Executive Summary
The report titled, “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" provides a
comprehensive analysis of the CEP Market Landscape in
the UAE. The report covers various aspects including the
market size (by shipments and revenue), industry life
cycle, a timeline of the major CEP players,
delivery model in CEP market, market sizing analysis,
market segmentation by domestic and international express,
by mode of transport (ground and air express), by business model (B2C,
B2B and C2C), by delivery period duration (same-day delivery,
1-2 day delivery, and more than 2-day delivery), and by
shipment weightage (less than 3 kg, 3kg-5kg and greater than
5kg).
The report also
elucidates the key lanes for shipments both internationally and
domestically. The report adds context to the dynamic nature of
the CEP market by providing seasonality trends, growth drivers, and
the various regulations put in place by the government. The report also covers
the overall competitive landscape basis certain parameters.
Additionally, the market share of both international and
domestic players is computed. The report concludes with future growth
projections, impact of Covid-19 on the sector, analysts’ take where market
entry strategies for potential players willing to enter the market are
discussed along with focus areas for existing CEP companies.
UAE CEP
Market Overview and Size
UAE Express Delivery Market has
witnessed an upward trajectory with a CAGR of 11.2% during 2015-2020. A strong
performance despite the brief halting of commercial activities in 2020 due to
the pandemic shows that the CEP market is resilient and has scope for further
growth.
The UAE presents itself as an
attractive destination for the CEP market due to inherent advantages that make
it ideal for become a hub for express delivery shipments. Its consumer
demographic consists of a young internet-savvy population (~91% internet
penetration rate in 2020), geographical benefits and with a developed
infrastructure. This is corroborated by the presence of a high consumer
confidence, increasing consumer preferences towards online shopping, that has
augmented the growth of CEP market. Furthermore, a surge in online shopping and
E-Commerce products owing to the pandemic has provided a boost to the CEP
market landscape. Dubai and Abu Dhabi have emerged as the key hub for the
express delivery shipments. The COVID-19 pandemic has also led the market
players in focusing towards improving their online presence, websites, collaborations
and technology for better unit economics. The government has also been playing
an active role in incubating the space for further growth by implementing
policies such as creation of Special Economic Zones, proving taxes breaks for
start-ups in this space and creating physical infrastructure to support more
shipments and deliveries.
UAE CEP Logistics Market Segmentations
By Domestic
and International Express: In terms of
total number of shipments, domestic express captured the majority of the market
share. Domestic deliveries tend to be faster in UAE due to the well-connected
transport system of the country. However, international express shipments have
increased significantly in the recent years owing to the high cross-border
e-commerce trade.
By Mode of
Transport: In terms of the mode of
transport used to deliver the product, most of the deliveries happen through
the ground express as compared to the air express on account of UAE being a
relatively small country and having concentrated demand in certain commercial
hubs. Furthermore, only established companies/international companies are able to
deliver the shipments through air.
By Business
Model: The B2C segments commands the
highest share in terms of shipments in 2020 owing to sudden surge witnessed in
the e-commerce shipments. The surge in B2C was induced by the change in
consumer preference towards online shopping for a wide range of products fueled
by the onset of Covid-19 pandemic.
By Shipment
Weight: Most of the shipments weigh less
than 3 kg which corroborates the fact that a large chunk of deliveries in the
market happen in the B2C segment. Furthermore, CEP companies cater to mails
sent in terms of postal cards and letters, and deliver them from one client to
another.
By Delivery
Period: Majority of the shipments are
delivered in the country within 2 days in UAE owing to the smaller geography.
International express shipments coming in from Asia & America usually takes
more than 2 days to be delivered in UAE. Companies are focusing on providing
better services along with quicker deliveries to remain relevant in the
competition.
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Competitive
Landscape of UAE CEP Market:
The competition in the CEP space
in UAE is fragmented with presence of ~ 50 international and domestic players
in the CEP Market. The major CEP companies include Aramex, Emirates Post, SMSA
Express, DHL Express, FedEx, UPS, Team Express, First Flight Couriers, TFM
Express, Sky Express, Zajel Courier Services and Century Express. Aramex &
SMSA Express are the market leaders in domestic & international players
segment respectively. Same day delivery service, competitive pricing,
technology adoption, user interface, network coverage, key clientele, fleet
size, value added services are the key competing parameters for express
delivery service providers.
UAE CEP Market Future Outlook and Projections
Over the forecast period, UAE CEP
market is expected to grow owing to increased internet penetration, shift in
consumer preference, advanced technologies in improving efficiencies,
collaboration between logistics and delivery companies, and favorable
government initiatives. 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 as E-commerce booms and more deliveries are made
through this route. The CEP 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 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
- 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, refer to below link:-
UAE E-Commerce and Express Delivery Market Research Report
Related Reports
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Ken Research
Ankur Gupta, Head Marketing &
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