A new report by Mordor Intelligence (MI) projects significant growth for the Philippines’ domestic freight and logistics market, with its value expected to climb from US$15.26 billion to US$20.41 billion by 2030, representing a compound annual growth rate (CAGR) of 5.99 percent. This expansion is fueled by major government infrastructure programs, liberalized foreign ownership rules, and the continued boom in e-commerce.
According to MI, the government’s PHP 8.8 trillion (US$158.1 billion) “Build, Better, More” program is a key catalyst for the industry’s growth, directly improving connectivity and efficiency. This is complemented by recent legislative changes that allow 100 percent foreign ownership in shipping and transport, attracting international investment and expertise.
Key Market Trends and Growth Drivers
E-commerce and CEP Sector Leading the Charge: The courier, express, and parcel (CEP) segment is projected to be the fastest-growing logistics function, with a 6.89 percent CAGR between 2025 and 2030. This is a direct result of the surge in online shopping, creating robust demand for last-mile delivery services.
Wholesale and Retail Driving Demand: The wholesale and retail trade sector currently holds the largest share of the market, at 30.79 percent in 2024, and is expected to grow at a 6.69 percent CAGR. This highlights the vital role of logistics in supporting the country’s consumer economy.
Dominance of Road Freight, Rise of Air and Temperature-Controlled Logistics: While road freight transport remains the backbone of the network, accounting for a 67.65 percent revenue share in 2024, the report also points to rapid growth in specialized segments.
Air freight transport is forecasted to expand at a 7.63 percent CAGR, and the market for temperature-controlled warehousing is projected to grow at a 6.83 percent CAGR, indicating a rising demand for specialized and high-value cargo handling.
Digitalization and Foreign Investment Accelerating Modernization: Foreign investors are increasingly entering the market through joint ventures, which are accelerating the adoption of new technologies in warehousing, freight forwarding, and last-mile delivery. Government-led digital connectivity initiatives are further empowering smaller operators to transition to more efficient, platform-based business models.
The report concludes that the combination of strategic government policies, a burgeoning consumer market, and increased foreign investment is transforming the Philippines into a major logistics hub in Southeast Asia, with significant growth opportunities across various logistics functions and transport modes.
