Press Release

South Korea Third-Party Logistics Market Expected to Reach USD 32 Billion by 2030

The South Korea Third-Party Logistics Market size is valued at around USD 18.5 billion in 2024 & is estimated to reach around USD 32 billion by 2030. The market is also expected to grow at a CAGR of around 9.8% during the forecast period, i.e., 2024-30, cites MarkNtel Advisors in the recent research report. The economy of South Korea is an export-driven economy and highly dependent on global trade. The country imports the raw materials and exports them after adding value to them. Hence third-party logistics plays an important role in the economic growth of the country. The primary growth driver of the South Korean third-party logistics industry is the rise in the e-commerce industry with South Korea being one of the biggest e-commerce markets globally. The need for reliable inventory and transportation management, warehousing & distribution, dedicated contract carriage, logistics software, and others are very important aspects necessary for the growth of the e-commerce industry, and such growth will propel the growth in the 3PL market.

Additionally, the boom in renewable energy in the country is being pushed due to the regulation requirements of the country. This is due to the Republic of Korea having set to get 22% of its power generation from renewable energy by 2030. The sudden push will force the industries to boost the manufacturing and production of the key components necessary for such a transition. This rise in economic activity will further boost future growth over the forecasted period. Such regulatory shift has also led industries to innovate their products and supply chains as well by making them environment friendly. For instance, some of the 3PL logistics companies in South Korea are adopting an eco-friendly and circular economy for their wraps and packaging.

However, some systematic challenges in the country can hinder the growth not just in the 3PL market but also in other industries due to the decline in the population of the country & low fertility rate. The decline in the population will lead to a fall in the consumption levels of the country and also negatively impact the overall productivity in the country necessary for economic growth. But these scenarios can be mitigated by adopting the proper policy measures such as the deployment of the latest technologies such as AI-enabled robots and welcoming skilled immigrants into the country. These developments present an optimistic prospect for accelerating future growth over the forecast period, further states the research report, “South Korea Third-Party Logistics Market Analysis, 2024.”

South Korea Third-Party Logistics (3PL) Market Segmentation Analysis

Road Segment Remains the First Choice for the 3PL

Based on the transportation mode, the market is further bifurcated into, Rail, Road, Air, and Sea. The population of the country is concentrated in its major cities which are interconnected by a wide road network making road the primary means of logistics. This is ultimately augmenting the revenue growth of the segment in the 3PL industry. 

Transportation Management Segment Holds the Largest Share of 3PL

The South Korean Third-Party Logistics Market is dominated by the transportation management segment, mainly because the country's export-oriented economy depends on international commerce to flourish. Additionally, industries that practice appropriate inventory management mostly use a just-in-time strategy or have built-in inventory capacity for goods that are in stock and awaiting delivery. Third-party logistics service providers are responsible for transporting these goods, which boosts transportation management revenue growth. Throughout the projection period, these situations will propel future segmental revenue growth.

Competitive Landscape

With strategic initiatives such as mergers, collaborations, and acquisitions, the leading market companies, including Hyundai Glovis, SEBANG, Daewoo Logistics, Yusen Logistics, Sunjin Logistics, Kuehne + Nagel, CTSI Logistics, Lotte Global Logistics, Omni Logistics, DSV, and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the 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 & solution adoption?
5. How has the competition been shaping up across the country?
6. How have 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?