South Korea E-commerce Logistics Market is expected to generate $16.4 Bn by 2026F driven by increasing internet penetration and improved logistics services among the players: Ken Research
GURUGRAM, India, Jan. 11, 2023 /PRNewswire/ -- South Korea E-commerce Logistics Market is at growing stage and has moderately fragmented market with about more than 100 domestic and international players operating in e-commerce logistics market. CJ Logistics have greater coverage in comparison to other logistics companies and provides integrated transportation and logistics services to individuals and companies in South Korea. Naver, Auction and G-market are the major Consumer to Consumer (C2C) platforms in South Korea E-commerce market.
- In the coming years, higher smartphones penetration rate, better internet connectivity as well as vision 2030 of South Korea will play an important role in increasing the reach of E-commerce.
- Updated Technology such as Live Tracking, Automation, WhatsApp Bots, AI Systems, IoT, Telematics will be a major trend used by e-com logistics players.
- It is expected that the growing e-commerce sector will create opportunities in intracity logistics eventually since South Korea has a well-developed transportation system. So, the orders can be delivered easily from one place to another.
Busy Consumer Lifestyle & Preference towards Online Orders: Busy consumer lifestyle where both partners are working mostly prefers online shopping rather than wasting time hopping from store to store to buy different products. Online retailers have made it effective to purchase all their needs from a single platform, which saves a lot of time for consumers. Imposed social distancing measures and curfews caused a mass switch to online shopping. The outbreak of COVID-19 has pushed most of the retailers to move to offline to online (O2O) methods of sale. E-Com logistics players started partnering with healthcare & grocery establishments to provide timely provision of necessary products as they had strong network capabilities.
Electronic Vehicles & Delivery Drones and Artificial Intelligence: Over a period of time, the invention of electric vehicles is expected to lead to a greener delivery system that is environmentally friendly. Logistics companies are adopting the electric vehicle trend for their logistics needs because they are cost-effective, lightweight, and environmentally friendly. Also, future is promising with drone deliveries and artificial intelligence with automated delivery systems or the ability to deliver in tough terrain.
Technological Advancements and Infrastructure Development: Technological Advancements helps to improve and enhance supply chain transparency and security leading to improved cost efficiency. Whereas expansion of logistics infrastructure such as intermodal connectivity, logistics parks and ports help create business opportunities.
Same Day Delivery & Offering discount and price schemes: Switching to same-day delivery is a significant boost to online business performance and gives significant competitive advantage over competitors and improves customer experience. Also, if the price is too high, it may result in the abandonment of the basket. However, it can be overcome by offering discounts and price schemes to consumers so they do not feel the burden of the price.
Analysts at Ken Research in their latest publication "South Korea E-commerce Logistics Market Outlook to 2026F- Driven by Growth in Online Shoppers along with Introduction of New Age Technologies by Logistics Players" by Ken Research observed that E-Commerce Logistic market is an emergent Logistic market in South Korea at a growing stage from the economic crisis after pandemic. The Merger, acquisition and key investment, increase in number of warehouses along with Online shoppers buying behavior is expected to contribute to the market growth over the forecast period. The market is expected to grow at a 4.7% CAGR during 2021-2026F owing to rising demand of same day delivery and favorable government regulations for South Korea e-commerce logistics market.
Key Segments Covered in the report:
South Korea E-Commerce Logistics Market
By Delivery Period (By number of shipments in %), 2021 & 2026F
- Same Day
- 1 -2 Days
- 2-4 Days
- More than 4 days
By Volumetric Weight (By number of shipments in %), 2021 & 2026F
- KG
- 1-2 KG
- 2-5 KG
- 5-10 KG
- Greater than 10 KG
By Types of Shipment (By number of shipments in %), 2021 & 2026F
- Domestic Shipments
- International Shipments
By Delivery area (By number of shipments in %), 2021 & 2026F
- Intercity
- Interacity
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By Mode of Shipment (By number of shipments in %), 2021 & 2026F
- Ground
- Air
- Water
By Online Sales (By number of shipments in %), 2021 & 2026F
- Mobile
- Desktop
By Types of Company (By number of shipments in %), 2021 & 2026F
- 3PL
- Captive
By Type of Commerce (By number of shipments in %), 2021
- B2C Commerce
- B2B Commerce
By Modes of Payment (By number of shipments in %), 2021 & 2026F
- Prepaid (Credit Cards, etc.)
- Cash on Delivery (COD)
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By Accepted & Returned Products (By number of shipments in %), 2021
- For Prepaid, Accepted Products
- For Prepaid, Returned Products
By Modes of Payment (By number of shipments in %), 2021 & 2026F
- E-wallet (Kakao pay, Naver Pay,Samsung Pay,Toss,Payco etc.)
- Local cards
- Bank transfer (direct & virtual)
- International Cards (VISA, Master, Amex, Union Pay)
- Cash on Delivery
- Other (phone carrier billing, e.g., SKT, KT, LG U+, etc.)
By Product Category (By number of shipments in %), 2021 & 2026F
- Food and Beverages products
- Food delivery
- Home appliances/electronics/communication devices
- Travel and transportation services
- Household goods
- Others
Key Target Audience
- E-Commerce Companies aiming to establish in USA
- USA E-Commerce logistics industries
- Government Bodies & Regulating Authorities
- E-Commerce Industry
- Logistics industry
- Shipping company
- Warehousing Companies
- E-Commerce users
- Industry Associations
Time Period Captured in the Report:
- Historical Period: 2018-2021
- Base Period: 2021
- Forecast Period: 2021-2026F
Companies Covered:
- CJ Logistics (NAVER)
- Coupang
- Wemakeprice
- Mesh Korea
- Lotte Global Logistics Center
- Hanjin
- Pantos
- Sebang
Key Topics Covered in the Report:
- South Korea E-commerce Market Overview
- South Korea E-commerce Logistics Market Overview
- Business Cycle and Genesis of South Korea E-commerce Logistics Market
- Value Chain of South Korea E-commerce Logistics Market
- Ecosystem: South Korea E-commerce Logistics Market
- Timeline of South Korea E-commerce Logistics Market
- South Korea E-commerce Logistics Market Size
- South Korea E-Commerce Logistics Market Segmentation
- Overview of E-commerce Warehousing Sector in South Korea
- Government Initiatives and Bodies
- SWOT Analysis of South Korea E-commerce Logistics Market
- Growth Drivers of South Korea E-commerce Logistics Market
- Challenges of South Korea E-commerce Logistics Market
- Key Trends in South Korea E-commerce Logistics Market
- End User Analysis
- Covid-19 Impact on the South Korea E-Commerce Logistics Market
- Future Outlook to South Korea E-Commerce Logistics Market
- Competition Analysis: Market Share of E-Commerce Logistics Players in South Korea
- Cross Comparison of Major E-Commerce Players
- Cross Comparison of Major Logistics Players
- Analyst Recommendation
For more insights on the market intelligence, refer to the link below:
South Korea E-commerce Logistics Market
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KSA is a highly developed country in terms of internet penetration of 98% in 2021. KSA internet infrastructure, youthful, tech-savvy population and rising mobile/broadband penetration rates all point to strong potential for the country's e-commerce market. KSA E-commerce Logistics market has been observed in its growth stages of development, thus growing year on year majorly due to improving fulfillment rate and high demand for faster delivery, coupled with increase in the number of online orders. Expansion in internet services coupled with increasing demand for online logistics services have collectively given a boost to development of E-commerce shipments industry in KSA. Updated Technology such as Live Tracking, Automation, Whatsapp Bots, AI Systems, IoT, Telematics are used by e-commerce logistics players.
Australia Ecommerce Logistics Market is Expected to grow with a high CAGR, between 2021-2026F, one of the major determinants for the surging growth in the coming years is the Growing Count of Logistics Startup, Burgeoning Demand for Last-mile Delivery Service, Trucking Services through Online Marketplace, Rising Demand of Door-to-door Parcel Pickup & Delivery Services and the augmenting use of EVs for Transportation. Higher digitization and the usage of Artificial Intelligence and Machine Learning is making easier and helping in assessing the different possibilities of E-Commerce Logistics Market, and others areas, such as Drop Shipping, Quick commerce, sustainable packaging material etc, which has flourished the Australia Ecommerce Logistics Market.
The USA E-Commerce Logistics Market witnessed significant growth during the period 2019-2021, owing to rising per capita incomes and increasing access to foreign brands are favouring cross-border e-commerce. One of the features of same-day delivery option used by competition has boosted revenue in recent years. 24 percent of U.S. online shoppers opted for same-day delivery for purchases from pure online merchants in 2020. As of February 2021, the percentage increased to 36 percent. The growth rate is expected to remain significant during the forecast period.
Germany's E-Commerce Logistics market was evaluated to grow at a double-digit CAGR during 2017-2021.The market is currently in the growth stage owing to the rising popularity of online platforms and increasing awareness amongst the population along with increasing government initiatives and investments in the sector. Correspondingly, the market is driven by a large number of E-Commerce websites available to the population. The increase in smartphone and social media penetration rates along with social media platforms such as Instagram, Facebook, and YouTube are also major drivers for growth. Also, innovative technologies are being introduced in B2C services, driving growth in the market. These technologies ensure growth in terms of competitiveness and better customer services which is driving the E-Commerce logistics in Germany.
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