Singapore Freight and Logistics Market Share, Growth [2031]

Report Description

The Singapore freight and logistics market was USD 1.13 Billion in 2022 and is likely to reach USD 1.99 Billion by 2031, expanding at a CAGR of 6.5% during 2023-2031. Freight refers to any form of things, goods, or commodities that are transported in bulk by surface, air, or ocean/sea transit. The management and oversight of cost-effective operations and the transportation of products are referred to as freight logistics.

The total process of managing how resources are stored, bought, and transported to their eventual destination is referred to as logistics. It integrates human resources, logistical expertise, and knowledge to ensure that items are transported smoothly between shippers and carriers. Logistics is commonly defined as the process of transferring and arranging resources such as food, equipment, inventories, liquids, people, and materials from one area to the intended destination's storage. It is the proper management of the flow of commodities from one place of origin to another in order to suit the needs of customers.

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

• Growing global trade activities and increasing investment for establishment of industries in the country are expected to boost the market expansion.

• Expansion of trade agreements as along with technology improvements and logistics infrastructure in the freight and logistics market for supply chain and fast delivery are major growth drivers of the market.

• Singapore has dense road and marine networks for multimodal transport of goods, with a seamless intermodal connection between one of the world's busiest seaports and airports are fuelling growth of the market.

• Rising e-commerce business as well as an increasing reverse logistics operations are key driver of the market expansion.

• Manufacturers' lack of control over logistics services and also increasing logistical costs are major challenges that can hamper market expansion.

• Importing and exporting commodities along with the growth in transportation and trade globally are offering profitable opportunities of the market.

Scope of Freight and Logistics Market report

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

Singapore Freight and Logistics Market Segment Insights

Waterways segment is projected to hold significant market share

Based on shipping types, the Singapore freight and logistics market is segmented into roadways, waterways, railways, and airways. The waterways segment is projected to hold significant market share since the waterways have grown popularity in recent years as a result of its high quality and services, ongoing R&D efforts, and world-class infrastructure.

Singapore is a significant transhipment hub and acts as a gateway to some of the world's most important locations. Any changes in the global shipping industry have an impact on Singapore's logistics market, particularly on the sea and air. Singapore's port is widely regarded as the world's busiest container transhipment hub and the country has excellent public transportation. It has strong maritime and road networks for multimodal transportation, as well as seamless multimodal connectivity between one of the world's busiest seaports and airports.

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Freight forwarding segment is anticipated to account for a substantial share

On the basis of services, the market is segregated into custom clearance, distribution, freight forwarding, inventory management, packaging, transportation, warehousing, value-added services, and others. The freight forwarding segment is anticipated to account for substantial share of the market owing to the expanding electronics industry, oil & gas projects, e-commerce, food products, pharmaceutical & biotech, and increased infrastructural developments in the country.

The first project is likely to fortify Singapore's digital infrastructure, with a focus on data analytics, digital connections, payment systems, and new business innovation. A crucial priority is a key factor for the development of 5G infrastructure, which is expected to serve as the backbone of the country's digital economy.

The increased network bandwidth is allowing for an improvement in the capability to handle massive e-commerce orders. Singapore is beefing up its cyber security skills in order to protect businesses and maintain the secure flow of cross-border data. 

Healthcare & pharmaceutical segment to register a substantial growth rate in the coming years

In terms of end-users, the Singapore freight and logistics market is fragmented into agriculture, distributive trade, fishing & forestry, government & public utilities, healthcare & pharmaceutical, manufacturing & automotive, manufacturing & construction, mining & quarrying, oil & gas, telecommunication & information technology, and others.

The healthcare & pharmaceutical segment is expected to register a substantial growth rate in the coming years. Singapore has an extremely advanced cold chain distribution network. Cold chain operators are considering expanding existing Singapore facilities to create a cross-docking facility to more efficiently transfer products around the ASEAN area, which would benefit US cold chain enterprises' operating efficiency and prospects in the region.

The expansion of these industries as a result of rising consumer spending and lifestyle, as well as the expansion of contractual production in the pharmaceutical sector, are key drivers of the segment. Rising cold storage demand, a developing e-commerce, and retail business, increased government backing, and increased trade with some other major exporting and importing countries are further expected to boost the segment in the coming years.

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