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)

The South Africa contract logistics market was valued at US$ 1,800.71 million in 2023 and is projected to reach US$ 2,787.43 million by 2031; the market is expected to register a CAGR of 5.6% during 2023–2031.

Analyst Perspective:

Major stakeholders in the South Africa contract logistics market ecosystem are technology providers, contract logistics service providers, end users, and aftermarket logistics. In contract logistics, the entire supply chain management constitutes many substantial aspects, such as mode of transportation, parcel picking and shipping process, warehouse management, and packaging infrastructures. Supply chain management further includes software such as contract management system, transportation management system (TMS), and warehouse management system (WMS). All different software required for managing diverse business functions is integrated with a common single platform for obtaining contract logistics services. DHL Group; DSV A/S; DB Schenker; DP World; Gulf Agency Company Ltd; CEVA Logistics; United Pharmaceutical Distributors (Clicks Group); GEODIS SA; Cargo Carriers Pty Ltd; and Value Logistics are among the major South Africa contract logistics market players. The companies are focusing on contract logistics services to cater to the requirements of end use industries such as aerospace, e-commerce, retail, automotive, industrial, pharmaceutical, healthcare, etc. The majority of the companies have been focusing on expanding their service range in remote locations and focusing on adopting green logistics to remain competitive in the market. For instance, in 2023, the contract logistics arm of DHL Group introduced DHL Supply Chain's Green Transport Policy, which became a part of the company's investment in decarbonized transport solutions. The continuous development and innovation in logistic services such as transportation, warehousing, distribution, packaging and processing, production logistics, and aftermarket services are anticipated to boost the South Africa contract logistics market growth.

Market Overview:

Contract logistics offer a wide range of services, from production to distribution and aftermarket services. The companies operating in the South Africa contract logistics market provide standardized warehousing, transport, and other value-added services to form a customized supply chain solution. For instance, the contract logistics services comprise planning, production activities, sourcing, packaging, aftermarket services, repairs, etc. Major contract logistics companies offer standardized solutions with the help of leading supply chain providers to meet the customer's expectations. The trend of outsourcing logistics and demand for value-added logistics services are expected to grow from 2023 to 2031. Moreover, the demand for supply chain services is expected to witness substantial growth in South Africa during the same period.

Gauteng province is one of the major hubs in South Africa for financial, transport, and manufacturing industries. This province is expected to become one of the most lucrative markets for contract logistics players, owing to the huge concentration of large industries. The Gauteng province accounts for approximately one-third of the GDP of South Africa. The Northern Cape and Northwest provinces are the other industrialized provinces of the South African economy. While mining and agriculture are the major sectors in the Northern Cape, mining is the largest industrial sector in the Northwest province. Gold, uranium, platinum, and diamonds are the prime minerals that are mined in the Northwest province. Durban, which lies in the KwaZulu Natal province, and Pretoria from the Gauteng province, are among the highly industrialized cities in South Africa. Cape Town, Johannesburg, and Pretoria are other important industrial hubs in the country, bolstering the South Africa contract logistics market share in global logistics market.

South Africa Contract Logistics MarketReport Scope

South Africa Contract Logistics Market Report Scope

The List of Companies - South Africa Contract Logistics Market 

1. Cargo Carriers (Pty) Limited
2. DHL Group
3. CEVA Logistics
4. DB Schenker
5. Gulf Agency Company Ltd (GAC)
6. DP World
7. United Pharmaceutical Distributors (Clicks Group)
8. Value Logistics
9. DSV A/S
10.  GEODIS SA.

• 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.
• Highlights key business priorities in order to assist companies to realign their business strategies
• The key findings and recommendations highlight crucial progressive industry trends in the South Africa contract logistics market, thereby allowing players across the value chain to develop effective long-term strategies
• Develop/modify business expansion plans by using substantial growth offering developed and emerging markets
• Scrutinize in-depth market trends and outlook coupled with the factors driving the market, as well as those hindering it.
• Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution