The logistics market was valued at US$ 45.00 billion in 2021 and is projected to reach US$ 89.85 billion by 2028; it is expected to grow at a CAGR of 7.9% from 2021 to 2028.
Digitalisation brought an significant change in the MEA logistics market, specifically into the logistics sector. The technology has negative impacts in the logistics market. For instance, the demand for the cash management service is declining due to the cashless payments methods adopted by the consumers. The advent of contactless payments, cashless payments, mobile payments, and others are transforming cash transactions into cashless. Retailers or manufacturers are adopting new payment technologies as safe and more convenient payment processes. The demand for digital payment solutions such as QR code scan payments and smart card contactless payments is increasing in domestic retail sector with the rising consumption of smartphones as well as expanding base of techno-savvy customer base. Further, the users opting for such new payment solutions to win rewards in the form of cashback, instant discount, and others, which is further augmenting the segmental market growth. As a result, the demand for the ATMs is experiencing slower growth and expected see declining growth in coming years. For instance, according to the KAPSARC (King Abdullah Petroleum Studies and Research Center, the numbers are ATMs are declining such as from 18,805 in 2019 to 16,797 in 2021. Also, according to the Okaz/Saudi Gazette monitoring, ~ 1,755 ATMs are went out of service in Saudi Arabia. The transformation into digital economy is impacting the cash managements service growth. As with reduction in ATMs the demand for ATM feeding services will be lowered with other service such as cash management, cash pick-up and deliveries.
The final stage of the delivery process from a distribution center or facility to the end-user is referred to as last-mile deliveries. The supply of effective last-mile deliveries is seeing a tremendous boom in the logistics market, thanks to the ever-increasing proliferation of e-commerce enterprises. Furthermore, receiving a shipment on the same day of order is becoming increasingly popular, leading to the expansion of last-mile delivery services. Likewise, as the pharmaceutical and food and beverages e-commerce businesses grow, the logistics market focuses more on last-mile delivery solutions. In addition, logistics market' ongoing efforts to provide effective last-mile deliveries are another potential predicted to fuel the Middle East logistics market's growth soon. Furthermore, automation is growing in popularity in the logistics market. One of the essential logistics developments generating profitable potential in the logistics market is the emergence of logistics 4.0.
The logistics market in the Middle East is highly dependent on the smooth flow of information, the requirement for real-time visibility for information, and companies trying to implement smartphones and cloud technology as their key information tools. A robust transportation network is mandatory in logistics to ensure timely delivery of consignments to enhance customer services. This industry growth across the region is majorly attributed to its exponential growth in terms of investment and various initiatives by the government. MEA stands amongst the most highly urbanized regions, which also faces the construction of new cities. With response to the continuous shift in global economic power has positioned the Middle East firmly as the world’s fastest-growing region, including Dubai and Abu Dhabi intending to turn into global hubs. Moreover, the regional government is also taking initiatives to enhance its logistics market. For instance, the principal investment arm of the UAE government and the Investment Corporation of Dubai launched ISS Global.. Saudi Arabia's Vision 2030 aims to modernize the country into a go-to logistics hub for the region that successfully connects trade across Asia, Africa, and Europe. The government regulations are continuously opening several new paths for market liberalization, private-sector participation, and public-private partnerships and are expected to efficiently finance the infrastructure for encouraging the overall structure of the logistics sector. Saudi Arabia is projected to be the leading logistics hub in the MEA by 2030.
Globalization and technology have generated new prospects for internationalization in Africa during the last decade, strengthening supply chains and competitiveness. Algeria, Angola, the Democratic Republic of Congo, Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa, and Tanzania are now the most powerful nations in logistics. Some of them control some of the continent's most important ports. For example, Barra owns Angola's Dande and Lobito, Nigeria's Lekki, Tanzania's Musoma, and Kenya's Lamu. Mining, which accounts for a third of the GDP, is extremely important to the economy. On the other hand, Egypt and Algeria have the greatest production values. They are recognized for their lack of developed logistical corridors and limited international engagement. African logistics firms aim to connect Africa's rural populations to regional supply networks and megacities.
The overall MEA Logistics Market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the Logistics Market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Logistics Market.
Digitalisation brought an significant change in the MEA logistics market, specifically into the logistics sector. The technology has negative impacts in the logistics market. For instance, the demand for the cash management service is declining due to the cashless payments methods adopted by the consumers. The advent of contactless payments, cashless payments, mobile payments, and others are transforming cash transactions into cashless. Retailers or manufacturers are adopting new payment technologies as safe and more convenient payment processes. The demand for digital payment solutions such as QR code scan payments and smart card contactless payments is increasing in domestic retail sector with the rising consumption of smartphones as well as expanding base of techno-savvy customer base. Further, the users opting for such new payment solutions to win rewards in the form of cashback, instant discount, and others, which is further augmenting the segmental market growth. As a result, the demand for the ATMs is experiencing slower growth and expected see declining growth in coming years. For instance, according to the KAPSARC (King Abdullah Petroleum Studies and Research Center, the numbers are ATMs are declining such as from 18,805 in 2019 to 16,797 in 2021. Also, according to the Okaz/Saudi Gazette monitoring, ~ 1,755 ATMs are went out of service in Saudi Arabia. The transformation into digital economy is impacting the cash managements service growth. As with reduction in ATMs the demand for ATM feeding services will be lowered with other service such as cash management, cash pick-up and deliveries.
The final stage of the delivery process from a distribution center or facility to the end-user is referred to as last-mile deliveries. The supply of effective last-mile deliveries is seeing a tremendous boom in the logistics market, thanks to the ever-increasing proliferation of e-commerce enterprises. Furthermore, receiving a shipment on the same day of order is becoming increasingly popular, leading to the expansion of last-mile delivery services. Likewise, as the pharmaceutical and food and beverages e-commerce businesses grow, the logistics market focuses more on last-mile delivery solutions. In addition, logistics market' ongoing efforts to provide effective last-mile deliveries are another potential predicted to fuel the Middle East logistics market's growth soon. Furthermore, automation is growing in popularity in the logistics market. One of the essential logistics developments generating profitable potential in the logistics market is the emergence of logistics 4.0.
The logistics market in the Middle East is highly dependent on the smooth flow of information, the requirement for real-time visibility for information, and companies trying to implement smartphones and cloud technology as their key information tools. A robust transportation network is mandatory in logistics to ensure timely delivery of consignments to enhance customer services. This industry growth across the region is majorly attributed to its exponential growth in terms of investment and various initiatives by the government. MEA stands amongst the most highly urbanized regions, which also faces the construction of new cities. With response to the continuous shift in global economic power has positioned the Middle East firmly as the world’s fastest-growing region, including Dubai and Abu Dhabi intending to turn into global hubs. Moreover, the regional government is also taking initiatives to enhance its logistics market. For instance, the principal investment arm of the UAE government and the Investment Corporation of Dubai launched ISS Global.. Saudi Arabia's Vision 2030 aims to modernize the country into a go-to logistics hub for the region that successfully connects trade across Asia, Africa, and Europe. The government regulations are continuously opening several new paths for market liberalization, private-sector participation, and public-private partnerships and are expected to efficiently finance the infrastructure for encouraging the overall structure of the logistics sector. Saudi Arabia is projected to be the leading logistics hub in the MEA by 2030.
Globalization and technology have generated new prospects for internationalization in Africa during the last decade, strengthening supply chains and competitiveness. Algeria, Angola, the Democratic Republic of Congo, Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa, and Tanzania are now the most powerful nations in logistics. Some of them control some of the continent's most important ports. For example, Barra owns Angola's Dande and Lobito, Nigeria's Lekki, Tanzania's Musoma, and Kenya's Lamu. Mining, which accounts for a third of the GDP, is extremely important to the economy. On the other hand, Egypt and Algeria have the greatest production values. They are recognized for their lack of developed logistical corridors and limited international engagement. African logistics firms aim to connect Africa's rural populations to regional supply networks and megacities.
The overall MEA Logistics Market size has been derived using both primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the Logistics Market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the Logistics Market.
Table of Contents
1. Introduction
3. Research Methodology
4. MEA Logistics Market Landscape
5. MEA Logistics Market - Key Market Dynamics
6. Logistics Market - Regional Analysis
7. MEA Logistics Market Analysis - by Model
8. MEA Logistics Market Analysis - by End Use
9. MEA Logistics Market - Country Analysis
10. MEA Logistics Market - COVID-19 Impact Analysis
12. Company Profiles
List of Tables
List of Figures
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Agility
- Al Futtaim - Logistics
- CEVA
- DHL
- FedEx
- Kuehne+Nagel
- RAK Logistics
- SAUDI TRANSPORT & INVESTMENT CO.
- United Parcel Service of America, Inc.
- YUSEN LOGISTICS CO. LTD
- Brink's Incorporated
- Etihad Secure Logistics
- Securitas AB
- Amazon
- Aramax
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 249 |
| Published | April 2022 |
| Forecast Period | 2021 - 2028 |
| Estimated Market Value ( USD | $ 44999.76 Million |
| Forecasted Market Value ( USD | $ 76539.44 Million |
| Compound Annual Growth Rate | 7.9% |
| Regions Covered | Africa, Middle East |
