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%. 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% 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% 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% in 2024, and is expected to grow at a 6.69% 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% 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% CAGR, and the market for temperature-controlled warehousing is projected to grow at a 6.83% 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.
