Singapore Freight and Logistics Market Research Report

Singapore Freight and Logistics Market Overview:

The Singapore freight and logistics market size was valued at USD 70.77 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 118.11 Billion by 2033, exhibiting a CAGR of 5.90% from 2025-2033. The market is growing owing to its strategic location as a trade hub, advanced infrastructure, strong connectivity, and efficient port operations. The country's focus on innovation, technology integration, and logistics optimization also enhances its competitiveness. Additionally, trade agreements and supportive government policies contribute to the expansion of the Singapore freight and logistics market share.

The swift expansion of e-commerce, both locally and internationally, is driving the need for last-mile delivery and storage solutions. Singapore's logistics sector leverages this trend by providing speedy, dependable services, particularly for regional e-commerce platforms aiming to improve their supply chain efficiency. Apart from this, logistics firms in Singapore are expanding their service range to include cold chain logistics, digital freight platforms, and comprehensive supply chain solutions. This diversification enables companies to access a wider market segment and meet various industry requirements, promoting overall growth in the industry. Additionally, as environmental issues grow, the logistics industry is moving towards more eco-friendly practices, including electric vehicles (EVs), sustainable packaging, and ports with low emissions. With a focus on sustainability, companies are turning to Singapore, where policies and technologies are being created to enhance the eco-friendliness of the logistics sector, in line with international standards.

Furthermore, Singapore maintains significant investments in its infrastructure, featuring expansions of ports and enhancements of airports. These advancements enhance the country's ability to manage larger quantities while also making it more appealing for businesses to choose Singapore as their main logistics center. In addition, the incorporation of latest technologies, such as automation, artificial intelligence (AI), and blockchain, improves operational efficiency, lowers expenses, and accelerates processes. These advancements enhance logistics and freight services, bolstering overall supply chain management and propelling the market growth, as businesses pursue smarter, more effective solutions. Besides this, Moreover, the governing body supports the logistics sector through favorable policies, tax incentives, and initiatives. These initiatives foster a favorable setting for businesses to flourish and grow, enhancing the competitiveness and attractiveness of the logistics market.

Singapore Freight and Logistics Market Trends:

Technological Advancements in Automation and Digitalization

The integration of cutting-edge technologies is revolutionizing Singapore’s freight and logistics sector, boosting efficiency and competitiveness. Automation, such as robotic sorting systems and self-driving vehicles, is assisting businesses in optimizing operations, lowering labor expenses, and decreasing human mistakes. Digital solutions like AI-driven route optimization, blockchain for secure transactions, and IoT for live tracking are enhancing supply chain visibility and connectivity. These advancements facilitate quicker deliveries, improved decision-making, and enhanced reliability, positioning Singapore as a more appealing logistics center in Southeast Asia. A notable instance is the new logistics center of UPS Healthcare in Singapore, which commenced operations in 2025. Covering 11,500 sqm, the facility features automation and cold chain functionalities to facilitate delicate medical deliveries, guaranteeing adherence to GDP and GMP regulations. With the ongoing evolution of technology, firms such as UPS are adopting these innovations to address the increasing need for smooth and safe logistics solutions.

Enhanced Air Logistics and Expedited Delivery Services

The growth of Singapore's freight and logistics market is significantly supported by the increase in expedited delivery services and improved air logistics capabilities. The tactical evolution of air transport options, especially for expedited deliveries, is essential for fulfilling the needs of time-critical sectors. For instance, in 2025, Kuehne+Nagel and SATS launched a new expedited delivery service for urgent aircraft parts at Singapore Changi Airport, enhancing air logistics resilience. They also expanded Sea-Air solutions in Singapore and Los Angeles and piloted a warehousing and trucking efficiency project at Frankfurt Airport. The implementation of a project aimed at enhancing warehousing and trucking efficiency at Frankfurt Airport highlights the increasing emphasis on improving air logistics. These advancements strengthen Singapore’s status as a premier logistics center, particularly in air cargo and swift deliveries.

Optimal Geographic Location and Superior Infrastructure

The prime position of the country on major global shipping and air travel routes, along with its modern infrastructure, are offering a favorable Singapore freight and logistics market outlook. Located on one of the most active shipping routes globally, Singapore is an essential contributor to international sea and air freight. The nation features top-tier ports, effective airports, and advanced roadways, enabling seamless transit. State-supported projects, including the creation of modern terminals and intelligent logistics systems, further improve the ability to handle rising freight volumes. Initiatives such as the Singapore Green Plan 2030 foster an environment conducive to innovation and sustainability within logistics. These initiatives enhance Singapore's advantage as a logistics center. A significant instance is the unveiling of DHL’s EUR 10 million Pharma Hub in Singapore in April 2025, which aligns with its Strategy 2030 and bolsters healthcare logistics in the Asia-Pacific. These investments reinforce Singapore's position as a vital logistics hub and promote continuous market growth.

Singapore Freight and Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Singapore freight and logistics market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on logistics function and end use industry.

Analysis by Logistics Function:

• Courier, Express and Parcel
  • By Destination Type
    • Domestic
    • International
• Freight Forwarding
  • By Mode of Transport
    • Air
    • Sea and Inland Waterways
    • Others
• Freight Transport
  • By Mode of Transport
    • Air
    • Pipelines
    • Rail
    • Road
    • Sea and Inland Waterways
• Warehousing and Storage
  • By Temperature Control
    • Non-Temperature Controlled
    • Temperature Controlled
• Others

Freight transport [by mode of transport {air, pipelines, rail, road, and sea and inland waterways}] represent the largest segment, accounting 61.6% market share in 2024. The dominance of the segment is because of its crucial function in enabling the transport of products both within the country and abroad. Singapore's strategic location as a global trade center necessitates various transportation methods to effectively link to regional and international markets. Every transportation mode provides unique benefits, including quickness, adaptability, affordability, and volume. The incorporation of these methods into a cohesive supply chain improves total logistics effectiveness, enabling companies to streamline routes and cut expenses. Moreover, the rising demand for just-in-time delivery, along with the rise of global trade and e-commerce, renders freight transport essential for satisfying higher volumes and user expectations. The ongoing innovation in the sector, featuring technology-based solutions like real-time tracking and route optimization, further strengthens its leading position in the market.

Analysis by End Use Industry:

• Agriculture, Fishing and Forestry
• Construction
• Manufacturing
• Oil and Gas, Mining and Quarrying
• Wholesale and Retail Trade
• Others

Wholesale and retail trade leads the market with 31.2% of market share in 2024, owing to its essential function in the movement of goods from suppliers to users. This industry generates significant demand for logistics services, necessitating effective inventory control, prompt deliveries, and the ability to manage large quantities of products through multiple channels. With the increasing complexity of supply chains and individual expectations for fast, reliable service, the wholesale and retail industry places pressure on logistics providers to ensure seamless operations. The rise of e-commerce, specifically, is catalyzing the demand for sophisticated logistics solutions, such as last-mile delivery, warehousing, and real-time tracking. This evolving sector also influences logistics by requiring more adaptable and reactive systems to address varying market demands. As a result, wholesale and retail commerce remains predominant, driving innovation shaping the logistics market's development in Singapore.

Regional Analysis:

• North-East
• Central
• West
• East
• North

In 2024, Central accounted for the largest market share of 39.5%, because of its strategic role as the country's commercial and economic hub. The region contains most essential infrastructure, featuring significant ports, transport hubs, and distribution centers, thereby strengthening its function in logistics activities. The area’s connectivity, on a regional and global scale, enables the effective transfer of goods using different transport modes, including air, sea, rail, and road, positioning it as the center for trade activities. Furthermore, the region's developed logistics infrastructure assists both domestic and international firms in navigating intricate supply chains, guaranteeing efficient operations and on-time deliveries. This combination of infrastructure, connectivity, and strategic importance solidifies Central's dominance in the market, making it the focal point for efficient trade and distribution.

Competitive Landscape:

Major market participants are concentrating on improving operational efficiency via digital transformation, utilizing latest technologies, including AI and IoT, for real-time monitoring and optimization. They are investing in infrastructure enhancements, including intelligent warehouses and automated technologies, to manage increasing e-commerce demands and enhance supply chain transparency. Additionally, collaboration with international partners and expanding multi-modal transport capabilities help strengthen their competitive edge in the increasingly complex and fast-paced logistics environment. Sustainability efforts are also a key focus, with numerous stakeholders striving to lower carbon emissions through eco-friendly transportation options. For example, in 2024, DSV Air & Sea Singapore acquired two Volvo electric trucks, including a Volvo FL and FM Electric, which highlighted a notable advancement in sustainable logistics. These entirely electric, emission-free vehicles were designed for city and long-distance travel, in line with Singapore’s Green Plan 2030.

The report provides a comprehensive analysis of the competitive landscape in the Singapore freight and logistics market with detailed profiles of all major companies.

Latest News and Developments:

• May 2025: CEVA Logistics broke ground on a new 143,000 square meter warehouse in Singapore's Jurong Industrial Estate. The facility, part of a sustainable logistics strategy, will expand CEVA’s footprint to 370,000 square meters, positioning the company as the second-largest contract logistics provider in Singapore.
• May 2025: Breakbulk Events & Media announced the launch of Breakbulk Asia, scheduled for November 2026 in Singapore. The event aims to connect global stakeholders in Asia’s energy and infrastructure markets, focusing on project cargo, logistics, and sustainability, supported by key regional industry groups and global maritime companies.
• February 2025: Maersk and Singapore-based Castlery signed a 10-year logistics partnership to support the furniture brand's global expansion. Maersk will provide end-to-end logistics, including ocean freight and warehousing, ensuring supply chain efficiency, sustainability, and improved delivery times. The collaboration also focuses on reducing carbon emissions through eco-friendly solutions.
• December 2024: Singapore became poised to become the world’s largest fully automated port by 2040, with Tuas Port and Changi Air Cargo Hub expanding capabilities. The country’s logistics sector boomed, with increased air cargo throughput and infrastructure upgrades, solidifying its role as a global supply chain hub.
• September 2024: Crawford Singapore launched a dedicated Logistics, Transportation & Freight division to service insurers for logistics providers and freight forwarders. The team, led by experienced adjusters, aims to handle complex claims involving multiple parties, focusing on reducing indemnity spend and providing expert evaluation in marine and transportation sectors.
• July 2024: Scan Global Logistics launched Asia's first electric cross-border truck service between Malaysia and Singapore, aimed at reducing CO₂ emissions. The service, operating between Singapore and Kuala Lumpur, saves nearly one ton of CO₂ per shipment, supporting sustainable logistics and the companies' commitment to net-zero emissions by 2050.

Singapore Freight and Logistics Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Singapore freight and logistics market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the Singapore freight and logistics market.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Singapore freight and logistics industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.