Market Research Reports - Ken Research Australian Transport and Logistics Industry

Infrastructure Development and Growing Manufacturing Industry to Foster Future Growth of
Australia Logistics and Warehousing Market: Ken Research
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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
Australia logistics market has shown an impressive growth rate in 2016 owing to the
expanding manufacturing & retail sector, increasing disposable income, growing number
of foreign companies and increasing value of exports and imports in the country.
With the rising demand for Australia agricultural products from other countries leading
to increasing agricultural exports the demand for cold chain logistics has increased.
The Australia logistics and warehousing industry will be driven by government investment in
infrastructure development of road, rail, air and water transport facilities. Around AUD 70
billion has been allocated for transport infrastructure from 2014 to 2021. Moreover, the
government is planning to spend AUD 75 billion for funding road and rail infrastructure from
2018 to 2027. Moreover, the partnership of the Australian government with New South Wales,
Victoria, Queensland, Western Australia, South Australia, Tasmania, Northern Territory and the
Australian Capital Territory in 2014 is expected to assist the various land transport
infrastructure projects. Further the large companies are expanding their operations through
partnerships. Freight forwarding industry will continue to account for the larger share of the
revenue pie. This will be supported by the growth of 3PL service providers as global players
enter Australia market. Large companies majorly focus on value added services in order to gain
competitive advantage over other players in the market. The market has seen the power
shifting to the consumer, internet driving growth, transformation of supply chain, B2C
outgrowing B2B, new technology and home delivery. The value added services segment has
seen faster growth in the international market than domestic primarily due to growing cross
border ecommerce. With the development of artificial intelligence and growth of ecommerce
sector, the demand for warehousing is expected to develop with Auto and Ancillary and
Chemical and Pharmaceutical sectors emerge as largest demand drivers of Warehousing space.
Ken Research in its latest study, Australia Logistics and Warehousing Market by Sector (Freight
Forwarding, Warehousing, VAS), By Domestic & International Services – Outlook to 2021
suggests that DHL, FedEx, Toll Holdings, SCT Logistics, Qube holdings, Aurizon Holdings, Maersk
Line, Hapag Llyod, TNT Australia and Australia Post will remain the major logistics and
warehousing companies in this space. However, these major players will witness rising
competition from small regional players due to low entry barriers.
Australia Logistics and Warehousing Market is projected to register a positive CAGR during the
period 2016-2021. Geographical expansion, digital technology, changing consumer preferences