ankur Gupta, Head Marketing & Communications