The report titled “UAE E-Commerce Logistics Market Outlook to 2025 – Driven by Growth in Online Shoppers along with Introduction of New Age Technologies by Logistics Players” provides a comprehensive analysis of e-commerce logistics services in the UAE. The report covers various aspects including the market size (by number of orders and revenue), return rate, industry cycle, timeline, market segmentation by channel (e-commerce merchants and 3PL companies), by domestic and international shipments, by area of delivery (intercity and intracity), by mode (ground, air & sea shipments), by delivery period duration (same day delivery, 1-3 day delivery, and more than 3 day delivery), by type of products and by payment mode (cash on delivery, credit & debit cards and others). The report also focuses on e-commerce logistics warehousing sector (warehousing clusters, space, technology, cost component analysis, etc.) in UAE. Moreover, the report also covers the overall competitive landscape and growth drivers and trends and government role and regulations. The report concludes with market projection for future for the market, Covid-19 impact, analysts’ take on the future and case studies highlighting the major opportunities.
UAE E-Commerce Logistics Market Overview and Size
UAE E-commerce industry has witnessed an upward trajectory over the past 5-6 years with an increase in internet penetration in the region. UAE is considered the most advanced e-commerce market in MENA, with a penetration rate of ~% in 2017. The UAE enjoys many advantages that make it ideal for e-commerce growth. Its consumer demographic consists of a young internet-savvy population, with high social media usage. Escalation in the number of smart phones in the country, high consumer confidence, changing consumer preferences, etc. has augmented the growth of e-commerce leading surging demand for e-commerce logistics as well in the country. Dubai, Abu Dhabi and Sharjah have emerged as the key hub for demand and supply of e-commerce logistics. The COVID-19 pandemic has also pushed the demand in the market as the need for social distancing has forced people to rely on online shopping. The growth in the E-commerce orders for logistics has been majorly driven with an increase in internet affinity and demand for value added services.
UAE E-Commerce Logistics Market Segmentations
By Accepted & Returned Orders: Returned orders out of total shipments delivered saw a slight decline in 2020. Fashion is the category with maximum returns due to inappropriate sizes received by the customers followed by Electronics, as customers return these products due to defective pieces received.
By Channel: In terms of total number of shipments, 3PL players have captured the majority of the market share as big marketplaces like Amazon & Namshi are also dependent on these players for the last mile deliveries in 2020. International e-commerce companies prefer to outsource logistics to 3PL companies to avoid the hustle of establishing their own operations.
By Delivery Period: 1-3 day delivery has dominated the market in terms of number of orders owing to increasing focus of the companies on providing better services coupled with increasing customer needs for better service. Moreover, majority of the orders are placed from the Dubai & Abu Dhabi region, where the products can be delivered within 1 day.
By Type of Products: Fashion & Accessories and Consumer Electronics have dominated the online retail sector in UAE in 2020. Foods and Personal Care is the third leading e-commerce category in UAE.
E-Commerce Warehousing Sector in UAE:
The warehousing market in the UAE is still in the growing phase where majority of the domestic companies are operating through their own in-house operations and are less focused towards out-sourcing it to 3PL companies.
E-Commerce warehousing has captured ~% of the overall warehousing space in UAE. The rise of e-commerce within the country has given a major boost to the warehousing market. For instance, Amazon & Noon plans to add several warehouses in the country in the next 3-5 years. Most of the e-commerce logistics players have their owned warehousing space in order to manage all the operations by themselves. Few companies have warehouses which are specially built for cross border operations as their distribution centres and hubs are used for procuring products from local sellers and delivering it domestically, Construction of Dubai Commercity, Dubai Maritime City, Dubai Logistics City and expansion of existing ports and free zones such as JAFZA and Hamriyah Free Zone has significantly amplified the warehousing space in the country.
Competitive Landscape of UAE E-Commerce Logistics Market:
The competition in the e-commerce logistics space in UAE is concentrated whereby major 3-4 companies hold the majority of the share in the market. The major e-commerce logistics companies include Aramex, iMile, Jeebly, Shipa, Fetchr, Emirates Post, Team Express, Quiqup, Time Express and few others. The e-commerce market is highly fragmented as the majority of the market share is composed by the top 3-4 players. Fleet size, number of orders, clientele, number of delivery centers, value-added services, price and delivery time are the key competing parameters for the e-commerce logistics providers.
UAE E-Commerce Logistics Market Future Outlook and Projections
Over the forecast period, UAE E-commerce Logistics Market is expected to drive up the demand because of expected surge in internet penetration, especially its exposure to the youth. 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. The e-commerce logistics 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 Accepted & Returned Orders
- Accepted Orders
- Returned Orders
- By Channel
- 3PL Players
- E-Commerce Merchants
- By Type of Shipments
- Domestic Shipments
- International Shipments
- By Area of Delivery
- Intercity
- Intracity
- By Mode
- Ground Shipments
- Air & Sea Shipments
- By Delivery Period
- Same Day Delivery
- 1-3 Day Delivery
- More than 3 Day Delivery
- By Type of Products
- Fashion & Accessories
- Consumer Electronics & Media
- Foods & Personal Care
- Home Care & Furniture
- Toys & Video Games
- Others (Consumer Health, Digital Music, Pet Care, etc.)
- By Payment Mode
- Cash on Delivery
- Credit & Debit Cards
- Others (Digital Wallets, Paypal, GPay, etc.)
- Captive and 3PL E-Commerce Warehousing
- Warehousing Concentration in UAE
E-Commerce Logistics Companies Covered
- Aramex
- iMile
- Jeebly
- Shipa
- Fetchr
- Emirates Post
- Team Express
- Quiqup
- Time Express
E-Commerce Marketplace Platform Covered
- Amazon
- Noon
- Namshi
- Landmark Group.
Key Target Audience
- 3PL Logistics Companies
- Integrated Logistics Companies
- E-Commerce Marketplace Platform
- Retail Companies
- Logistics/Supply Chain Industry Associations
Time Period Captured in the Report:-
- Historical Period – 2015-2020
- Forecast Period – 2020-2025
For more information on the research report, refer to below link:
UAE E-Commerce Logistics Market Research Report 2021
Related Reports
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
support@kenresearch.com
+91-9015378249
