Thailand Logistics and Warehousing Market Outlook to 2029

The report titled “Thailand Logistics and Warehousing Market Outlook to 2029 - By Market Segments (Freight Forwarding, Warehousing, and Express Logistics), By End-User Industries, By Mode of Transport, By Warehousing Space, and By Region” provides a comprehensive analysis of the logistics and warehousing sector in Thailand. 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 Thai logistics and warehousing market. The report concludes with future market projections based on industry revenue, by segment, transport mode, region, and success case studies highlighting major opportunities and key risks.

Thailand Logistics and Warehousing Market Overview and Size

The Thailand logistics and warehousing market was valued at THB 720 Billion in 2023, propelled by the country’s role as a regional trade hub, the rise of e-commerce, and infrastructural investments under the Eastern Economic Corridor (EEC) initiative. Key players such as Kerry Express, SCG Logistics, DHL Thailand, Linfox, and Thailand Post dominate the market with their extensive networks, diversified offerings, and technology-driven solutions.
In 2023, SCG Logistics expanded its warehouse footprint in the Eastern region to cater to growing demand from manufacturing and e-commerce clients. Bangkok and Chonburi emerged as high-demand zones due to proximity to industrial estates and key seaports.

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

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

• Strategic Location and Trade Integration: Thailand’s central location in ASEAN and free trade agreements with neighboring countries have enabled it to become a logistics hub, facilitating cross-border trade and multimodal transport operations.

• E-Commerce Expansion: Online retail is driving demand for last-mile delivery and real-time inventory solutions. In 2023, e-commerce shipments grew by over 20%, spurring investments in fulfillment centers and integrated logistics services.

• Infrastructure Development: Ongoing projects under the EEC plan such as double-track railways, port upgrades, and smart logistics parks are enhancing connectivity and reducing lead times, making Thailand an attractive location for supply chain operations.

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

• Fragmented Supply Chain and Operational Inefficiencies: A major challenge in Thailand’s logistics landscape is the fragmentation of supply chain activities, especially among small and medium enterprises (SMEs). In 2023, nearly 60% of logistics providers in Thailand operated with outdated systems, leading to poor coordination, high lead times, and increased costs. This inefficiency contributes to logistics expenses accounting for approximately 13.8% of Thailand’s GDP, which is higher than regional peers like Singapore.

• Labour Shortages and Skills Gap: The logistics sector faces a notable shortage of skilled workers in areas such as inventory control, supply chain analytics, and transport optimization. Industry estimates suggest that over 25% of logistics firms reported challenges in finding qualified personnel in 2023, particularly in rural and industrial belt regions.

• Infrastructure Bottlenecks: Despite heavy investments, some infrastructure projects have faced delays due to bureaucratic hurdles and land acquisition issues. For instance, Phase 2 of the double-track railway project saw a six-month delay in 2023, disrupting planned multimodal integration timelines for freight corridors linking to Laos and Cambodia.

What are the Regulations and Initiatives which have Governed the Market

• Logistics Development Master Plan (2023–2027): The Thai government has implemented a national strategy to reduce logistics costs to 12% of GDP by 2027 through digitalization, enhanced multimodal transport systems, and better customs procedures. Under this initiative, over THB 200 Billion has been allocated for logistics infrastructure upgrades.

• Eastern Economic Corridor (EEC) Special Zone Incentives: The EEC initiative offers tax incentives, customs exemptions, and land lease benefits to logistics operators setting up within designated industrial zones. In 2023 alone, logistics-related investment pledges in the EEC totaled THB 90 Billion, driven by demand for regional distribution hubs.

• Mandatory Digital Customs Filing: In 2022, Thailand enforced mandatory electronic customs declarations for all importers and exporters, improving processing times and transparency. By 2023, 95% of customs filings were processed digitally, reducing average cargo clearance time by over 30%.

Thailand Logistics and Warehousing Market Segmentation

• By Market Structure: The logistics market in Thailand is largely dominated by local and regional players, particularly SMEs, due to their strong geographic penetration and competitive pricing. These operators are preferred by domestic manufacturers and retailers for their flexibility and localized knowledge. However, organized third-party logistics (3PL) and multinational providers such as DHL, CEVA Logistics, and SCG Logistics have carved out a significant share, especially in sectors like electronics, automotive, and international freight. These organized players benefit from superior infrastructure, digital tracking systems, and global networks that attract large enterprises seeking reliability and scalability.

• By Mode of Transport:Road transport continues to dominate the logistics landscape, accounting for the bulk of domestic movement, particularly for FMCG and retail goods, due to Thailand’s extensive road network. Rail freight is growing in importance following infrastructure developments under the EEC initiative, offering a cost-effective solution for bulk goods over longer distances. Air freight, while niche, is used extensively for high-value, time-sensitive goods such as electronics and perishables. Maritime logistics plays a critical role in international trade, with Laem Chabang Port serving as a major gateway for containerized cargo.

• By End-User Industry:Retail and e-commerce emerged as the top end-users, driven by a surge in online sales and last-mile delivery requirements. Automotive and electronics sectors also contribute significantly due to the need for just-in-time inventory and international logistics. Healthcare and pharmaceuticals have shown notable growth in demand for temperature-controlled warehousing and fast-track distribution post-pandemic. The food & beverage industry is heavily reliant on cold storage and urban distribution networks, particularly in metropolitan areas.

Competitive Landscape in Thailand Logistics and Warehousing Market

The Thailand logistics and warehousing market is moderately consolidated, with a few dominant players holding significant market share, particularly in organized freight forwarding and contract logistics. The rise of e-commerce and regional trade has also facilitated the entry of new-age logistics firms and tech-based aggregators, intensifying competition. Key players include Kerry Express, SCG Logistics, DHL Thailand, Linfox, Flash Express, and Best Express.

ome of the Recent Competitor Trends and Key Information Include:

• Kerry Express: As a leader in last-mile delivery, Kerry Express handled over 350 million parcels in 2023. The company expanded its express delivery services to cover 99% of Thailand’s postal codes and launched eco-friendly packaging solutions to meet sustainability goals.

• SCG Logistics: A key player in B2B contract logistics, SCG Logistics reported a 20% increase in warehousing demand in the Eastern Economic Corridor (EEC) zones in 2023. The company has invested in automated sorting and inventory systems to improve throughput and operational efficiency.

• DHL Thailand: DHL strengthened its market presence by opening a new multi-temperature warehouse in Chachoengsao and expanding its cross-border trucking services to Laos and Cambodia. In 2023, DHL reported a 12% YoY increase in freight forwarding revenue in Thailand.

• Linfox: Linfox operates large-scale warehousing and transport operations, especially in the FMCG and automotive sectors. In 2023, the company introduced an AI-powered route optimization system in Thailand, reducing fuel usage by 14%.

• Flash Express: One of Thailand’s fastest-growing logistics startups, Flash Express saw parcel volumes grow by 35% in 2023. It expanded its delivery fleet and partnered with Chinese e-commerce platforms to facilitate cross-border logistics.

• Best Express: Targeting Tier 2 and Tier 3 cities, Best Express has focused on regional penetration and built over 2,000 drop-off points nationwide. In 2023, it launched a same-day delivery service in Bangkok and Chiang Mai to compete with incumbents.

What Lies Ahead for Thailand Logistics and Warehousing Market?

The Thailand logistics and warehousing market is projected to witness robust growth by 2029, driven by infrastructure upgrades, regional trade integration, and the booming e-commerce sector. The market is expected to record a healthy CAGR during the forecast period, underpinned by technological advancement and strategic policy support.

• Expansion of E-Commerce and Last-Mile Delivery: The rapid growth of Thailand’s digital economy is set to further drive demand for last-mile delivery and urban warehousing. E-commerce penetration is expected to exceed 60% by 2029, with major players investing in hyperlocal fulfillment hubs and smart delivery systems to cater to evolving consumer expectations.

• Development of Integrated Logistics Parks: The government’s continued investment under the Eastern Economic Corridor (EEC) will accelerate the development of integrated logistics zones. These hubs will support multimodal transport, facilitate cross-border trade, and offer plug-and-play infrastructure to logistics operators—particularly in Chonburi, Rayong, and Chachoengsao.

• Adoption of Automation and AI: Logistics firms in Thailand are expected to increasingly adopt automation, robotics, and AI-driven route optimization to boost efficiency. By 2029, it is estimated that over 50% of modern warehouses will be semi- or fully automated, reducing operational costs and enhancing inventory accuracy.

• Rise of Green and Sustainable Logistics: Sustainability is becoming a core focus, with companies expected to adopt electric delivery vehicles, solar-powered warehouses, and carbon tracking systems. Thailand’s commitment to achieving carbon neutrality by 2050 will drive regulatory support and incentivize green logistics practices.

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

Thailand Logistics and Warehousing Market Segmentation

• By Market Structure:

  • Freight Forwarding Companies

  • Third-Party Logistics (3PL) Providers

  • Fourth-Party Logistics (4PL) Providers

  • Express Delivery Services

  • Contract Logistics Providers

  • Organized Sector

  • Unorganized/Traditional Operators

  • Cold Chain Logistics Providers

• By Mode of Transport:

  • Road Transport

  • Rail Transport

  • Air Freight

  • Sea Freight / Maritime Logistics

  • Multimodal Transport

• By End-User Industry:

  • E-commerce and Retail

  • Automotive

  • Food & Beverage

  • Electronics and Electricals

  • Healthcare and Pharmaceuticals

  • Industrial Manufacturing

  • Agriculture and Perishables

• By Type of Warehousing Space:

  • Grade A Warehouses

  • Grade B & C Warehouses

  • Cold Storage Facilities

  • E-commerce Fulfillment Centers

  • Built-to-Suit (BTS) Warehouses

• By Region:

  • Central Thailand (incl. Bangkok)

  • Eastern Thailand (incl. EEC)

  • Northern Thailand

  • Southern Thailand

  • Northeastern Thailand

Players Mentioned in the Report:

Freight Forwarding Companies

• Dynamic Air Cargo

• Transpo Logistics

• World Air Logistics

• Triple i Logistics

• NRS Logistics

• Eagles Air & Sea

• Pilot Air Cargo

• Embassy Freight (Thailand)

• MOL Logistics

• Rhenus Thailand  

Warehousing Companies

• DB Schenker (Thailand)

• Kuehne + Nagel (Thailand)

• Rhenus Thailand  

• Integrated Logistics Services (ILS)

• SCGJWD Logistics

E‑Commerce Logistics Companies

• SIAM Shipping / DocShipper

• Pakman Fulfillment

• Sokochan

• Aden (Ascend Group)

• JWD InfoLogistics (Fuze Post cold‑chain express) 

Express Logistics Companies

• DHL Express

• FedEx

• UPS

• SF Express

• J&T Express

Key Target Audience:

• Logistics and Warehousing Companies

• E-commerce Companies and Aggregators

• Industrial Estate Developers

• Government and Regulatory Authorities (e.g., Ministry of Transport, BOI)

• Technology Providers for Logistics Automation

• Private Equity and Infrastructure Investors

• Research and Consulting Firms

Time Period:

• Historical Period: 2018–2023

• Base Year: 2024

• Forecast Period: 2024–2029