Key Findings
- Aramex, a leading express company, recently
announced adopting a new operating model with the strategic objective of
enhancing customer service levels and operating efficiencies while
capturing greater global market share. Aramex Express will serve the B2C
customer base including Shop & Ship, e-commerce, FMCG, SMEs and other
customers needing innovative last mile solutions.
- Emirates Post has announced 5 new services to
its business services portfolio, to enhance customer experience, improve
efficiency, offer more flexible pick-up and drop-off options, and faster
delivery services. New additions include new service points and parcel
lockers, temperature-controlled vehicles for its cold chain solutions, new
fulfilment centre in Dubai South and same day express service.
- Technological developments vis-à-vis API
integration into postal websites, Live Tracking of Shipments, Barcoding,
Collaboration between different entities in the market GPS Monitored
Robots, Drones, Inbuilt RFID, GPS, IoT, telematics for better inventory
management is expected to help in the growth of the market.
Way Forward
for Express
Delivery Market in UAE: The country
seems to be in a perfect position to benefit from the geographical location of
the country as a strategic trade hub between three continents. The CEP
market is expected to grow at a CAGR of 14.0% in terms of revenue during
2020-2025. With the introduction of new technologies and the backing of the
government to increase the efficiency of deliveries, the country seems to be in
a great position to benefit from the CEP market.
Moreover, government initiatives
focusing on reducing lead time, provision of value added services and
organizing events such as Expo 2020 are expected to fuel the CEP deliveries.
Introduction of FTZ & SEZ zones would attract more manufacturing industries
in the country.
The CEP space is formalised by
the UAE government as it provides licences to the Courier companies for
operation and the granting of licensing to start the operations are based on
certain parameters. Furthermore, businesses in this space have been encouraged
to upgrade technologically and even bring SMEs into the fold.
UAE
E-Commerce and Express Delivery Market Trends
E-Commerce
Surge and Use of Sophisticated Technologies Expected to drive the market
further: In the past few years, UAE has
managed to position itself as one of the fastest-growing E-commerce markets in
the world which fares well for the express delivery companies. The growth of
E-Commerce and digital payments presents a huge opportunity for companies in
the Express Delivery space as only 38% of payments for shipments
have been conducted through plastic money. The opening up of logistic
hubs has expedited the delivery of shipments to their destinations.
Additionally last mile deliveries are expected to become even more efficient
with companies focusing on new models such as “click and collect” locations.
The use of technologies such as GPS Monitored Robots, Drones, Inbuilt RFID,
GPS, IoT, telematics is expected to make inventory management more
cost-efficient for the companies.
Long Term
Positive Impact of Covid-19: The sudden
onset of the pandemic has essentially interrupted and unsettled social and
economic activities worldwide. Initially, while the logistics sector as a whole
has been affected by global trade slowdown, the sub-sectors like international
CEP have witnessed steady growth when compared to others such as freight
forwarding, inventory and supply chain management. Consumers moved to online
shopping for clothes, groceries and other items which they would usually
purchase from brick-and-mortar shops, leading to a surge in B2C shipments.
Moreover, this is corroborated by the fact that lockdowns have made
inter-country travel difficult, and due to the high population of expatriates
living in the country, deliveries during the festive seasons and other
important occasions has led to an increase in the number of express shipments.
Thus, growth in the volume of shipments was witnessed during festive periods.
This has led to the clear establishment of more trade lanes and information about
new companies for the players in the Express Delivery Market. Companies are
continuously investing on technologies to make deliveries more efficient and
customized according to the demands of the customer. This trend is only
expected to continue in the coming years.
Analysts at Ken Research in their
latest publication “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)” have observed that the CEP market in UAE has a great potential to
grow supported by increased E-Commerce Demand in the country. The covid-19
outbreak has further accentuated the growth of the market by shifting major retailers
to online platforms affecting consumer preference concerning online retail. UAE
CEP Market is expected to grow at a CAGR of ~14.0 % based on the revenue
over the forecast period 2020-2025.
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
·
UAE
Domestic/International Courier Delivery Market
·
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
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Ankur Gupta, Head Marketing
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