Hong Kong Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2029)

The Hong Kong Freight And Logistics Market size is estimated at USD 22.37 billion in 2025, and is expected to reach USD 27.92 billion by 2030, at a CAGR of 4.53% during the forecast period (2025-2029).

Third-party logistics (3PL) providers and freight forwarders have actively sought solutions to meet the rising service demand. Many businesses aim to increase their digital capabilities, secure longer-term capacity, and transition towards omnichannel integration. Additionally, companies are intensifying their investments in the region. For instance, in April 2023, Cainiao Network Technology, the logistics arm of Alibaba Group Holding, began preparations for the first of the company's six units to go public. Cainiao was discussing an initial public offering in Hong Kong with banks. According to industry reports, some investment banks, including China International Capital Corp., had also expressed an interest in investing in Cainiao's initial public offering.

The industry is experiencing an emergence of new technologies, companies, customers, and business models. Freight companies increasingly prioritize digitization to enhance efficiency, reshaping the marketplace. The growing preference for third-party logistics across various industries is expected to drive industry growth in the near to medium term.

Hong Kong plans to establish a new transport bureau to solidify its position as a significant global hub for shipping and logistics. This anticipated government action was made public this week, coinciding with the city's removal from the top five marine towns in the world. The new bureau's challenge lies in enhancing Hong Kong's logistics, maritime, and aviation freight hub capabilities. It must ensure the city keeps pace with the latest advancements in the Guangdong-HK-Macao Greater Bay Area, RCEP, and BRI's intelligent logistics and supply chains, as well as the diversification of manufacturing bases and e-commerce booms.

Challenges such as the limited presence of an integrated IT system, fragmented warehousing, inadequate infrastructure handling capacity, and multiple regulations are impeding the growth of the freight sector in Hong Kong. However, various industries' increasing digitization and adoption of the Internet of Things drive the freight transportation market. Moreover, the freight transportation sector significantly contributes to overall employment in the country, and with growing government support, employment in the industry is forecasted to rise exponentially.

Hong Kong Freight And Logistics Market Trends

Increase In Trade Is Driving The Growth Of The Market

The Special Administrative Region of the People's Republic of China now exists in Hong Kong. The 'One Country, Two Systems' approach grants the HKSAR considerable autonomy in commerce, finance, and currency. The Basic Law guarantees the expansion of crucial components that make Hong Kong an international financial center. The Census and Statistics Department released on February 2024 the external merchandise trade statistics for January 2024. According to the report, Hong Kong's overall exports and imports of goods increased year on year by 33.6% and 21.7%, respectively, for January 2024. As a result of the difference in the timing of the Lunar New Year holidays, trade in January and February of each year is characterized by considerable volatility.

Trade is a significant growth driver for the logistics industry; for example, air transport is critical for Hong Kong's trade. The country is an important international trading hub, heavily reliant on trade. In 2023, Hong Kong saw domestic exports and re-exports totaling around HKD 4.18 trillion (USD 534 billion), while goods imported amounted to about HKD 4.64 trillion (USD 593 billion), according to the Census and Statistics Department of Hong Kong.

Mainland China is the most important market for goods transported by air, both in exports and imports. The government is investing in the logistics infrastructure due to growing trade. In 2023, Mainland China remained Hong Kong's largest export market, accounting for HKD 2,320.37 billion (USD 296 billion), according to the Census and Statistics Department of Hong Kong.

Air Freight Is Dominating The Market

Hong Kong stands tall as the regional logistics center for the Asia Pacific, boasting an extensive network linking to vital global destinations. Its connectivity, coupled with top-tier aviation and maritime infrastructure, positions it as a premier transportation hub in the region. According to the latest Fitch Solutions country risk and industry research, Hong Kong's transport network efficiency ranks second only to Singapore, scoring an impressive 95.1 out of 100.

The Transport and Housing Bureau, Hong Kong, and the Civil Aviation Administration of China have extended the current air services arrangement. This extension permits designated airlines from all GBA cities to share code with land and sea transport operators, simplifying commuting between GBA cities.

The Hong Kong International Airport is the region's second busiest cargo facility, with five air cargo handling facilities. As per industry reports, by 2024, after Hong Kong's third runway, air cargo volume capacity will expand to 8.9 million tons.

Hong Kong is poised to maintain its stature as an international airfreight gateway due to its free trade policy, robust supporting services, streamlined customs procedures, and strategic proximity to mainland China. The anticipated completion of the three-runway system at Hong Kong International Airport is expected to further bolster the region's capacity for freight movement in the coming years.

Hong Kong Freight And Logistics Industry Overview

The Hong Kong freight and logistics market is relatively fragmented, with the top five to ten players accounting for a significant market share. The logistics sector in the country is made up of both domestic and international enterprises. International companies initially struggled against local companies; however, the situation is changing. Some prominent players in the market include DHL, DB Schenker, Kerry Logistics, OOCL Logistics, and SF Express. The demand for integrated and specialized logistics solutions is rising. The logistics companies in the country are expected to adopt transport and warehouse management systems, big data, and analytics to remain competitive. Major players in the market are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to remain competitive.

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