Artificial intelligence (AI) is anticipated to drive increased demand for high-quality logistics assets across Asia, according to a new report by Savills. The report highlights how AI adoption is transforming occupier requirements, supply chain strategies, and industrial real estate demand in the region. Established logistics hubs like China and Singapore are expected to benefit significantly due to their strong infrastructure and connectivity.
Savills’ research suggests that AI will not radically alter Asia’s logistics landscape overnight but will reinforce existing advantages in locations with robust infrastructure and integrated supply chains. As companies strive for improved productivity and operational resilience, the demand for modern logistics facilities is likely to grow. Louisa Luo, Managing Director and Head of Capital Markets & ILS in China, noted, “China is the absolute leader in both market scale and technology adoption.”
China, as a leading manufacturing and e-commerce hub, is well-positioned for growth, with significant investments in AI by companies like JD Logistics and SF Express. Meanwhile, Singapore’s role as a critical gateway in Asia’s logistics network is expected to become more valuable as supply chains become increasingly interconnected. Sally Tan, Senior Managing Director and Head of Client Solutions in Singapore, stated, “AI can make supply chains smarter, but it does not make them weightless.”
Savills concludes that the best-positioned locations for future industrial growth are those with the necessary infrastructure, connectivity, and operational depth. Understanding AI’s impact on occupier demand and location decisions will be crucial for investors, developers, and occupiers moving forward.
