Australia Logistics and Warehousing Market Size and Forecast (2018-2028)

Australia Logistics and Warehousing Market Size and Forecast (2018-2028)

Executive Summary

In the year 2022, the freight and logistics sector in Australia achieved remarkable double-digit growth, which can be attributed to the strategic geographical location of the country and its active engagement in international trade activities. This growth trend was significant, reflecting the intrinsic connection between Australia's trade dynamics and the performance of its freight and logistics industry.

Australia's freight and logistics market experienced substantial expansion owing to the country's strategic geographic position and its robust international trade relations. With a heavy reliance on international trade, particularly with major partners such as China, the United States, Japan, and other Asian nations, Australia's freight and logistics sector is intricately tied to global trade patterns and the demand for its exports.

Over the past five years, Australia's freight and logistics market has witnessed periods of growth, decline, and recovery. Notably, the year 2022 marked a substantial rebound from the challenges faced in 2020 and 2021. The robust growth observed in 2022 serves as a testament to the industry's resilience and its ability to overcome adversities.

E-commerce Surge and Technological Integration Reshape the Industry

The burgeoning e-commerce landscape has left a profound impact on Australia's logistics industry, driving the demand for more efficient last-mile delivery services. To meet this demand, the sector has embraced advanced technologies like automation, the Internet of Things (IoT), and data analytics. The strategic integration of these technologies has played a pivotal role in optimizing supply chains and overall operational performance.

Dominance of Freight Forwarding Segment

Australia freight and logistics market is divided into four major modes of transportation: Road freight, Rail freight, Marine freight and Air Freight. Rail transportation is the dominant mode for domestic freight movement in Australia, accounting for over half of the market share. Road transport, though not as significant as rail, still holds a substantial portion of the market share. This is likely due to its flexibility, adaptability to various types of goods, and ability to provide direct deliveries to smaller and remote areas.

Road Transport: With a volume of 230.11 units, road transport plays a key role in the last-mile delivery and the movement of goods within urban areas and regions where road infrastructure is well-developed. It is crucial for connecting distribution centers, warehouses, and retail locations.

Marine Transport: While marine transport had a relatively smaller volume of 103.5 units, it still plays a role in connecting coastal areas and utilizing waterways for freight movement, particularly for larger quantities of goods or where overland transportation may not be as efficient.

Australia Post's Leading Position in B2C Parcel Delivery

Australia Post enjoys a dominant position in Business-to-Consumer (B2C) parcel deliveries within the country. This supremacy is primarily due to the extensive coverage it provides, even reaching remote corners of the nation. While competition in major cities intensifies, Australia Post maintains its unchallenged authority in less populous areas. The year 2021 witnessed a substantial surge in parcel deliveries, aligned with the remarkable expansion of the e-commerce market.

Dynamic Evolution of Australia's Third-party Logistics (3PL) Market

Australia's 3PL market, a dynamic and evolving sector, assumes a pivotal role in the nation's supply chain and logistics framework. With businesses increasingly recognizing the advantages of outsourcing non-core functions, the 3PL market in Australia has gained notable traction. This market extends beyond traditional logistics, encompassing services like warehousing, transportation, inventory management, and value-added offerings.

Notable Transformation in Australia's Warehousing and Cold Storage Sector

The General Warehousing and Cold Storage sector has demonstrated noteworthy expansion. Participants within the industry provide indispensable solutions in warehousing and cold storage to a diverse array of downstream markets, many of which have experienced favorable shifts in demand dynamics during this duration. The landscape of warehousing facilities has undergone a transformative progression, evolving into intricate hubs for distribution and information that intricately interconnect the entire supply chain of a product. This evolution facilitates seamless just-in-time stock replenishment. The burgeoning popularity of online retailing has proven immensely advantageous for players in the industry. The rise in the popularity of online shopping can be attributed to its convenience, accessibility, and transparent pricing, all of which resonate with consumers.

Scope of the Study

The study conducted by Makreo Research on the “Australia Logistics and Warehousing Market Size and Forecast (2018-2028) – Segmentation by Mode of Transportation, Freight Forwarding, Postal & courier, Warehousing, VAS & 3PL provides a comprehensive analysis of the market, encompassing a wide range of factors. The report takes into account both qualitative and quantitative factors, indicating a well-rounded approach to analysis. The inclusion of both qualitative and quantitative factors in the study ensures that readers gain a more complete understanding of the Australia Logistics and Warehousing Market. It goes beyond mere numbers and incorporates insights into consumer behavior, industry trends, and market dynamics. This holistic approach enhances the overall analysis and makes the study a valuable resource for individuals or organizations interested in exploring the logistics, warehousing, 3PL, cold chain, parcel service market in Australia. Moreover, the report's focus on past and present performance, as well as potential growth opportunities in the future, enables readers to identify key areas of interest and investment.

Period of Study:

2018-2022 : Past and Present Scenario

2022: Base Year

2023-2028 : Future Outlook of the industry

Segmentation Covered:

By Type of Services

Freight Forwarding

Warehousing & Cold Chain

Parcel Services

3PL

Warehousing Market

General Warehouses

Cold Storage

Cold Chain

Freight Forwarding

By Mode of Transportation

By Air

By Road

By Sea

By Rail

Companies Covered

DHL Group

Linfox

FedEx Corporation

DB Schenkar

Aramex

Ceva Logistics

United Parcel Service

Toll Group

Brambles