The report titled “UAE
E-Commerce Logistics Market Outlook to 2025 – Driven by Growth in Online
Shoppers along with Introduction of New Age Technologies by Logistics Players"
provides a comprehensive analysis of e-commerce logistics services in the
UAE. The report covers various aspects including the market size (by number of
orders and revenue), return rate, industry cycle, timeline, market segmentation
by channel (e-commerce merchants and 3PL companies), by domestic and
international shipments, by area of delivery (intercity and intracity), by mode
(ground, air & sea shipments), by delivery period duration (same day
delivery, 1-3 day delivery, and more than 3 day delivery), by type of products
and by payment mode (cash on delivery, credit & debit cards and others).
The report also focuses on e-commerce logistics warehousing sector (warehousing
clusters, space, technology, cost component analysis, etc.) in UAE. Moreover, the
report also covers the overall competitive landscape and growth drivers and
trends and government role and regulations. The report concludes with market
projection for future for the market, Covid-19 impact, analysts’ take on the
future and case studies highlighting the major opportunities.
UAE
E-Commerce Logistics Market Overview and Size
UAE E-commerce industry has
witnessed an upward trajectory over the past 5-6 years with an increase in
internet penetration in the region. UAE is considered the most advanced
e-commerce market in MENA, with a penetration rate of ~% in 2017. The UAE
enjoys many advantages that make it ideal for e-commerce growth. Its consumer
demographic consists of a young internet-savvy population, with high social
media usage. Escalation in the number of smart phones in the country, high
consumer confidence, changing consumer preferences, etc. has augmented the
growth of e-commerce leading surging demand for e-commerce logistics as well in
the country. Dubai, Abu Dhabi and Sharjah have emerged as the key hub for
demand and supply of e-commerce logistics. The COVID-19 pandemic has also
pushed the demand in the market as the need for social distancing has forced
people to rely on online shopping. The growth in the E-commerce orders for
logistics has been majorly driven with an increase in internet affinity and
demand for value added services.
UAE
E-Commerce Logistics Market Segmentations
By Accepted
& Returned Orders: Returned
orders out of total shipments delivered saw a slight decline in 2020. Fashion
is the category with maximum returns due to inappropriate sizes received by the
customers followed by Electronics, as customers return these products due to
defective pieces received.
By Channel: In terms of total number of shipments, 3PL players
have captured the majority of the market share as big marketplaces like Amazon
& Namshi are also dependent on these players for the last mile deliveries
in 2020. International e-commerce companies prefer to outsource logistics to
3PL companies to avoid the hustle of establishing their own operations.
By Delivery
Period: 1-3 day delivery has dominated
the market in terms of number of orders owing to increasing focus of the
companies on providing better services coupled with increasing customer needs
for better service. Moreover, majority of the orders are placed from the Dubai
& Abu Dhabi region, where the products can be delivered within 1 day.
By Type of
Products: Fashion & Accessories and
Consumer Electronics have dominated the online retail sector in UAE in 2020.
Foods and Personal Care is the third leading e-commerce category in UAE.
E-Commerce
Warehousing Sector in UAE:
The warehousing market in the UAE
is still in the growing phase where majority of the domestic companies are
operating through their own in-house operations and are less focused towards
out-sourcing it to 3PL companies.
E-Commerce warehousing has
captured ~% of the overall warehousing space in UAE. The rise of e-commerce
within the country has given a major boost to the warehousing market. For
instance, Amazon & Noon plans to add several warehouses in the country in
the next 3-5 years. Most of the e-commerce logistics players have their owned
warehousing space in order to manage all the operations by themselves. Few
companies have warehouses which are specially built for cross border
operations as their distribution centres and hubs are used for
procuring products from local sellers and delivering it domestically,
Construction of Dubai Commercity, Dubai Maritime City, Dubai Logistics City and
expansion of existing ports and free zones such as JAFZA and Hamriyah Free Zone
has significantly amplified the warehousing space in the country.
Competitive
Landscape of UAE E-Commerce Logistics Market:
The competition in the e-commerce
logistics space in UAE is concentrated whereby major 3-4 companies hold the
majority of the share in the market. The major e-commerce logistics companies
include Aramex, iMile, Jeebly, Shipa, Fetchr, Emirates Post, Team Express,
Quiqup, Time Express and few others. The e-commerce market is highly fragmented
as the majority of the market share is composed by the top 3-4 players. Fleet
size, number of orders, clientele, number of delivery centers, value-added
services, price and delivery time are the key competing parameters for the
e-commerce logistics providers.
UAE
E-Commerce Logistics Market Future Outlook and Projections
Over the forecast period, UAE
E-commerce Logistics Market is expected to drive up the demand because
of expected surge in internet penetration, especially its exposure to the
youth. 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. The e-commerce logistics 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 Accepted & Returned Orders
- Accepted Orders
- Returned Orders
- By Channel
- 3PL Players
- E-Commerce Merchants
- By Type of Shipments
- Domestic Shipments
- International Shipments
- By Area of Delivery
- Intercity
- Intracity
- By Mode
- Ground Shipments
- Air & Sea Shipments
- By Delivery Period
- Same Day Delivery
- 1-3 Day Delivery
- More than 3 Day Delivery
- By Type of Products
- Fashion & Accessories
- Consumer Electronics & Media
- Foods & Personal Care
- Home Care & Furniture
- Toys & Video Games
- Others (Consumer Health, Digital Music, Pet
Care, etc.)
- By Payment Mode
- Cash on Delivery
- Credit & Debit Cards
- Others (Digital Wallets, Paypal, GPay, etc.)
- Captive and 3PL E-Commerce Warehousing
- Warehousing Concentration in UAE
E-Commerce
Logistics Companies Covered
- Aramex
- iMile
- Jeebly
- Shipa
- Fetchr
- Emirates Post
- Team Express
- Quiqup
- Time Express
E-Commerce
Marketplace Platform Covered
- Amazon
- Noon
- Namshi
- Landmark Group.
Key Target
Audience
- 3PL Logistics Companies
- Integrated Logistics Companies
- E-Commerce Marketplace Platform
- Retail Companies
- Logistics/Supply Chain Industry Associations
Time Period
Captured in the Report:-
- Historical Period – 2015-2020
- Forecast Period – 2020-2025
For more
information on the research report, refer to below link:
UAE E-Commerce Logistics Market Research Report
2021
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Ken Research
Ankur Gupta, Head Marketing & Communications
support@kenresearch.com
+91-9015378249
