ASEAN Freight and Logistics Market 2025–2034

Reports Description

ASEAN Freight and Logistics Market size was valued at USD 258.9 Billion in 2025 and is expected to reach USD 476.6 Billion by 2034, at a CAGR of 6.28% during the forecast period 2025 – 2034.

Freight logistics is a multi- faceted, complex and dynamic industry. The freight and logistics industry involves various processes of transporting goods and services such as planning, management, execution, warehousing, transportation, consulting, packaging and legal services.  Freight and Logistics industry is rapidly evolving in the ASEAN countries due to growing trade and commerce activities.

The Association of Southeast Asian Nations (ASEAN) is a regional Southeast Asian organisation that aims to promote the regional and security grouping among the ten South East Asia countries such as Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The below mentioned factors are boosting the trade and commerce in the ASEAN region.

ASEAN Freight and Logistics Market: Growth Factors

Supportive Government Policies and Economic Growth:

The rapidly expanding end use industries such as Manufacturing, Automotive, Semiconductor, Electronics and Construction are mainly boosting the Economic growth of the ASEAN countries. For instance, From 2018 to 2023 the ASEAN’s economy grew at an annual rate of 5.8% and is expected to grow exponentially during the next decade.

Furthermore, ASEAN countries are implementing various supportive government policies to boost trade and commerce activities and increase the import and export of various commodities and services.  For instance, many ASEAN countries such as Vietnam, Indonesia and the Philippines have implemented various structural transformation policies for the freight and logistics sector that have improved their trade performance and economic resilience.

For instance, recently Philippines government’s infrastructure initiatives such as the “Build, Build, Build” program are expected to drive the market for freight and logistics market during the forecast period. Thus, such factors are boosting the overall economic growth of the region, thereby driving the freight and logistics industry.

Growing Trade Activities in ASEAN

Trade activities in the ASEAN countries are increasing exponentially due to globalization and increasing regional partnerships. ASEAN is a major exporter of various agricultural commodities such as rubber, coffee, palm oil, coconut oil and cereals.

Furthermore, various supportive policies such as the relief in trade tariffs, tax concessions and various free trade agreements are boosting the trade activities between ASEAN countries and other countries. For instance, the ASEAN Free Trade Area (AFTA) is mainly implemented to support the local and domestic trade and manufacturing sectors in the ASEAN countries to enhance economic integration with regional and international partners.

The ASEAN countries are increasingly making trade integration with China to boost exports and imports and enhance bilateral trade.

ASEAN countries are major hubs for many manufactured goods and commodities such as electronic products, semiconductors and electric raw materials. For instance, in 2022, the ASEAN country’s exports stood at USD 1.98 trillion and imports stood at USD 1.86 trillion. Such trade and export of these commodities and products increasing exponentially, which in turn drives the demand for the freight and logistics sector.

Rising focus on supply chain optimization and cost efficiency

The various end use industries in the ASEAN countries and trade partners of the ASEAN are emphasizing supply chain optimization and improving their bottom line and maximize profits.  The end use industries are constantly and increasingly investing in the various freight and logistics services such as inventory management, packaging and warehousing and transportation activities to track the supply chain visibility of their business.

In today’s complex and dynamic market conditions supply chain management and visibility are extremely important to achieve substantial benefits, including reduced costs, improved inventory management, and enhanced customer satisfaction. Thus, growing emphasis by the end use industries on supply chain optimization is expected to drive the demand for freight and logistics services during the forecast period.

ASEAN Freight and Logistics Market: Restraints

High Initial Investment Requirements

The freight and logistics business requires well equipped infrastructure and machinery. The cost of such infrastructure and machinery is very high and increasing exponentially due to the increasing inflation and increasing wages. Furthermore, the growing stringent regulations on the emission of carbon and increasing focus on sustainable transportation create hurdles for market growth.

Every ASEAN and country involved in trade activities has its own set of rules and regulations about freight transport and trade tariffs. The key players operating in the market are finding it very difficult to comply with such country wide regulations, which in turn increases overall operation cost, thereby increasing the services cost. Thus, such factors are decreasing the investment in the market and restraining the market growth.

Growing Trade Wars and Geo- Political Conflicts

The growing trade wars and geo- political conflicts are also creating hurdles for the freight and logistics market growth. For instance, the recent war between Israel and Hamas created significant risks and threats to various maritime checkpoints and passes.

The war between Russia and Ukraine impacted the serval manufacturing a services industries across the ASEAN countries and impacted the trade activities between the ASEAN and European countries, which in turn hampered the market growth. Thus, such factors are restraining the overall market expansion during the forecast period.

ASEAN Freight and Logistics Market: Opportunities

Integration of Emerging Technologies

The key players operating in the market and the port authorities are heavily investing in the integration of various emerging technologies in the freight logistics and transport. Various emerging technologies such as Artificial intelligence, blockchain, internet of things, global positioning systems tracking (GPS), transportation management systems, warehouse management systems, automation and freight ERP software.

These technologies are playing key roles in the transformation of the shipping and freight logistics sector. Internet of Things and machine learning integrated containers and ships provide real-time data on locations, external conditions and environmental conditions.

This data helps the freight and logistics companies to strategize their next moves and it also helps with route optimization, compliance, and asset utilization. Blockchain technology is used for inventory management and to improve transparency and visibility and manage the documentation and track the assets.

The growing E-commerce trade and cross border trade are boosting the implementation of advanced and software driven ERP systems in the freight and logistics sector, thereby creating opportunities for the market during the forecast period.

The key players and end users are increasingly investing in the Freight ERP software to manage the transport and logistics businesses manage operations, improve customer satisfaction, and increase profitability.  Thus, the aforementioned factors are expected to create lucrative opportunities for the market during the forecast period.

ASEAN Freight and Logistics Market: Segment AnalysisThe 

ASEAN Freight and Logistics market is segmented by shipping type, by service type, by end use industry and by country. By shipping type, the market is further sub-segmented into airways, railways, roadways and waterways. Among all of these, the Waterways segment dominated the global market and is expected to keep its dominance during the forecast period owing to the growing adoption of waterways transport by the end use industries.

Various factors such as availability of large coastline, increasing investment in the port infrastructure, growing trade agreements between ASEAN and other countries for water transports and increasing demand for affordable cargo transportation are some of the factors expected to drive the demand for waterways freight and logistics market during the forecast period.

Airways segment is expected to grow at substantial growth rates during the forecast period owing to the growing usage of air transport facilities by the end use industries as it is the fastest way of transportation.

By service, the ASEAN freight and logistics market is segmented into inventory management, packaging, warehousing, transportation, distribution and customs clearance. Among all these warehousing segments held the highest market share and are expected to keep their dominance during the forecast period.

Warehousing is one of the most essential and critical components of supply chain management. Warehousing ensures that inventory is managed efficiently and is readily available to meet demand.

Various factors such as growing e-commerce penetration, increasing trade activities between ASEAN and other leading economic superpowers, flourishing agricultural commodities sector in the region and increasing investment in warehousing technologies are some of the factors driving the market growth of this segment.

By end use industry, the trade and transportation segment dominated the ASEAN freight and logistics market and is expected to keep its dominance during the forecast period owing to growing investment in these sectors and increasing international and regional trade activities in the region.

The trade and transportation end use industries are rapidly expanding in the ASEAN countries due to increasing investment in the infrastructure and port development in the region. The flourishing trade and transportation industries in the region coupled with the growing presence of global companies in the region are some of the factors mainly driving the market growth of this segment.

The manufacturing and construction segment is expected to grow at the fastest CAGR during the forecast period owing to the growing trade of various manufacturing and construction equipment and commodities. Furthermore, growing supportive policies for the manufacturing industry and the presence of well-established semiconductor manufacturing facilities are fuelling the market growth of this segment during the forecast period.

Report Scope

ASEAN Freight and Logistics Market: Regional Analysis

By country, the ASEAN freight and logistic market is segmented into Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippines, Singapore, Thailand and Vietnam. Among all these countries, Indonesia country held the highest market share in 2023 and is expected to keep its dominance during the forecast period.

Various factors such as rapid economic growth, growing investment in the freight and logistics sector by global companies, increasing investment in infrastructure development, rapidly expanding end use industries and burgeoning end use industries are mainly driving the market growth of this region.

For instance, Indonesia has more than 17,000 islands and is the world’s largest archipelago, these islands are fuelling the maritime freight & international freight transportation in Indonesia, thereby boosting the market growth of this region.

Furthermore, the Indonesian government recently invested more than USD 400 Mn to build a more resilient logistics network. The Indonesian E-commerce industry is expected to grow by more than 18% in the next couple of years. Thus, the aforementioned factors are expected to create lucrative opportunities for the Indonesia fright and logistics industry during the forecast period.

ASEAN Freight and Logistics Market: Recent Developments

• In October 2024, the LOGISTEED, Ltd. completed the acquisition of a 45.9% stake in Alps Logistics Co., Ltd. Through this acquisition Alps Logistics and logistics ltd are collaborating on various fronts to enhance their business operations and market presence.

• In October 2024, Kerry Logistics Network Limited and a syndicate solely led by MUFG Bank Ltd. signed a five-year Sustainability-linked & Social Term Loan Facility (‘Facility’). This Facility is a first-of-its-kind ESG-linked syndicated loan structure in the Asia Pacific, validating KLN’s pioneer position in the logistics sector and commitment to Environment, Social, and Governance (‘ESG’).

List of the prominent players in the ASEAN Freight and Logistics Market:

• Alps Logistics
• DB Schenker
• DHL Group
• DP World
• DSV A/S
• FedEx
• JWD InfoLogistics Public Company Limited
• Kuehne + Nagel
• NYK Line
• Tiong Nam Logistics Holdings BhD
• United Parcel Service of America Inc. (UPS)
• YCH Group
• Ceva Logistics
• Sino Trans
• Nippon Express
• Yusen Logistics
• Kerry Logistics
• Others

The ASEAN Freight and Logistics Market is segmented as follows:

By Shipping Type

• Airways
• Railways
• Roadways
• Waterways

By Service

• Inventory Management
• Packaging
• Warehousing
• Transportation
• Distribution
• Customs Clearance
• Other

By End-Use Industry

• Energy & Utilities
• Trade and Transportation
• Government and Public Utilities
• Healthcare
• Manufacturing & Construction
• Retail
• Media and Entertainment
• Banking and Financial Service
• Telecommunication & Information Technology
• Others