Japan Third-Party Logistics (3PL) Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 50.11 Billion |
| Market Size (2029) | USD 59.53 Billion |
| CAGR (2024 - 2029) | 2.16 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Japan Third-Party Logistics (3PL) Market Analysis
The Japan Third-Party Logistics Market size is estimated at USD 50.11 billion in 2024, and is expected to reach USD 59.53 billion by 2029, growing at a CAGR of 2.16% during the forecast period (2024-2029).
- The COVID-19 epidemic had a direct effect on logistics companies, which move, store, and move goods.Logistics companies help businesses do business and get their products to customers. They became an important part of value chains both inside and outside of national borders. Hence, supply chain interruptions brought on by the pandemic could affect the sector's competitiveness, economic expansion, and job creation.
- Japan has made a lot of progress in the supply chain space over time. For example, it has embraced digital technologies to change a traditional industry. In the last few years, the social and economic factors that affect logistics have changed a lot. These factors include a shrinking or aging population, new ideas in some areas, more frequent deliveries of smaller goods, and different customer needs. In Japan, there is more demand for 3PL as large companies look at how their logistics networks work and outsource more tasks to 3PL providers to cut costs and improve efficiency.
- 3PL logistics firms are the ones who run supply chains and get materials and goods to all industries and consumers. Japan, one of the biggest economies in East Asia, relies on 3PL logistics a lot because of its manufacturing industry. As a result, organizations like Yamato Holdings are among the top logistics providers globally. 120 million people in the archipelago handled 4.71 billion tons of domestic freight, and foreign trade added 900 million tons more.
- Since 2000, there has been a big rise in the need for large, modern logistics leasing facilities in Japan. Outsourcing logistics operations, imbalances in corporate real estate, and moving out of multiple old warehouses all contributed to the rise. The freight and logistics industry in Japan is a big part of the economy, making up more than 5% of the GDP.
- The logistics business is known for its fierce cost competitiveness. To outbid rivals, sophisticated coordination and economies of scale are required. Through the use of "third-party logistics," sometimes known as "3PL," logistics firms have begun to streamline their operations. Automation and artificial intelligence (AI) are further tools for cost control.
It's likely that the logistics systems industry will grow to include more of these technical solutions. Although automated warehouses are now in use, it will be some time before fully autonomous trucks are allowed on the roads. Automation advancements cannot arrive soon enough for Japan. Its logistics sector is experiencing a manpower deficit, and on top of that, drivers are aging quickly, endangering the availability of services at fair prices. Two goals of this effort are to increase productivity in the trucking sector and to foster work environments that attract and retain older and female drivers. It has to be seen whether this tactic stabilizes the market effectively enough until automation advances further.
Japan Third-Party Logistics (3PL) Market Trends
Growth in automotive and manufacturing sector driving the market
Japan has always been and is one of the global leaders in the manufacturing machinery and automobile industries. The Ministry of Economy, Trade, and Industry (METI) says that high-tech manufacturing is one of Japan's most important growth sectors. The core areas in Japan's manufacturing sector are consumer electronics, automobile manufacturing, semiconductor manufacturing, optical fibers, optoelectronics, optical media, steel and iron, and copy machines.
Since a long time ago, Japan has been one of the top exporters of cars in the world. It is known for its high-quality manufacturing and efficient logistics services. Its highly developed infrastructure and port network support its status as an exporting giant, as do its dense concentration of shipping lines.
Some of the major players in the automotive industry in Japan also have in-house logistics arms. Vantec, a leading automotive logistics provider in Japan, operates under the HTS Group. The Vantec Group supports the sequential supply of auto parts in full alignment with the complex logistics requirements of automotive manufacturers.
As per Hino Motors, the future mobility society to be considered is represented by the word "SPACE". "Shared (sharing of movement, space, and time)" "Platform (corresponding to various services freely) and "Autonomous (free from driving)" "Connected (connecting mobility with people, things, and cities)" "Electricity" (increase efficiency and flexibility).
Development in cold chain logistics
Japan is the second-fastest-growing mature pharmaceutical market in the world, following the United States. The international interest in the Japanese pharmaceutical market will create opportunities for cold chain logistics service providers. The companies in the country are heavily improving and updating their services through deals, partnerships, and agreements with competitors and companies that provide platform services to the 3PL companies.
The cold chain market is also known for the amount of energy required in the process and the huge amount of emissions that occur. The companies are setting up logistics centers and transforming vehicles into ones that are environment-friendly, produce minimum emissions, and run on sustainable sources of energy.
The Government of Japan and the United Nations Children's Fund (UNICEF) gave three refrigerated vans to the Ministry of Health and SAMES on February 20, 2022. These vans will be used to move vaccines.At the SAMES compound in Dili, Masami Kinefuchi, the Japanese ambassador to Timor-Leste, and Ainhoa Jaureguibeitia, the deputy UNICEF representative, gave the vehicles to Sr. Bonifacio Maucoli dos Reis, the vice minister of health.
Moreover, walk-in cool rooms have been provided and are currently being installed at all regional warehouses in the municipalities of Ainaro, Baucau, Bobonaro, and the Special Administrative Area of Oecusse. It is important to have refrigerated vans, walk-in coolers, and freezer rooms with all of their parts so that vaccines can be kept safely and quickly sent to towns and medical facilities.
Japan Third-Party Logistics (3PL) Industry Overview
The market is pretty small, and its biggest players are Yusen Logistics, Expeditors, DHL, Hitachi Transport System, and Kuehne Nagel. Retail and manufacturing companies that handle their own logistics also play a big role in the market.
Japan's e-commerce market is growing at a rate that has never been seen before. This is reflected in the rapid growth of value-added services in Japan.As a result, packaging, labeling, and sorting activities have seen a large spike in the Japanese logistics industry.
To deal with the high demand and lack of workers in the country, steps can be taken like joint or shared delivery, which sends goods from multiple companies to common delivery points, platform apps, which help delivery companies find drivers with empty truck space and shippers, the use of small warehouses in cities as intermediate distribution centers, and collection logistics.
The goal of the changes in the logistics industry, like the use of self-driving machines and vehicles, is to get rid of the sector's carbon footprint on the economy as a whole.
Japan Third-Party Logistics (3PL) Market Leaders
-
Yusen Logistics
-
Nippon Express
-
Yamato Holdings
-
Kintetsu World Express
-
Sagawa Express
*Disclaimer: Major Players sorted in no particular order
Japan Third-Party Logistics (3PL) Market News
- January 2023: BoomiTM, a pioneer in intelligent connectivity and automation, revealed that Geekplus Co., Ltd. (Geekplus), which has dominated the Japanese market for automated guided vehicles (AGV) for four years running, has chosen the Boomi AtomSphereTM Platform to automate its upcoming smart logistics platform.
- April 2022: Hitachi Transport System Ltd. announced that KKR, a renowned worldwide investment firm, intended to tender its common shares through HTSK Co., Ltd., a company owned by the investment funds managed by KKR. In Japan, Hitachi Transport System is a market pioneer in third-party logistics (3PL). Customers who outsource logistics tasks such as logistics system integration, inventory and order control, logistics center operations, manufacturing logistics, and transportation and delivery services can use the company's supply chain solutions. HTS operates a successful domestic 3PL business in addition to an international firm that specializes in forwarding and related 3PL activities.
Japan Third-Party Logistics (3PL) Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Deliverables
- 1.2 Study Assumptions
- 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
- 2.1 Analysis Methodology
- 2.2 Research Phases
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 Value Chain / Supply Chain Analysis
- 4.4 Industry Policies and Regulations
- 4.5 General Trends in Warehousing Market
- 4.6 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics Etc.
- 4.7 Insights on Ecommerce Business
- 4.8 Technological Trends and Automation
-
4.9 Industry Attractiveness - Porter's Five Forces Analysis
- 4.9.1 Threat of New Entrants
- 4.9.2 Bargaining Power of Buyers/Consumers
- 4.9.3 Bargaining Power of Suppliers
- 4.9.4 Threat of Substitute Products
- 4.9.5 Intensity of Competitive Rivalry
- 4.10 Impact of COVID--19 on the Market
5. MARKET SEGMENTATION
-
5.1 By Service
- 5.1.1 Domestic Transportation Management
- 5.1.2 International Transportation Management
- 5.1.3 Value-added Warehousing and Distribution
-
5.2 By End-User
- 5.2.1 Manufacturing & Automotive
- 5.2.2 Oil & Gas and Chemicals
- 5.2.3 Distributive Trade (Wholesale and Retail trade including e-commerce)
- 5.2.4 Pharma & Healthcare
- 5.2.5 Construction
- 5.2.6 Other End-Users
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (market concentration and major players)
-
6.2 Company Profiles
- 6.2.1 Nippon Express
- 6.2.2 Yamato Holdings
- 6.2.3 Kintetsu World Express
- 6.2.4 Sagawa Express
- 6.2.5 Hitachi Transport System
- 6.2.6 Nichirei Logistics
- 6.2.7 Sankyu
- 6.2.8 Kokusai Express
- 6.2.9 Fukuyama
- 6.2.10 Mitsui-Soko
- 6.2.11 Alps Logistics
- 6.2.12 Yusen Logistics
- 6.2.13 DHL*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
- 8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of Transport and Storage Sector to economy)
- 8.2 External Trade Statistics - Exports and Imports, by Product
- 8.3 Insights into Key Export Destinations and Import Origin Countries
Japan Third-Party Logistics (3PL) Industry Segmentation
Third-party logistics companies provide services that have to do with the logistics of the supply chain. This includes shipping, storing, picking and packing, figuring out how much inventory there will be, filling orders, packaging, and freight forwarding.
A 3PL (third-party logistics) provider offers logistics services that are outsourced. These services include the management of one or more aspects of purchasing and shipping. In business, 3PL has a broad meaning that applies to any service contract that involves storing or shipping items. A 3PL service can be a single provider, like shipping or storing goods in a warehouse, or it can be a system-wide bundle of services that can manage the supply chain.
A comprehensive background analysis of the Japan third-party logistics (3PL) market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. The impact of COVID-19 has also been incorporated and considered during the study.
The Japan third-party logistics (3PL) market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution) and by end-users (manufacturing and automotive, oil and gas, and chemicals), distributive trade (wholesale and retail trade, including e-commerce), pharma and healthcare, construction, and other end-users. The report offers the market size and forecast in value (USD billion) for all the above segments.
| By Service | Domestic Transportation Management |
| International Transportation Management | |
| Value-added Warehousing and Distribution | |
| By End-User | Manufacturing & Automotive |
| Oil & Gas and Chemicals | |
| Distributive Trade (Wholesale and Retail trade including e-commerce) | |
| Pharma & Healthcare | |
| Construction | |
| Other End-Users |
Japan Third-Party Logistics (3PL) Market Research FAQs
How big is the Japan Third-Party Logistics (3PL) Market?
The Japan Third-Party Logistics (3PL) Market size is expected to reach USD 50.11 billion in 2024 and grow at a CAGR of 2.16% to reach USD 59.53 billion by 2029.
What is the current Japan Third-Party Logistics (3PL) Market size?
In 2024, the Japan Third-Party Logistics (3PL) Market size is expected to reach USD 50.11 billion.
Who are the key players in Japan Third-Party Logistics (3PL) Market?
Yusen Logistics, Nippon Express, Yamato Holdings, Kintetsu World Express and Sagawa Express are the major companies operating in the Japan Third-Party Logistics (3PL) Market.
What years does this Japan Third-Party Logistics (3PL) Market cover, and what was the market size in 2023?
In 2023, the Japan Third-Party Logistics (3PL) Market size was estimated at USD 49.05 billion. The report covers the Japan Third-Party Logistics (3PL) Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Japan Third-Party Logistics (3PL) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan 3PL Industry Report
Statistics for the 2024 Japan 3PL market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan 3PL analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
