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Spurring Investments in Infrastructure to Expand Express Delivery and Third Party Logistics Market in Philippines: Ken Research
August 2015

The logistics market in the Philippines will continue to grow at a considerable pace in the next few years with the surge in demand from general public and retail stores in different regions across the country. The market is predicted to grow at a CAGR of ~% from 2015-2019 and is expected to cross USD ~ million by 2019. The future of this industry has been expected to be interlinked with technology which will improve transparency in the complete logistics process and minimize the role of sales representatives. Spurring investments in infrastructure, growth in international trade volumes, increase in technology usage and expanding business opportunities in the Philippines will drive the growth of the industry in the future. Increased penetration of players in the remote areas to facilitate cost effective logistics services will help build brand awareness and assist in the expansion of local players in the market.

Furthermore, with the rise of e-commerce activities in the Philippines, various e-commerce organizations have opted to utilize express delivery and third party logistics services. The 3PL services have enabled e-commerce companies to save costs of infrastructure and management and have directly impacted the growth of this segment. Express delivery has acted as a mode of quick and efficient service available at a premium price. Also, local logistics service providers have formed strategic alliances with international companies to cater to international demand and allow for their expansion in the global market. According to an industry veteran, “the scope of logistics industry in the Philippines has been limited by the relatively slower growth of infrastructure facilities, however, with an increase in government focus on trade and economic development, the future years are expected to witness an increase in shipments through Philippines and hence will solidify the country’s place as a major logistics hub in the ASEAN market.”

“Logistics and express delivery have been essential to take the Filipino economy to the next level of growth as it has been considered as the next viable option for manufacturing operations. Customized, fast and cost effective logistics and express delivery services will likely be the key to en-capture the Filipino market. The country has already been considered as a potential international gateway for international logistics due to its strategic geographic location. However, in spite of the efforts, the lack of infrastructural support will challenge the growth of this industry in the next few years.”, according to the Research Analyst, Ken Research.

The report titled "Philippines Logistics Market Outlook to 2019" provides detailed overview on the Logistics Market. This report helps readers to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry consultants, logistics and freight forwarding companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.