December 2021|UAE News
High
Heightened Technological Adoption, Support & Initiatives for E-Commerce
Growth by the Government, and Changing Consumer Preference owing to Covid-19
has Accelerated Growth Prospects in UAE CEP Market
Growing
Government Support: The UAE CEP
market continues to be an attractive avenue that has seen a growth of ~ 11%
CAGR for the volume of shipments even after international trade has faced
disruptions owing to the pandemic. This is attributed to the continued support
by the government for adequate infrastructure and other reforms to support
express delivery players. The Government has taken up initiatives such as
improvement of Ease of Doing Business Parameters, along with the
creation of Economic Zones which offer tax-exempts to businesses
as well as facilities for courier and other delivery companies.
This is supplemented by the fact
that there has been growth in Physical Infrastructure with development
of highways, airports & seaports as UAE is one of the major transshipment
hubs in the region. Furthermore, Dubai Executive Council has approved the Dubai
e-Commerce Strategy with a primary goal of with the aim of solidifying the
emirate's position as a hub for global ecommerce. The market is bullish with
the GDP Per Capita of UAE standing at ~ 300% above the world average in 2020
& is expected to increase to ~ 10% in 2025 over 2020.
Expatriates
and Demographic Advantages: The Express
Delivery Market maintains its status as an attractive space for increased
revenue as 80% of the population is expatriate which means that they receive
and send couriers, mails and parcels to and from more often than non-expatriate
population. Furthermore, the median age in UAE is 32.6 Years (as of 2020),
along with high internet penetration rates (91%) means that the express
delivery segment is witnessing high demand as E-Commerce and E-Deliveries have
seen large scale adoption in the country.
Challenges
in UAE Express Delivery Market: One of the
major concerns coming out of the market is the fact that inflation has been
in the negative category for the last couple of years (-2.1% for 2020).
This points to the fact that consumer spending has been slowing down and could
be a potential challenge for businesses vying for customers. Another point of
concern remains concerning the postal address code integration due to
the absence of postal codes leading to the increased cost borne by companies
for last-mile deliveries by ~25%. Even though steps have been taken by both the
government and various private players, there exists challenges with last-mile
delivery. Lastly, certain small CEP companies are making inroads into the
industry without paying the due registration fees and offering deliveries at a
lower rate as compared to the registered players. These companies are less
technologically adapt to the new systems but have a moderate to strong user
base with respect to price sensitive customers.
Multi-Faceted
Impact of COVID-19 on UAE CEP Market: The UAE was
one of the top-performing economies globally before the sudden outbreak of the
new novel coronavirus. However, the pandemic has positively impacted the growth
of the Express Delivery Market in the UAE. Digitalization and increased
technological up-gradation were witnessed in the country.
The onset of COVID-19 acted as a
catalyst and accelerated the process of familiarity with E-Commerce and
E-Retail. Existing physical or brick and mortar stores had witnessed a fall in
sales which prompted them to shift their focus towards online shopping. This
has served as an added demand for more shipments, especially in the B2C
segment. 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.
However, a challenge that the CEP
companies are facing is the additional cost being borne by the express delivery
companies owing to the operational disruptions stirred by lockdown.
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 ~15.4% based on the number of
shipments delivered 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
Request For Sample Report @ https://www.kenresearch.com/sample-report.php?Frmdetails=NDkzMjg1
Cross-Comparison
on GCC Postal Networks Covered
- Bahrain Post
- Emirates Post
- Oman Post
- Qatar Post
- Saudi 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 on the research report, refer to the below link:
UAE Parcel
Delivery Market Growth | UAE Courier
Delivery Market Future Outlook
Related
Reports
Contact Us:-
Ken
Research
Ankur
Gupta, Head Marketing & Communications
+91-9015378249
