What is the current scenario of LEVS in LMD?
The advent of e-commerce, food and grocery deliveries is leading to a
rapid increase in demand for last-mile deliveries. Approximately 30,000 Light
Commercial Vehicles are employed throughout the kingdom for last mile delivery
fulfilling more than 200 Million orders.
Most e-commerce retailers in KSA struggle with last-mile delivery as
delays, reduced success rate & difficulty cash on delivery (COD) handling.
E-com Retailers need to come up
with solutions such as B2B SAAS Platform and Digital Freight Brokers/ Load
Discovery Aggregator Platform to solve the last mile delivery problem in an
efficient way to meet the growing customer demands.
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 Vision 2030 plan, which aims to reduce the country’s dependence
on oil, diversify the economy, and implement a range of social reforms.
However, 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 for adoption
of light electric vehicles in last mile delivery space.
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. 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.
Business Side Potential for LEVs in
Grocery Delivery
The industry is at nascent stage registering double digit growth rate
between 30-40% in revenue terms. Grocery companies usually partner with third
party operators to fulfil customer orders. Riyadh, Medina and Makkah are
recognized as regions with maximum demand 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.
Business Side Potential for LEVs in
FOOD DELIVERY
The industry is expected to register a revenue growth of 7.2% CAGR during
the forecaster year fulfilling over 200 million orders. The companies operate
on pay per delivery model where the freelancers owning a car or a two wheeler are
hired and paid on the basis of the number of orders delivered. Partnership with
restaurants, malls, real-estate developers and other commercial hubs should be
explored for the potential deployment of charging infrastructure for LEVs.
Expected EV Penetration in LMD
Market
Given the nature of deliveries around a designated warehouse, last-mile
deliveries make an excellent use case for electric mobility, overcoming the
range anxiety. However, LEVs do not promise a higher adoption potential in the
current scenario attributed to both a high cost disparity and a lack of
vehicle. 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. Electric Vehicles in Food
and Grocery Delivery sectors are expected to penetrate faster due to
availability of hybrid models.
Future CATALYSTS IN KSA LEV Market
KSA could witness an LEV penetration between 5-7% by 2025. E-commerce
companies and third-party logistics players across the board will eventually
commit to including EVs in their fleet as a part of their sustainability
initiatives. KSA will eventually 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. The mass
production of batteries and available tax incentives will bring down the cost
of EV, thus, making it the preferred choice. 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.
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
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