China Freight and Logistics Market Growth & Forecast [2031]

Report Description

China Freight and Logistics Market Outlook 2031:

The China freight and logistics market size was valued at USD 1.06 Trillion in 2022 and is projected to reach USD 1.69 Trillion by 2031, expanding at a CAGR of 5.32% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing e-commerce and digital marketplace trend.

Logistics and freight are terminologies that are often used in a variety of industries. The terms logistics and freight are synonymous with the transportation and movement of commercial goods by different means of transportation, including the ocean, air, rail, and truck.

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The process of controlling and executing a cost-effective method with the delivery of products is referred to as freight management. Freight management combines human resources, logistical knowledge, and data to ensure that shippers and carriers are in sync.

The logistics business is described as the science of collecting, manufacturing, and delivering materials and goods to the proper locations. In a military context, where it is more commonly used, the term also refers to personnel mobility. The process of designing, implementing, and monitoring processes for the efficient and effective transportation and storage of commodities is referred to as logistics.

This covers services and related data from the point of origin to the point of consumption with the goal of meeting and exceeding consumer expectations. Any kind of products, objects, or commodities that are delivered in bulk through air, surface, or sea or ocean transit are referred to as freight. It is the cost of transporting products by any means or by a combination of modes of transportation.

China Freight and Logistics Market Trends, Drivers, Restraints, and Opportunities

• Growth of e-commerce and digital marketplace trend are projected to fuel the market during the forecast period.
• Rapid urbanization is key factor propelling the market in the coming years.
• High maintenance cost is estimated to hamper the market growth.
• Manufacturers lack control over logistical services which act as major challenges that can restrict the market in the coming years.
• R&D investment and technological advancement is anticipated to create lucrative opportunities for the market players.

Scope of the China Freight and Logistics Market Report

The report on the China freight and logistics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

China Freight and Logistics Market Segment Insights

The cold chain logistics segment is projected to represent a major market share

Based on function, the China freight and logistics market is divided into freight transport, freight forwarding, warehousing, value-added services, and cold chain logistics. The cold chain logistics segment is expected to represent a key share of the market during the forecast period. One of the things that caused Chinese consumers to seek better standards in terms of safe and nutritious food items has been their rising affluence.

Perishable items, such as fresh fruits and vegetables, meat, dairy, aquaculture products, and fresh flowers, as well as medicinal products, such as medicines, reagents, and vaccinations, require stringent temperature, humidity, and other environmental conditions.

The instability and breakage of the cold chain are key roadblocks in this industry, since ownership of various phases of the cold chain, such as warehousing, ground transportation, air freight, airports, and distribution, is highly fragmented. The lack of uniform end-to-end process control leads to widespread logistics process mismanagement.

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The manufacturing & automotive segment is expected to grow at a rapid pace

On the basis of end-user, the China freight and logistics market is segregated into manufacturing & automotive, oil & gas and quarrying, agriculture, construction, distribution trade, and others. The manufacturing and automotive segment is expected to represent a key share of the market during the forecast period.

The Chinese freight and logistics business is expanding at a tremendous rate, in tandem with the Chinese economy's exceptional success. With the expansion of the automobile industry, reliable logistics and transportation infrastructure are required.

In 2017, China produced more than 29 million passenger and commercial cars. International OEMs have developed a high degree of globalization in terms of production, mostly motivated by the necessity to geographically diversify, either through growth or partnerships, to prevent manufacturing crises.

Consumer demand and growing purchasing power are some of drivers. Manufacturing is mostly concentrated in six regions: on the coast, Shanghai, Guangzhou, Changchun, and Beijing; inland, Wuhan, Chengdu, and the city of Sichuan; and in Western China, Wuhan, Chengdu, and the capital of Sichuan. Many German and American businesses are extending their production networks in China, particularly in the western and central provinces.

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