Report Overview

Japan Freight and Logistics Market - Industry Trends & Forecast Report, 2030

Japan Freight and Logistics Market size was estimated to be worth USD 309.19 billion in 2023. During the forecast period between 2024 and 2030, the Japan Freight and Logistics Market size is projected to grow at a CAGR of 5.74%, reaching a value of USD 386.54 billion by 2030. Major growth factors for the Japan Freight and Logistics Market include flourishing international trade, import and export activities, and rapid infrastructural development in the country. Furthermore, the expanding e-commerce sector and the rising integration of advanced technologies, such as sensors and data analytics, are anticipated to drive the Japan freight and logistics market during the forecast period.

Freight and Logistics – Overview

Freight is (often) large, heavy goods that are moved by land, sea, or air. Freight is defined as goods that are too big or heavy to be transported by a package service. Logistics, as it is commonly understood, is the act of planning and organizing the movement of resources—including people, inventory, food, equipment, and liquids—from one place to the storage of the intended destination. It involves managing the movement of commodities from a place of origin to a site of consumption to satisfy consumer demands.

Japan Freight and Logistics Market

Growth Drivers

Expanding Partnerships and Other Industry Strategies

The Japan Freight and Logistics Market is emerging as one of the biggest sectors in the country owing to the flourishing e-commerce sector as well as the growing need for an efficient supply chain in the medical industry. As a result, various industry players are adopting cutting-edge technologies, such as artificial intelligence (AI), and engaging in business strategies to tap into the growing market opportunities and expand their businesses. For instance, Lalamove, a China-based logistics platform, is entering Japan and bringing AI-powered services to optimize its delivery process.

Challenges

Complex Regulatory Framework

The complex and stringent regulatory framework involved in the transport of goods across borders and within the country acts as a major restraining factor for the Japan Freight and Logistics Market. For instance, importers need to obtain an import permit as well as pay customs duty and excise tax to import goods in Japan. Additionally, certain items, such as hazardous materials, perishables, articles of high value, may also require import licenses, which may discourage import activities in Japan, negatively impacting the demand for freight and logistics market.

Impact of Escalating Geopolitical Tensions on Japan Freight and Logistics Market

The escalating geopolitical tensions hindered the growth of the Japan Freight and Logistics Market. Japan has had cordial trade relations with Russia, with petroleum products and oil being the major importing goods. It also imports other products such as machinery, nuclear reactors, rubber, plaster, lime, and cement, which necessitates freight and logistics services in the country to transport these products. However, following Russia's invasion of Ukraine in February 2022, Japan imposed sanctions on Russia, which hampered the import and export activities between the two countries. Japan ceased the export of goods, such as semiconductors, to Russia, which directly impacted the demand for Japan Freight and Logistics Market.

Japan Freight and Logistics Market

Segmental Coverage

Japan Freight and Logistics Market – By End Use Industry

Based on end use industry, the Japan Freight and Logistics Market is divided into agriculture, fishing & forestry, construction, manufacturing, oil & gas, mining & quarrying, and others (including wholesale & retail trade) segments. The agriculture segment holds the largest share in the Japan Freight and Logistics Market owing to the flourishing import and export activities of agricultural produce. Japan is the fourth largest export destination of the United States, importing USD 14.2 billion in 2021, according to the USDA Foreign Agriculture Service.

Japan Freight and Logistics Market – By Logistics Function

Based on logistics functions, the Japan Freight and Logistics Market is segmented into courier, express & parcel, freight forwarding, warehousing & storage, and others (including freight transport). The warehousing & storage segment holds the highest market share by logistics function. The flourishing e-commerce sector is boosting the need for efficient logistics and distribution centers. The significant surge in online shopping and growing demand for faster deliveries from consumers is prompting retailers to establish a reliable infrastructure to store and process orders, driving the warehousing and storage segment.

Japan Freight and Logistics Market – By Mode of Transportation

Based on the mode of transportation, the Japan Freight and Logistics Market is segmented into road freight, rail freight, air freight, sea freight, and multimodal. The sea freight segment dominates the Japan Freight and Logistics Market. According to Seacon Logistics, a logistics chain director based in Germany, the sea route accounts for around 90% of Japan’s trade. The country’s geography plays a major role in boosting the growth of sea freight as it is an island country, consisting of four major islands and nearly 4,000 smaller islands.

Competitive Landscape

Major players operating in the Japan Freight and Logistics Market include Nippon Express, Yamato Holdings Co. Ltd, Mitsubishi Logistics Corporation, Sagawa Express Co., Ltd, YUSEN LOGISTICS CO., LTD, Kintetsu World Express, Schenker AG, FedEx Corporation, ANA HOLDINGS INC., and United Parcel Service of America, Inc. (UPS).

To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product and service launches.

Recent Developments

• In January 2024 – Accenture, a global IT major based in Ireland, and Mujin, a robotic solution provider based in Japan, formed a joint venture, to introduce AI and robots to the logistics and industrial sectors.

Scope of the Report

By End Use Industry

• Agriculture, Fishing & Forestry

• Construction

• Manufacturing

• Oil & Gas

• Mining & Quarrying

• Others (Wholesale & Retail Trade)

By Logistics Function

• Courier, Express & Parcel

• Freight Forwarding

• Warehousing & Storage

• Others (Freight Transport)

By Mode of Transportation

• Road Freight

• Rail Freight

• Air Freight

• Sea Freight

• Multimodal

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3.  Japan Freight and Logistics Market Insights
   1. End User Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing International Trade
         2. Rising Urbanization
         3. Increasing Investments in Infrastructure, such as ports, airports, Railways, and Roads
      2. Restraints
         1. Complex Regulatory Framework
         2. Cybersecurity Threats
         3. Fuel Price Volatility
      3. Opportunities
         1. E-commerce Sector Expansion
         2. Demand for Specialized Services
         3. Growing Healthcare Sector
      4. Challenges
         1. Skilled Labor Shortage
         2. Tariffs and Trade Conflicts
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Japan Freight and Logistics Market: Marketing Strategies
5. Japan Freight and Logistics Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share and Forecast
      1. By End Use Industry
         1. Agriculture, Fishing & Forestry
         2. Construction
         3. Manufacturing
         4. Oil and Gas, Mining & Quarrying
         5. Others (Wholesale & Retail Trade)
      2. By Logistics Function
         1. Courier, Express & Parcel
         2. Freight Forwarding
         3. Warehousing & Storage
         4. Others (Freight Transport)
      3. By Mode of Transportation
         1. Road Freight
         2. Rail Freight
         3. Air Freight
         4. Sea Freight
         5. Multimodal
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Japan Freight and Logistics Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Impact of Escalating Geopolitical Tensions on Japan Freight and Logistics Market
8. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
   1. Nippon Express
   2. Yamato Holdings Co. Ltd
   3. Mitsubishi Logistics Corporation
   4. Sagawa Express Co., Ltd
   5. YUSEN LOGISTICS CO., LTD
   6. Kintetsu World Express
   7. Schenker AG
   8. FedEx Corporation
   9. ANA HOLDINGS INC.
   10. United Parcel Service of America, Inc. (UPS)
   11. Other Prominent Players
9. Key Strategic Recommendations
10. Research Methodology
    1.    Qualitative Research
       1.  Primary & Secondary Research
    2.    Quantitative Research
    3.    Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.    Breakdown of Primary Research Respondents, By Region
    5.    Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Japan Freight and Logistics Segmentation

Figure 2       Japan Freight and Logistics Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Japan Freight and Logistics Market Size, By Value (USD Billion), 2019–2030

Figure 5       Japan Freight and Logistics Market Share, By End Use Industry, By Value (USD Billion), 2019–2030

Figure 6       Japan Freight and Logistics Market Share, By Logistics Function, By Value (USD Billion), 2019–2030

Figure 7       Japan Freight and Logistics Market Share, By Mode of Transportation, By Value (USD Billion), 2019–2030

List of Tables

Table 1        Japan Freight and Logistics Market Size, By Value (USD Billion), 2019–2030

Table 2        Japan Freight and Logistics Market Share, By End Use Industry, By Value (USD Billion), 2019–2030

Table 3        Japan Freight and Logistics Market Share, By Logistics Function, By Value (USD Billion), 2019–2030

Table 4        Japan Freight and Logistics Market Share, By Mode of Transportation, By Value (USD Billion), 2019–2030

Table 5        Nippon Express Company Overview

Table 6        Nippon Express Financial Overview

Table 7        Yamato Holdings Co. Ltd Company Overview

Table 8        Yamato Holdings Co. Ltd Financial Overview

Table 9        Mitsubishi Logistics Corporation Company Overview

Table 10      Mitsubishi Logistics Corporation Financial Overview

Table 11      Sagawa Express Co., Ltd Company Overview

Table 12      Sagawa Express Co., Ltd Financial Overview

Table 13      YUSEN LOGISTICS CO., LTD Company Overview

Table 14      YUSEN LOGISTICS CO., LTD Financial Overview

Table 15      Kintetsu World Express Company Overview

Table 16      Kintetsu World Express Financial Overview

Table 17      Schenker AG Company Overview

Table 18      Schenker AG Financial Overview

Table 19      FedEx Corporation Company Overview

Table 20      FedEx Corporation Financial Overview

Table 21      ANA HOLDINGS INC. Company Overview

Table 22      ANA HOLDINGS INC. Financial Overview

Table 23      United Parcel Service of America, Inc. (UPS) Company Overview

Table 24      United Parcel Service of America, Inc. (UPS) Financial Overview