UAE - Logistics Market by Application and End-user - Forecast and Analysis 2023-2027

UAE Logistics Market Forecast 2023-2027

The UAE logistics market size is estimated to increase by USD 10.37 billion and grow at a CAGR of 7.23% between 2022 and 2027. 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 propelled by heightened Internet penetration and widespread smartphone accessibility. This surge 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.

What will be the Size of the UAE Logistics Market During the Forecast Period?

To learn more about this report, View Report Sample

Segmentation

This market report extensively covers market segmentation by application (transportation, inventory holding, and administration) and end-user (manufacturing, retail, healthcare, automobile, and construction and others). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Application Segment Analysis:

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.

Get a glance at the market contribution of various segments Request Free PDF Sample

The transportation segment was the largest segment and was valued at USD 16.02 billion in 2017. 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.

End-user Segment Analysis:

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.

Market Dynamics and Customer Landscape

The Market is undergoing significant transformations propelled 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.

Key Market Driver

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.

Significant Market Trend

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.

Major Market Challenge

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.

Market Customer Landscape

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

Who are the Major UAE Logistics Market Companies?

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:

• ABC Cargo
• 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.
• Platinum Shipping and Logistics LLC

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.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Application Outlook 
  • Transportation
  • Inventory holding
  • Administration
• End-user Outlook
  • Manufacturing
  • Retail
  • Healthcare
  • Automobile
  • Construction and others

Market Analyst Overview

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.

UAE Logistics Market Scope
Report Coverage	Details
Page number	139
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 7.23%
Market growth 2023-2027	USD 10,375.52 million
Market structure	Fragmented
YoY growth 2022-2023(%)	5.5
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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
Market dynamics	Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

View PDF Sample

What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across the UAE
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements. 

Get in touch