How Is UAE Logistics Market Is Positioned?
Overview: UAE Logistics Market comprises of both organized and unorganized players which provide both logistics and warehousing services in the country. The logistics operations are majorly centered in Dubai. The country is one of the world’s leading producers of oil and gas products.
Due to high growth in manufacturing and industrial sector, players have begun turning to 3PL (Third Party Logistics). They have also been witnessed to adopt new technology. UAE economy has witnessed diversified trends in 2013-2019 owning to increasing foreign direct investments, increase investments in infrastructures, negative repercussions of global economic slowdown, 100% ownership in some sectors and fall in oil prices.
Market: The market has been continuously growing. In recent years, the market share of third-party logistics has been growing at a significant rate in the country. UAE logistics industry has shown a remarkable growth over the last five years recording a CAGR of ~% owing to the investments in the logistics infrastructure and logistics centers. A key driver behind the recent growth in the market is the strategic location of UAE as a re-export and multi-modal transshipment hub. The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by warehousing and courier & parcel activities. The other sectors include value added services, e-commerce deliveries and 3PL market.
UAE Logistics And Warehousing Market
By Service Mix: Freight forwarding segment has dominated the logistics industry of UAE and has grown at a five year CAGR of ~% during the period 2013-2019P. The market was witnessed to grow from USD ~ Million in 2013 to USD ~ Million in 2019. This is primarily due to emergence of UAE as a major transshipment hub, infrastructural investments, EXPO 2020, growth of e-commerce market, development of free zones. Increasing export and import value has positively impacted the freight forwarding industry of the country. Warehousing market is the second largest contributor in the logistics industry of UAE and reached USD ~ Million in 2019 owing to increasing trade and growth of e-commerce. Courier Express and Parcel market acquired a revenue share of USD ~ billion in the year 2019 which was an increment from the 2013. The industry is still growing with the increasing investment in the logistics centers by the government.
UAE Freight Forwarding Market Segmentation
By Mode of Service: UAE freight forwarding market was dominated by sea freight in terms of volume owing to strategic geographical position of UAE. Road freight and air freight acquired the second and third largest share respectively in terms of volume 2019.
By Mode of Freight: This includes domestic and international freight. In terms of revenue, international freight forwarding contributed the majority share of ~% in 2019. The remaining share of ~% was occupied by domestic freight in 2019P.
By Flow Corridors: Asian Countries flow corridor is the largest contributor in terms of revenue in the freight forwarding market followed by GCC and European countries.
Revenue by End Users: The major end users of freight forwarding services in UAE include manufacturing and retail sectors. Others include telecommunications and healthcare and many more.
By 3PL and Integrated Logistics: Third party logistics witness a substantial growth in 2013-2019 because of increasing freight volume in UAE.
Uae Warehousing Market Segmentation
By Type of Warehouses: The market share of closed warehouses in the country was evaluated to be approximately ~%. Open yards warehouses captured the market share of ~% in 2019
By Business Model: The industrial and retail warehouses dominated the overall UAE warehousing market with a revenue share of ~% in 2019. This is primarily due to increasing investment in the economy.
By Regions: JAFZA is the most demanded area by warehousing companies. Others include KIZAD, Sharjah, Abu Dhabi and many more.
Revenue by End Users: The major end users of warehousing services in UAE include industrial/retail, food and beverage, automotive, healthcare and oil and gas.
UAE COURIER, EXPRESS AND PARCEL MARKET
The overall revenue generated by the CEP Logistics market has increased from USD ~ Million in 2013 to USD ~ Million in 2019 at a positive CAGR of ~%during the period.
By Market Structure: The market share of B2B shipments in the country was evaluated to be approximately ~%. B2C captured the market share of ~% and C2C market share was ~% in 2019.
By Domestic and International Shipment: The market share of Domestic Shipment the country was evaluated to be approximately ~%.
By Air and Ground: The market share of Air shipments in the country was evaluated to be approximately ~% and the market share of ground shipments was ~% in 2019P
By Delivery Period: The market share of same shipments in the country was evaluated to be approximately ~%. One Day delivery captured the market share of ~% and two or more day delivery market share was ~% in 2019.
For more information, refer to below links:
South Africa Logistics Market Outlook to 2023 – By Sea, Land, Air Freight Forwarding; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), 3PL Warehousing, Cold Chain; By Express Logistics and E-commerce Logistics
Ankur Gupta, Head Marketing & Communications