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Different Innovations And Growth In Trends Of UAE Logistics Market Outlook: Ken Research

Overview

The Logistics market has been substantially impacted by the overview and usage of new technologies. Some of fresh technologies in logistics market are worldwide positioning system (GPS), order entry systems, warehouse management systems, transmitting communication system, the Internet of Things, automated transportation and comparable futuristic innovations, and transportation management system (TMS) amongst others.

Although, The Logistics industry across the UAE is one of the highest 5 logistics markets around the world, provided the favorable location of UAE at the crossing of Asia, Africa & Europe. Growth in the industry has been encouraged due to the high effortlessness of doing business in the Emirates, owing to which the country is home to a lot of worldwide and multi-national brands.

The industry is home to a tremendously robust Freight Forwarding segment, propelled by the UAE’s position as a foremost facilitator for worldwide re-exports. In addition, given its great dependence on Imports for Consumer Products and Technology, the UAE has robust trade relations with far-Eastern regions, European countries and the US. Provided its oil-producing proficiencies, the region relies greatly on Sea Freight as a mode of cargo transport, with the service being almost a communal feature amongst freight forwarding corporates in the country. The UAE also has a robust warehousing market segment, propelled by players that lease warehousing space for long periods of time.

Furthermore, the Warehousing operations near to the Jebel Ali Port and Dubai Airport are measured most favourable to decrease the transportation cost from port to mother-hub. The Courier, Express and Parcel market is influenced by growth in Last-Mile deliveries and the E-Commerce sector across the country.

Enlargement of the e-commerce industry coupled with augment in reverse logistics operations

E-commerce denotes to the purchasing and selling of goods by utilizing the internet. Third-party logistics service providers incorporate shipping of products to customers. In addition, the e-commerce industry uses logistics service to accomplish and oversee the supply chain of e-commerce corporates, which enables these corporates to aim on marketing and other business functions. Thus, owing to numerous benefits delivered by the logistics to the e-commerce industry, implementation of logistics service is augmenting at a significant rate, which in return is influencing the growth of the logistics market.

Challenges for Logistics Market in the UAE

Over-dependence on Imports: Levels of domestic producing in the region have remained very low since 2009. On the account of this industries have majorly demanded freight forwarding services from logistics service delivers during this duration. This has left very restricted scope for end-to-end logistics services across country. In addition, the small size of the domestic producing has forced the logistics corporates to serve the international markets during the recent years which have made cost efficiency very important.

competition-benchmarking-in-uae-logistics-market

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Limited Progress in E-Payment Gateways: The sophistication level across the country’s e-payment gateways has been well below as linked to more improved international retail markets over the duration. Cash on delivery has been the most favored mode of payment for the online shipments across UAE over the past five years.

Limited Options in Surface Transportation: While the UAE possesses a highest notch sea and air transportation network, the choices prevail in surface transportation have remained restricted since 2009. Corporates can send combined freight only by road as there is a shortage of a well-organized rail network in the country. Owing to this the influence of road transport in the entire logistics revenues of the country has continued meaningfully low over the past five years, especially when associated to logistics markets in countries such as Saudi Arabia.

Competition Overview

The competition in the Logistics space across the UAE can be categorized on the basis of different service sectors involving Freight Forwarding, Contract Logistics (Warehousing) and Express Delivery.

International players likewise Kuehne + Nagel, DB Schenker, DHL, Agility were recognized to be overriding when it comes to Air Freight and Sea Freight, simply owing to the great MNC accounts managed by such corporates and the strong capacities they transport from international markets to the UAE. When it comes to the Land Freight, local corporates such as Avalon, Allied Transport, ATS, Mohebi Logistics and NTDE were acknowledged to be most dominant, owing of their trucking fleet across the Emirates.

While the International Express market around the UAE is concentrated amongst the majorly worldwide players such as DHL, FedEx and UPS, the Domestic Express market is more fragmented owing to weighty competition amongst local players such as Zajel Courier Services, Skynet, and Time Express. Emirates Post is a government possessed body that leads the Domestic Express market.

Future Growth

While the COVID-19 situation has hit worldwide supply chains greatly, the UAE has been moderately less impacted. The logistics market in the region is projected to grow on the back of fresh technologies such as Automation, Blockchain and Internet of Things, which will be discovered to augment efficiency, develop customer experience and improve service quality. The pharma logistics sector and the e-commerce logistics segment are projected to drive growth during the future, given the predicted increase in medical products demands post COVID-19 and the increasing penetration of e-commerce in the country.

Key Target Audience:-

3PL Logistics Companies

Integrated Logistics Companies

E-Commerce Companies

Oil & Gas Companies

Retail Companies

Pharmaceutical Companies

Logistics/Supply Chain Industry Associations

Time Period Captured in the Report:-

Historical: 2015 to 2019

Future: 2019 to 2025

Companies Mentioned:-

Kuehne + Nagel

Agility

Emirates Post

Al-Futtaim Logistics

DB Schenker

DHL

FedEx Express

UPS

Allied Transport

Freightworks

Zajel Courier Services

Time Express

Bollore Logistics

Danzas AEI

Mohebi Logistics

Hellmann Worldwide Logistics

Tristar

Gulf Agency Company

CEVA Logistics

ATS

Skynet

Sky Express

Avalon General Land Transport

GSL (Global Shipping and Logistics)

RSA Global

Roadlink Transport

Al Mujarad Transport

For More Information on the research report, refer to below link:-

Logistics industry in the UAE

Related Reports:-

Saudi Arabia Dry Logistics And Warehousing Market Outlook To 2025 – Warehousing Automation And Investment Within Transport Infrastructure To Drive Market Revenue)

Philippines Logistics Market Outlook to 2024– By Sea, Land, and Air Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Agriculture), By End Users; By Cold chain market (Cold transportation and Cold storages)

India Logistics Market Outlook to FY24–Driven by Government Infrastructure Push, New Age Logistics Startups, and Technology Innovation

Contact Us:-
Ken Research
Ankur Gupta, Head Marketing & Communications
Ankur@kenresearch.com
+91-9015378249

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