Japan Freight Logistics Market

Japan Freight Logistics Market Size Report – In a Glance

As per the survey report on Japan freight logistics market, the market is expected to foresee a CAGR value of 4.1% during 2025-2035, and further generate a market size of USD 512.5 billion by the end of 2035. In 2025, the market size was value at USD 335.9 billion revenue.

• The Japan freight logistics market’s growth is driven by expansion of e-commerce industry.
• KDMI analyst’s growth analysis foresees expansion of transport infrastructure as the growth driver for Japan freight logistics market.

Japan Freight Logistics Market Analysis

Freight logistics is the process of managing movement of goods from manufacturer or seller to consumers effectively and efficiently. It consists of planning, implementing, and controlling activities related to flow and storage of goods. The process manages transportation, warehousing, inventory management, and other essential activities to ensure timely delivery of product at consumer’s place. The market growth is driven by the expansion of e-commerce industry in the nation, contributing in the requirement of freight services. Tokyo Metropolitan Government (TMG) has launched the world’s first fuel efficiency indicator to enhance freight logistics service performance. DB Schenker, Hanjin Shipping, and Nippon Express are some of the significant participants in the Japan freight logistics market.

Japan Freight Logistics Market Growth Drivers and Restraints

Growth Drivers

• Expansion of transportation infrastructure – The Japanese government has been potentially investing in upgrading transportation infrastructure in the nation, contributing to the growth of Japan freight logistics market. The upgradation of expressways and highways allows for seamless transportation of goods and materials, leading to reduction in delay and enhancing delivery services. With these developments in transportation industry, the nation is capable of handling import and export activities at high volume by providing efficient services. The investments in logistics hubs and distribution centers located near rail terminals, airports, and ports strategically improves freight service. The adoption of advanced technology like implementation of robotics in freight logistics management has enhanced the performance, which has resulted in the growth of Japan freight logistics market.
• Increasing demand for luxury goods – The demand for luxury goods among Japanese people is significantly rising, which is leading to the need for efficient freight services. Luxury goods require specialized care and careful handling due to their high value, which creates the need for specialized logistics services including advanced packaging, high-value cargo insurance, and careful tracking throughout the transportation. Freight services take care of specific needs of luxury products, providing efficient transportation services. By enhancing transportation services, the industry builds loyal customer base, leading to the Japan Freight Logistics market growth.

Restraints

• Shortages of skilled workers - The Japan freight logistics market growth faces challenge due to shortage of skilled workers and drivers as the country’s population is rapidly aging. The growing aging population in the nation, there is serious shortage of labor in long-haul trucking, warehousing, and timely delivery services. As a result, freight logistic companies struggle to meet consumer requirements, and delay in delivery time has increased, which leads to increasing operational costs. Automation in the industry is also experiencing difficulty in performing tasks due to lack of skilled manpower, restraining the expansion of freight logistic market in the Japan.

Japan Freight Logistics Market Segmentation

Our experts at KD Market Insights have segmented the Japan freight logistics market research report as:

Analyst’s Observation on Japan Freight Logistics Market Recent Developments

Over the years, the experts at KD Market Insights have been observing the recent developments associated with Japan freight logistics market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

In 2024, the Mahindra Logistics has entered into partnership with Japan’s Seino Holdings Co Ltd to enhance warehousing and trucking services. The joint venture is aimed at improving transportation of automobile companies and its subsidiaries in India. Mahindra Logistics will hold 50% share and another 50% share will be held by Seino Holdings.

The Japan is planning to build an automated cargo transport corridor between Tokyo and Osaka, to overcome the challenge of labor shortages. The trial system of this project is estimated to begin in 2027 or early 2028, with the aim to begin full operation by the mid of 2030.

Japan Freight Logistics Market Competitive Landscape

Some of the significant companies in the Japan freight logistics market share:

• DB Schenker
• Deutsche Post DHL Group
• DSV A/S
• Hanjin Shipping
• Kintetsu World Express​
• Kuehne + Nagel
• Mitsui O.S.K. Lines, Ltd.
• Nippon Express
• United Parcel Service
• Yamato Holdings Co. Ltd
• Yusen Logistics