South Africa Contract Logistics Market Size and Forecast (2021 – 2031)
South Africa Contract Logistics Market Size and Forecast (2021 – 2031), Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Outsourcing and Insourcing), Services (Transportation, Warehousing, Distribution, Packaging Processes and Solutions, Production Logistics, Aftermarket Logistics, and Others), and End User (Aerospace, E-commerce and Retail, Automotive, Industrial, Pharmaceutical and Healthcare, and Others)
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Description
Moreover, factors such as the increase in the e-commerce sector growth rate and enhanced focus on supply chain risk management in uncertain political scenarios are projected to generate remarkable growth opportunities for the contract logistics industry players. After a slowdown in the real-estate prices since the mid of 2017, the real-estate market has displayed remarkable growth in the Gauteng province. Gauteng, being an economic powerhouse of South Africa, is attracting numerous international business executives. The lower interest rates in South Africa have favored the growth of the real estate market, which creates potential demand for contract logistics services for warehousing activities.
The South Africa contract logistics market is segmented on the basis of type, services, and end user. Based on type, the market is divided into insourcing and outsourcing. Furthermore, the outsourcing segment is the dominant segment as many companies are shifting to outsourcing logistics services. By services, the market is categorized into transportation, distribution, warehousing, packaging processes and solutions, production logistics, aftermarket logistics, and others. In terms of end user, the market is segmented into aerospace, e-commerce & retail, automotive, industrial, pharmaceutical & healthcare, and others. Furthermore, the e-commerce & retail segment dominated the market in 2023 and is also expected to maintain its dominance during the forecast period.
The South Africa contract logistics market analysis is carried out by identifying and evaluating key players in the market. Cargo Carriers (Pty) Limited, DHL Group, CEVA Logistics, DB Schenker, Gulf Agency Company Ltd (GAC), DP World, United Pharmaceutical Distributors (Clicks Group), Value Logistics, DSV A/S, and the GEODIS SA Ltd are among the key players analyzed in the South Africa contract logistics market report. The South Africa contract logistics market report also includes growth prospects in light of current South Africa contract logistics market trends and driving factors influencing the market growth.
The contract logistics service providers are focusing on aftermarket logistic services to remain competitive in the market. The product returning process, or reverse logistics, is a major part of the contract logistics process. Most of the contract logistics services include an assessment of the returned goods for any damage. An efficient reverse or aftermarket logistics process reduces the operational time in making unmanaged products available again.
Companies operating in the South Africa contract logistics market highly adopt inorganic strategies such as mergers and acquisitions. The market initiative is a strategy adopted by companies to expand their footprint across the world and to meet the growing customer demand. The players present in the market are mainly focusing on product and service enhancements by integrating advanced features and technologies into their offerings to increase their South Africa contract logistics market share.
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According to our latest study on “South Africa Contract Logistics Market Forecast to 2031 – Country Analysis – by Type, Services, and End User,” the market was valued at US$ 1,800.71 million in 2023 and is expected to reach US$ 2,787.43 million by 2031; it is anticipated to record a CAGR of 5.6% from 2023 to 2031. Apart from growth drivers, the report covers the South Africa contract logistics market trends and their foreseeable impact during the forecast period.
An increasing population drives the rapid growth of South Africa’s supply chain & logistics industry, which is projected to reach ~2.5 billion by 2050, according to the International Monitory Fund. Additionally, the growth of e-commerce platforms and digital technologies has increased the potential to transform the transportation of goods, making it convenient to track and deliver products over long distances. South Africa is a notable emerging economy; it is also the gateway to Sub-Saharan markets. In 2023, C&D Logistics signed the Intentional Cooperation Agreement with PG South Africa. Under the agreement, C&D Logistics is anticipated to strengthen cooperation with PG South Africa on nonferrous metal mineral products. This agreement is expanding the cooperation between the two parties and contributing to the economic and trade investment and support between South Africa and China, enabling a proper supply chain of mineral products. In 2023, HRMP Logistics planned to invest US$ 0.79 million to establish a new warehouse and distribution facility in the Dube Tradeport Special Economic Zone situated in Durban. In 2023, A. P. Moller–Maersk, a global integrator of logistics, opened its first warehousing & distribution facility in Cape Town, South Africa. This facility is anticipated to strengthen the company’s customer base in South Africa by connecting and streamlining its supply chains with comprehensive logistics solutions. Thus, the surge in activities in transportation and warehousing, as well as the growing consumer goods distribution network, is boosting the expansion of the logistics sector, which fuels the growth of the South Africa contract logistics market.
South Africa Contract Logistics Market Share — by Country, 2023
Source: The Research Team Analysis
The scope of the South Africa contract logistics market report includes country analysis. In South Africa, online retail sales were US$ 2.62 billion in 2022, which surpassed US$ 2.22 billion in 2021, propelled by the rise in demand for home deliveries. The emerging consumer preference for shopping online and changing consumer purchase patterns from physical shops to online stores and apps is a key factor supporting the growth of e-commerce facilities in South Africa. Also, there was an increase in cross-border e-commerce activities as consumers purchased products from international markets, excluding the South African market, and had items delivered locally using contract logistics services. Appeal and accessories, food and beverages, cosmetics and personal care products, medicines and drugs, books, and electronic appliances are major sourced items in South Africa using e-commerce facilities, which is bolstering the South Africa contract logistics market size. Moreover, in January 2024, there were ~45.34 million internet users in South Africa, and the country’s internet penetration rate reached ~74.7% of the total population at the beginning of 2024, which was ~72.3% in 2023. The growing internet penetration and changing consumer buying habits post-COVID-19 pandemic, from physical stores to online platforms, are positively impacting the e-commerce sector in South Africa.
The growing online activities such as appeal shopping, grocery shopping, business transactions, and transactions using online portals can lead to potential threats to data security posed by cybercrimes. Hence, the rise in cybercrimes has led the government of South Africa to mandate regulations in order to safeguard user’s critical information. For instance, The Electronic Communications and Transactions Act 2002 is the prime legislation that regulates and maintains e-commerce in South Africa, which is also streamlining the proper setup for e-commerce facilities.
Contract logistics are a contributor to the overall growth of the e-commerce sector by facilitating proper warehousing; inventory management; and product packing, tracking, shipping, and distributing. In the e-commerce sector, contract logistics providers facilitate efficiency, flexibility & scalability. In addition, the logistic services provided by the companies to e-commerce businesses are primarily focused on warehousing and distribution management, as well as managing reverse logistics and aftermarket services. Contract logistics service providers are dedicated to supply chain management, which allows online stores to focus more on marketing and other business operations, which is also increasing the proliferation of contract logistics services in South Africa. Thus, the rising e-commerce business activities are bolstering the South Africa contract logistics market size.
Major stakeholders in the South Africa contract logistics market ecosystem are technology providers, contract logistics service providers, end users, and aftermarket logistics. End users of contract logistics are aerospace, e-commerce, retail, automotive, industrial, pharmaceutical, healthcare, and others. The growing demand for e-commerce services and development in the retail and industrial sectors are among the major factors fueling the South Africa contract logistics market growth. For instance, in South Africa, online retail sales were recorded to be US$ 2.62 billion in 2022, which surpassed the figure of US$ 2.22 billion in 2021, propelled by the rise in demand for home deliveries. The emerging consumer preference for shopping online and changing consumer purchase patterns, from physical shops to online stores and apps, which is anticipated to boost the growth of e-commerce facilities in South Africa in the coming years.
The South Africa contract logistics market analysis is based on type, services, and end user. Contract logistics services include the storage and movement of goods to different locations from the point of origin supplier to the intermediate, ultimately reaching end users. Based on services, outsourcing is projected to hold a significant South Africa contract logistics market share by 2030. The contract logistic service providers majorly focus on the transportation of goods by different modes and warehousing. The companies offer services to an extensive range of industries by providing innovative solutions and high value for money to their customers. The highly used outsourced services include warehousing, transportation, freight forwarding, and customs brokerage, along with several value-added services such as packaging, cross-docking, and shipment consolidation. Based on service, the market is segmented into transportation, distribution, warehousing, packaging processes and solutions, production logistics, aftermarket logistics, and others.
The South Africa contract logistics market is a moderately consolidated market with the presence of well-established and industry-recognized players as well as emerging or private players. The South Africa contract logistics market players compete with each other on various parameters such as cost, time, aftermarket services, additional services related to product delivery, shipping lead time, and number of distributors, among others. All these parameters boost the competitiveness among the market players and are anticipated to keep a prominent level of competitive rivalry among the contract logistics service providers. Cargo Carriers (Pty) Limited, DHL Group, CEVA Logistics, DB Schenker, Gulf Agency Company Ltd (GAC), DP World, United Pharmaceutical Distributors (Clicks Group), Value Logistics, DSV A/S, and the GEODIS SA Ltd are among the key players profiled in the South Africa contract logistics market report. The companies implement both organic (such as product launches, expansion, and product approvals) and inorganic (such as collaborations and partnerships) strategies to stay competitive in the market.
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o Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the South Africa contract logistics market.
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TABLE OF CONTENTS
1.2 Market Segmentation
2. Executive Summary
2.1 Key Insights
2.2 Market Attractiveness, By Services
3. Research Methodology
3.1 Coverage
3.2 Secondary Research
3.3 Primary Research
4. South Africa Contract Logistics Market Landscape
4.1 Overview
4.2 Porter’s Five Forces Analysis
4.2.1 Bargaining Power of Buyers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat to New Entrants
4.2.4 Threat to Substitutes
4.2.5 Competitive Rivalry
4.3 Ecosystem Analysis
4.3.1 Technology Providers
4.3.2 Contract Logistics Service Providers
4.3.3 End User
4.3.4 Aftermarket Logistics
4.3.5 List of Vendors in the Value Chain
5. South Africa Contract Logistics Market – Key Market Dynamics
5.1 South Africa Contract Logistics Market – Key Market Dynamics
5.2 Market Drivers
5.2.1 Positive Outlook of the Manufacturing Sector
5.2.2 Growing Expansion of the Logistics Sector
5.2.3 Rising E-commerce Business Activities
5.3 Market Restraints
5.3.1 Lack of Adequate Infrastructure Development
5.4 Market Opportunities
5.4.1 Increasing Adoption of Sustainable Solutions
5.5 Future Trends
5.5.1 Implementation of AI and Cloud-based Software and Process Automation
5.6 Impact of Drivers and Restraints:
6. South Africa Contract Logistics Market Analysis
6.1 South Africa Contract Logistics Market Revenue (US$ Million), 2023–2031
6.2 South Africa Contract Logistics Market Forecast and Analysis
7. South Africa Contract Logistics Market Analysis – by Type
7.1 Outsourcing
7.1.1 Overview
7.1.2 Outsourcing: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
7.2 Insourcing
7.2.1 Overview
7.2.2 Insourcing: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
8. South Africa Contract Logistics Market Analysis – by Services
8.1 Transportation
8.1.1 Overview
8.1.2 Transportation: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
8.2 Warehousing
8.2.1 Overview
8.2.2 Warehousing: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
8.3 Distribution
8.3.1 Overview
8.3.2 Distribution: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
8.4 Packaging Processes and Solutions
8.4.1 Overview
8.4.2 Packaging Processes and Solutions: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
8.5 Production Logistics
8.5.1 Overview
8.5.2 Production Logistics: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
8.6 Aftermarket Logistics
8.6.1 Overview
8.6.2 Aftermarket Logistics: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
8.7 Others
8.7.1 Overview
8.7.2 Others: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
9. South Africa Contract Logistics Market Analysis – by End-user
9.1 Aerospace
9.1.1 Overview
9.1.2 Aerospace: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
9.2 E-Commerce and Retail
9.2.1 Overview
9.2.2 E-Commerce and Retail: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
9.3 Automotive
9.3.1 Overview
9.3.2 Automotive: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
9.4 Industrial
9.4.1 Overview
9.4.2 Industrial: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
9.5 Pharmaceutical and Healthcare
9.5.1 Overview
9.5.2 Pharmaceutical and Healthcare: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
9.6 Others
9.6.1 Overview
9.6.2 Others: South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
10. Competitive Landscape
10.1 Heat Map Analysis by Key Players
10.2 Company Positioning and Concentration
10.3 South Africa Company Market Share Analysis
11. Industry Landscape
11.1 Overview
11.2 Market Initiative
11.3 Mergers & Acquisitions
12. Company Profiles
12.1 Deutsche Post AG
12.1.1 Key Facts
12.1.2 Business Description
12.1.3 Products and Services
12.1.4 Financial Overview
12.1.5 SWOT Analysis
12.1.6 Key Developments
12.2 CEVA Logistics AG
12.2.1 Key Facts
12.2.2 Business Description
12.2.3 Products and Services
12.2.4 Financial Overview
12.2.5 SWOT Analysis
12.2.6 Key Developments
12.3 DB Schenker
12.3.1 Key Facts
12.3.2 Business Description
12.3.3 Products and Services
12.3.4 Financial Overview
12.3.5 SWOT Analysis
12.3.6 Key Developments
12.4 DP World Ltd
12.4.1 Key Facts
12.4.2 Business Description
12.4.3 Products and Services
12.4.4 Financial Overview
12.4.5 SWOT Analysis
12.4.6 Key Developments
12.5 DSV A/S
12.5.1 Key Facts
12.5.2 Business Description
12.5.3 Products and Services
12.5.4 Financial Overview
12.5.5 SWOT Analysis
12.5.6 Key Developments
12.6 Cargo Carriers (Pty) Limited
12.6.1 Key Facts
12.6.2 Business Description
12.6.3 Products and Services
12.6.4 Financial Overview
12.6.5 SWOT Analysis
12.6.6 Key Developments
12.7 Value Group (Pty) Ltd
12.7.1 Key Facts
12.7.2 Business Description
12.7.3 Products and Services
12.7.4 Financial Overview
12.7.5 SWOT Analysis
12.7.6 Key Developments
12.8 GAC Group (Holdings) Ltd
12.8.1 Key Facts
12.8.2 Business Description
12.8.3 Products and Services
12.8.4 Financial Overview
12.8.5 SWOT Analysis
12.8.6 Key Developments
12.9 GEODIS SA
12.9.1 Key Facts
12.9.2 Business Description
12.9.3 Products and Services
12.9.4 Financial Overview
12.9.5 SWOT Analysis
12.9.6 Key Developments
12.10 United Pharmaceutical Distributors (UPD)
12.10.1 Key Facts
12.10.2 Business Description
12.10.3 Products and Services
12.10.4 Financial Overview
12.10.5 SWOT Analysis
12.10.6 Key Developments
13. Appendix
13.1 About The Research Team
LIST OF TABLES
Table 2. List of Vendors
Table 3. South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million)
Table 4. South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million) – by Type
Table 5. South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million) – by Services
Table 6. South Africa Contract Logistics Market – Revenue and Forecast to 2031 (US$ Million) – by End-user
LIST OF FIGURES
Figure 2. South Africa Contract Logistics Market-Porter’s Five Forces Analysis
Figure 3. South Africa Contract Logistics Market- Ecosystem Analysis
Figure 4. Impact Analysis of Drivers and Restraints
Figure 5. South Africa Contract Logistics Market Revenue (US$ Million), 2023–2031
Figure 6. South Africa Contract Logistics Market Share (%) – by Type, 2023 and 2031
Figure 7. Outsourcing: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 8. Insourcing: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 9. South Africa Contract Logistics Market Share (%) – by Services, 2023 and 2031
Figure 10. Transportation: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 11. Warehousing: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 12. Distribution: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 13. Packaging Processes and Solutions: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 14. Production Logistics: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 15. Aftermarket Logistics: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 16. Others: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 17. South Africa Contract Logistics Market Share (%) – by End-user, 2023 and 2031
Figure 18. Aerospace: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 19. E-Commerce and Retail: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 20. Automotive: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 21. Industrial: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 22. Pharmaceutical and Healthcare: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 23. Others: South Africa Contract Logistics Market– Revenue and Forecast to 2031 (US$ Million)
Figure 24. Heat Map Analysis by Key Players
Figure 25. Company Positioning and Concentration
Figure 26. Company Market Share Analysis, 2022
The List of Companies – South Africa Contract Logistics Market
o Cargo Carriers (Pty) Limited
o DHL Group
o CEVA Logistics
o DB Schenker
o Gulf Agency Company Ltd (GAC)
o DP World
o United Pharmaceutical Distributors (Clicks Group)
o Value Logistics
o DSV A/S
o GEODIS SA.
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