• EV, chemical, metal, and other specialised logistics opportunities are now available in Asia
• Manufacturing and intra-regional exports among the reasons for increased logistics demand
• The Asian logistics market was valued at more than USD4 trillion in 2024

As exports of electric vehicles, chemicals, electronics, pharmaceuticals, and various food products increase, so does the need for specialised logistics in Asia. Overseas companies with these capabilities or related technologies may find now is the ideal time for market entry. Asian Insiders Managing Partner Jari Hietala details potential opportunities and what foreign businesses must know about the current state of play.

In order to better understand the opportunities for specialised logistics in Asia, it is essential to realise the scope of manufacturing and exports across the region. The underlying metrics of both in most markets remain positive.

Export totals have grown steadily in China and several Southeast Asian countries over the past few years. India remains a true success story, having recorded a 67 percent increase in exports since 2013. Figures in South Korea and Japan have fluctuated recently, but both are still among the ten largest exporters globally.

On the manufacturing front, the figures here are equally promising. Output in China surpassed USD4.5 trillion last year, a six percent increase in 2023. India is beginning to realise its massive potential with experts believing output here could reach USD1 trillion by decade’s end. The situation in Southeast Asia is a little more complex. Some countries are seeing growth while others are experiencing stagnation or minor contraction.

As far as logistics is concerned, a shift in manufacturing to more complex sectors is what has created opportunities in specialised areas. For example, the increased production of chemicals and electronics in Vietnam has created a greater need for storage and transportation.

Most notable is the rise of electric vehicles (EVs) in Asia. Production of everything from batteries and parts to trucks and busses can be found throughout the region. The logistics process is now something manufacturers are increasingly mindful of. That’s because not all local providers have the necessary capabilities to store and ship their goods.

Looking at the sector as a whole, the Asian logistics market is the world’s largest and was valued at more than USD4 trillion in 2024. Double-digit annual growth is being predicted between now and 2030.

What opportunities exist?

One of the biggest headaches for Asian manufacturers is getting goods to their final destination. Research from various players has found logistics outsourcing rates in Southeast Asia remain much lower than China, Japan, and South Korea. Yet, those countries do not have all the solutions required to support increasing specialisation.

Moreover, the bulk of existing logistics players are involved with e-commerce meaning they may lack the skills and technologies to handle certain goods. Here is a brief look at some of the available opportunities in Asia.

EV-related logistics

As mentioned previously, EV manufacturing is growing throughout Asia. This has created a few different challenges related to logistics. One of the largest is that EVs use semiconductors, batteries, and other sensitive materials that require more delicacy in shipping and storage than traditional automotive parts.

There is also the circular supply chain of EVs to consider. Components need to be repurposed and recycled at the end of the vehicle’s lifespan. This creates logistics gaps for manufacturers who do not have the capacity to handle the change. Firms willing to be first movers here may have a long-term advantage as demand inevitably grows.

Chemical logistics

While Asia does have a few providers active in the field, it is a growing subsegment, and that will create additional opportunities. Over the next five years, the compound annual growth rate for chemical logistics in Asia Pacific is predicted to surpass four percent annually.   

Cold shipping and storage

As the aquaculture sector in many Asian countries expands, the demand for cold shipping and storage has grown. Producers understand fresh and chilled fish bring in higher prices and are actively looking for partners capable of getting their goods to consumers faster. The story is similar for other types of food and agriculture products as well as certain pharmaceuticals.

Opportunities here come in two forms. First, as an end-to-end, cold logistics service provider. Second, there are partnership opportunities with local firms who may lack the necessary skills and technology to carry out reliable cold shipping and storage. Each path has positives and negatives to be weighed.  

Digital tools

There is demand for various technologies that would allow existing players to improve operations. These include artificial intelligence and blockchain innovations capable of improving efficiency. Many organisations continue to seek out tools that enable them to better utilise data in decision making.

Preparing for challenges

It is impossible to ignore the geopolitical uncertainty that surrounds both exports and manufacturing globally. Tariffs and, in the worst-case scenario, a trade war would undoubtedly have an impact on logistics in Asia and beyond.

Those worries are somewhat offset by the fact demand for specialised logistics should remain steady is some countries at the very least. The lion’s share of exports from ASEAN are bound for other countries within Asia Pacific providing a stable floor.

Meanwhile, Chinese exports surpassed USD3.5 billion in 2024 and the country retains strong trade links to Japan, South Korea, Southeast Asia, and Hong Kong, among others. Logistics opportunities are unlikely to vanish even in the event of a prolonged dispute between the United States and other markets.  

Another challenge, especially in Southeast Asia, is a lack of infrastructure. Many countries, including the Philippines, Indonesia, Thailand, and Vietnam, are working toward improving road, sea, air, and rail links, but this remains a work in progress.

Final thoughts on specialised logistics in Asia

The challenges mentioned above cannot be ignored. A period of uncertainty may cause some disruptions in the short term. However, the opportunities for specialised logistics in Asia aren’t going to disappear either. Manufacturers are still seeking out solutions.

For overseas firms, there are a few different ways to approach a potential market entry. Most notable is the choice to either go it alone or work with a local partner. A specialist, such as Asian Insiders, can be of assistance on many levels.

We will conduct the necessary market research to help your business make an informed decision on what countries have the most potential. Should you opt to pursue a local partnership, our on-the-ground experts will introduce you to the right connections in the country.

Specialised logistics in Asia is a growing sector and one with many opportunities. To learn more, schedule a no-obligation call with Jari Hietala, Managing Partner: jari.Hietala (at)asianinsiders.com