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Thailand Freight and Logistics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • ID: 4514812
  • Report
  • May 2021
  • Region: Thailand
  • 120 pages
  • Mordor Intelligence

FEATURED COMPANIES

  • CEVA Logistics
  • Deutsche Bahn AG
  • DSV
  • FedEx Corporation
  • Panalpina Group
  • Yamato Transport
The Thailand Freight and Logistics market (henceforth, referred to as the market studied) was valued at USD 61.87 billion in 2020, and it is expected to reach around USD 100 billion by 2026, registering a growth rate of 6% during the period (2021-2026).

Thailand, the second-largest economy in ASEAN after Indonesia, is an upper-middle-income country with an open economy. Although the years 2019 and 2020 have been significantly affected by the COVID-19 pandemic and lockdown leading to loss of consumption and disruptions in supply chains. Small-size and low-tech firms have suffered due firstly to reduced orders and secondly to a shortage of inputs including raw materials due to the disruption of the supply chain.

The express services are likely to become more significant in the near future as Thailand’s economy becomes increasingly integrated owing to rapid growth in international trade services. Growth in the E-commerce industry will drive the express delivery market owing to the rising demand for this service for the B2C business segment.

Land transport is a major domestic freight mode of transport in Thailand. As estimated, more than 80% of the total domestic transport is carried out by road freight. The major existing truck transport operators are small and lack the latest technologies. Moreover, most of these trucks run empty (on-return trips) and if this is correctly developed, truck transport has abundant room for growth in the future.

With the evolution of Asian Economic Community (AEC), Thailand's position as a transportation hub for the Greater Mekong Sub-region (GMS) has been strengthened. This initiative has increased the country's opportunities for cross-border trades and import-export shipments. The most dominant mode of transportation is road transportation. Fierce competition is expected to occur, as professional multinational logistics companies owned by foreigners are expected to use their competitive advantage to gain significant market shares and compete with local logistics providers. To withstand the competition, domestic logistics firms have to identify the risks for their services among the neighboring countries and find avenues to manage the risks.

Key Market Trends

Growing E-commerce Propels Demand for Logistics Services

As incomes in the ASEAN countries steadily rise, demand for consumer goods is created, with an evolved e-commerce ecosystem and increased spending of people in those countries. The second-largest economy of ASEAN, Thailand has one of the region’s highest number of internet users. There are around 57 million internet users in the country that are well versed in the use of digital technologies, mobile, and e-commerce. The expanding internet user base has made Thailand an ideal growth environment for e-commerce businesses.

The continued expansion of the e-commerce business has created a demand for logistics space and has brought significant changes in the supply chain and logistics operations in Thailand. Many courier companies have launched their cost-effective and high-quality logistics services in the country and brought domestic end-to-end delivery to the market. Many other companies have established central warehouses, along with smaller drop-off and pickup points across the nation, in order to sustain the rise in demand. For small and medium enterprises (SME), this means greater convenience and a quicker process to deliver to their consumers, at a much lesser cost. Central Group, Aden, DHL Express Thailand, Kerry Express, Lazada, Pomelo, and Shopee, are some of the major e-commerce and logistics companies in the country. Additionally, the air freight handled at Thai airports is significantly increasing, owing to the on-going demand created by e-commerce.

In Thailand, strong growth in downloads of apps of traditional retailers, such as the Charoen Pokphand Group Co. Ltd. and The Central Group's Big C hypermarkets and Tops supermarkets, suggests that the services may now be growing in familiarity beyond the Bangkok metropolitan area, where they have largely focused on until the pandemic, increasing the scope for expansion of the freight and logistics service in the country.

Thailand’s Emerging Automotive Industry Provides Opportunities for Logistics

Thailand offers excellent investment potential as a leading automotive production base in the ASEAN region, a fast-developing region for the automotive manufacturing industry. Over 50 years, the country has developed from an assembler of auto parts and components into a top automotive manufacturing and export hub. With shipments bound for around 100 countries, Thailand is the 13th-largest automotive parts exporter and the sixth-largest commercial vehicle manufacturer in the world, and the largest in the ASEAN region.

The country has the presence of virtually all of the world’s leading automakers, assemblers, and component manufacturers. Automotive logistics has rapidly become one of the most important sectors in Thailand and is still continuing to grow to this day. Recognizing the importance, ANJI-NYK logistics (Thailand), a leading automotive logistics provider, offers automobile manufacturers in Thailand end-to-end automotive logistics, which focuses on delivering finished vehicles and automotive spare parts.

Although auto exports performed badly in 2019, with unit export sales falling by 7.6% to 1.1 million vehicles, and export value by 6.3% to THB1.8 billion. This was largely a result of the global economy recording its slowest growth in a decade (only +2.9%) and the impact of COVID-19 pandemic and the US-China trade war on Thai export markets, although this also presented an opportunity for Thai players to ramp up exports of certain types of vehicles and result in an overall growth in the long term.

Competitive Landscape

The logistics market landscape of Thailand is fragmented in nature, with a mix of global and local players. According to industry sources, DHL holds a significant position in the Thai logistics market, with a foothold in air and sea freight and their expertise in 3PL services. Other global players, such as CEVA, DB Schenker, Nippon Express, Expeditors, Yusen, and FedEx, have a significant presence in the market in specific segments. Additionally, Japanese logistics companies are planning to expand their services in the market, due to the rising trade and industrial activities. The Thai manufacturing industry is dominated by global players and these global players prefer global counterparts for their logistics operations. For instance, Japanese and Korean manufacturers in Thailand bring their domestic logistics partners or prefer to tie up with service providers of the same origin.

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • CEVA Logistics
  • Deutsche Bahn AG
  • DSV
  • FedEx Corporation
  • Panalpina Group
  • Yamato Transport
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS AND INSIGHTS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Technological Trends and Automation
4.4 Government Regulations and Initiatives
4.5 Value Chain/Supply Chain Analysis
4.6 Industry Attractiveness -Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Brief on Freight Rates
4.8 Insights on Eastern Economic Corridor (EEC)
4.9 Review and Commentary on Thailand’s Relation with Other ASEAN Countries (Analyst View)
4.10 Spotlight- Thailand Trade with Chinese Provinces
4.11 Impact of COVID -19 on the market

5 MARKET SEGMENTATION (Market Size by Value )
5.1 By Function
5.1.1 Freight Transport
5.1.1.1 Road
5.1.1.2 Shipping
5.1.1.3 Air
5.1.1.4 Rail
5.1.2 Freight Forwarding
5.1.3 Warehousing
5.1.4 Value-added Services and Other Services
5.2 By End User
5.2.1 Manufacturing and Automotive
5.2.2 Oil and Gas, Mining, and Quarrying
5.2.3 Agriculture, Fishing, and Forestry
5.2.4 Construction
5.2.5 Distributive Trade (Wholesale and Retail)
5.2.6 Healthcare and Pharmaceutical
5.2.7 Other End Users

6 COMPETITIVE LANDSCAPE
6.1 Overview (Market Concentration, Major Players)
6.2 Company Profiles
6.2.1 Unithai Group
6.2.2 MON Logistics Group Co. Ltd
6.2.3 Kiattana Transport Public Company Limited
6.2.4 JWD InfoLogistics Public Company Limited
6.2.5 Sub Sri Thai Public Co. Ltd
6.2.6 Scg Logistics Management Company Limited
6.2.7 Thai Beverages Logistics Company Ltd
6.2.8 Yamato Transport
6.2.9 Kerry Logistics Network Limited
6.2.10 CEVA Logistics
6.2.11 DSV
6.2.12 Deutsche Bahn AG
6.2.13 FedEx Corporation
6.2.14 Yusen Logistics Co. Ltd
6.2.15 Expeditors International
6.2.16 Nippon Express Co. Ltd
6.2.17 Kintetsu World Express Inc.
6.2.18 Panalpina Group
6.2.19 Deutsche Post DHL Group
6.2.20 CJ Logistics*

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

8 APPENDIX
8.1 GDP Distribution, by Activity
8.2 Insights on Capital Flows
8.3 Economic Statistics - Transport and Storage Sector, Contribution to Economy
8.4 External Trade Statistics - Export and Import, by Product
8.5 Insights on Key Export Destinations
8.6 Insights on Key Import Origin Countries
Note: Product cover images may vary from those shown
  • Unithai Group
  • MON Logistics Group Co. Ltd
  • Kiattana Transport Public Company Limited
  • JWD InfoLogistics Public Company Limited
  • Sub Sri Thai Public Co. Ltd
  • Scg Logistics Management Company Limited
  • Thai Beverages Logistics Company Ltd
  • Yamato Transport
  • Kerry Logistics Network Limited
  • CEVA Logistics
  • DSV
  • Deutsche Bahn AG
  • FedEx Corporation
  • Yusen Logistics Co. Ltd
  • Expeditors International
  • Nippon Express Co. Ltd
  • Kintetsu World Express Inc.
  • Panalpina Group
  • Deutsche Post DHL Group
  • CJ Logistics
Note: Product cover images may vary from those shown

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