South Africa Contract Logistics Market

The South Africa contract logistics market accounted to US$ 528.6 Mn in 2018 and is expected to grow at a CAGR of 4.6% during the forecast period 2019 – 2027, to account to US$ 782.2 Mn by 2027.

 

The automotive sector contributes significant share in the country’s imports and exports, with foreign trade being the essence of South African’s economy. This offers a prosperous opportunity for the contract logistics players to expand their presence in South Africa and also boost the prospects for South Africa contract logistics market.

 

Market Insights

The swift growth of the manufacturing sector in South Africa to contribute to the contract logistics market growth

The manufacturing industry has witnessed rapid growth in recent times owing to huge investments coming up from the Government of South Africa. This expansion in the manufacturing industry is expected to embrace technological advancements to enhance plant productivity, maintain an edge with the customers, and gain competitive advantage. Steady and consistent economic growth worldwide is a major driving factor for the development and advancements in the manufacturing industry. Further, the manufacturing industry is presently found to be in the middle of a technological renaissance, which is changing the outlook, systems, and processes of the modern factory which would drive the adoptions for contract based logistics. This factor would propel the growth of South Africa contract logistics market.

 

Technological integration pertaining to the supply chain drive the South Africa contract logistics market

The meteoric rise of on-demand delivery of products has propelled today’s businesses to shift from the conventional in-house logistic models to a more advanced and cost-efficient outsourced or contract based logistics model. Outsourcing the entire supply chain functionality to a more knowledgeable partner on the supply chain management arena reduces the complexities associated with the last mile deliveries. Some of the intangible benefits achieved through outsourcing logistics include cost savings, human capital savings, no lock-in of working capitals, and better access to customer networks. There would be a marked rise in the South Africa contract logistics market anticipating the positive impact of technological integrations.

 

Type Insights

The South Africa contract logistics market by type was led by insourcing segment. The variation between the logistic types is the method in which the task of logistics is divided. Day-to-day the transportation managers strive to maintain a perfect balance between cost control, keep a check on the shipping operations, and also maintaining a safe working environment for the human personnel deployed. With the required analysis and strategy formulation, the selection of the best method that supports the overall transportation function is extremely critical. Size of the business, the complexity of the shipping operations, and control on the operations, specialization, and stakeholder confidence influence the selection of the logistics type. Both of the logistics types have their own set of advantages and drawbacks.

 

Service Insights

The South Africa contract logistics market by service was led by the transportation segment. Contract Logistics includes the storage and movement of goods to the different locations from point of origin supplier to intermediate and finally to end users. The contract logistics service providers majorly focus on the transportation of goods by different modes and warehousing. The companies serve to an extensive range of industries by providing innovative solutions and provide high value for money to their customers.

 

End-User Insights

The South Africa contract logistics market is segmented on the basis of end-user into Aerospace, Automotive, Consumer, High-Tech, Industrial, Pharma & Healthcare, Retail, and Others. Retail sector held the largest market in 2018 and is anticipated to continue its dominance during the forecast period from 2019 – 2027 in the South Africa contract logistics market. The other end-users for contract logistics providers are maritime, oil & gas, Semicon & solar, recyclables, perishables & reefers, and construction.

 

Exhibit: South Africa Contract Logistics Market by End User

 

Strategic Insights

The market players present in the contract logistics market are mainly focusing on product enhancements by implementing advanced technologies. By signing partnership, contracts, joint ventures, funding, and inaugurating new offices across the world permit the company to maintain its brand name in South Africa. Few of the recent developments are listed below:

 

2019:

Cargo Carriers established the benchmark in environmentally-sustainable road transport operations. This is evidenced by the company’s ongoing investment into state-of-the-art information technology to significantly improve the monitoring of and efficient use of fuel, the industry’s single largest input and biggest contributor towards the release of carbon emissions.

2019:

UPS announced opening of a new hub in Prague The facility, near Vaclav Havel Airport, would be located in a key economic region of the Czech Republic, where small and large companies are turning to exports to grow their businesses, and the hub is scheduled to be opened at the beginning of 2020.

2018:

CEVA announced its partnership with IBM and Maersk, for implementing blockchain technology and rising the levels of visibility and transparency of the customers' supply chain.

 

SOUTH AFRICA CONTRACT LOGISTICS – MARKET SEGMENTATION

South Africa Contract Logistics Market - By Type

• Outsourcing
• Insourcing

 

South Africa Contract Logistics Market - By Services

• Transportation
• Warehousing
• Packaging Processes and Solutions
• Distribution
• Production Logistics
• Aftermarket Logistics
• Others

 

South Africa Contract Logistics Market - By End User

• Aerospace
• Automotive
• Consumer
• High-Tech
• Industrial
• Pharma & Healthcare
• Retail
• Others

 

South Africa Contract Logistics Market - Company Profiles

• Cargo Carriers (Pty) Limited
• Ceva Logistics AG
• DB Schenker
• Deutsche Post AG
• DSV A/S
• Imperial Logistics
• Laser Group
• Namlog
• Onelogix Group
• UPS Supply Chain Solutions

South Africa Contract Logistics Strategic Insights

Strategic insights for the South Africa Contract Logistics provides data-driven analysis of the industry landscape, including current trends, key players, and regional nuances. These insights offer actionable recommendations, enabling readers to differentiate themselves from competitors by identifying untapped segments or developing unique value propositions. Leveraging data analytics, these insights help industry players anticipate the market shifts, whether investors, manufacturers, or other stakeholders. A future-oriented perspective is essential, helping stakeholders anticipate market shifts and position themselves for long-term success in this dynamic region. Ultimately, effective strategic insights empower readers to make informed decisions that drive profitability and achieve their business objectives within the market.

South Africa Contract Logistics Report Scope

South Africa Contract Logistics Regional Insights

The geographic scope of the South Africa Contract Logistics refers to the specific areas in which a business operates and competes. Understanding local distinctions, such as diverse consumer preferences (e.g., demand for specific plug types or battery backup durations), varying economic conditions, and regulatory environments, is crucial for tailoring strategies to specific markets. Businesses can expand their reach by identifying underserved areas or adapting their offerings to meet local demands. A clear market focus allows for more effective resource allocation, targeted marketing campaigns, and better positioning against local competitors, ultimately driving growth in those targeted areas.