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Logistics Market in Thailand by End-user and Function – Forecast and Analysis 2022-2026


The logistics market share in Thailand is expected to increase by USD 18.89 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 4.95%.

This logistics market in Thailand research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the logistics market in Thailand segmentation by end-user (manufacturing, automotive, retail, healthcare, and others) and function (transportation, inventory holding, and administration). The logistics market in Thailand report also offers information on several market vendors, including CMA CGM Group, Deutsche Post AG, Kerry Logistics Network Ltd., MON Logistics Group Co. Ltd., SCG Logistics Management Co. Ltd., Schenker AG, Unithai Group, WICE Logistics Public Company Ltd., Yamato Unyu, and YUSEN LOGISTICS CO. LTD. among others.

What will the Logistics Market Size in Thailand be During the Forecast Period?

Logistics Market in Thailand: Key Drivers, Trends, and Challenges

The growing e-commerce propels the demand for logistics services, which is notably driving the logistics market growth in Thailand, although factors such as increased lead time and supply-demand imbalance may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the logistics industry in Thailand. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Logistics Market Driver in Thailand

Growing e-commerce propels the demand for logistics services, which is one of the key factors driving the logistics market growth in Thailand. As the incomes of Association of Southeast Asian Nations (ASEAN) countries continue to grow, there is a demand for evolving e-commerce ecosystems and consumer goods with increased spending by people in these countries. Furthermore, there are approximately 57 million internet users in the country who are familiar with the use of digital technology, mobile, and e-commerce, which has made Thailand an ideal growth environment for the e-commerce business. Thus, vendors such as Central Group, Aden, DHL Express Thailand, Kerry Express are introducing low-cost, high-quality logistics services domestically and have begun end-to-end domestic delivery. For small and medium-sized enterprises (SMEs), this means more convenient and faster delivery to consumers at significantly lower costs. Such factors are expected to positively impact the market growth during the forecast period.

Key Logistics Market Trend in Thailand

Another key factor driving the logistics market growth in Thailand is the use of blockchain with logistics. In the logistics industry, blockchain technology increases the visibility of operations and offers the ability to track products effectively across the logistics process. As the blocks are linked together, they store the record of stakeholders involved in the process, along with the specific details of the products associated with each movement. It also improves security as each transaction is recorded and validated by an independent third party. In addition, the data cannot be modified, deleted, or appended without validation from every stakeholder in the network, thereby strengthening security. This will drive the demand for blockchain in the logistics market in Thailand during the forecast period.

Key Logistics Market Challenge in Thailand

One of the key challenges to the logistics market growth in Thailand is the increased lead time and supply-demand imbalance. More than half of the shipper companies surveyed in 2021 by Infosys Consulting saw at least one-fourth reduction in supply chain operations due to the COVID-19 pandemic. The transport and logistics distribution networks are being disrupted due to the supply-demand imbalance, the lack of last-mile fulfillment services, and labor shortages. In addition, sometimes, lead time increases from the manufacturer’s end due to raw material shortages, limited workforces, and lockdowns owing to the pandemic. Furthermore, the shift in consumers’ preference toward online shopping has been higher than pre-COVID-19 levels, which is expected to put pressure on the global transport and logistics industry. Thus, supply chain disruptions and lead time increments are expected to be challenging for transport and logistics vendors in the logistics market in Thailand during the forecast period.

This logistics market in Thailand analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Source: Technavio

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