The report titled “Indonesia Logistics and Warehousing Market by Sector (Freight Forwarding, Warehousing, VAS), by Domestic and International Services – Outlook to 2021” which provides a comprehensive analysis of the Logistics market in Indonesia. The reports covers overall size and future outlook of Indonesia logistics, freight forwarding, warehousing, cold chain, 3PL, and express market in terms of value, segmentation on the basis of service mix, by geography and by type of industries. The report also covers value chain analysis for logistics market, comparative analysis of Indonesia logistics market with few APAC countries and global logistics market. The report also covers the competitive landscape of the industry and comprehensive profile of leading and emerging players operating in the market.
Indonesia Logistics Market Introduction
Indonesia Logistics Market has a combination of shipping and international freight forwarders along with courier providers mainly engaged in land transportation and total logistics services providers that operate a multimodal transport model. Players are turning into 3PL and adopting new technology to enhance their market share. Presently, there are more than ~ logistics and warehouse service provider in Indonesia.
Indonesia Logistics Market Size
Indonesia logistics industry has shown a tremendous growth in past five years recording a CAGR of ~%. The market grew from USD ~ billion in 2011 to USD ~ billion in 2016. It was observed that ~% of the country’s GDP is spent on logistics. Freight forwarding segment has dominated the Logistics industry in Indonesia and has grown at a five year CAGR of ~% during the period 2011-2016. Value Added service has shown an incline of ~% during 2011-2016.
Freight Forwarding Market
Freight forwarding market has witnessed a tremendous growth in past five years growing at a CAGR of ~% during 2011-2016. The market increased from USD ~ billion in 2011 to USD ~ billion in 2013.
Indonesia freight forwarding market was majorly dominated by road freight in terms of revenues and is growing at a CAGR of ~% during 2011-2016. Road freight has the highest share owing to the high number of deliveries that take place through roads. Air freight had the second largest share in the country in the freight forwarding market and is growing at a CAGR of ~% during 2011-2016. Sea freight grew at a five year CAGR of ~% during 2011-2016 and rail freight grew at ~% during same period.
International freight forwarding has majorly contributed to the revenues of overall freight forwarding industry and added the share of ~% in the revenues. In terms of revenue, domestic freight forwarding has contributed ~% share to the Indonesia Freight Forwarding Market. Asian Countries flow corridor is the largest contributor in terms of revenue in the international freight forwarding market owing to free trade agreement and accounted to share of ~%.
The leading players in the industry are DHL, CEVA Logistics, Yusen Logistics, Agility Logistics and others. The freight forwarding market is forecasted to dominate the Indonesia logistics market in future and will grow at a five year CAGR of ~% during 2016-2021.
Express Delivery Market
The express delivery logistics has witnessed a tremendous growth in past few years growing at a CAGR of ~% during 2011-2016 in Indonesia. The market increased from USD ~ billion in 2011 to USD ~ billion in 2016 due to rising prominence of online shopping, increase in international cross border trade, shopping online for perishable items and elevated e-commerce industry.
Air express logistics has dominated the Indonesia express logistics with revenue market share of ~% during 2016 owing to major international shipments falling in this category. Ground Express witnessed lower revenue market share accounting to ~% in 2016. The major players of Express logistics in Indonesia include DHL, FEDEX, First Logistics and JNE Express. Express Delivery market in Indonesia is expected to increase at a CAGR of ~% during 2016-2021.
Third Party Logistics Market
Third party logistics segment has witnessed a robust growth in past few years in Indonesia. The market is growing at a CAGR of ~% during 2011-2016. The revenues have increased from USD ~ billion in 2011 to USD ~ billion in 2016 due to 3PL outsourcing gaining importance in the country. The leading companies in the segment are CEVA Logistics, Combi Logistics, Mitsui, APL Logistics, Kerry Logistics and others. 3PL market in Indonesia is expected to increase at a five year CAGR of ~% during the period 2016-2021 owing to the increasing focus of manufacturers on their core businesses and sub-contracting the activities where they have less expertise.
The warehousing market in Indonesia grew at a five year CAGR of ~% growing from USD ~ billion in 2011 to USD ~ billion in 2016 due to expansion in the FMCG sector, increase in the imported goods, increased demand for the outsourcing of warehouse services, rising e-commerce industry, Indonesian regulations relaxed for the foreign companies and increase in the warehouses and its capacity.
Industrial/Retail sector is the largest contributor to the warehousing sector in terms of revenues in 2016 with ~% of share. Container freight and inland container deport warehousing has contributed second highest share accounting to ~% in Indonesia warehousing market in 2016. The cold storage market contributed least revenue share accounting to ~% in the warehousing market of Indonesia. Jakarta contributed highest revenue share of ~% in Indonesia warehousing market in 2016 owing to the industrial parks situated in the largest city Jakarta. Surabaya accounted for ~% revenue share in the warehousing market. Bali accounted for ~% revenue share in the warehousing market. Others include Medan, Bandung, Kai, Buton and others.
The leading companies in the segment are Keppel Logistics, Oocl logistics, Samudera and others. The warehousing market in Indonesia is expected rise at a CAGR of ~% during 2016 to 2021.
Cold Chain Market
The Indonesia cold chain market grew at a five year CAGR of ~% from USD ~ billion in 2011 to USD ~ billion in 2016 due to the increasing contribution from the e-commerce industry with rising population opting for online grocery and food delivery, increase in the pharmaceutical industry, elevated agricultural market with rising population for consumption, increased demand of frozen foods and beverages, rise in the franchises in the country and the increased smart phone users and internet penetration.
Cold chain market in Indonesia is a concentrated market. PT. Diamond Cold Storage, Maersk Line, Wahana and GAC are the leading companies in the industry.
Indonesia cold chain industry is expected to grow at a five year CAGR of ~% during 2016-2021 owing to the nascence and emerging demand. The market will be majorly driven by increasing demand for perishable items including frozen food, pharmaceutical, meat, sea food and dairy products in the country.
Future Aspects of Indonesia Logistics Market
Indonesia logistics market is expected to increase at a CAGR of ~% during 2016-2021 owing to the country’s plans to turn in a logistics hub. The imports of the country is expected to incline from USD ~ billion in 2016 to USD ~ billion in 2021 whereas the exports are anticipated to increase from USD ~ billion in 2016 to USD ~ billion in 2021. The rising demand of the products online due to e-commerce market is also anticipated to raise the logistics market as with high demand of products, the shipping will increase. New players are expected to enter the market and the existing players are expected to expand their market by increasing their offices owing to the increase in industrial activities in the country. Additionally, the rise of demand of perishable products and fast delivery will raise both express logistics and cold chain market leading to increase in Indonesia logistics and warehouse market.
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Ankur Gupta, Head Marketing & Communications