Executive Summary
The report titled, “UAE CEP Market Outlook to 2025 – By Domestic and International Express, By Mode (Ground & Air Express), By Business Model (B2C, B2B & C2C), By Shipment Weight (<3kg, 3-5kg, >5kg), By Region (Dubai, Abu Dhabi, Sharjah & Others” provides a comprehensive analysis of the CEP Market Landscape in the UAE. The report covers various aspects including the market size (by shipments and revenue), industry life cycle, a timeline of the major CEP players, delivery model in CEP market, market sizing analysis, market segmentation by domestic and international express, by mode of transport (ground and air express), by business model (B2C, B2B and C2C), by delivery period duration (same-day delivery, 1-2 day delivery, and more than 2-day delivery), and by shipment weightage (less than 3 kg, 3kg-5kg and greater than 5kg).
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The report also elucidates the key lanes for shipments both internationally and domestically. The report adds context to the dynamic nature of the CEP market by providing seasonality trends, growth drivers, and the various regulations put in place by the government. The report also covers the overall competitive landscape basis certain parameters. Additionally, the market share of both international and domestic players is computed. The report concludes with future growth projections, impact of Covid-19 on the sector, analysts’ take where market entry strategies for potential players willing to enter the market are discussed along with focus areas for existing CEP companies.
UAE CEP Market Overview and Size
UAE Express Delivery Market has witnessed an upward trajectory with a CAGR of 11.2% during 2015-2020. A strong performance despite the brief halting of commercial activities in 2020 due to the pandemic shows that the CEP market is resilient and has scope for further growth.
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The UAE presents itself as an attractive destination for the CEP market due to inherent advantages that make it ideal for become a hub for express delivery shipments. Its consumer demographic consists of a young internet-savvy population (~91% internet penetration rate in 2020), geographical benefits and with a developed infrastructure. This is corroborated by the presence of a high consumer confidence, increasing consumer preferences towards online shopping, that has augmented the growth of CEP market. Furthermore, a surge in online shopping and E-Commerce products owing to the pandemic has provided a boost to the CEP market landscape. Dubai and Abu Dhabi have emerged as the key hub for the express delivery shipments. The COVID-19 pandemic has also led the market players in focusing towards improving their online presence, websites, collaborations and technology for better unit economics. The government has also been playing an active role in incubating the space for further growth by implementing policies such as creation of Special Economic Zones, proving taxes breaks for start-ups in this space and creating physical infrastructure to support more shipments and deliveries.
UAE CEP Logistics Market Segmentations
By Domestic and International Express: In terms of total number of shipments, domestic express captured the majority of the market share. Domestic deliveries tend to be faster in UAE due to the well-connected transport system of the country. However, international express shipments have increased significantly in the recent years owing to the high cross-border e-commerce trade.
By Mode of Transport: In terms of the mode of transport used to deliver the product, most of the deliveries happen through the ground express as compared to the air express on account of UAE being a relatively small country and having concentrated demand in certain commercial hubs. Furthermore, only established companies/international companies are able to deliver the shipments through air.
By Business Model: The B2C segments commands the highest share in terms of shipments in 2020 owing to sudden surge witnessed in the e-commerce shipments. The surge in B2C was induced by the change in consumer preference towards online shopping for a wide range of products fueled by the onset of Covid-19 pandemic.
By Shipment Weight: Most of the shipments weigh less than 3 kg which corroborates the fact that a large chunk of deliveries in the market happen in the B2C segment. Furthermore, CEP companies cater to mails sent in terms of postal cards and letters, and deliver them from one client to another.
By Delivery Period: Majority of the shipments are delivered in the country within 2 days in UAE owing to the smaller geography. International express shipments coming in from Asia & America usually takes more than 2 days to be delivered in UAE. Companies are focusing on providing better services along with quicker deliveries to remain relevant in the competition.
Competitive Landscape of UAE CEP Market:
The competition in the CEP space in UAE is fragmented with presence of ~ 50 international and domestic players in the CEP Market. The major CEP companies include Aramex, Emirates Post, SMSA Express, DHL Express, FedEx, UPS, Team Express, First Flight Couriers, TFM Express, Sky Express, Zajel Courier Services and Century Express. Aramex & SMSA Express are the market leaders in domestic & international players segment respectively. Same day delivery service, competitive pricing, technology adoption, user interface, network coverage, key clientele, fleet size, value added services are the key competing parameters for express delivery service providers.
UAE CEP Market Future Outlook and Projections
Over the forecast period, UAE CEP market is expected to grow owing to increased internet penetration, shift in consumer preference, advanced technologies in improving efficiencies, collaboration between logistics and delivery companies, and favorable government initiatives. Due to the COVID-19 outbreak, there has been a shift from offline sales to online sales, which is expected to ensure substantial growth in the future as well as E-commerce booms and more deliveries are made through this route. The CEP market in the country is expected to grow on the back of new technologies such as Automation, Blockchain, and the Internet of Things, which will be explored to increase efficiency, improve customer experience and enhance service quality.
Key Segments Covered
- By Domestic and International Express
- Domestic Express
- International Express
- By Mode of Transport
- Ground Express
- Air Express
- By Major Regions
- Dubai
- Abu Dhabi
- Sharjah & Others
- By Business Model
- B2C
- B2B
- C2C
- By Shipment Weight
- <3 Kg
- 3 Kg – 5 Kg
- > 5 Kg
- By Delivery Period
- Same Day Delivery
- 1-2 Day Delivery
- More than 2 Day Delivery
CEP Companies Covered
- Aramex
- Emirates Post
- SMSA Express
- DHL Express
- FedEx
- UPS
- Team Express Services
- First Flight Couriers
- TFM Express
- Sky Express
- Zajel Courier Services
- Century Express
Cross-Comparison on GCC Postal Networks Covered
- Oman Post
- Bahrain Post
- Saudi Post
- Qatar Post
- Emirates Post
Key Target Audience
- CEP Companies
- Express Delivery Companies
- 3PL Logistics Companies
- Postal Network Association
- E-Commerce Companies/Platforms
- Integrated Logistics Companies
- Logistics/Supply Chain Industry Associations
- Parcel and Mail Companies
- Ministry of Transport and Communications
Time Period Captured in the Report:
- Historical Period – 2015-2020
- Forecast Period – 2020-2025F
Key Topics Covered in the Report
- UAE CEP Market Overview
- Industry Lifecycle of UAE CEP Market
- UAE CEP Market Ecosystem
- Timeline of Major CEP Players
- Delivery Model in CEP Market
- UAE CEP Market Sizing Analysis, 2015-2020
- Seasonality Trends in CEP Market
- Growth Drivers for UAE CEP Market
- UAE CEP Market Segmentation, 2020
- Competition Scenario amongst Players in UAE
- Market Share of Leading Players in the Overall UAE CEP Market
- Market Share of Leading International and Domestic Players
- Competition Parameters in UAE CEP Market
- Cross Comparison of Major UAE CEP Players
- UAE CEP Market Pricing Analysis
- Laws and Regulations Governing CEP Market in UAE
- Issues and Challenges Faced by CEP Players
- SWOT Analysis of CEP Market in UAE
- New Trends and Developments in the UAE CEP Market
- Customer Analysis for the UAE CEP Market
- Future Market Size and Segmentations, 2020-2025F
- Covid-19 Impact on UAE CEP Market
- Analyst Recommendations
- Cross-Comparison of GCC Postal Networks
For More Information, refer to below link:-
UAE E-Commerce and Express Delivery Market Research Report
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