Report Overview

Strategic infrastructure development, e-commerce expansion, rising manufacturing activities, government initiatives, and adoption of digital technologies are expected to drive Thailand Freight and Logistics Market during the forecast period between 2025 and 2031.

Thailand Freight and Logistics Market – Industry Trends & Forecast Report, 2031

Thailand Freight and Logistics Market size was estimated at USD 55.29 billion in 2024. During the forecast period between 2025 and 2031, Thailand Freight and Logistics Market size is projected to grow at a CAGR of 7.23% reaching a value of USD 90.13 billion by 2031. Strategic infrastructure development, including projects like the Eastern Economic Corridor, enhances connectivity and trade efficiency. The rapid expansion of e-commerce drives demand for last-mile delivery and logistics solutions. Rising manufacturing activities, particularly in sectors like automotive and electronics, boost freight volumes. Government initiatives, such as investments in transportation networks, further strengthen the logistics ecosystem. Additionally, the adoption of digital technologies, including automation and real-time tracking, improves operational efficiency and supply chain management, contributing to the market's growth.

Freight and Logistics – Overview

Freight and logistics underpin global trade by ensuring seamless movement of goods through diverse modes like road, rail, air, and sea. This sector encompasses freight forwarding, warehousing, and last-mile delivery, serving industries such as manufacturing, retail, and agriculture. Key growth factors include technological advancements, e-commerce expansion, and infrastructure development. However, challenges like traffic congestion, high costs, and workforce limitations persist. Despite these hurdles, opportunities in digital transformation and green logistics are paving the way for sustainable and efficient supply chain solutions.

Thailand Freight and Logistics Market

Growth Drivers

Expanding E-commerce Sector

The rapid growth of e-commerce is transforming Thailand Freight and Logistics Market. Further deepening of internet penetration and mobile connectivity have driven online shopping, boosting demand for efficient logistics solutions, including last-mile delivery and reverse logistics. The rise of digital payment systems and mobile wallets further supports the trend. Additionally, the expansion of online marketplaces and consumer preference for convenience are creating opportunities for logistics providers to innovate and scale operations, making e-commerce a key growth driver in Thailand Freight and Logistics Market.

Challenges

Regulatory Complexities

The expansion of Thailand Freight and Logistics Market faces challenges, due to complex regulatory frameworks and inconsistent enforcement of policies. The complexities create barriers for both domestic and international logistics providers, leading to delays in customs clearance and increased operational costs. The lack of standardized procedures across regions further complicates compliance, affecting supply chain efficiency. Addressing these issues requires streamlining regulations, enhancing transparency, and fostering collaboration between government agencies and industry stakeholders to create a more competitive and efficient logistics environment.

Impact of Escalating Geopolitical Tensions on Thailand Freight and Logistics Market

Escalating geopolitical tensions could disrupt the growth of Thailand Freight and Logistics Market by increasing shipping costs and rerouting trade routes. Conflicts in oil-rich regions lead to fuel price volatility, raising operational expenses. Security concerns elevate insurance premiums, adding financial strain on logistics providers. Additionally, geopolitical instability impacts Thailand's warehousing market, slowing growth and reducing occupancy rates. These challenges hinder supply chain efficiency and trade flow, affecting Thailand's position as a regional logistics hub. However, opportunities exist in diversifying trade partnerships and adopting resilient strategies to mitigate the adverse effects of geopolitical tensions.

Thailand Freight and Logistics Market

Segmental Coverage

Thailand Freight and Logistics Market – By Logistics Function

By logistics function, Thailand Freight and Logistics Market is divided into Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing, and Storage segments. The freight transport segment is the largest logistics function in Thailand Freight and Logistics Market, due to the extensive movement of goods across domestic and international routes, supported by Thailand's strategic location as a logistics hub in Southeast Asia. Freight transport encompasses road, rail, air, and sea modes, catering to diverse industries such as manufacturing, retail, and agriculture. The segment benefits from significant infrastructure investments, including the Eastern Economic Corridor (EEC) project, which enhances connectivity and trade efficiency. Additionally, the growing demand for efficient supply chain solutions and cross-border trade further solidifies Freight Transport as the leading segment.

Thailand Freight and Logistics Market – By End User

Based on end user, Thailand Freight and Logistics Market is divided into Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil & Gas, Mining & Quarrying, and Wholesale & Retail Trade segments. The wholesale & retail trade segment is the largest end user in Thailand Freight and Logistics Market. The segment dominates due to the high volume of goods transported to support Thailand's thriving retail sector and consumer demand. The rapid growth of e-commerce has further amplified the need for efficient logistics services, including last-mile delivery and inventory management. Wholesale and retail trade benefit from advancements in transportation infrastructure and supply chain technologies, ensuring timely delivery and cost efficiency. Additionally, Thailand's strategic location as a trade hub facilitates the movement of goods, making Wholesale and Retail Trade the leading segment in the market.

Thailand Freight and Logistics Market – By Mode of Transport

Thailand Freight and Logistics Market by mode of transport is divided into Road, Rail, Air, and Sea segments. The road transport segment is the largest mode of transport in Thailand Freight and Logistics Market, due to the country's extensive road network, which facilitates the movement of goods across urban and rural areas. Road transport is crucial for domestic logistics, supporting industries like retail, agriculture, and manufacturing. It is also integral to last-mile delivery, especially with the rise of e-commerce. Additionally, road transport benefits from ongoing infrastructure development projects, such as highway expansions and connectivity improvements under the Eastern Economic Corridor (EEC) initiative. These factors make road transport the leading segment in Thailand Freight and Logistics Market.

Competitive Landscape

Major companies operating in Thailand Freight and Logistics Market include CEVA Logistics, DB Schenker, Nippon Express, Expeditors, Yusen Logistics, FedEx Corporation, DHL Group, Kuehne + Nagel, Bolloré Logistics, UPS Supply Chain Solutions, and Agility Logistics. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Logistics Function

• Courier, Express, and Parcel (CEP)

• Freight Forwarding

• Freight Transport

• Warehousing & Storage

By End User

• Agriculture, Fishing, and Forestry

• Construction

• Manufacturing

• Oil & Gas

• Mining & Quarrying

• Wholesale & Retail Trade

By Mode of Transport

• Road

• Rail

• Air

• Sea