Increasing Government initiatives in Various Sectors, Increasing Prominence of 3PL Services backed up with Trade Scenario of the Country are the key factors driving growth in Kuwait Logistics Market.
Rising e-commerce industry in the country has triggered the demand for logistics and warehousing services in past few years. This has also accelerated the market size of express delivery. Majority of the companies in the country have tie ups with logistic companies to ship their products from warehouses to the end customers. The rise in demand for freight forwarding services from the factory units to the retail stores has also aided the overall market growth of the logistics industry. The warehousing companies have increasingly gained prominence in the market owing to high demand for storage of retail goods.
The oil sector plays a dominant role in the Kuwaiti economy, with the country estimated to own roughly 6.0% of the world’s oil reserves. Oil exports account for over 90% of Kuwaiti government revenues and 50% of nominal GDP. After the decline in oil prices since 2015, the logistics industry in Kuwait has witnessed decline in growth rate majorly owing to fall in trade of the country. Owing to dip in oil prices, the government of Kuwait has been largely focusing on economic diversification which has opened gates for several key projects in the power, transportation and health sectors which sustain spending and imports of materials such as ores and metals. Additionally, increase in the retail stores, super & hyper marts in the country has triggered the demand for logistics & warehousing space.
In Kuwait, the freight forwarding market is highly prevailing on account of expanding e-commerce, retail & manufacturing and express delivery industries. Rising e-commerce industry in the country has triggered the demand for logistics and warehousing services in the past few years. This has also accelerated the market size of express delivery, as all the companies in e-commerce industry in the country are offering the express delivery services. The demand for fresh and processed fruits & vegetables, meat, dairy and others are on rise with the increase in the urban and affluent population supported by change in their consumption habits which has aided the cold chain logistics industry revenue.
The report titled “Kuwait Logistics Market by Service Mix (Freight Forwarding Market, Warehousing Market and Value Added Services), by Third Party Logistics, By Cold Chain Logistics and by Industries (Oil & Gas, Engineering Equipment, Food & Beverages, Metals, Automotive and Others) – Outlook to 2022” by Ken Research suggested that increasing demand for cold storage goods and express delivery services will result in market growth at a positive CAGR in revenues in Kuwait logistics market in next 5 years till 2022.
Key Topics Covered in the Report:
- 3PL Companies In Kuwait
- Agility Fleet Size Kuwait Future of Kuwait Logistics Market
- Air Freight Demand
- Aramex Competition Kuwait Logistics
- Cold Storage Warehouses in Kuwait
- Cold Transport Services in Kuwait
- Competition In Kuwait Logistics Market
- DHL Revenue Kuwait Logistics
- Freight Forwarding Companies in Kuwait
- Globe Express Services Market Logistic Sector
- Globe Express Services Revenue From Logistics
- Government Spending on Logistics and Infrastructure Kuwait
- Growth Freight Forwarding Market Kuwait
- Growth Kuwait Express Logistics Industry
- International Domestic Revenue Kuwait Logistics
- Kuwait Cold Chain Revenue
- Kuwait Express Delivery Logistics Revenue 2017
- Kuwait Freight Forwarding Revenue
- Kuwait Logistics Market Future Growth
- Kuwait Logistics Market Size
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Ankur Gupta, Head Marketing