Press Release

Malaysia’s USD28.88 Billion Logistics Market to Record a Growth of Around 5.4% During 2024-30

Malaysia Logistics Market size is projected to grow at a CAGR of 5.4% during the forecast period of 2024-30, cites MarkNtel Advisors in the recent research report. In 2024, the market size was estimated to be around USD28.88 billion. The expansion of e-commerce services, increasing trade agreements, and the growing focus of the official authorities to facilitate trade are ramping up the demand for logistics services in Malaysia.

In recent years, Malaysia has witnessed a rise in internet penetration and smartphone accessibility owing to the improved country's digital infrastructure. The higher mobile phone ownership rates & the speedy internet connection create a favorable environment for the adoption of E-commerce platforms, supporting their expansion. Also, the rising urbanization and the busy schedules followed by individuals in Malaysia are accentuating the demand for solutions that provide them flexibility. As a result, they are increasingly ordering or purchasing products from online shopping stores. These online retailers highly depend upon the logistics solutions provider to ensure that the products are delivered to the customers on time, supporting market growth.

Further, the top online retailers are partnering with the logistics providers to provide better services to the customers and deliver the products timely. In addition, the market players are integrating emerging technologies and launching their mobile applications. These apps offer real-time updates directly to the consumers and help in resolving their queries. They also provide information regarding the stages of the delivery of the products, including shipping, in transit, deployment, etc., which assures the customers about the commodity delivery. Also, the details of the delivery personnel are shared with the end-users, which makes the communication between the end-user and delivery partner more clear.

Furthermore, the end-user industries are signing the corporate sustainability goals to lower their carbon footprint. As a result, they are increasingly looking for delivery partners that offer green logistics services. Thus, to capitalize on this upcoming opportunity, the top companies are actively using energy-efficient technologies, which would further enhance them to achieve higher revenue growth, further states the research report, “Malaysia Logistics Market Analysis, 2024.”

Malaysia Logistics Market Segmentation Analysis

Third-Party (3PL) to Dominate in Forthcoming Years

Based on the model, the market is further bifurcated into First-Party (1 PL), Second-Party (2 PL), Third-Party (3 PL), and Fourth-Party (4 PL). Among them, Third-Party (3 PL) holds a substantial market share owing to the beneficial features it offers. This type of model offers a wide range of delivery services to the end-users, which are superior to other types of models, making them a preferable choice. Also, they are more cost-effective and highly scalable. Therefore, the industry verticals that are looking for more economical solutions are shifting towards 3PL services, enhancing market growth.

Food & Beverage to Outperform During Forecast Period

Based on the end users, the market is segmented into Healthcare & Pharmaceuticals, Construction, Energy & Chemicals, Retail & E-Commerce, Food & Beverage, Consumer Goods and Others. Of them all, Food & Beverage holds a prominent market share since these industries essentially require the logistics solutions that help them maintain their product quality. Food products, like bread, butter, etc., are highly perishable and they must be dispersed across the country within a time limit. Therefore, these enterprises depend upon the logistics service providers that have extensive distribution & delivery networks. Also, several local F&B companies are laying plans to expand their footprint by supplying their products to every city in Malaysia. Therefore, the requirement for adequate delivery partners would be accentuated in the forecast years.  

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including City-Link Express (M) Sdn Bhd, CJ Logistics Corporation, DB Schenker, FedEx, DHL Group, Hextar Technologies Solutions Berhad, Pos Malaysia Bhd, Keretapi Tanah Melayu Berhad, Kuehne + Nagel, MMC Corporation Berhad, etc. are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Market Size- By Value, Forecast Numbers, Segmentation, Market Shares)?
2. What are the market trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & services adoption?
5. How has the competition been shaping across the country?
6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?