Market Research Reports - Ken Research 3PL Companies in Indonesia, Damco Market Share | Page 2

infrastructure, increase in number of freight forwarders, increasing industrial activities, growing
FMCG market and rising e-commerce industry.
Road freight has the highest share owing to the high number of deliveries that take place
through roads. Moreover, the deliveries that are done by air, sea or rail are further transferred
to the destination by road transport from port or station. Air freight had the second largest
share in the country freight forwarding market growing at a CAGR of ~% during 2011-2016.
What is the Role of Warehousing Market in Indonesia?
The warehousing industry in the country has observed a tremendous growth in terms of
revenues as well as the volume handled by these warehouses in past few years owing to the
growth in three economic sectors including FMCG and e-commerce. The expansion in the FMCG
sector has been a major factor for the increase in the retail market growth leading to a positive
impact on the Indonesia warehouse market by the rising demand from this sector. The
warehousing market in Indonesia grew at a five year CAGR of 6.1% growing from USD 24.6
billion in 2011 to USD 33.0 billion in 2016. Modern technologies which have influenced the
Indonesia warehouse market include Automatic store and retrieval System, Warehouse
Management System, Cross Docking, Vendor Managed inventory and Efficient Consumer
Response. In case of renting a warehouse, land prices cause an issue. For example, rents in
Greater Jakarta account to USD 6.0 – USD 7.0 per square meter. The country is experiencing a
major rise in warehousing service demand and the major companies operating in the space
include Keppel Logistics, OOCL Logistics and Samudera. Industrial/Retail sector has contributed
majorly in the revenues of warehousing industry with the share of ~ % in 2016 followed by
container freight and cold storage.
What is the Role of Express Delivery market in Indonesia logistics industry?
In the starting, the logistics market had freight system for delivering the products. With the
growing industrialization and busy lifestyles of people, the customers felt a requirement of
faster delivery. This gave the logistics industry an opportunity to launch a new service vertical
named express logistics which was a faster way of delivery compared to the normal delivery.
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
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