With a CAGR of 5.4% between 2017 & 2021 Innovative Warehousing technologies are changing the warehousing ecosystem for good. Is it a feasible solution for long term growth? – Ken Research

 1. Increasing demand for cold chain facilities coupled with investments in automated warehousing facilities are gaining traction in UAE warehousing market.

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Manufacturers and logistics companies are adopting advanced technologies for improved productivity & efficiency, improved customer experience, pushing advanced inventory control high up the industry agenda and sharpening cost-control, space optimization and competitiveness. Increasing demand for food quality, availability, and delivery has resulted in the rising importance of cold chain warehousing facilities in the global food distribution sector. Moreover, increasing demand for food quality, availability, and delivery has resulted in the rising importance of cold chain warehousing facilities in the global food distribution sector.

2. Increased Automation due to rising Investment in Newer Technologies is driving the demand for Modern Warehouses in UAE

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Next generation supply chains in UAE are utilizing robotics and automation to perform task such as picking, sorting, inspecting, handling to improve overall efficiency and speed to market. Some warehouses are turning to autonomous vehicles to bring merchandise to sortation while Drones & RFID will be used for Inventory Management. The opportunities seem endless which will result in greater efficiency and productivity.

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UAE Logistics Market Report

UAE’s Logistics Market to grow at the rate of 7.5% in the upcoming period between 2021-2026 owing to government initiatives such as Expansion of sea ports alongside technological innovations such as Real-Time Tracking : Ken Research

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History of steady growth alongside a positive future forecast provides UAE’s logistics Market increasing confidence & interest of stakeholders, says a report by Ken Research

1. Expansion of existing sea ports, emergence of e-commerce sector coupled with rising maritime, air cargo & land transport sector serves as major catalyst for the growth and development of logistics industry in UAE.

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The government of UAE is aiming to establish it as a Logistics Hub by huge investments in the infrastructure. Initiatives such as development of sea ports (USD 1.09 Billion to enhance logistical infrastructure for serving trading operations) alongside a growing pharmaceutical & maritime industry will help UAE government to achieve the economic growth targets by 2040. The country’s strength lies mainly in its maritime sector. As per relevant data, the Bunker Supply Index ranked UAE 3^rd globally in transport services and 5^th globally as a key competitive maritime hub. As of 2022, there were more than 10 million cubic meters of crude and oil products storage capacity at Fujairah, making Fujairah the world’s No. 3 bunkering hub, which contributes in strengthening UAE’s position as a reliable supplier of crude oil. All in all, the country has a huge potential when it comes to expansion of its logistics sector.­­­­

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2. “Integrating Technology to market’s growth prospects:” With the increasing technological innovations and advancements across the world, logistics sector in UAE is also getting benefitted.

Technology options such as Real Time Tracking, Control Tower, smarter operations & greater service quality serve as a major benefit for UAE’s Logistics Market. A major benefit of technologies such as warehouse Management System is that) it further optimizes and accelerates key warehousing tasks by directing receiving, put-away, picking, packing, shipping and space utilization along optimized routes is that they have a large Shipper and Trucker Base and offer services such as Freight Listing, Freight Brokerage and Online Transactions to earn revenue. All in all, technological innovations are anticipated to be inculcated deep into the logistics systems in UAE.

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Technological Trends in UAE’s Logistics Market