Australia Warehousing and Storage Market Forecast Trends - Market Size, Share, Growth Analysis Report (2025-2034)

Australia Warehousing and Storage Market Trends

Warehousing enhances supply chain management by centralising the storage of goods, ensuring smoother logistics and creating growth opportunities in the Australia warehousing and storage market. It helps lower transportation costs by strategically locating warehouses, thus reducing travel distances. Additionally, warehouses improve inventory control, preventing issues like overstocking or stockouts, and offer flexible solutions to help businesses adapt to shifts in demand or supply. In October 2024, Kitchen Warehouse, Australia’s leading kitchenware retailer, opened its first store in South Australia at Gepps Cross, marking the 24th store in its national network. Founded in the 1990s, the family-owned business offers a wide range of kitchen products and strives to build a community for passionate home cooks and entertainers.

Warehousing plays a key role in supporting e-commerce by facilitating efficient order fulfilment and faster delivery, thereby boosting customer satisfaction and impacting the Australia warehousing and storage market revenue. It also strengthens distribution networks, ensuring goods are efficiently delivered across Australia, while modern warehouses incorporate advanced technologies to enhance operational efficiency.

Australia Warehousing and Storage Market Growth

Warehouses help reduce risks by providing enhanced protection for goods, lowering the chances of damage or loss, thereby driving demand for the Australia warehousing and storage market. They offer scalable storage solutions that adapt to changing demand. Effective warehousing ensures faster order fulfilment, improving customer service and satisfaction. Australian warehouses adhere to strict regulations, ensuring the safe handling and storage of goods. In October 2023, URB-E shifted its focus to last-mile delivery, while GoodBytz secured USD 12 million in funding, supporting regenerative agriculture startups like Overstory, GoodBytz, and FarmInsect.

Storing products closer to markets reduces lead times, accelerating order fulfilment and boosting growth in the Australia warehousing and storage market. The warehousing sector also generates jobs, contributing to Australia’s economy. Additionally, it fosters regional development by supporting industries such as retail, manufacturing, and logistics.

Australia Warehousing and Storage Market Insights

• According to the 2022 National Freight and Supply Chain Strategy Annual Report, Australia’s freight sector managed around 900 million tonnes of goods in the 2020-2021 period. This highlights the growing importance of efficient warehousing and storage solutions to handle increasing freight volumes and improve logistics efficiency.
• Industry reports show that in the 2020-2021 period, e-commerce retail accounted for 41.5% of the value growth added by digital activities. This surge in e-commerce demands robust warehousing and storage systems to support order fulfilment, inventory management, and fast delivery times across Australia’s logistics network.
• The Australian Business Growth Fund (ABGF) invested in HUBBED in 2022, a technology-driven solution for last-mile delivery and returns logistics. This investment underscores the growing demand for efficient, tech-enabled warehousing and storage solutions to optimise last-mile delivery and enhance customer satisfaction in the e-commerce sector.

Australia Warehousing and Storage Market Drivers

E-commerce Growth

The growth of online shopping is a major trend in the Australia warehousing and storage market, driving demand for more efficient warehousing solutions and faster, automated order fulfilment systems. Companies are increasingly turning to local warehouses to speed up deliveries and meet customer demands for quicker shipping, resulting in greater use of warehouse automation and smart inventory management technologies. In July 2024, Goldman Sachs Alternatives acquired seven last-mile logistics properties in Australia, located in Adelaide, Brisbane, Perth, and Melbourne. These properties, leased to e-commerce and transport companies, were added to Goldman Sachs’ real estate portfolio as part of their USD 13 billion investment in Australian logistics assets.

Warehouse Automation

Automation is becoming a significant trend in the Australia warehousing market. With innovations in robotics, AI, and machine learning, businesses are investing in automated storage and retrieval systems (ASRS), which help reduce labour costs, boost efficiency, and enable faster, more accurate order picking and stock management. In October 2024, The LEGO Group strengthened its partnership with Kuehne+Nagel by opening a 26,500-square-metre distribution centre in Truganina, Victoria, to serve B2C and B2B customers in Australia and New Zealand. The facility incorporates advanced automation and sustainable technologies, such as solar panels and water-saving systems, achieving a 5-star Green Star Rating.

Opportunities in the Australia Warehousing and Storage Market

Environmental sustainability is becoming increasingly important and is shaping the Australia warehousing and storage market dynamics and trends. Companies are adopting energy-efficient technologies, such as solar power and LED lighting, while also focusing on eco-friendly packaging, waste reduction, and carbon footprint management strategies to comply with regulations and attract environmentally conscious consumers. In 2024, Mirvac, in partnership with Australian Retirement Trust, launched their first carbon-neutral industrial warehouse. The 34,000-square-metre facility, located at the Aspect Industrial estate in Kemps Creek, Western Sydney, is leased to CEVA. The estate, valued at USD 660 million, is expected to create over 1,700 jobs.

Market Restraints

The Australia warehousing and storage market faces several restraints, including high real estate costs in urban areas, making affordable space difficult to secure. Labour shortages, regulatory compliance complexities, and infrastructure limitations also pose challenges. Rising energy costs, increasing competition from automation, and pressure for environmental sustainability add to operational difficulties.

Additionally, economic uncertainty can cause fluctuations in demand, leading to reduced warehouse utilisation and profitability, making it harder for businesses to maintain efficiency and profitability in this competitive market.

Australia Warehousing and Storage Market Share

Market Analysis by Type

According to the Australia warehousing and storage market analysis, general warehousing leads the market by offering adaptable storage solutions for a variety of goods, allowing businesses to manage inventory effectively. It provides cost-efficient storage, reduces transportation costs with strategically chosen locations, and improves supply chain management. This type of warehousing facilitates quick adaptation to market changes, enhancing operational efficiency and ensuring timely order fulfilment. In November 2024, Amazon Australia opened a USD 90 million Fulfilment Centre (FC) in Horsley Park, Western Sydney, attended by Minister for Climate Change and Energy, Chris Bowen. The facility is expected to create over 360 local jobs, offering diverse roles, training, competitive wages, and comprehensive benefits.

Refrigerated warehousing plays a crucial role in storing perishable goods like food and pharmaceuticals, maintaining optimal temperatures to preserve product quality. It allows businesses to meet the demand for fresh products, extends shelf life, and supports industries like food distribution and healthcare. This specialised storage also ensures compliance with safety and regulatory standards.

Farm product warehousing offers vital storage for agricultural goods such as grains and produce, protecting them from damage and spoilage, thus driving the growth of the Australia warehousing and storage market. It helps preserve product quality, extends shelf life, and ensures supply chain efficiency. This type of warehousing supports Australia’s agricultural industry, offering flexibility for seasonal products while minimising waste and loss.

Market Analysis by Application

According to the Australia warehousing and storage market report, the market is primarily driven by Private Warehouses, which provide businesses with full control over their storage operations. These warehouses allow for tailored space, security, and inventory management to meet specific needs. Offering greater flexibility, privacy, and operational efficiency, they are well-suited for companies with high-volume or specialised storage requirements. However, they demand significant capital investment and ongoing operational costs.

Public Warehouses provide businesses with flexible storage solutions on a rental basis, offering cost-effective options for warehousing needs. Ideal for companies with fluctuating storage demands, they offer scalability and reduced upfront costs. Public warehouses also benefit from shared resources, lowering operational expenses and providing more affordable storage solutions for smaller businesses or seasonal inventory.

Bonded Warehouses enable businesses to store imported goods without paying customs duties until they are ready for sale or export, driving demand for the Australia warehousing and storage market. These warehouses offer cash flow advantages and reduce the financial burden of upfront taxes. Particularly beneficial for international trade, they allow businesses to defer duties and taxes, improving inventory management and import/export operations.

Market Analysis by End Use

Warehousing in the manufacturing sector plays a crucial role in efficiently storing raw materials, components, and finished products, impacting the Australia warehousing and storage market revenue. It supports smooth production schedules, optimises inventory management, and minimises downtime. With proper storage, manufacturers can ensure a steady material supply, reduce waste, and ensure timely distribution, improving overall operational efficiency and cost-effectiveness. In February 2024, Smeg Australia relocated its Sydney head office to new administration and warehouse facilities in Ingleburn, following 25 years in Banksmeadow, while administration staff moved to Alexandria's Woolstores.

In the consumer goods sector, warehousing enables businesses to store large quantities of products, ensuring swift delivery to retailers or consumers. It optimises inventory management by balancing stock levels to prevent overstocking or stockouts. Strategic warehousing enhances supply chain flexibility, improves order fulfilment, and guarantees timely product availability to meet market demand.

Retail warehousing ensures products are stored efficiently for fast order fulfilment, driving opportunities in the Australia warehousing and storage industry. It improves stock control, reduces inventory costs, and ensures high-demand products are always available. Retail warehousing supports timely deliveries, boosts customer satisfaction, and reduces transportation costs by positioning goods closer to end consumers or retail outlets. In November 2024, a 17,000-square-metre agricultural parts warehouse was established in Victoria, transforming agricultural logistics. With 130,000 unique storage locations, this facility improves farmers' access to essential machinery parts, highlighting Australia's commitment to modernising the agricultural sector with advanced infrastructure and technology.

Australia Warehousing and Storage Market Regional Insights

New South Wales Warehousing and Storage Market Overview

New South Wales (NSW) boasts a robust warehousing infrastructure, offering businesses strategic access to key ports and transport networks, improving supply chain efficiency and lowering logistics costs. In 2022-23, NSW allocated AUD 27.5 billion to health services, with a portion directed towards enhancing logistics infrastructure to support the expanding e-commerce sector.

Queensland Warehousing and Storage Market Trends

Queensland's increasing demand for warehousing drives the adoption of automation and flexible storage solutions. Businesses benefit from a growing logistics network and proximity to Asia-Pacific markets, improving operational efficiency and cost-effectiveness. According to the Queensland Government's Department of State Development, e-commerce now represents around 10% of the state's retail sales, with investments in logistics infrastructure further boosting delivery capabilities and strengthening business-consumer connections.

Western Australia Warehousing and Storage Market Dynamics

Western Australia’s warehousing sector thrives thanks to its strong mining and export industries. It provides businesses with access to abundant resources, ensuring efficient storage and distribution, particularly for minerals and agricultural products, which supports regional trade. For 2024–25, the Australian Government forecasts a 24% increase in winter crop production, reaching 18.4 million tonnes, surpassing the 10-year average. This growth is expected to improve logistics operations and lower operational costs for local businesses.

Competitive Landscape

The Australia warehousing and storage market key players include logistics and supply chain companies that provide transportation, warehousing, and distribution services across various sectors, including retail, manufacturing, and resources. One such company specialises in cold storage, transportation, and supply chain solutions, catering to industries like food, pharmaceuticals, and healthcare. They utilise advanced technology to maintain product integrity and enhance supply chain efficiency, focusing on innovation and sustainability in their global logistics operations.

Key Industry Players

Silk Contract Logistics: Silk Contract Logistics, headquartered in Sydney, Australia, was established in 2001. The company specialises in providing integrated supply chain solutions, including warehousing, distribution, and transportation services. Silk serves various industries, ensuring operational efficiency through tailored logistics solutions and advanced technology to optimise business processes.

Linfox Pty Ltd: Linfox Pty Ltd, founded in 1956 and headquartered in Melbourne, Australia, is a leading logistics and supply chain company. It offers transportation, warehousing, and distribution services across multiple sectors, including retail, manufacturing, and resources. Linfox focuses on innovation and sustainability in its logistics operations globally.

Lineage, Inc.: Lineage, established in 2008 and headquartered in Alabama, United States, is a global leader in temperature-controlled logistics. The company specialises in cold storage, transportation, and supply chain solutions, serving industries such as food, pharmaceuticals, and healthcare. Lineage employs cutting-edge technology to ensure product integrity and supply chain efficiency.

eStore Logistics Pty Ltd: eStore Logistics Pty Ltd, based in Melbourne, Australia, was founded in 2010. The company provides third-party logistics services, specialising in e-commerce fulfilment, warehousing, and distribution. eStore Logistics offers innovative solutions to enhance customer experience and streamline supply chain operations for online retailers across Australia.

Other key players in the Australia warehousing and storage market report are Iron Mountain, Inc., Clarke Global Logistics Pty Ltd, and Steadfast Australia, among others.

Recent Developments

March 2025

Lockheed Martin Australia opened a 4,500-square-metre logistics warehouse in Sydney to support the Australian Army’s UH-60M Black Hawk fleet. The facility, located near Holsworthy Barracks, provides critical spare parts and maintenance support, enhancing operational readiness. It features Vertical Lift Machines to optimise inventory and ergonomics, creating 30 new roles with potential for expansion.

August 2024

PVH opened a state-of-the-art warehouse in Sydney, Australia, to support the steel industry and enhance logistics and transportation. The facility also offers training for PVH staff and collaborators. Strategically located, it enables efficient service nationwide, reinforcing PVH's commitment to customer satisfaction and contributing to Australia’s renewable energy goals.