The report titled “Future Potential Market of LEVs in Last Mile Delivery Industry in KSA – Favorable Government Policies and Better Charging Infrastructure Availability to drive the LEV Sales in KSA Market” provides a comprehensive analysis of the future potential of Light Electric Vehicle industry in Last Mile Delivery Industry in the KSA. The report covers various aspects including the current EV Scenario and charging infrsatructure status in KSA along with the business potential of CEP, E-Commerce, Food and Grocery Delivery industry in terms of number of orders and fleet metrics (Fleet type, average distance travelled, number of delivery fleets, maintenance charges and payload capacity), major trends and development, issues and challenges, government regulations and competition benchmarking. The report concludes with market projections for future of the industry including forecasted industry size by EV sales volume in best, neutral and worst case scenario.
KSA Electric Vehicle Market
EVs are slowly gaining traction with less than 0.5% of vehicles deployed
as PHEVs in Saudi Arabia. Efforts to create a market for EVs are consistent
with the Saudi Crown Prince Muhammed bin Salman’s Vision 2030 plan, which aims
to reduce the country’s dependence on oil, diversify the economy, and implement
a range of social reforms. The EV infrastructure in Saudi Arabia is still
lagging behind as the government is yet to install charging stations in public
areas.
Several gaps in the EV market such as a limited hybrid car range, high
prices, insufficient battery life and an underdeveloped charging ecosystem are
yet to be filled. Fleet operators need
to create and manage vehicle service infrastructure and charging infrastructure
on their own due to limited availability of existing set-ups in public domain.
Last-Mile Delivery Industry in KSA
Business Side Potential for LEVs in
KSA CEP Industry
Domestic express courier dominates the market and is expected to register
revenue growth at a CAGR of 4.4% and growth in shipments at a CAGR of 8.6%
during the forecasted year 2020-2030. CEP Shipments include E-Commerce, Pharma
and Grocery deliveries. The express companies such as UPS, DHL and Saudi Post
use four-wheelers particularly small vans, to deliver parcels/packages in Saudi
Arabia. E-commerce delivery vans usually make 45-50 deliveries in a day, with
an average trip length of 100 kms in Tier 1 cities and 50 kms in Tier 2/3
cities. Major players in this category include Saudi Post, Naquel Express, SMSA
Express, DHL, Aramex and UPS. Currently, LEVs do not promise a high adoption
potential attributed to both a high cost disparity and a lack of vehicle.
However, small format EVs may gain momentum in the near future, given their
lower fuel and maintenance costs. They are also less dependent on charging
infrastructure, since their power requirements are lower, and they are more likely
to come in models that allow battery swapping.
Business Side Potential for LEVs in
Grocery Delivery Industry
The industry is at nascent stage registering double digit growth rate
between 30-40% in revenue terms. Online grocery penetration in terms of users
is expected to increase from 3.7% in 2019 to 20% by 2025 owing shift in
customer preference from offline to online grocery shopping. Grocery companies
such as Danube and Carrefour have their own in-house fleet whereas others
usually partner with third party operators to fulfill customer orders. Riyadh,
Medina and Makkah are recognized as regions with maximum demand and supply of
online grocery service where LEVs could be initially deployed. Expanding
in-house delivery fleet or partnering with fleet management companies on
contractual basis will enable the companies to minimize the costs & gain a
competitive edge in the industry. Major companies in the segment include Nana
Direct, Zadfresh, Danube, Qareeb and Carrefour.
Business Side Potential for LEVs in
Food Delivery Industry
Saudi Arabia witnessed an unprecedented growth in the online food
delivery market for the past few years. The industry is expected to register a
revenue growth of 7.2% during the forecaster year fulfilling over 200 million
orders. Aggregator platforms like Hungrstation, Careem and Jahez have expanded
all over the kingdom through the sale of reliable infrastructure solutions and
attractive commission rates for restaurants. The companies operate on pay per
delivery model where the freelancers owning an car or a two wheeler are hired and paid on the basis of the number
of orders delivered. Major companies in the segment include Hungerstation,
talabat, Careem, Jahez and Mrsool. Partnership with restaurants, malls,
real-estate developers and other commercial hubs should be explored for the
potential deployment of charging infrastructure for LEVs. Popular markets and
food and beverage pick-up points are the ideal charging / swapping hubs to keep
an EV fleet ready for both last-mile goods and food deliveries.
Identification of Gaps in Last Mile
Delivery:
Most e-commerce retailers in KSA struggle with last-mile delivery as
delays, reduced success rate & difficulty cash on delivery (COD) handling.
Expectation of same-day deliveries from the consumers puts a greater strain on
the budget. Inconsistent demand, with spikes during festive seasons such as
Ramadan put additional pressure on supply side ecosystem for e-commerce
logistics and hyperlocal logistic service providers.
E-com Retailers need to come up with solutions such as Tech-Enabled E-com
Logistics Platform/Automated Shipping Software, B2B SAAS Platform and Digital
Freight Brokers/ Load Discovery Aggregator Platform to solve the LMD problem in
an efficient way to meet the growing customer demands
Top 3 Oppurtunities for LEVs in
Last-Mile Delivery:
E-Mobility Solutions: E-commerce
players like Amazon witnessing a large volume of orders and requiring larger
delivery fleets will slowly move towards LEVs by partnering with e-mobility
startups and suppliers to convert their fleet into an e-fleet.
Reduced Operational Cost: The cost
to rent and maintain e-vehicles like e-scooters and e-cars will be lower in
comparison to their ICE counterparts since there is no additional expenses like
petrol/diesel costs.
Dealership and Franchise
Oppurtunities: Entry of new players in the EV space creates myriad
opportunities for prospective companies to explore dealer/distributorship of
these brands. With Tesla also planning to enter the KSA market in a year or
two, the companies can establish itself as a credible dealer and partner with
electric car brands to help the clients purchase and deliver to their various
locations. Electric car franchise and reselling business have bright future
since the number of LEVs increases.
Future Analysis and Projections for
LEVs in Saudi Arabia
KSA could witness an LEV penetration between 5-7% by 2025. The neutral
case scenario predicts KSA will build a framework like UAE such as free
charging stations, discounted car registrations, toll exemptions, and other
perks to incentivize people to give up their traditional cars for EVs. However,
barriers such as TCO parity, high battery cost & infrastructure challenges
such as mass deployment of charging stations in public area may slow down the
adoption rate. Introduction of new model vehicles to provide greater choice
along with promotion of greater levels of understanding of the capabilities,
benefits and imperatives for adopting EVs will accelerate adoption.
Key Segments Covered in LEV
Adotpion in Last Mile Delivery Market in KSA
Business Side Potential for LEVs in
KSA CEP Industry
CEP Market Size
Total Number of Courier Shipments
KSA E-Commerce Landscape
E-Commerce Market Major Categories
Total Number of E-Commerce Orders
Total Number of Vehicles Deployed
Competition Scenario in KSA CEP Market
Future Projections towards Penetration of LEVs in Courier Segment
Business Side Potential for LEVs in
KSA Grocery Delivery Market
KSA Online Grocery Ecosystem
KSA Online Grocery Market Size
KSA Online Grocery Market Concentration
KSA Online Grocery Market Segmentations
Total Number of Orders
Total Number of Vehicles Deployed
Competition Scenario in KSA Grocery Delivery Market
Future Projections Towards Penetration of LEVs in Grocery Delivery
Segment
Business Side Potential for LEVs in
KSA Food Delivery Market
Landscape of Food Delivery Companies in Saudi Arabia
KSA Online Food Delivery Market Size
Total Number of Orders
Total Number of Vehicles Deployed
Competition Scenario in KSA Food Delivery Market
Future Projections Towards Penetration of LEVs in Food Delivery Segment
Key Target Audience
LEV Manufacturers
LEV Dealers/Distributors
Courier and Parcel Companies
E-Commerce Companies
Grocery Delivery Companies
Food Delivery Companies
Time Period Captured in the Report:
Historical Period: 2015-2020
Forecast Period: 2020–2030
Companies Covered:
EV Manufacturers
Tesla
BMW
Chevrolet
Renault
Hyundai
Nissan
CEP Industry
Saudi Post
Naquel Express
SMSA Express
DHL
Aramex
UPS
FedEx/TNT
Grocery Delivery Companies
Nana Direct
Zadfresh
Danube
Carrefour
Qareeb
Food Delivery Companies
Hungerstation
Careem
Jahez
Talabat
Mrsool
Key Topics Covered in the Report
Overview of Global EV Market
Genesis and Overview of KSA LEV Market
Ecosystem of Major Entities in Saudi Arabia LEV market
Charging Infrastructure for LEV Market in Saudi Arabia
Overview of KSA Last-Mile Delivery Market
Number of Orders/Shipments in KSA Last-Mile Delivery Market
Number of Fleets Deployed for Last Mile Delivery
Business Side Potential for LEVs in KSA CEP Industry including E-commerce
Landscape in KSA
Business Side Potential for LEVs in KSA Grocery Delivery Market
Business Side Potential for LEVs in KSA Food Delivery Market
Regulatory Scenario and Framework in Saudi Arabia LEV Market
Opinions of Industry Experts regarding adoption of LEVs
Difference in EV costs compared to ICE vehicles- Cost Benefit Analysis
Viable Supply Chain Model for Adoption and Supplying LEVs in KSA
Current Landscape of LEV Offering in KSA
Major Deals/Transactions for LEVs in KSA
Impact of COVID 19 on EV sales
Future Analysis and Projections for LEVs in Saudi Arabia
Opportunity Analysis of an LEV in Last Mile Delivery
Case Studies for LEV Last-Mile Delivery
Recommendations / Success Factors
Research Methodology
Appendix
For more information on the
research report, refer to below link:
Future
Potential Market of LEVs in Last Mile Delivery Industry in KSA
Related Reports
Global
Last Mile Delivery Market Report 2019, Competitive Landscape, Trends and
Opportunities
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
No comments:
Post a Comment