How Is China Logistics Market Positioned?
The China logistics and warehousing industry is at a growth stage and is increasingly being supported by modern infrastructure and integrated supply chain. The cost of industry accounts for 10-11% in China’s GDP. China logistics market has shown an impressive growth rate in past few years owing to the expanding manufacturing & retail sector, increasing disposable income, growing investments by large players and increasing value of exports and imports in the country.
Moreover, Emergence of digital freight aggregators, improving infrastructure, rising technological innovations along with increase in use of internet and rising mobile penetration have also led to this boom in the market.
Market: The logistics market has seen significant growth in the last few years, recording a CAGR of ~% during 2015-2020 primarily due to increasing infrastructure investment, e commerce and rising logistics demand in China.
China currently ranks 24th in the Logistics Performance Index Ranking by World Bank (2020).
The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by warehousing and courier & parcel activities. Value Added services also contribute a significant proportion to the overall logistics market in China.
China Logistics and Warehousing Market
By Service Mix: The logistics industry has evolved over the years in terms of integration and digitalization of supply chain which has led to better productivity and efficiency creating sustainable modes of transporting goods from one place to another. The market is segmented on the basis of service mix, geography and normal and express delivery. The freight forwarding segment is driven by changing consumer preference, rise in e-commerce and growing trade activities. Value added services contributing a significant portion, majorly dominated by Freight Forwarding Agency Services along with Stevedoring and Port Handling Activities.
China Freight Forwarding Market Segmentation
By Mode of Service: China freight forwarding market was dominated by road freight in terms of revenue as well as volume. Road and Rail Freight are majorly used for domestic transportation for Bulk & Non bulk commodities.
By End Users
Non- Agricultural Products segment dominate the Freight Forwarding Market of China with commodities and FMCG Products categories in the segmentation taking the largest revenue share.
By FTL/LTL: Majority of the Volume transported by road is done on FTL basis by Revenue with Average prices charged in case of LTL is ~% higher than FTL basis.
Cost Component analysis
Out of the total operating cost, ~ % is held by Fuel, ~% is held by salary and ~% by Toll earning ~% margin by trucking companies.
China Warehousing Market Segmentation
By Business Model: The industrial and retail warehouses dominate the overall China warehousing market basis area as well as revenue share. This is primarily due to increasing demand of Industrial parks as well as high real estate developers’ investments in logistics space. This is followed by ICD’s /CFS near the ports.
By Warehousing Space Segmentations: Out of the total warehousing space in China, ~% is held by tech enabled warehouses, ~% by organized warehouses and ~% by racked warehouses.
By Regions: The largest end users of warehousing services in China include FMCG and Commodities (such as Steel, cement, etc.) industry which provides maximum revenue. These are followed by Agriculture, Electronic, Automotive, Pharmaceutical, etc. sectors. The pharmaceutical companies generally prefer their own warehouses due to the extra precautions measures needed.
China Warehousing Future Market Size: Land supply for building large warehouses is on the decline in China. Melbourne, Sydney is running out of prime lands to build quality large warehouses. Traditionally, single storied warehouses are the norm in China. It is expected that to solve the problem of space crunch, multi storied warehouses are expected to be built across China. Technology integration is expected to improve efficiency and effectiveness in Warehouses with more companies looking to integrate various technologies into their warehouses.
Competitive Scenario in China Logistics and Warehousing Market
The Transportation and warehousing market of China is highly fragmented in nature with large number of Domestic as well as international players. Companies are focusing on providing value added services along with trucking and warehousing. Major Transportation Players in China include Sinotrans, Toll Group, DB Schenker, DHL, SF Express, Deppon Logistics, JD Logistics, CN Logistics, Yusen Logistics, among others. Major Warehouse companies include GLP, Vanke, CNLP, Maple Tree, Prologis, Li & Fung and more.
The parameters at which the companies are competing are Pricing, Location, fleet size, Warehousing space, Clientele, service portfolio, Technology and more.
China Logistics and Warehousing Future Outlook and projections
The China logistics and warehousing industry is expected to increase at a CAGR of ~% during 2020 to 2025. The revenue is expected to increase from RMB ~ trillion in 2020 to RMB ~ trillion in 2025. The freight forwarding market will continue to dominate the China logistics industry with ~% market share by 2025. 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. Rising retail and FMCG industry of the country will accelerate the demand for warehouses storage and transportation & logistics facility. Industry will move towards a digital growth with the introduction of cloud logistics, drone facilities, automation and more.
Key Segments Covered:-
By Mode of Service- Freight Forwarding Market (Revenue and Volume)
Road Freight
Sea Freight
Rail Freight
Air Freight
By Type of Load- Road Freight Forwarding Market (Revenue)
LTL
FTL
By Type of End Users – Road Freight Forwarding Market (Revenue)
Agriculture
Non- Agriculture
Commodities
FMCG Products
Electronic Equipments
Chemicals
Automotive Products
Pharmaceutical Products
By Business Model-Warehousing Market (Revenues)
Industrial Retail
Cold Storage
IFS/ICD
Grain Storage
By End User-Warehousing Market (Revenues)
FMCG Products
Commodities
Agricultural Products
Pharmaceutical and Medical Devices
Automotive Products
Electronics
Others
Companies Covered:-
(Freight Forwarding Companies)
SF Express
ZTO
Deppon Logistics
Yuancheng Group Co Ltd
Fujian Shengfeng
Leaping Express Group
Shandong Jiayi Logistics Co
Shanghai Zeyi Logistics
Aneng Logistics
Topone Logistics
Sinotrans Hi-Tech Logistics
Topwin Logistcs
Tianjin Datian Group
HOAU Logistics Co.
Yuantong Express Co. (YTO)
Shenghui Logistics Group Co.
Guangzhou Xinzhihong Logistics
Dazhong Transportation Group
Toll Global Logistics
Shandong Taian Transportation Group
Guangzhou City Star Transportation
Tianjin Lion Bridge
Beijing Xianglong Logistics Group
JD Logistics
CN Logistics
Zhejiang Xinbang Logistics Co
DB Schenker
Noatum Logistics
Best Freight
Dadi Logistics
PG Logistics
Shanghai Jiao Yun Co.
Transfar Logistics
Yusen Logistics China
(Warehousing Companies)
GLP
Vanke (VX Logistics Properties)
JD Logistics
China Logistics Property Holdings
Maple Tree Logistics
Proligis
Sinotrans
Li & Fung
SF Holdings
Kerry Logistics
COSCO SHIPPING Logistics
DB Schenker
DCH Holdings Ltd.
Changa Minsheng APLL Logistics
Bollore
(FMCG Companies)
WH Group
Pesico
Yili Group
Mengniu Group
Master Kong (Tingyi Holding Corp.)
Nestle
P&G
Coca Cola
China Resource Beer
Unilever
Nongfu Spring
Want Want China Holdings Ltd
Johnson and Johnson
Beijing Sanyuan Foods Company Limited
Mars Group
Nestle Waters
Key Target Audience:-
Industry Associations and Consulting Companies
Third Party Logistic Providers
Potential Market Entrants
Freight Forwarding and Warehousing Companies
Time Period Captured in the Report:-
Historical Period: 2015-2020
Forecast Period: 2020-2025
Key Topics Covered in the Report:-
Comprehensive analysis of China Logistics Market and its segments.
Listed major players and their positioning in the market.
Identified major industry developments in last few years and assessed the future growth of the industry.
For More Information On the research report, refer to below link:-
China Logistics and Warehousing Market
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Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
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