Singapore Freight and Logistics Market Size, Share, Industry Trends, and Growth Forecasts (2026-2031) | Tuas Port, E-Commerce, and Automation Propel Market to USD 35.37 Billion

Dublin, Oct. 29, 2026 (GLOBE NEWSWIRE) -- "Singapore Freight and Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The Singapore freight and logistics market is projected to grow from USD 24.53 billion in 2025 and USD 26.11 billion in 2026 to USD 35.37 billion by 2031. The market is expected to record a CAGR of 6.26% from 2026 to 2031, supported by infrastructure investment, rising e-commerce activity, digitalization, and Singapore's strategic position as a trans-shipment hub for ASEAN and the Indo-Pacific region.

Infrastructure Investment Strengthens Singapore's Logistics Hub

Government investment in port, transport, and supply chain infrastructure continues to reinforce the competitiveness of the Singapore freight and logistics market. The Tuas Port complex, designed for an ultimate capacity of 65 million TEU, began Phase 1 operations in September 2024. Automated yard movements at the port are already reducing berth time by 20%, improving cargo handling efficiency and vessel turnaround.

A SGD 647.5 million (USD 476.65 million) Supply Chain Hub, scheduled for completion in 2027, will combine autonomous cranes with the SGTraDex data layer. This integration is expected to provide real-time inventory visibility and support faster repositioning of goods for manufacturers and distributors.

The Land Transport Authority is also piloting a Green Freight Corridor. From 2026, the initiative will offer incentives of SGD 40,000 per heavy battery-electric truck, supported by battery-swap stations along major industrial routes. Together, these investments are expected to expand freight capacity, shorten dwell times, improve sustainability, and strengthen Singapore's cost position within regional supply chains.

E-commerce Growth Accelerates Parcel Demand

Strong online shopping adoption is driving rapid growth in Singapore's courier, express, and parcel market. Online shopping penetration reached 88%, while domestic e-commerce value totaled SGD 7.9 billion (USD 5.81 billion) in 2023. This figure is projected to rise to SGD 11.3 billion (USD 8.31 billion) by 2028.

Parcel volumes are increasing at double-digit rates, with more than 200 million items handled in 2024. Logistics providers are responding with automated sorting facilities, last-mile micro-fulfillment sites, and electric cargo bikes. These investments have the potential to reduce urban delivery costs by approximately 15% while improving delivery speed and network capacity.

Cross-border e-commerce is providing further momentum. ASEAN e-commerce value is forecast to reach USD 211 billion by 2025, supporting high-value parcel flows through Changi Airport's express cargo facilities. Singapore's connectivity and customs efficiency position the country to capture a significant share of regional online retail shipments.

Labor Costs Increase Pressure for Automation

Labor shortages and rising manpower costs remain key constraints for the Singapore logistics industry. Transport job vacancies increased from 2,800 to 3,800 between Q3 2023 and Q3 2024, while median sector wages rose 5.4% in 2023. Foreign-worker quotas remain capped at 38% of total headcount, encouraging logistics businesses to invest in autonomous systems and warehouse automation.

Autonomous mobile robots have demonstrated the ability to reduce manual cargo handling by 30%. However, smaller operators may face cash-flow challenges because automation projects often require substantial upfront investment and multi-year payback periods. Further wage increases under the Progressive Wage Model through 2026 could also encourage some basic warehousing activities to relocate to lower-cost sites outside Singapore.

Market Segment Insights

Wholesale and Retail Trade accounted for 30.96% of market revenue in 2025, supported by omnichannel grocery and electronics distribution. Manufacturing is forecast to be the fastest-growing end-user industry, with a CAGR of 6.76% from 2026 to 2031. Singapore generated USD 177.8 billion in factory output in 2024, led by semiconductors and biomedical products. These precision industries require climate-controlled logistics, secure handling, and short turnaround times, increasing demand for specialized freight services.

Oil and Gas, Mining, and Quarrying continues to generate steady petrochemical cargo flows from Jurong Island. Construction projects associated with Tuas Port and rapid transit infrastructure support heavy-haul transport demand, although growth may moderate as major projects approach completion. Agriculture remains a smaller segment but is creating niche cold-chain opportunities through Singapore's "30 by 30" local food initiative.

Freight Transport represented 61.26% of the Singapore freight and logistics market in 2025, underpinned by maritime and air-cargo activity. Courier, express, and parcel services are expected to record a 7.20% CAGR from 2026 to 2031, driven by domestic e-commerce and ASEAN cross-border orders. Warehousing and storage is projected to grow at a 6.50% CAGR as real-time visibility tools support just-in-time inventory strategies.

Freight forwarding is also benefiting from SME digitalization and faster customs processing through TradeNet. Growing demand for integrated insurance, brokerage, packaging, and compliance services is encouraging greater convergence between parcel delivery and freight forwarding. This shift is expected to improve capacity utilization, lower unit costs, and reshape investment across Singapore's logistics market through 2031.

Key Topics Covered:

1 Introduction

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Demographics

4.3 GDP Distribution by Economic Activity

4.4 GDP Growth by Economic Activity

4.5 Inflation

4.6 Economic Performance and Profile

4.6.1 Trends in E-Commerce Industry

4.6.2 Trends in Manufacturing Industry

4.7 Transport and Storage Sector GDP

4.8 Export Trends

4.9 Import Trends

4.10 Fuel Price

4.11 Trucking Operational Costs

4.12 Trucking Fleet Size by Type

4.13 Logistics Performance

4.14 Modal Share

4.15 Maritime Fleet Load Carrying Capacity

4.16 Liner Shipping Connectivity

4.17 Port Calls and Performance

4.18 Freight Pricing Trends

4.19 Freight Tonnage Trends

4.20 Infrastructure

4.21 Regulatory Framework (Road and Rail)

4.22 Regulatory Framework (Sea and Air)

4.23 Value Chain and Distribution Channel Analysis

4.24 Market Drivers

4.24.1 Government Investment in Port and Logistics Infrastructure

4.24.2 Explosive B2C E-commerce Parcel Volumes

4.24.3 Singapore's Role as Trans-Shipment Hub for ASEAN + Indo-Pacific

4.24.4 Accelerated Digitalisation and 3PL Outsourcing by SMEs

4.24.5 SGTraDex Data-Exchange Adoption Boosting Supply-Chain Visibility

4.24.6 Green Freight Corridor Pilot for Battery-Electric Trucks

4.25 Market Restraints

4.25.1 Acute Labor Shortage and Escalating Manpower Costs

4.25.2 Land Scarcity Limiting New Warehousing Capacity

4.25.3 High Exposure to Global Trade Cycle Volatility

4.25.4 Tightening Carbon-Emission Rules Increasing Compliance Cost

4.26 Technological Outlook

4.27 Porter's Five Forces Analysis

4.27.1 Threat of New Entrants

4.27.2 Bargaining Power of Buyers

4.27.3 Bargaining Power of Suppliers

4.27.4 Threat of Substitutes

4.27.5 Competitive Rivalry

5 Market Size and Growth Forecasts (Value in USD)

5.1 By End-User Industry

5.1.1 Agriculture, Fishing, and Forestry

5.1.2 Construction

5.1.3 Manufacturing

5.1.4 Oil and Gas, Mining, and Quarrying

5.1.5 Wholesale and Retail Trade

5.1.6 Others

5.2 By Logistics Function

5.2.1 Courier, Express and Parcel (CEP)

5.2.1.1 By Destination Type

5.2.1.1.1 Domestic

5.2.1.1.2 International

5.2.2 Freight Forwarding

5.2.2.1 By Mode of Transport

5.2.2.1.1 Air

5.2.2.1.2 Sea and Inland Waterways

5.2.2.1.3 Others

5.2.3 Freight Transport

5.2.3.1 By Mode of Transport

5.2.3.1.1 Air

5.2.3.1.2 Pipelines

5.2.3.1.3 Rail

5.2.3.1.4 Road

5.2.3.1.5 Sea and Inland Waterways

5.2.4 Warehousing and Storage

5.2.4.1 By Temperature Control

5.2.4.1.1 Non-Temperature-Controlled

5.2.4.1.2 Temperature-Controlled

5.2.5 Other Services

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Segments, Financials as Available, Strategic Information, Market Rank/Share for Key Companies, Products and Services, and Recent Developments)

6.4.1 A.P. Moller - Maersk

6.4.2 CJ Logistics Corporation

6.4.3 CMA CGM Group (Including CEVA Logistics, and Bollore Logistics)

6.4.4 CWT Pte, Ltd.

6.4.5 DHL Group

6.4.6 DSV A/S (Including DB Schenker)

6.4.7 FedEx

6.4.8 GEODIS (Including Keppel Logistics Pte Ltd.)

6.4.9 Kuehne+Nagel

6.4.10 Nippon Express Holdings, Inc.

6.4.11 Pacific International Lines Pte, Ltd.

6.4.12 Poh Tiong Choon Logistics, Ltd.

6.4.13 PSA International

6.4.14 SATS, Ltd.

6.4.15 SF Express (KEX-SF)

6.4.16 Singapore Post, Ltd.

6.4.17 ST Logistics Pte, Ltd.

6.4.18 United Parcel Service of America, Inc. (UPS)

6.4.19 Vibrant Group, Ltd.

6.4.20 Yamato Holdings Co., Ltd.

6.4.21 YCH Group

7 Market Opportunities and Future Outlook

7.1 White-Space and Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/w8eff4

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