Domestic express courier dominates the market and is expected to register revenue growth at a CAGR of 4.4%. Most e-commerce retailers in KSA struggle with last-mile delivery as delays, reduced success rate & difficulty cash on delivery (COD) handling. Inconsistent demand, with spikes during festive seasons such as Ramadan, put additional pressure on the supply-side ecosystem for e-commerce logistics and hyperlocal logistic service providers. E-com Retailers need to come up with solutions such as Tech-Enabled E-com Logistics Platforms/Automated Shipping Software, B2B SAAS Platforms, and Digital Freight Brokers/ Load Discovery Aggregator Platform to solve the LMD problem in an efficient way to meet the growing customer demands.
Other Challenges in Future Potential Market Of LEVs in Last Mile Delivery Industry in KSA.
- Cities such as NEOM and SPARK are incorporating smart mobility into their urban planning.
Some cities in the GCC are already incorporating smart mobility into their urban planning. Saudi Arabia and the UAE will invest nearly $50 bn in smart city projects through 2025 and most of the smart city projects in the GCC have a distinct focus on mobility for residents. SPARK will be a fully integrated city with master plans to seamlessly intertwine industrial areas, such as factories, workshops, yards, and the Logistics Zone, with vibrant residential, educational, and commercial areas. Moreover, NEOM City consists of a city of a million residents with a length of 170 kilometers (105 miles) that preserves 95% of nature with zero car emission, zero streets and zero carbon emissions. Moreover, ABB, a global automation giant and a leader in electric vehicle (EV) infrastructure sector has supplied its market-leading EV chargers to a premier residential compound ‘Safa 28’ located in Riyadh, Saudi Arabia. All these government initiatives, makes a greater space of the EV sector to flourish which will help the Last mile LEVs sector to grow.
- New types of vehicles and new logistic structures are emerging to address the new paradigm in E-Commerce Industry.
The rising competition to deliver faster has led to ecommerce and hyperlocal delivery players to partner with mobility players to expand their fleet while still staying lean on resources. E-commerce players like Noon and Amazon witnessing a large volume of orders and requiring larger delivery fleets will slowly move towards LEVs by partnering with e-mobility startups and suppliers to convert their fleet into an e-fleet. The lower total cost of ownership and operating costs have made EVs more attractive for the intra-city cargo segment which comprise ~40% of total E-commerce shipments in KSA. However, LEVs need to be as efficient as an ICE vehicles carrying a similar payload and covering more trips and at lesser costs. This has led to the growth of new types of vehicles and new logistic structures that are emerging to address the new paradigm in E-Commerce Industry.
- Government policies play a huge role in Adoption of Electric Vehicles in a country.
In November 2019, the Kingdom announced that 5% of its parking spaces are to be designated solely for the use of EVs. Also, and even more importantly, the Saudi government has mandated that there will be EV charging stations at all municipal car parks. National Industrial Development & Logistics Program (NIDLP) considered by CEDA to be one of the highly critical VRPs, will most likely develop initiatives geared towards EVs in the coming years. Furthermore, it focuses on developing ICE along with EV as it allows KSA to optimize short term gains while making calculated bets on EV over the medium term. Developing this sector will create jobs while contributing to the GDP.
- High penetration acceptance of the use EVs could radically reduce the high rate for demand of oil.
Fossil CO2 emissions in Saudi Arabia are 526.8 million tones of CO2 in 2019. An EV has zero exhaust emissions. They are 100% eco-friendly as they run on electrically powered engines. The desire to reduce their carbon footprint is a motivator for environmentally conscious consumers to buy EVs. The cost of purchasing an EV is more than ICE. However, the operational costs requiring fuel and maintenance in ICE vehicle is more than that of an EV. The mass production of batteries and available tax incentives will further bring down the cost, thus, making it much more cost-effective.
Key Segments Covered in KSA LEV Market
Business Side Potential for LEVs in KSA CEP Industry
- CEP Market Size
- Total Number of Courier Shipments
- KSA E-Commerce Landscape
- E-Commerce Market Major Categories
- Total Number of E-Commerce Orders
- Total Number of Vehicles Deployed
- Competition Scenario in KSA CEP Market
- Future Projections Towards Penetration of LEVs in Courier Segment
Business Side Potential for LEVs in KSA Grocery Delivery Market
- KSA Online Grocery Ecosystem
- KSA Online Grocery Market Size
- KSA Online Grocery Market Concentration
- KSA Online Grocery Market Segmentations
- Total Number of Orders
- Total Number of Vehicles Deployed
- Competition Scenario in KSA Grocery Delivery Market
- Future Projections Towards Penetration of LEVs in Grocery Delivery Segment
Business Side Potential for LEVs in KSA Food Delivery Market
- Landscape of Food Delivery Companies in Saudi Arabia
- KSA Online Food Delivery Market Size
- Total Number of Orders
- Total Number of Vehicles Deployed
- Competition Scenario in KSA Food Delivery Market
- Future Projections Towards Penetration of LEVs in Food Delivery Segment
Key Target Audience
- LEV Manufacturers
- LEV Dealers/Distributors
- Courier and Parcel Companies
- E-Commerce Companies
- Grocery Delivery Companies
- Food Delivery Companies
Time Period Captured in the Report:
Historical Period: 2015-2020
Forecast Period: 2020–2030
Key Topics Covered in the Report
- Overview of Global EV Market
- Genesis and Overview of KSA LEV Market
- Ecosystem of Major Entities in Saudi Arabia LEV market
- Charging Infrastructure for LEV Market in Saudi Arabia
- Overview of KSA Last-Mile Delivery Market
- Number of Orders/Shipments in KSA Last-Mile Delivery Market
- Number of Fleets Deployed for Last Mile Delivery
- Business Side Potential for LEVs in KSA CEP Industry including E-commerce Landscape in KSA
- Business Side Potential for LEVs in KSA Grocery Delivery Market
- Business Side Potential for LEVs in KSA Food Delivery Market
- Regulatory Scenario and Framework in Saudi Arabia LEV Market
- Opinions of Industry Experts regarding adoption of LEVs
- Difference in EV costs compared to ICE vehicles- Cost Benefit Analysis
- Viable Supply Chain Model for Adoption and Supplying LEVs in KSA
- Current Landscape of LEV Offering in KSA
- Major Deals/Transactions for LEVs in KSA
- Impact of COVID 19 on EV sales
- Future Analysis and Projections for LEVs in Saudi Arabia
- Opportunity Analysis of an LEV in Last Mile Delivery
- Case Studies for LEV Last-Mile Delivery
- Recommendations / Success Factors
- Research Methodology
- Appendix
Companies Covered:
EV Manufacturers
- Tesla
- BMW
- Chevrolet
- Renault
- Hyundai
- Nissan
CEP Industry
- Saudi Post
- Naquel Express
- SMSA Express
- DHL
- Aramex
- UPS
- FedEx/TNT
Grocery Delivery Companies
- Nana Direct
- Zadfresh
- Danube
- Carrefour
- Qareeb
Food Delivery Companies
- Hungerstation
- Careem
- Jahez
- Talabat
- Mrsool
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