Japan Third Party Logistics (3PL) Market Overview, 2028

Japan is a major player in global trade. The 3PL industry benefits from Japan's exports and imports, as companies require logistics and supply chain solutions to transport goods internationally. This includes services such as customs clearance and cross-border transportation. Japanese companies are constantly seeking ways to enhance the efficiency of their supply chains while reducing costs. 3PL providers offer specialized expertise, technology, and economies of scale that can help companies achieve these goals. Many 3PL companies in Japan specialize in specific industries or logistics niches, such as pharmaceuticals, automotive, or perishable goods. This expertise is a valuable driver for businesses looking for tailored solutions in their respective fields. Japan continues to invest in infrastructure development, such as upgrading ports and transportation networks. This enhances the efficiency of logistics operations and benefits the 3PL industry. In urbanized areas of Japan, last-mile delivery is a critical challenge. 3PL providers are developing innovative solutions to address the unique demands of urban logistics, such as crowded city centers and environmental considerations. The 3PL industry in Japan has seen mergers and acquisitions as companies seek to expand their service offerings and global reach, which can impact market dynamics. International trade agreements and economic partnerships can significantly impact logistics and supply chain demands. Changes in trade agreements can lead to shifts in supply chain routes, requirements, and trade volumes, affecting the 3PL industry. Data analytics and predictive forecasting are becoming integral to supply chain management. 3PL providers that can offer insights into demand forecasting and inventory optimization are highly sought after. Direct-to-consumer brands have gained popularity, and they often require specialized 3PL services for order fulfillment, customized packaging, and delivering a unique customer experience. According to the research report "Japan Third-Party Logistics (3PL) Market Overview, 2028," published by Bonafide Research, the Japan Third-Party Logistics (3PL) market is anticipated to grow at more than 6% CAGR from 2023 to 2028. Japan's aging population can lead to labor shortages, particularly in physically demanding roles in logistics and warehousing. Automation and technology adoption by 3PL providers can help mitigate these labor challenges. The adoption of 3D printing and additive manufacturing can reduce the need for traditional supply chain networks, potentially affecting the logistics and warehousing requirements. The development of smart cities in Japan and the integration of the Internet of Things (IoT) into urban infrastructure can create opportunities for 3PL providers to offer efficient, data-driven logistics solutions within these environments. Multimodal transportation, which combines various modes of transportation (e.g., road, rail, sea, and air), was gaining traction in Japan. 3PL providers were offering integrated solutions that optimize transportation routes for cost savings and efficiency. Collaborative logistics models, where multiple companies share resources and transportation, were being explored. These models aimed to reduce transportation costs and environmental impact. Japanese companies were increasingly looking for 3PL partners that offer value-added services beyond traditional logistics, including kitting, labeling, packaging customization, and quality control. The demand for shorter-term warehousing leases was increasing, reflecting the need for greater flexibility in a rapidly changing business environment. 3PL providers were offering more flexible warehouse solutions. Companies and 3PL providers were accommodating more flexible delivery timeframes to meet consumer expectations for same-day or specific delivery slots. Real-time routing and delivery optimization solutions were being used to adapt to changing traffic conditions and customer demands, making the last-mile delivery more efficient.

In terms of mode transport the market is segmented into Roadways, Railways, Waterways, and Airways. Rail transport is well-suited for the efficient movement of bulk cargo, such as raw materials, heavy machinery, and commodities. In industries like manufacturing, automotive, and agriculture, where bulk transportation is common, rail offers a cost-effective and reliable option. Japan's railways are known for their punctuality and reliability. This makes rail transport an attractive option for businesses that require on-time delivery and want to minimize the risk of delays. Rail transport is considered more environmentally friendly compared to road transport, as it typically produces fewer emissions. Japanese businesses are increasingly focused on sustainability, and rail offers a greener transportation solution. Japan's extensive rail network allows for long-distance transportation across the country. For businesses requiring goods to be moved from one end of Japan to the other, rail transport can be an efficient option. Rail transport can often provide cost savings for bulk shipments over long distances, especially when compared to long-haul road transport, which can be more expensive due to factors like fuel costs and driver wages. Japan's extensive high-speed rail network offers faster transportation options for time-sensitive cargo. 3PL providers can leverage this network to expedite the delivery of goods and reduce transit times. The W&D segment provides customized warehousing solutions tailored to the unique needs of businesses. This includes specialized handling, kitting, packaging, labeling, and other value-added services to enhance the supply chain. W&D providers often use advanced warehouse management systems (WMS) to optimize warehouse operations. These systems help with efficient storage, picking, packing, and shipping, improving overall supply chain efficiency. Cross-docking is an essential component of efficient distribution, especially in industries like retail and e-commerce. W&D providers offer cross-docking facilities to facilitate the fast and direct transfer of goods from inbound to outbound shipments. The safe storage of temperature-sensitive products, such as pharmaceuticals and perishable goods, is vital. W&D providers offer temperature-controlled warehousing solutions to ensure the integrity of these products. W&D providers often offer value-added services like product labeling, quality checks, and packaging customization. These services cater to businesses that require specialized handling and care for their products. In addition based on end user, the market is divided into Manufacturing, Healthcare, Retailing, E-commerce, Automotive, Food & Groceries, Technological and Others. The food and grocery industry faces unique supply chain challenges, including perishable products and the need for temperature-controlled storage and transportation. 3PL providers with expertise in food logistics can help businesses navigate these complexities. Cold chain logistics, which includes the transportation and storage of temperature-sensitive products, is critical in the food and grocery sector. 3PL providers in this segment offer specialized refrigerated and frozen warehousing and transportation solutions to maintain the quality and safety of perishable goods. The food and grocery industry often experiences seasonal variations in demand, such as during holiday seasons. 3PL providers offer scalable solutions that allow businesses to accommodate these fluctuations without the need to maintain excess infrastructure year-round. Considered in this report: • Geography: Japan • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Manmayi Raval

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Aspects covered in this report: • Japan Third-Party Logistics (3PL) market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Mode of Transport • Roadways • Railways • Waterways • Airways By Services • Domestic Transportation Management (DTM) • International transportation management (ITM) • Dedicated contract carriage (DCC) • Warehousing & Distribution (W&D) • Value-Added Logistics By Services (VALs)

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By End User • Manufacturing • Healthcare • Retailing • E-commerce • Automotive • Food & Groceries • Technological • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.