Market Trends of asean cross border road freight transport Industry
This section covers the major market trends shaping the ASEAN Cross Border Road Freight Transport Market according to our research experts:
Manufacturing is the largest segment by End User.
- During the historical period (2016-2021), the ASEAN cross-border road freight market registered a CAGR of 2.78%, with the construction segment registering the highest CAGR of 3.15%, followed by the other end users segment (2.92%). Due to the resumption of public construction projects, the construction sector in ASEAN countries witnessed growth in 2021. The Philippines' and Singapore's construction sectors experienced a growth of 16.8% and 66%, respectively, in the third quarter of 2021. Strong growth was experienced in both the public and private sectors advanced after the slow resumption of construction activities after pandemic restrictions.
- Similarly, the other end users segment also experienced growth as Vietnam's drug imports increased by 21% YoY in 2021, while imported raw materials for domestic drug production increased by only 3% in the same period. Furthermore, the total pharmaceutical revenue in Vietnam increased by 7% in the first quarter of 2022 over the same period last year, with the revenue from the pharmacy channel increasing by 23% YoY and revenue from the hospital channel decreasing by 5% YoY. In addition, despite the country's COVID-19 predicament, the pharmaceutical sector in Thailand grew by 2.5% in 2021.
- During the forecast period, the ASEAN cross-border road freight is expected to witness growth, with the construction segment and the other end users segment estimated to experience the highest CAGR. The construction sector in the ASEAN region is anticipated to grow between 2023 to 2028, with an increase in contracts worth billions of dollars. Furthermore, Singapore is being used by foreign investors as a platform to enter the rapidly growing ASEAN healthcare industries. In addition, the healthcare market in Singapore is anticipated to reach USD 49.4 billion by 2029.
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Indonesia is the largest segment by Country.
- During the historical period (2016-2021), the ASEAN cross-border road freight market registered a CAGR of 2.78%, with Vietnam registering the highest CAGR of 4.22%, followed by Malaysia (4.01%). In Southeast Asia and Vietnam, cross-border shopping is booming, creating new market opportunities for local companies and enabling consumers to access a wide variety of goods. Vietnam currently holds 15% of Southeast Asia's overall internet retail market, second only to Thailand (16%) and equal to the Philippines (15%).
- Cross-border business opportunities are visible at shipping companies such as Ninja Van. Especially throughout the last 12 months, the company has delivered 2 million orders daily in the ASEAN region, with a coverage density of 100%. Cross-border e-commerce is expanding, giving firms the drive to operate globally and across numerous nations. As a result, top transportation companies are pushing hard to prepare for the region's cross-border economic operations.
- Implementing the ASEAN Customs Transit System (ACTS) has been one of the most significant developments in the road freight sector in the last year. The ASEAN community's aims of doubling intra-ASEAN trade between 2017 and 2025 and cutting trade transaction costs by 10% in three years from 2017 were considered when the ACTS was developed and launched in 2020 in Cambodia, Laos, Malaysia, Singapore, Thailand, and Vietnam. Furthermore, the ACTS is expected to strengthen cross-border road freight in ASEAN during the forecast period.
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