China Logistics Market COVID-19 Impact and Future Outlook to 2026

China Logistics Market COVID-19 Impact and Future Outlook to 2026

Executive Summary 

China logistics market is enjoying strong growth momentum from last one decade. As the global economy grows, the Global Freight and Logistics market will continue to play a vital cross-functional responsibility in facilitating the smooth transportation of goods between industries/geographies during the production process and the delivery of finished goods to the consumers. Currently, the logistics market in China is the largest in terms of market size not only in the Asia-Pacific region, but also globally, and it is expected to grow further.

China is one of the few countries in the world with positive GDP growth of 2.3% in 2020, bouncing back from a historic contraction in the first months of the year following the virus outbreak. China's ability to expand even as the world struggled to control a deadly virus that has killed over two million people highlights the country's achievement in largely attempting to control the coronavirus within its boundaries and solidifies its position as Asia's dominant economy. 

Growing Infrastructure: Ever since 1990s, China has made significant investments in transportation infrastructure, resulting in remarkable improvements in connectivity both within China and between China and other countries. Such large-scale investments have been made possible by a variety of financing mechanisms from the federal government, local governments, and the private sector. It is widely acknowledged that China has a lower labour cost and a better infrastructure than most other developing countries in today's global economy. The availability of all of these services makes it the preferred manufacturing location for many businesses. However, it is unknown that China is also on the verge of becoming the world's largest manufacturing market and also supporting freight and logistics market growth.

According to the Chinese government, by 2035, China will become a transportation hub that will leap to the front ranks of the world, while a strong infrastructure accumulation will power economic growth in the post-pandemic era and help close the urban-rural divide.

Growing Investment in Technology: According to China freight and logistics market report published by Makreo Research, China's major logistics users are constantly working on enhancing IT and investing in technology in order to retain customers in the nation's highly competitive environment. Logistics Infrastructure Development in China is in line to integrate big data, open data, and digital technologies. Technologies such as 3D Printing, Autonomous Vehicles, Artificial Intelligence, Alternative Fuel Vehicles, Drones and more adoption levels are anticipated to grow at a higher rate in the country.

Expanding Express Logistics Market: China's postal and express delivery industry has grown rapidly in the last eight years, owing to the country's push to improve its logistics system and boost consumption. The outbreak of the Covid-19 has highlighted critical role of China Logistics Industry in delivering medical supplies and necessities. There is rapid logistics infrastructure developments has been witnessed in China that will further support express logistics market. 

Third-party Logistics (3PL) market is being boosted by the country's booming e-commerce industry: Increased overseas shopping is a major trend in the Chinese market. Because of increased internet penetration, China's preference for overseas shopping is growing. In China, both the number of online shoppers and the total amount of online shopping are expanding rapidly. According to China freight and logistics market report, China's third-party logistics market has increased to USD ~ billion in 2020, with a compound annual growth rate of 9.13% between 2016-2020, owing to strong domestic Consumption. This has accelerated the development of logistics warehouses.

Scope of the Study

The following synopsis is based on the China logistics market report published by Makreo Research titled China Logistics Market- COVID-19 Impact and Outlook to 2027 and Consulting. The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography. The report on China logistics market help to assess the China Logistics Future Revenue. The report discusses China Logistics Market COVID-19 Impact in detail. 

The report helps reader to gain information on following areas:

•  What is the present scenario of China logistics industry and what impact COVID-19 has left over the industry performance?
•  What all factors are contributing in the Chinese Logistics Industry growth and what restraints are impacting industry performance?
•  How the Chinese Logistics Industry is segmented and which segment has a dominant role to play?
•  How different modes of transportation are performing in China logistics market also what developments are happening in China Logistics Industry Infrastructure?
•  Which segment offers high growth prospects and what are the key forces?
•  How industry reacted to COVID-19 and what impact will it leave over industry future performance?
•  Who are the leading players in Chinese logistics market and what is their present state of financials and business development?
•  To evaluate economic environment of the country and major macro-economic factors accounting for shift in the market performance.