UAE Logistics Market Future Outlook and Projections
The report titled “UAE Logistics and Warehousing Market Outlook to 2025 – By Road , Sea and Air Freight Forwarding; Domestic and International Freight, Major Flow Corridors, Integrated and Contract Freight Forwarding; By Warehousing (Industrial / Retail, CFS / Inland Container Depot & Cold Storage, Agriculture), End Users (Manufacturing, Retail, Food and Beverage, Automotive, Oil and Gas, Healthcare), Type of Warehouses; By Courier Express & Parcel Market , and, E-commerce Logistics” provides a comprehensive analysis of logistics and warehousing market of UAE. The report covers the overall size and future outlook of UAE Freight Forwarding, Warehousing, Courier Express and Parcel, 3PL and E Commerce Logistics market in terms of value, segmentation on the basis of service mix, by geography, by ownership and by type of industries. The report also covers the competitive landscape and company profiles of major Freight Forwarding, Warehousing and Express Logistics Companies in UAE. The report concludes with market projections for future and analyst recommendations highlighting the major opportunities and challenges.
UAE Logistics Market Overview and Size
UAE logistics and warehousing market is on strong and sustainable growth trajectory. The economy has faced volatility in 2013-2019 owning to increasing foreign direct investments, increase investments in infrastructures, negative repercussions of global economic slowdown, 100% ownership in certain sectors and fall in oil prices. Foreign Direct investments in 2016-2018 is estimated to be USD 139 Billion leading to total foreign direct investments of USD 139 Billion in UAE. Government of UAE has consistently taken initiatives to reduce dependence on oil exports due to falling prices. Various government initiatives such as EXPO 2020, Dubai Vision 2020 , Abu Dhabi Vision 2030 and flexible rules and regulations have been taken up to promote economic diversification of the economy.
UAE Logistics Market Segmentation
UAE has a strong freight forwarding market owning to the strategic geographical position on the trans-continental trade route and multi-modal connectivity in UAE. Sea freight dominates the freight forwarding market in terms of volume because of expansion of sea ports and development of free zones. Industry and retail is the major end user in terms of revenue in freight forwarding market of UAE.
Warehousing market of UAE has grown at a consistent rate in 2013-2019 because of increase investments in the economy in the manufacturing sector. Warehouses are majorly located near the free zone to ensure fast delivery and efficient movement of products across the borders. The warehousing companies need to acquire license for handling specific products such as pharmaceuticals. Warehousing market has started adopting advanced technology such as WMS, block chain, RFID tags to ensure efficient operations. Along with warehousing, the demand for value added services has also increased in UAE.
Courier, Express and Parcel Market
Courier, Express and Parcel market of UAE has experienced astonishing growth due to increasing technological advancements, adoption of automation , high purchasing power and increasing mobile and internet penetration.
Ecommerce Logistics Market
E-commerce logistics market of UAE has experienced exponential growth because of increasing technological advancements, favorable consumer demographics and significant mobile and internet penetration. High dependence of foreign trade is also a major reason for e-commerce growth in UAE. Government has also supported the growth of e-commerce through development of free zones for e-commerce industries.
Increasing demand of value added services, increasing freight volume, economic diversification and increasing trend of technological advancements has opened up the opportunity for the contract logistics providers. The growth in the market also encouraged the emergence of several new players by using asset-light and yet dominates the market by partnering with the domestic logistics companies, who knows the market better.
Competitive Scenario of UAE Logistics and Warehousing Market:
The freight forwarding and warehousing market of UAE is highly fragmented in nature. Companies are focusing on investing cold storage and cold transportation. UAE market has witnessed emergence of various startups providing contract logistics for road freight such as Trukker, Trukin and Load Me. These aggregators tend to bridge the gap in the demand and supply of the fleets for road freight and hence eliminate inefficiency in the market. The major players in the UAE logistics and warehousing market are DB Schenker, GAC, Al-futtaim logistics, Agility, Kuehne Nagel, DSV-Panalpina, Hellmann logistics, Emirates logistics, Global Shipping lines, Aramex, DHL, Fedex, and UPS.Location, pricing strategy, fleet size, tie-ups with the shipping lines and carrier service provider, value added services and technological advancements are important parameters in the UAE logistics and warehousing market.
UAE Logistics Market Future Outlook and Projections
The logistics and warehousing market of UAE is expected to experience a sustainable growth owing to the strategic position of UAE, EXPO 2020, Rail Development, increasing infrastructural development, increasing foreign investments and booming e-commerce. The logistics industry is likely to witness entry of new players and new mergers and acquisition between the players. The growing demand of perishable products in the country will consequently augment the requirement for fast delivery impacting cold chain markets of UAE. In addition to this, increasing investments in the manufacturing sector aiming to promote economic diversification will pave a path of growth trajectory for logistics and warehousing market of UAE.