LONDON--(EON: Enhanced Online News)--According to the latest market study released by Technavio, the third-party logistics (3PL) market in China is expected to grow at a CAGR close to 9% during the forecast period.
This research report titled ‘Third-party Logistics Market in China 2017-2021’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments and all geographical regions.
The 3PL market in China occupies a significant 21.91% of the global 3PL market. It is expected to be valued at over USD 250 billion by 2021. The transportation sector is responsible for generating the maximum revenue for this market, taking up a market share of over 49%.
One of the key drivers of this market is the improved government policies aimed at rebalancing the economic structure by facilitating a shift from an export- and investment-led growth model to a model driven by domestic consumption. To this end, it has introduced laws that provide tax reductions on land used for warehouses. The government has also plans to increase budget allocated for the development of infrastructure to enhance data analytics and service quality and logistics information in the logistics industry. Such policies will encourage more logistics players and e-commerce players to enter the market in China, thus driving the market forward.
Request a sample report: http://www.technavio.com/request-a-sample?report=55188
Technavio’s sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more.
Based on end-user, the report categorizes the 3PL market in China into the following segments:
- Manufacturing industry
- Automotive Industry
- Retail Industry
- Consumer goods industry
- Food and beverage industry
- Other industries
The top three revenue generating end-user segments in the 3PL market in China are discussed below:
“The Chinese economy is shifting its focus from manufacturing sector to services sector. This move provides an opportunity for manufacturers to shift their strategy from manufacturing to sales and marketing. Labor-intensive manufacturing industries are actively shifting to lower cost locations and produce more innovative products that are designed especially tailor-made to suit the needs and demands of the Chinese consumers,” says Abhay Sinha, one of the lead analysts at Technavio for logistics research.
Additionally, government campaigns like “Made in China 2025” focuses on marking China as a global manufacturing hub that produces technologically advanced products. To accommodate major changes in the manufacturing sector, companies need to be efficient in shifting and upgrading their logistics supply to meet the changing demands in the region. This is expected to bring in demand for 3PL services from the manufacturing sector. Vendors are focusing on equipping themselves with high-quality logistics supply to maintain a competitive position in the industry.
The automotive industry in China is flourishing, with the country maintaining the top position globally for the sales of passenger vehicles. The automakers in China managed to sell an impressive 21.1 million new passenger cars in 2015 alone. With around 130 separate passenger car brands available in the market, Chinese consumers have the option of choosing from a variety of national and international brands. Additionally, international vendors are shifting their manufacturing bases to China to save on manufacturing costs.
With so many players present in the market, there is an intensely competitive atmosphere present, which has led to intense price wars. To keep the selling price at a low point, manufacturers have started utilizing efficient and cost-effective logistics service providers for their supply chain management (SCM) demands. With production and distribution centers witnessing expansion all over the country, the demand for 3PL from the automotive industry will only increase through the forecast period.
“The changing lifestyles and increase in disposable income have led to an increased demand for retail systems across China. The retail industry is expected to reach USD 6.4 trillion by 2020, with a majority of Chinese consumers looking for value-for-money products. Since e-retail provides one of the most attractive prices, it is quickly gaining popularity in the region. Additionally, with retailers expanding out of tier-1 cities, the demand for 3PL will increase,” says Abhay.
To improve customer relationship and create a loyal customer base, e-retailers are establishing efficient logistics services from source to destination, which ensures timely and accurate delivery of goods to the customers. Thus, the demand for 3PL services will increase from the retail industry.
The top vendors highlighted by Technavio’s research analysts in this report are:
- CEVA Logistics
- China COSCO
- China Logistics
- CMA CGM
Browse Related Reports:
- Global Third-party Chemical Distribution Market 2016-2020
- Logistics Market in the APAC Region 2016-2020
- 3PL Market in Brazil 2016-2020
Become a Technavio Insights member and access all three of these reports for a fraction of their original cost. As a Technavio Insights member, you will have immediate access to new reports as they’re published in addition to all 6,000+ existing reports covering segments like packaging, tags and labels, and warehouse and storage. This subscription nets you thousands in savings, while staying connected to Technavio’s constant transforming research library, helping you make informed business decisions more efficiently.
Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
If you are interested in more information, please contact our media team at email@example.com.