Indian Vernacular Industry is Expected to grow at a CAGR of 76% in the coming five years | Ken Research

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 1. Digital Advertising Industry grew at a CAGR OF 28.12% over the last few years.

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The Digital advertising industry saw a steady growth over the period of 2016-2022 is expected to grow steadily for the next five years. Established platforms have started monetizing, with majority of the platforms still in the pilot phase of earning revenue through advertisement. Vernacular will constitute a major segment in the online advertising spend in the coming year, with brand realizing the awareness of marketing in localized content to tap the local audience for their product.

2. The Indian Vernacular Industry has grown rapidly over the last six years.

The Vernacular Market in India recorded a positive CAGR of 60.5% on the basis of revenue generated in between 2017 and 2022. Covid-19 bought a significant increase in the vernacular segment, with increase in digital penetration, high screen time and increase in content creators among others. Reducing internet charges, increasing digital literacy and high disposable income are driving the growth of Indian vernacular industry. The market is expected to grow further over the next 5 years owing to increase in monetization efforts, entry of new players and increasing rural digitalization and more.

3. The Southern Region is dominating the Indian Vernacular Market at 43%.

South Indians have higher sense of attachment towards their language and culture and Hindi being widely spoken in northern part explain the reason for highest share in South. Eastern region has the lowest share due to low population proportion and internet penetration. The southern market is expected to continue dominating the space. The west and east market is expected to be on the similar lines with a very slight increase over time.

Growing food processing industry, shift in cropping patterns to horticulture, and Proactive Govt. Policies and Financing Support will propel the growth of the Indian Agricultural Cold Storage Market: Ken Research

 1. Cold storage capacity has increased year on year, however, there is a lack of modern storage facilities that hold back the industry’s extreme growth.

The cold storage sector in India is driven by the increase in international trade because of liberalization in trade. Also, with the push by the government via various incentive-led schemes and recommendations of NCCD (2015), the number of cold storage units increased dynamically in August 2020. Although the highest number of units are concentrated in Uttar Pradesh, the top 5 states contribute >75% to total Indian capacity. This highlights the focus to ensure a well-distributed mechanism in India. Moreover, more than 80% of units are decades old in nature and lack modern techniques for storing more commodities, temperature control methods, etc. which inhibits the growth of the cold storage industry.

2. Inadequate capacity for multi-storage, high Opex, long gestation period & small unorganized players are some of the other pain points of this industry.

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While the cold storage capacity has increased at a CAGR of ~4.8% during 2010-20, it is still behind the capacity of New Zealand, the USA, and Great Britain in terms of availability per urban resident in cubic meters. There can be many reasons for it. One of them is the inadequate capacity for multi-storage. Around 68% of its capacity is suitable for potato storage only which makes it an economically not so-viable option in bumper years of production.

Also, only 20% of revenues of the cold chain sector are generated from Potato while the multi-purpose sector increases the capacity utilization rate and contributes 54% to total revenue. Moreover, the presence of small independent private players has restricted the growth of the industry as these players do not possess the required monetary backing for undertaking capacity expansion, technological advancements across cold chains, procuring reefer trucks, setting up mobile units, etc. Also, the low availability of skilled staff at economically viable rates increases the Opex.

3. Opening up of the sector and technological push is gearing up for unleashing the potential of the cold storage market in India.

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Despite having challenges, the industry is expected to grow in the future as multiple factors are working together to boost growth. One of them is the surge in the adoption of CA Technology. Cold storage operators with sound capacity & sizeable operations expressed willingness to upgrade their cold storage rooms with Controlled Atmosphere technology. Given the inherent benefits of technology, cold storage operators are looking to diversify clientele to export partners; fetching higher returns than normal market prices.

In addition to this, in 2020, Mumbai airport became the world’s largest airport-based temperature-controlled facility with a capacity of stock holding up to 700 tonnes at a time. Railways of India has been undertaking multiple steps via CONCOR & subsidiaries to establish/ operate cold storage units in various states. Entry of new players, increase in contract farming, and backward integration are some of the other trends and development in the industry.

KSA Last Mile LEVs Market is growing and have huge potential due to its high penetration: Ken Research

 1. The current Saudi framework for EVs is in its early stages and is yet to be developed into a comprehensive framework.

In Saudi Arabia, less than 0.5% of vehicles are used as PHEVs at the moment. However, commercial EV deployment is not taking place in the kingdom. Additionally, starting 2018, Saudi authorities have let their residents to import EVs for personal usage. The establishment of an incentive, such as cost-free charging stations, reduced vehicle registration, toll exemptions, and other benefits, has not yet occurred. Saudi Arabia's EV infrastructure is still lagging behind since the government has not yet set up charging stations in public places.

2. Cost-effective, rising gas price, reduced noise pollution and better driving experience to provide multiple benefits in adoption of LEVs.

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The demand for EVs is expected to rise in the near future due to rising fuel prices, such as the price of gasoline in 2021. Electric vehicles also accelerate and decelerate smoothly and quickly because an electric engine produces rapid torque, which allows them to take off from stops quickly. Additionally, the low center of gravity of EVs enhances handling, reactivity, and ride comfort. Additionally, because they are significantly quieter, electric automobiles help to reduce noise pollution. Additionally, EVs cost more to buy than ICEs do. However, the operating costs of an ICE vehicle (which require gasoline and maintenance) are higher than those of an EV.

3. Lack of transparency, large cod-based transactions, optimization and reverse logistics are pain points in current last mile delivery ecosystem.

With the exception of E-Commerce and Food Delivery, relatively few express companies in Saudi Arabia offer GPS real-time tracking as a service to customers that require complete access to real-time monitoring of their deliveries. Furthermore, in Saudi Arabia, more than 60% of customers choose COD services. The cost of COD deliveries is thought to be twice as high as that of prepaid orders due to greater rates of returns and failed delivery. In addition, last-mile delivery failures in Saudi Arabia result in low customer satisfaction and lost revenue when returns and retries of E-Commerce goods cause delays and protracted wait times. Last but not least, vehicle routing is a challenging computation of available drivers and vehicles utilizing the quickest routes to deliver customer orders within the desired time periods. Missed deliveries or slipping SLAs as a result of a routing delay or ineffective routing method can negatively impact the customer experience.

4. LEVs adoption is expected to reach 10% in the LMD Fleet by 2027F in KSA Last Mile LEV Market

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Currently, LEVs do not promise a higher adoption potential 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. Also, electric vehicles in food and grocery delivery sectors are expected to penetrate faster due to availability of hybrid models.

China Logistics Industry grew and reached to ~ 10 Trillion in 2020 owing to the rising Investments and Improving Infrastructure: Ken Research

 1. The Logistics Industry is expected to witness a Rise in Digital Freight Brokers, Improvement in Infrastructure and Growth in Automation

The China Logistics Market is expected to grow at a CAGR of ~7.5% over the forecasted period (2023-2025F) with warehousing market expected to increase its market share marginally. Digital Freight Brokers are expected to expand in the market with an average CAGR of >20%, leading to the industry becoming more organized while Intermodal Freight Logistics Parks and other infrastructure projects are also expected to rise in future paving way for better logistic services in the country.

Moreover, initiatives like Infrastructure push by the government aimed at increasing efficiency of the supply chain, as the government plans to promote rail and road freight network will serve as a catalyst for the overall logistics market in China. It is also predicted that the warehousing industry will witness an increase in use of technology and automation as major players adopt robotics technology in order to gain return on investment in less time than it took before and remain competitive.

2. The 3PL Market of China is highly fragmented with large number of companies focused on Consumer Retail sector

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China’s has one of the largest 3PL Markets in the world. The Industry grew at a CAGR of 13.4% from RMB 1 Trillion in 2015 to RMB 2.0 Trillion in 2020.The 3PL Market in China is highly fragmented and consists of companies which are generally small in scale, with single service functions.  In this context, the industry is expected to usher in a new round of concentration & integration in future to provide full set of services to the clients.

In terms of competition, China Contract Logistics industry is dominated by logistics subsidiaries of large foreign & domestic companies, and the market for private third-party companies is relatively small ( 40 - 50% of top 50 Companies). 47% of 3PL Logistic services in China are focused on consumer retail sector followed by ~13% in Automobile Sector, ~12% in Pharmaceutical Sector, ~11% in Electronics sector and ~16% in other sectors such as Chemicals, etc.

3. China Warehousing Industry generated a Revenue of RMB 0.8 Trillion from 2,010 Mn Sqm Logistics Infrastructure Supply in 2020

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In recent years, China's logistics has grown steadily with huge investments, which has driven the increase in storage costs year by year. In 2020, China’s warehousing cost reached RMB 5.4 Tr, a year-on-year increase of 7.4%, accounting for 34% of the cost of the logistics industry. In 2020, China had 7000+ automated three-dimensional warehouses covering an area of more than 3.5 Mn sqm. These have grown at a CAGR of ~8.8% from 2015-2019 and are expected to show higher growth in the future owing to increasing demand.

The Indonesian Chemical Construction Company is expected to grow at a CAGR of ~9% in the upcoming years: Ken Research

 1. Oligopolistic Market is with a few players dominating the market, with high fragmentation among smaller players occupying minute portions of the pie.

Indonesian construction sector is expected to grow at YoY rate of 5.4%, i.e., at CAGR 11% over the period of 2022-2025, thus impacting the growth rate of construction chemical market as well. The extremely humid climate of Indonesia, with increasing awareness of construction chemicals is driving up demand for waterproofing products.

The market has significant presence in terms of numbers of small sized players operating in different product categories. Industry is growing at a faster rate compared to the Global Industry. Only few major companies such as Aquaproof, SIKA, Fosroc, MBS have strong retail chains in the industry. Unorganized market share is ~20% of the overall Construction Chemicals Market as of FY20. Moreover, the overall market is highly oligopolistic, with major players such as SIKA, Fosroc, MBS, Mapei and ESTOP capturing nearly 75% of the market.

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2. Indonesian Construction Chemicals Market Size Market Size in FY’20 was ~12 Mn USD and it has grown at a CAGR of 7.3% from FY’15 to FY’20.

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Growth in urbanization and development of housing projects led to the growth for construction chemicals. Demand for high quality and durable products such as construction admixture for cements, waterproofing chemicals increased the adoption of construction chemicals. The drought and water scarcity in Indonesia has led to the demand for water reducer additives and newer technologies that allow construction processes to consume lesser water.

Global companies increased their presence by opening new manufacturing plants, for instance SIKA opened a third manufacturing plant in Indonesia, Deka Group has acquired PT Estop Indonesia to enhance their concrete admixture sales. Sika, Fosroc, MBS are few of the pure construction chemicals companies having strong presence in market. Whereas companies such as Bostik, DOW, Bossil, that majorly offer other allied products are also present in market. Construction sector had to bear the worst impact of Covid-19 as there was major financial crunch in the market. Construction activities were completely halted and projects shut down, which indirectly affected the construction chemicals market adversely.

Malaysia’s Construction Chemical market is expected to contribute a revenue of USD 744 Mn in 2027F expanding at a CAGR of ~ 5% in between 2022E and 2027F: Ken Research

Strong Growth & Government Support: The global pandemic disrupted the global markets including the construction Industry but several initiatives have been taken by the Malaysian Government to induce a steady recovery. In December 2021, The Malaysian government pass budget of MYR332.1 billion ($81.8 billion) for 2022 including an allocation of MYR75.6 billion ($18.6 billion) for development expenditure, and support businesses^. The government also introduced the 12^th Malaysian plan. Ongoing developments under the 12th Malaysia Plan include eight highway projects (four of which are in the Klang Valley), five railway projects and a hydroelectric dam project in Baleh, Sarawak. More than 67000 units of affordable houses were approved for construction under the Federal Territories Ministry’s Residensi Wilayah Keluarga Malaysia housing project as of May 2022^.

Slightly Fragmented: Malaysia Chemical Construction Market is slightly concentrated and has a fragmented tail as it is flooded with multiple small domestic and international players. The major competitive parameters are geographies covered, brand awareness, payment terms, quality vs quantity, domestic sales vs exports, type of product & total SKUs. SIKA is the leader because they are dominating a large segment of market with highest revenue and huge capital investment. After acquiring BASF (MBCC Group), both the companies with dominate the market. Bostik and Pentens operates in limited construction chemicals but makes good revenue. MAPEI are visionaries as they have average market share. They understand where the market is going but do not yet execute very well because lack of partnership.

Analysts at Ken Research in their latest publication, “Malaysia Construction Chemicals – driven by strong growth of construction Industry & Government support” by Ken Research observed that Malaysia Construction Chemical Market is in a growth phase & is  expected to grow at a CAGR of ~5%  in the forecasted period 2023-2027F. It is to be noted that the Malaysia Construction Chemicals market is is slightly concentrated and has a fragmented tail as it is flooded with multiple small domestic and international players competing not only on the basis of price and quality, domestic sales & product quality.

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Key Segments Covered in the report:

By Market Type:

• Organized
• Unorganized

By Product Type:

• Concrete Admixtures
• Waterproofing
• Repair & Rehabilitation Chemicals
• Grouting Chemicals
• Coatings
• Sealants & Adhesives
• Industrial Flooring

By Region

• North Peninsula
• South Peninsula
• Central Peninsula
• East Malaysia

By Type of End users

• Residential
• Commercial
• Industrial

By Major Players

• Sika
• BASF
• Fosroc
• Pentens
• Bostik
• Mapie
• Others

Key Target Audience

• Construction Chemical companies
• Concrete Additive companies
• Waterproofing companies
• Adhesive and Sealant Companies
• Repair and Rehabilitation Chemical companies

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Time Period Captured in the Report:

• Historical Period: 2017-2022
• Base Year: 2022
• Forecast Period: 2023-2027F

Companies Covered:

• Sika
• BASF
• Fosroc
• Pentens
• Bostik
• Mapie

Key Topics Covered:

• Executive Summary
• Country Overview
• Malaysia Construction Market Overview
• Malaysia Construction Chemical Market Overview
• Malaysia Construction Chemical Market Size
• Malaysia Construction Chemical Market Segmentation
• Industry Analysis of Malaysia Construction Chemical Market
• Competition Framework of Malaysia Construction Chemical Market
• Future Outlook of Malaysia Construction Chemical Market
• Analyst Recommendation
• Research Methodology

For more insights on the market intelligence, refer to below link:-

Malaysia Construction Chemical Market

Related Reports by Ken Research: –

Indonesian Construction Chemicals Market Outlook to 2025

Vietnam Construction Chemical Market

India Construction Chemicals Market Outlook to 2025

Kuwait Warehousing Market Space to increase at a CAGR of 10.7% from 2021-2026F and is expected to reach at ~7 Mn sqm in 2026F: Ken Research

 1. The Kuwait warehousing industry is in the growing stage and is undergoing radical changes as warehouses are becoming increasingly sophisticated

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The warehousing segment in Kuwait is becoming increasingly sophisticated & advanced with time & is expected to witness innovation in upcoming years. Kuwait is majorly focusing on improving its trade relations which led to the growth in import and export in terms of value and volume. Companies manufacturing or importing products in Kuwait usually outsource all or part of their supply chain to logistics specialists when it’s not a core. Along with warehousing services (picking up, packing and labeling), logistics suppliers have extended their traditional core into extra value-added services, such as postponed manufacturing (light assembly, kitting, manufacturing and quality control), and even payment and customer management. Moreover, government initiatives are also expected to boost the overall market growth. Kuwait government’s plans to invest across strategic sectors under Kuwait Development Plan (KDP) 2015-2020 has positively impacted the market.

2. Advanced sortation systems, Drones, IoT and Automated guided vehicles are some of the emerging technologies in the Kuwait warehousing ecosystem

Kuwait Warehousing Market is expected to witness innovation in terms of technology in upcoming years. Advanced sortation systems, Drones, IoT and Automated guided vehicles are some of the emerging technologies in the market. Automated guided vehicles or AGV’s can be used to transport raw materials, work-in-progress, and finished goods around the warehouse whereas technologies such as the IoT can help warehouses to reduce risk and avoid mistakes or accidents that can create losses in the supply chain by early detection. It is also expected that in future many warehouses will be able to use drones to track their inventory. This will give warehouses of all sizes the ability to conduct comprehensive inventory counts and audits at the drop of a hat. Safety concern is holding back drones from becoming part of the warehouses.

3. The growth of local companies within the logistics sector points to widening industry potential in the country with total warehousing space growing @10.7% CAGR (2021-2026F)

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Kuwait is developing its transportation infrastructure across ports, airport and rail with a view to position the country as a hub for regional trade. This, combined with Kuwait’s reliance on imports, logistics and warehousing presents considerable opportunities for international players. Technological Advancements are expected to improve and enhance supply chain transparency and security leading to improved cost efficiency while SMEs are expected to increase in the FMCG, Pharma & manufacturing sector which will induce freight handling of these goods. Moreover, expansion of logistics infrastructure such as intermodal connectivity, logistics parks and ports to create business opportunities.

Investments from Government, Emerging AI Technologies and Faster Delivers are the Major Trends driving the E-Commerce Shipments Market in Malaysia: Ken Research

 1. Malaysia E-commerce Shipments Market has witnessed a Strong Growth Trajectory Backed by Competitive Technological Advancements

Malaysia E-commerce shipments market has been observed in its early growth stages of development, thus growing year on year majorly due to rising E-retailing coupled with increase in the number of online orders. Expansion in internet services (~80% internet penetration in 2021) coupled with increasing demand for online logistics services have collectively given a boost to development of E-commerce shipments industry in Malaysia. Updated Technology such as Live Tracking, Automation, WhatsApp Bots, AI Systems, IoT, Telematics are used by e-com logistics players.

2. Ecommerce growth in Malaysia is primarily driven by a growing number of digitally-savvy, middle-class people who are looking for great deals and access to international brands.

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Businesses in Malaysia are supported by a host of efficient and modern infrastructural and technical implementations that facilitate trade, transactions and deliveries. The advanced logistics, connectivity and trading establishments are the foundations upon which the modern technology driven enterprises have found their incredible growth.

Traditionally ecommerce players in Southeast Asia faced logistical challenges due to the fragmented topology of the region dominated by multiple islands and dense jungles. However, Malaysia is segregated into only two major parts – Peninsular Malaysia and East Malaysia; which makes ecommerce logistics a whole lot more straightforward and cost-effective.

Malaysia boasts of an incredible 140% mobile penetration and 85% internet penetration. More than 26 Mn Malaysians access the internet and about 80% of users between the ages of 16 and 64 are already shopping online. Malaysia’s mobile commerce growth is outpacing overall e-commerce, projected to rise at a compound annual growth rate.

3. More than 2 Days delivery will still dominate the Malaysian E-commerce shipments market

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Many E-commerce companies are increasingly offering 24-hour delivery promise to its customers to encourage speedy deliveries in and around Kalang Valley, Selangor and Kuala Lumpur, giving a boost to the same day deliveries in Malaysia. Post Pandemic, groceries and essential items are being processed at a faster rate to ensure same day/next delivery of these products to the customers across the country.

4. Digital Free Trade Zone along with other initiatives launched in Malaysia by the Government to support Efficient Cross Border Trade with E-Commerce as the priority sector

Digital Free Trade Zone (DFTZ) was launched under MITI in 2017 to facilitate seamless cross-border trade and enable local businesses to export their goods with a priority for e-commerce. The e-Fulfilment Hub under DFTZ will be developed over two phases where the first phase will be at the Kuala Lumpur Airport Cargo Terminal operated by POS Malaysia to serve e-commerce players.

Based on Section 14 of the Commercial Vehicles Licensing Board Act 1987 (“CVLBA 1987”), to provide transportation services, two types of licenses are available. Carrier License A – to provide transportation services to third parties using commercial vehicles; Carrier License C – to provide services for their own use.

The UAE data center and cloud services industry is quickly growing as a result of the country's growing tech-savvy population and wide range of services: Ken Research

 1. UAE data center market generated over $400 Mn with presence of 20 data center across UAE in 2021.

AWS created three data centers in 2022, Etisalat and G42 have partnered to provide the largest data center, and Oracle will open a second cloud region in the UAE are just a few instances of the rising data center infrastructure in the UAE. In order to assist social and economic success and increase the value of the digital economy, the UAE government will also speed up technological development and implement the most recent ICT projects.

2. Rising investments and diverse service offerings with improved connectivity and internet penetration are major growth drivers in the UAE data center market.

Due to the fact that local and international businesses invested more than $5.3 billion in IT businesses in the UAE in 2021, more data center facilities were built throughout the nation. The nation's strategic location between Asia, Europe, and Africa makes it an ideal site for business. Additionally, 99.0% of the population in the UAE had daily access to the internet, and smartphone penetration was 97.6%, placing the country at number 22 in the world for internet usage. Finally, data center firms provide a variety of backup and recovery services utilizing best-in-class technology and high-bandwidth connections.

3. The UAE cloud services market was observed to grow at a positive double digit CAGR, generating over $400 Mn as revenue over the period 2016-2021

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The market for cloud services in the UAE has had phenomenal growth as a result of an increase in online activity, particularly in all workplace systems, as well as investments and new market entrants. Additionally, organizations from industries including government, aviation, finance, manufacturing, and healthcare are among those already utilizing the cloud regions. The demand for data storage will also rise due to increased online media consumption, the installation of IOT devices, and sensors in manufacturing facilities, as well as the growing demand from SMBs for cloud solutions.

4. Uncertain regulatory framework, environmental conditions, cyber-attacks, and power costs are some of the issues confronting the UAE data center market.

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It is difficult for market actors to conduct business because each of the seven emirates in the United Arab Emirates has its own laws and regulations. Additionally, while ranking fifth in the Global Cybersecurity Index for 2020, the UAE is still susceptible to data breaches and cyberattacks. In addition, the UAE Data Center's power usage and cost index are significantly greater than those of other Middle Eastern nations. Finally yet importantly, raising the working temperature has a detrimental knock-on impact on the condensers, which become overkill on the efficiency of these cooling units and associated outdoor units are oversized to compensate or offset UAE’s ambient conditions.

Permission of licensing of female-only gyms in KSA and increasing health awareness about fitness after COVID-19 are expected to fuel the growth of the KSA Fitness Services Market in the future: Ken Research

 1. The KSA Fitness Market contributed ~0.10% of GDP and generated more than $800 Mn Revenue in 2020 driven by evolving service offerings by fitness centers and fitness enthusiast population.

Fitness Centers in KSA are focused on Providing Wellness and luxury Health experience rather just Exercise Equipment and Training Activities. For this, fitness apps and virtual classes are gaining wide popularity in KSA due to COVID period. The Growth will be tremendous in future but will not outpace traditional Training in Gyms. Fitness brands are actively optimizing their business models, integrating behavioral science into health and fitness through personal and group sessions encouraging clients to focus on their fitness goals.

2. The Fitness Market has a ripple effect on other sectors such as Fitness Equipment Industry, Construction, Real Estate, Apparel and Footwear and Technology.

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KSA Fitness Equipment Market generated a revenue of more than ~$150 Mn in 2020 driven by rise in sale of in-home equipment coupled with increasing inclination towards health and wellness in the country due to growth in lifestyle diseases. Riyadh, Jeddah and Damman are the major catchment areas in KSA with a premiumization of $60-$70 on real estate properties within a catchment area of 500 m- 1 km depending on the city. In addition to this, demand for sports apparel and footwear are directly proportional to the growth of fitness centres and active members in the country. Initially, the sports apparel was mostly worn by athletes but with time, it has become quite common with regular gym-goers & other non-athletes. The rise of smartphones and mobile apps has made the brand-customer interaction more convenient and accessible. As a result, gyms are taking advantage of this technology to reach out to members

3. Demand for fitness centers in KSA is mostly driven by Increasing Local Gyms and Fitness Centers, Variety of Service Offerings, Specialized Fitness Programs and Demand for Water Training.

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The fitness industry in KSA was once dominated by the wealthy and expats, now a new wave of local gyms and dance and martial arts studios are emerging to serve a fast-rising number of young, less affluent fitness enthusiasts. Major fitness chains such as Fitness First offers a variety of wellness options such as sauna and spa with a barbershop, restaurant, sea access, child care and more motivating the people to join a fitness centres. Simultaneously, specialty fitness programs that focus on a particular style of exercise, piece of equipment or even philosophical approach are exploding across the country. Some focus on interval training, others on yoga or Pilates, on stationary bicycles (spin) or any number of other trainings. Moreover, Pre Scheduled Group Classes for Aerobics, Cardio, Pilates, Yoga, Barre inspire people and motivates them to explore new training styles and techniques, while keeping others motivated like-minded members.