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The UAE logistics market size is estimated to increase by USD 11.31 billion and grow at a CAGR of 7.44% between 2023 and 2028. The growth of the market depends on several factors such as the growing e-commerce industry, the increasing use of multimodal transport, and the increased outsourcing of logistics services. A pivotal driver of market expansion is the burgeoning e-commerce sector. The rapid ascent of e-commerce in the UAE is fuelled by heightened Internet penetration and widespread smartphone accessibility. This growth in online commerce profoundly impacts the logistics sector. As consumers increasingly engage with online platforms, their initial brand interaction often occurs with the packages delivered to their doorstep.
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The transportation segment is estimated to witness significant growth during the forecast period. The main difference between transportation is logistics is that transportation mainly includes the movement of commodities, while logistics is concerned with the management of the supply chain for transportation from the manufacturer to the end user. The logistics comprise the planning, execution, and control of the procurement, movement, and stationing of materials, personnel, and other resources.
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The transportation segment was the largest segment and was valued at USD 16.50 billion in 2018. Additionally, the logistics model decides how resources are efficiently acquired, stored, and transported to their desired destination. Logistics is a crucial part of supply chain management and comprises services including freight forwarding and multimodal transport by sea, road, air, and rail. Some of the logistics-managed resources are tangible commodities including materials, equipment, consumables, food, and other consumer goods. Furthermore, the major modes of transportation that are used for the smooth operation of logistics are roadways, seaways, airways, and railways. Factors such as the presence of logistics market players and high import-export businesses in the region are expected to fuel the growth of this segment which in turn will drive the market during the forecast period.
Based on the end-user, the segment is classified into manufacturing, retail, healthcare, automobile, construction, and others. the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation is referred to as manufacturing. Manufacturing logistics comprises the management and optimization of storage processes, coupled with the movement of materials in installations connected to a manufacturing center. The processes in this segment can range from the purchase of raw materials to the creation of the product. The booming manufacturing industry in UAE is expected to fuel the growth of this segment which in turn will drive the market during the forecast period.
The Market is undergoing significant transformations fuelled by factors such as e-commerce expansion, tax reforms, and increased investment in food security. With a growing emphasis on private sector participation, logistics firms are focusing on enhancing services across the supply chain. This includes optimizing transportation modes such as sea freight and air freight, while also integrating advanced technologies for efficient inventory management and warehousing. The evolution of logistics encompasses freight forwarding, CEP (Courier, Express, Parcel) services, and value-added offerings, catering to diverse service mixes. As the sector witnesses a genesis in revenue streams, logistics companies prioritize information flow and supply chain management to meet evolving customer demands. With logistics playing a crucial role in supporting global trade and distribution networks, the industry continues to adapt to changing dynamics and emerging opportunities, particularly in sectors like pharmaceuticals. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market growth is the growing e-commerce industry. There is rapid growth in the e-commerce industry due to the increase in Internet penetration in the UAE and the rising access to smartphones. The growth of the e-commerce industry has a significant influence on the logistics industry. For instance, as consumers spend more time on online platforms, their first interaction with the brand is the package delivered to their doors.
Moreover, logistics plays a crucial role in enhancing the customer experience as the movement of goods highly relies on the transportation and distribution network. As a result, several market players are integrating logistic services into their e-commerce enterprises. Hence, such factors are positively impacting the UAE - logistics market growth. Therefore, it is expected to drive the market during the forecast period.
A key factor shaping the market growth is the growing demand for green logistics. There is increasing adoption of green logistics solutions among several market players in the market in order to reduce carbon emissions. The green logistics model mainly comprises the implementation of sustainable operations to minimize environmental pollution.
Moreover, there is an increasing adoption of eco-friendly strategies by several market players due to increasing environmental issues caused by pollution. thereby helping to gain more profits and reduce carbon footprint. Additionally, these eco-friendly approaches enhance the branch image which will positively impact the market. Therefore, it is expected to drive the market growth during the forecast period.
High operational costs are one of the key challenges hindering the market growth. The high operational cost is mainly due to the increasing shipping costs fuelled by factors such as the shortage of skilled labor and rising fuel prices. Additionally, the increasing transportation cost is significantly influenced by the fluctuations in crude oil prices which in turn will reduce the profitability of logistics service providers.
Moreover, there is significant pressure on the logistics market to reduce the rates from the market as well as from customers. Furthermore, a large fleet of vehicles and containers at the port, technology-equipped warehouses, and skilled manpower are essential for the smooth operation of the logistics market in the UAE. Thus, the availability of adequate infrastructure for logistics in the UAE results in a rise in operational costs. Hence, such factors are negatively impacting the market growth. Therefore it is expected to hinder the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aramex International LLC: The company offers logistics services such as warehousing, facility management and value-added services to make business more efficient and increase customer satisfaction, which can be applied to a variety of business models across varying industries.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The Market is a dynamic ecosystem encompassing various sectors like agricultural, automotive, and pharma, supported by infrastructural development and digital solutions. Airports and ports serve as vital nodes in the logistics corridors, facilitating air and sea freight movements. Initiatives like free trade zones and tax reforms enhance competitiveness, attracting investments and fostering trade environment. Multimodal hubs and fulfillment centers optimize freight volume and lead times, while last-mile deliveries are streamlined through online shopping platforms. Real-time visibility tools and tracking systems ensure efficient inventory management and order processing. Public-private partnerships drive infrastructural growth, while regulatory frameworks govern customs procedures and trade routes. With investments in logistics infrastructure and private sector participation, the market continues to evolve, catering to the evolving needs of the consumer base and driving economic growth.
Moreover, the bottlenecks in cold storage and CFS (Container Freight Stations) can impact last-mile deliveries and the overall demand for products. Effective connectivity and route optimization software are crucial for enhancing road networks and ensuring smooth shipment processes. Consumer preferences and a growing customer base drive the need for efficient goods and services distribution, both domestic and imports. Growth enablers include the warehouse model and optimizing warehousing space, while tax exemptions and supportive policies help mitigate regulatory framework challenges. Balancing space and service mix in industrial settings can improve productivity. The choice of mode of transport also affects efficiency, highlighting the need for strategic planning and adaptation in logistics and cold storage operations.
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Market Scope |
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Report Coverage |
Details |
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Page number |
135 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 7.44% |
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Market growth 2024-2028 |
USD 11.31 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.4 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABC Cargo, Aramex International LLC, CMA CGM SA Group, Deutsche Bahn AG, Deutsche Post AG, DGL CLEARING AND FORWARDING, Emirates Logistics LLC, Freightworks, Global Shipping and Logistics LLC, Globelink West Star Shipping LLC, Gulf Agency Co. Ltd., Hellmann Worldwide Logistics SE and Co KG, Jenae Logistics LLC, Kuehne Nagel Management AG, Mac World Logistic LLC, Masstrans Freight LLC, Modern Freight Company LLC, Momentum Logistics Co. Ltd., Move One Inc., and Platinum Shipping and Logistics LLC |
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Market dynamics |
Parent market analysis, market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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