Taiwan Logistics and Warehousing Market Outlook to 2029

The report titled “Taiwan Logistics and Warehousing Market Outlook to 2029 – By Mode of Transport, By Type of Services, By End-User Industry, By Region, and By Type of Warehousing” provides a comprehensive analysis of the logistics and warehousing industry in Taiwan. The report covers an overview and genesis of the industry, overall market size in terms of revenue, market segmentation; trends and developments, regulatory landscape, customer level profiling, issues and challenges, and comparative landscape including competition scenario, cross comparison, opportunities and bottlenecks, and company profiling of major players in the Taiwan logistics and warehousing market. The report concludes with future market projections based on revenue by segment, transport type, region, and success case studies highlighting the major opportunities and cautions.

Taiwan Logistics and Warehousing Market Overview and Size

The Taiwan logistics and warehousing market was valued at TWD 280 Billion in 2023, driven by the country's strategic geographic location, booming e-commerce sector, and robust industrial base. The market is shaped by key players such as Kerry TJ Logistics, Dimerco Express, HCT Logistics, Evergreen Logistics, and Yamato Transport. These companies are known for their integrated logistics solutions, expansive warehouse networks, and investment in automation and digitalization.

In 2023, Kerry TJ Logistics expanded its smart warehouse capacity in Taoyuan to cater to growing demand from the FMCG and electronics sectors. Taipei, Taichung, and Kaohsiung remain critical logistics hubs due to their port access, infrastructure, and dense industrial clusters.

Market Size for Taiwan Logistics and Warehousing Industry on the Basis of Revenue in USD Billion, 2018-2024

What Factors are Leading to the Growth of Taiwan Logistics and Warehousing Market:

• E-commerce Boom: The exponential growth of e-commerce has led to increased demand for efficient last-mile delivery and real-time inventory management. In 2023, Taiwan recorded over 380 million online shopping transactions, creating a significant need for warehousing and logistics support across urban and semi-urban regions.

• Government Investment in Infrastructure: Taiwan’s government has invested over TWD 200 billion in transportation infrastructure improvements under the Forward-looking Infrastructure Development Program. Upgrades to port facilities, highways, and rail freight lines have enhanced overall logistics efficiency.

• Smart Warehousing Adoption: Rising labor costs and the need for accuracy have led to the widespread adoption of smart warehousing solutions. Technologies like automated guided vehicles (AGVs), warehouse management systems (WMS), and IoT tracking are increasingly deployed by top logistics providers.

Which Industry Challenges Have Impacted the Growth for Taiwan Logistics and Warehousing Market

• Rising Operational Costs: Taiwan’s logistics sector faces increasing costs related to fuel, labor, and facility rentals. In 2023, warehouse rental prices in Taipei and Taoyuan surged by 9–12%, squeezing profit margins for logistics service providers. Fuel prices also remained volatile, contributing to an overall 7% increase in transportation costs year-over-year.

• Labor Shortage and Aging Workforce: The logistics industry in Taiwan is experiencing a talent crunch, particularly for warehouse operators, drivers, and skilled IT staff. With over 33% of the logistics workforce aged above 50, the industry is at risk of long-term labor shortages unless automation and workforce reskilling efforts are accelerated.

• Limited Land Availability for Warehousing: Due to Taiwan's dense urban planning and mountainous terrain, land for new warehousing infrastructure is scarce, especially near key logistics hubs like Taipei and Kaohsiung. In 2023, industrial land vacancy rates in prime logistics zones were under 2.5%, severely restricting expansion capacity.

What are the Regulations and Initiatives Which Have Governed the Market

• Green Logistics Initiatives: Taiwan’s Ministry of Transportation and Communications (MOTC) has launched several sustainability mandates, including fuel efficiency benchmarks and carbon reduction targets for logistics fleets. As of 2023, over 28% of logistics providers in Taiwan had begun integrating electric delivery vehicles or low-emission solutions into their operations.

• Free Trade Zone (FTZ) Reforms: Recent reforms in FTZ policies aim to ease customs procedures and reduce turnaround time for transshipment goods. As of 2023, goods processed through FTZs enjoyed an average customs clearance time of under 6 hours, improving Taiwan's competitiveness as a regional hub.

• Warehousing Safety and Compliance Codes: The Taiwan Occupational Safety and Health Administration (OSHA) mandates rigorous warehouse safety standards covering fire prevention, worker protection, and automation system integrity. In 2022, OSHA audits led to temporary closures of 3.4% of warehouses due to non-compliance, pushing operators toward stricter safety adherence.

Taiwan Logistics and Warehousing Market Segmentation

• By Market Structure: The logistics market in Taiwan is predominantly organized, with large integrated logistics players managing end-to-end supply chains for major industries including electronics, FMCG, and pharmaceuticals. These players offer superior infrastructure, digital tools for real-time tracking, and compliance with global standards. However, the unorganized segment—comprising small-scale trucking, storage operators, and local courier services—continues to serve last-mile and rural delivery needs. Their low-cost operations and local familiarity make them relevant in Tier 2 and Tier 3 cities.

• By End-User Industry: The electronics and semiconductor sectors dominate logistics demand due to Taiwan’s strong manufacturing base in these industries. Timely and precise delivery is critical, driving demand for high-reliability logistics partners. E-commerce follows closely, supported by rising online shopping volumes and increasing consumer expectations for fast, low-cost delivery. The FMCG and healthcare sectors also represent growing demand verticals, relying on temperature-controlled and just-in-time logistics solutions.

• By Type of Warehousing: General warehousing continues to hold the largest share, serving retail, consumer goods, and basic industrial storage needs. However, cold storage and bonded warehousing are rapidly expanding segments. With Taiwan’s growing pharmaceutical exports and fresh food imports, temperature-controlled warehousing has seen a CAGR of 11% from 2018 to 2023. Bonded warehouses are also key for transshipment and re-export activities.

Competitive Landscape in Taiwan Logistics and Warehousing Market

The Taiwan logistics and warehousing market is moderately concentrated, with a mix of established multinational players and regional logistics firms. The market is seeing growing competition due to technological advancements and increased demand for customized logistics solutions. Major players such as Kerry TJ Logistics, Dimerco Express, HCT Logistics, Evergreen Logistics, Yamato Transport, and Chi Lin Technology are actively expanding their service portfolios and digital capabilities to gain a competitive edge.

Some of the recent competitor trends and key information about competitors include:

• Kerry TJ Logistics: One of the leading logistics providers in Taiwan, Kerry TJ Logistics expanded its smart warehousing facilities in northern Taiwan in 2023 to support rising demand from electronics and FMCG sectors. The firm also launched AI-powered warehouse management systems (WMS) to enhance real-time inventory tracking.

• Dimerco Express: A key player in international freight forwarding, Dimerco achieved 18% year-on-year growth in cross-border logistics in 2023, particularly serving semiconductor and high-tech exports. The company also enhanced its air-sea transport integration model to improve supply chain agility.

• HCT Logistics: Focused on B2C and last-mile delivery services, HCT Logistics introduced electric delivery vans across metropolitan routes in 2023. The company now operates over 200 eco-friendly vehicles and reported a 14% reduction in delivery times through optimized route planning.

• Evergreen Logistics: A subsidiary of Evergreen Group, it specializes in sea freight and containerized logistics. In 2023, it opened a new bonded warehouse near the Port of Kaohsiung to support transshipment and re-export activities, contributing to a 22% increase in regional shipments.

• Yamato Transport Taiwan: Known for its strong last-mile delivery services, Yamato launched temperature-controlled logistics for pharma and fresh food sectors in 2023. The company has rapidly expanded its cold-chain infrastructure across major cities.

• Chi Lin Technology: Specializing in logistics automation and smart warehouse solutions, Chi Lin saw a 25% increase in contracts from e-commerce clients in 2023. Its proprietary robotics and automation modules are increasingly adopted by warehouse operators across central Taiwan.

What Lies Ahead for Taiwan Logistics and Warehousing Market?

The Taiwan logistics and warehousing market is projected to witness steady growth through 2029, driven by rapid digitization, growing e-commerce penetration, and infrastructure modernization. The market is expected to register a healthy CAGR during the forecast period, supported by technological innovation and increased demand for efficient supply chain solutions.

• Expansion of Smart Warehousing: The adoption of AI, robotics, and IoT in warehousing operations is expected to accelerate. Smart warehouses equipped with automated guided vehicles (AGVs), real-time tracking, and predictive inventory management will enhance operational efficiency and reduce human dependency. These advancements are particularly relevant in overcoming Taiwan's labor shortage and optimizing urban warehousing.

• Rising Demand for Cold Chain Logistics: With increasing demand from pharmaceutical, biotechnology, and fresh food sectors, the cold chain logistics segment is poised for strong growth. Taiwan's export-oriented pharma industry, along with rising health-conscious consumer behavior, will drive investment in temperature-controlled storage and last-mile cold deliveries.

• Sustainability and Green Logistics Initiatives: Environmental sustainability will become a key focus, with logistics providers investing in electric fleets, energy-efficient warehouses, and carbon-neutral logistics solutions. Taiwan’s Green Transport Program and emission reduction mandates will further accelerate adoption. By 2029, it is expected that over 40% of urban delivery fleets will be hybrid or fully electric.

• Regional Transshipment and Free Trade Zone Expansion: Taiwan is likely to strengthen its position as a regional logistics hub by expanding Free Trade Zones (FTZs) and enhancing port logistics. The proximity to major East and Southeast Asian economies, coupled with streamlined customs procedures, will make Taiwan a critical node in Asia’s supply chain ecosystem.

Future Outlook and Projections for Taiwan Logistics and Warehousing Market on the Basis of Revenues in USD Billion, 2024-2029

Taiwan Logistics and Warehousing Market Segmentation

• By Market Structure:
  • Organized Logistics Service Providers
  • Independent Warehousing Operators
  • Third-Party Logistics (3PL) Providers
  • Fourth-Party Logistics (4PL) Coordinators
  • Courier, Express & Parcel (CEP) Providers
  • Freight Forwarders
  • Cold Chain Logistics Providers
• By Mode of Transport:
  • Road Freight
  • Rail Freight
  • Air Cargo
  • Sea Freight
  • Intermodal Transport
• By Type of Warehousing:
  • General Warehousing
  • Bonded Warehousing
  • Cold Storage Warehousing
  • Automated Warehousing
  • E-Commerce Fulfillment Centers
• By End-User Industry:
  • Electronics and Semiconductors
  • E-Commerce and Retail
  • FMCG
  • Pharmaceuticals and Healthcare
  • Automotive
  • Chemicals
  • Agriculture and Food Processing
• By Region:
  • Northern Taiwan (Taipei, New Taipei, Taoyuan)
  • Central Taiwan (Taichung, Changhua, Miaoli)
  • Southern Taiwan (Kaohsiung, Tainan, Pingtung)
  • Eastern Taiwan (Hualien, Taitung)
  • Offshore Islands (Penghu, Kinmen, Matsu)

Players Mentioned in the Report:

Freight Forwarding Companies

• Dimerco Express Group
• JAS Worldwide Taiwan
• Mainfreight Taiwan
• Bolloré Logistics Taiwan
• Air Tiger Express Taiwan
• QA Transport Co. Ltd.
• Korchina Logistics Holdings Ltd.
• Hecny Transportation (Taiwan) Ltd.
• Mako Transport Co., Ltd.
• Great China Transportation Co., Ltd.
• Asia Access Express Co., Ltd.
• Fortune Transportation Corporation
• ShanLoong International & Customs Broker Co., Ltd.
• Sun Ocean & Air Logistics Co., Ltd.
• DocShipper
• Airlife Freight (Taiwan) Corp.
• 3L-Leemark Logistics
• Symatrans Express
• Jia Yunn Express
• Agility Logistics
• Omni Logistics Taiwan
• MENQ Logistics
• Crane Worldwide Logistics Taiwan
• All-The-Way Express (Taiwan) Co., Ltd

Warehousing Companies

• Dimerco Express Group
• Mainfreight Taiwan
• Nippon Express (Taiwan) Co., Ltd.
• Omni Logistics Taiwan
• Rinchem Taiwan
• CTW Logistics Corporation
• YES Logistics Corporation
• Choice E-Logistics
• Logistic Republic
• One Union Solutions
• TRIUMPH EXPRESS SERVICE
• UNITOP Logistics Corporation
• Toyota Tsusho (Taiwan) Co., Ltd.
• Transcentral Integrated Logistics
• Centurion Logistics Services

E-Commerce Logistics Companies

• FedEx Taiwan
• DHL Express Taiwan
• Choice E-Logistics
• MENQ Logistics
• e-Commerce Logistics (Taiwan) Corporation Limited
• TGL Group
• SGS Taiwan
• Shopee Taiwan (SPX Express)

Express Logistics Companies

• DHL Express Taiwan

• FedEx Taiwan

• UPS Taiwan

• Aramex Taiwan

• Taiwan Pelican Express Co., Ltd.

• T-Cube Global Logistics

• T3EX Global Holdings

Key Target Audience:

• 3PL and 4PL Providers
• Warehousing and Cold Chain Operators
• Freight Forwarding Companies
• E-Commerce and Retail Companies
• Manufacturing and Export Enterprises
• Government and Regulatory Bodies (e.g., Ministry of Transportation and Communications)
• Industrial Real Estate Developers
• Technology Providers (WMS, IoT, Robotics)
• Investment and Infrastructure Funds

Time Period:

• Historical Period: 2018–2023
• Base Year: 2024
• Forecast Period: 2024–2029