ASEAN e-commerce market is growing at a considerable CAGR of 20.6% during the forecast period (2021-2027). The major factors that are contributing to the growth of the market include the increasing number of e-commerce companies, growth in e-commerce sales, and technological advancements across the ASEAN economies. Moreover, the high discounts offered by e-commerce companies and the availability of new products have increased the interest among people toward online shopping. The significant growth in mobile internet penetration has also played an important role in the growth of the market. The advancement in technology can be implemented to improve control of shipping movement and logistics that includes drones and optimization of vehicle routing and efficiency, such as platooning of trucks. Moreover, The free trade agreement between the ASEAN countries enables the smooth flow of goods from one country to another. It allows the logistics companies to expand rapidly. The e-commerce logistics market players in ASEAN countries are expected to gain momentum due to growing revenues and expansion in the untapped ASEAN region. However, inconsistency in the ease and speed of customs clearance, poor GPS coverage, lack of quality standard, and poor connectivity of railways and roadways has affected the reach and coverage of the logistics company are some of the restraints that can challenge the growth of the market during the forecast period. 

For instance, In February 2021, Rakuten Payment, Inc., and crypto asset (virtual currency) exchange business operator Rakuten Wallet, Inc. The Rakuten Group started Bitcoin and Other Crypto Currencies used to charge e-money for its e-commerce business. The users will be able to safekeeping their Rakuten Cash balance, and online e-currency provided by the Rakuten Group, with Bitcoin. By doing so, the user will be able to use crypto assets to shop at Rakuten Pay and Rakuten Point Card-affiliated businesses across Japan. In January 2018, DHL and the Panama Ministry of Commerce and Industry jointly launched a Global Center of Excellence (GCOE) that aims to fulfill the central objectives of the “National Logistics Strategy of Panama by 2030”. Such strategy goals set by the country and the company’s partnership further increase the market share. GCOE was launched to increase international investment in Panama in the areas of logistics and transport.

Impact of COVID-19 on the ASEAN e-commerce logistics Market

ASEAN e-commerce logistics market is hardly hit by the outbreak of COVID-19 since December 2019. The outbreak of COVID-19 in the ASEAN countries has disrupted the manufacturing and supply of raw materials across the globe which resulted in a low supply of the products in the ASEAN region. This was mainly due to the lockdowns imposed by the governments of several countries which affected the transportation of the materials whether international or local. Moreover, flight cancellations, travel bans, and the closure of manufacturing activities affected the e-commerce logistics market. 

Segmental Outlook 

The market is segmented based on services, products, and location. Based on the services segment, the market is segmented into transportation services, warehousing services, and other e-commerce logistics services. Based on the product segment, the market is segmented into baby products, personal care products, books, home furnishing products, apparel products, electronics products, automotive products, and others. Further, based on the location segment, the market is segmented into urban, semi-urban and rural.

ASEAN e-commerce logistics Market by Service, 2020 (%)

The transportation Services segment projected to have the largest share in the ASEAN e-commerce logistics market

Among Services segment, the transportation services segment estimated to hold the largest shares in the ASEAN e-commerce logistics market 2020, based on services. The transportation services by the logistics companies include shipping containers, aircraft supply, railcars and engines, unit load devices, and transportation through roads. These types of services are comparatively low-priced as compared to other kinds of services, and the customers can also keep records of their shipment details. 

Regional Outlooks

ASEAN e-commerce market is analyzed based on the geographical regions that are contributing significantly towards the growth of the market. Based on the geography, the market is segmented into Indonesia, Thailand, Malaysia, Singapore, and the rest of ASEAN. Indonesia has the largest market share in the e-commerce logistics market among all the ASEAN countries due to an increase in disposable income, increase in online shopping, and large customer base. According to Central Intelligence Agency (CIA), Indonesia has the largest market in SIA owning an increasing middle-class population of around 135 million by 2020, among this 70% of the population is under the age of 40, these are some factors that boost the market growth. Moreover, as per The Organisation for Economic Co-operation and Development (OECD), Over the last few years, Indonesia has improved its overall logistics performance, and in 2018 it ranked 46 out of 160 countries in the World Bank’s Logistics Performance Index (LPI).

ASEAN e-commerce logistics Market, by Region 2021-2027

Market Player Outlook

Key players of the ASEAN e-commerce logistics market include United Parcel Service, Inc., FedEx Corp., LBC EXPRESS HOLDINGS INC., LAZADA GROUP, Rakuten Group. To sustain a strong position in the market, these players adopt different marketing strategies such as a merger, acquisitions, product launch, and geographical expansion so on. For instance, in December 2020, FedEx announced to acquire ShopRunner to expand its portfolio in e-commerce and is expected to increased value for brands, merchants, and consumers. 

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the ASEAN e-commerce logistics market Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where in the market.