The rapid growth in e-commerce is creating an opportunity for the logistics sector in Singapore, according to a new report.

The Colliers International report cited a study by payments firm WorldPay that showed the e-commerce market here is tipped to expand 48 per cent to US$7.4 billion (S$10.2 billion) by 2022.

The report noted that technologies and new business models are reshaping the Asian logistics sector, which is under pressure to deliver better service at an ever lower cost.

It said technology is being used to bridge the gap, and added: "Many instances of how AI (artificial intelligence) is improving logistics are already in place.

"Other technology innovations, including cloud solutions, supply chain financing, blockchain and automated solutions in the warehouse have also been deployed... to enhance productivity and minimise risk of processing errors."

Ms Stephanie Sun, Colliers' director of research, Asia, said the logistics business is largely shaped by e-commerce, which involves various categories of providers and services.

Disruptive firms, such as Amazon and JD.com, have business models that simplify operations and eliminate significant labour costs associated with the traditional logistics industry, she added.

Colliers picked out four key market trends for the near future - on-demand warehousing; automation as a service; co-working spaces in the logistics sector; and utilising technology to modernise customs systems and processes.

Meanwhile, the report noted that demand for warehouse space here was firm in the first quarter with a vacancy rate of 10.8 per cent, compared with 11.1 per cent in the same period last year.

The average gross rents for the logistics sector remained unchanged year on year at $13.50 per sq m per month in the first quarter.

Colliers expects logistics rents to remain soft for the rest of the year, given the high warehouse vacancy rate.