Automation, Skilled Manpower and Increased Investments are the Keys to the Growth of Singapore Logistics & Warehousing Market: Ken Research
Posted on 31 August 2017 by KenResearch Automotive, Transportation and Warehousing,
Logistics & Warehousing market in the Singapore has witnessed tremendous growth supported by rising industrial activities, increasing government and private investment spending, thus collectively generating high demand for logistics partners in the Singapore.
Southeast Asia is the largest e-commerce market with smartphone penetration of more than 100%. Singapore has big potential as a thriving market for Omni-channel retailing, which in turn will result in demand for logistics partner with better capabilities to meet their requirements.
The Government is also planning to work with reputed local research institutions and universities to develop world-class capabilities in the logistics and supply chain management space. Implementation assistance will also be made available to enterprises that adopt impactful productive technologies that are new to Singapore or to the industry.
The country is experimenting with picking up parcels in an increasingly automated manner – through drones or even an underground system like a tube system. It is common to see an industry’s emphasis on automation and software such as fully automated warehouses, automatic pallet storage inside of warehouses and factories. Construction of new industrial hubs and warehouse space will lead to growth in industry’s capability to sustain its growth and to absorb the future requirements in a much efficient way.
For instance, targeted to be completed in 2019, JTC Logistics Hub at Gul, is the first high-rise multi-tenant facility co-locating Inland Container Depots (ICDs), warehouses and a heavy vehicle park. The new integrated development is set to improve operational efficiency and productivity for logistic companies, thereby improving the growth and transformation of the logistics industry. The report titled “Singapore Logistics and Warehousing Market Outlook to 2021- Freight Forwarding and Warehousing Sector to Support Future Growth” by Ken Research suggested the Singapore logistics industry will grow to over USD 35 billion by 2021. The freight forwarding market is forecasted to dominate the Singapore logistics market in the future. The market will be driven by expanding industrial activities, growing E-commerce industry, upcoming infrastructure in the country & continuous investment by the government in development of logistics infrastructure and consistent economic growth.
Ankur Gupta, Head Marketing & Communications