UAE 3PL Market To Attain A Revenue Of US$ 6,529.7 Million By 2030: Astute Analytica

(MENAFN- EIN Presswire)

CHICAGO, UNITED STATES, May 11, 2023 /einpresswire.com / -- The uae third-party logistics market is anticipated to grow rapidly from 2023 to 2030, at an expected growth rate of 6.5%, and will be valued at US$ 6,529.7 million by 2030, up from US$ 3,940.9 million in 2022. This is due to the rising government backing and expanding the e-commerce sector.

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Due to the UAE's growing internet usage and increased access to smartphones, the e-commerce sector is expanding quickly. As a result, this factor is benefiting the logistics sector. As per the United Nations Commodity Trade Statistics Database (UN Comtrade) the United Arab Emirates (UAE) is one of the world's largest trading nations. The nation's transport industry is essential to making it easier to import and export commodities. In 2021, the UAE's imports and exports revenue was US$ 303 billion and US$ 365 billion, respectively. China, India, the US, and Japan were the UAE's major import partners, while China, India, Switzerland, and Singapore were their top export partners.

The Middle East and North Africa market is ripe for multinational companies to enter, and the third-party logistics market in the UAE is booming and full of prospects. The nation is a top choice for businesses looking for affordable and effective supply chain management solutions due to its strategic location, cutting-edge infrastructure, and friendly government policies.

The UAE government is taking steps to encourage trade and economic diversification through free trade agreements, modifications to the laws governing foreign ownership in specific industries, and creating free zones close to airports and ports to entice foreign investors to establish manufacturing businesses in the UAE. Some of these policies emphasize the advantages of the nation's strategic location, which puts it at the nexus of Europe, Asia, and Africa. The government has substantially invested in the development of ports, airports, and road networks to promote the transit of commodities, making it a key hub for trade and logistics in the area.

The country's e-commerce has grown recently due to government rules, which have raised the demand for 3PL services. For instance, the Dubai E-Commerce Strategic Plan 2021 was formed by the government to foster an environment favorable for e-commerce enterprises. The UAE government has been promoting technology and automation in logistics operations at the same time. To increase the effectiveness of the supply chain, this includes creating smart ports and putting digital platforms into use.

Storage Service Dominated the UAE 3PL Market

In 2022, the storage segment dominated the UAE 3PL industry. This is because manufacturers and merchants are demanding more effective and secure storage options.

Business to Business Customer 3PL Recorded a Share of 58.2%

In 2022, the Business-to-Business (B2B) segment held a sizeable 58.2% market share. This is due to 3PLs' broad knowledge, access to carriers, and relationships, which enable them to meet the unique shipping requirements and potential difficulties of B2B shipping.

Roadways Transport Segment Handles a 45% Share of the Third-Party Logistics Market

Roadways have a 45% share of the UAE third-party logistic market based on the mode of transportation. The rising public-private partnership model and a greater emphasis on logistics infrastructure in the nation are likely to fuel the growth of the segment.

Industrial End-Use Segment Contributed about US$ 38.11 Billion to the GDP

The industrial segment is likely to hold a revenue share of 50%. In 2022, industrial exports from the UAE had record growth and reached production worth US$ 31.5 billion, up from US$ 21.23 billion over the previous two years. In addition, the industrial sector contributed US$ 38.11 billion to the GDP in the same year.

Top Players in the UAE 3PL Market are DHL International, Al Hilal Transporting and Contracting Company, and RAK Logistics

Many domestic and foreign players, including DHL International, Al Hilal Transporting and Contracting Company, and RAK Logistics, are actively vying for market share in this fiercely competitive and partially fragmented market. The high level of technological integration in the logistics industry has caused logistics firms' reliance on market digital players to grow. The nation's total logistics infrastructure is expanding quickly, which is likely to fuel market competition.

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The players in the market are focusing on various strategies and developments to stay in the competitive sector. Some of the strategies adopted by key players are:
In March 2023, Johnson & Johnson MedTech KSA signed a contract with Tamer Logistics to use them as their third-party logistics provider in Saudi Arabia. The newly concluded agreement is a component of J&J MedTech KSA's strategic plan to revamp its business operations, which calls for establishing direct operations in the kingdom by 2024.
In Jan 2023, For DB Schenker, one of the top logistics service providers in the world, DCM International, the architectural design and construction project management consultant, unveiled its most recently completed project. DCM developed and oversaw the construction of Schenker's DLC 3 major logistics hub in the United Arab Emirates, which is the benchmark for environmentally friendly and ergonomically sensible architecture locally and globally.
In Jan 2023, according to its strategic growth ambitions, AJEX Logistics Services, a Middle Eastern expert in rapid distribution and shipping solutions, introduced a number of new services for customers in the UAE. Customers of AJEX in the UAE can now take advantage of end-to-end integrated domestic and international logistics services that link B2B and B2C customers throughout the UAE, the GCC, and worldwide.
In Aug 2022, the operator of industrial cities and free zones in the emirate, Abu Dhabi Ports Group, which is listed on the Abu Dhabi Securities Exchange, recently unveiled KLP21, a cutting-edge warehousing and logistics hub. According to the corporation, the new plant will begin operating later in the third quarter of this year.
In Aug 2022, KLP21, a cutting-edge warehousing and logistics hub in Abu Dhabi, will be operational by Q3 2022, according to an announcement from AD Ports Group, a major facilitator of international trade, logistics, and industry.

Prominent Players
SAG logistic
DHL International GmbH
FedEx
RAK Logistics
Emirates Logistics LLC
Global Shipping & Logistics Company
Al-futtiam Logistics
Freightworks
Ceva Logistics
Mohebi Logistics
Consolidated Shipping Services group
KUEHNE+NAGEL INC.
Other Prominent Players

Segmentation Outline

By Service
Procurement
Contract Software/ Systems
Storage
Public warehousing
Contract warehousing
Specialist storage
High-security storage
Value-Added Warehousing
Order fulfillment
Dedicated Contract Carriage (DCC)
Transportation
Domestic Transportation Management
International Transportation Management
Drayage
Cross-Docking
Intermodal Transport
Drop Deck and Lowboy Transport
Other
Other Services
Freight Forwarding
Reverse Logistics
Environmentally Controlled Freight
Consolidation and Deconsolidation

By Customer Type
B2B
LSP (Logistics Service Providers)
Carriers
CEP (Courier/Express/Parcel)
B2C
CEP (Courier/Express/Parcel)

By Mode of Transport
Railways
Waterways
Roadways
LTL
FTL
Express
Airways

By End Use
Industrial
Automotive
Heavy Industry
Agriculture
Food & Beverage
Paper & Pulp
Chemicals
Others
Commercial
Post & Parcel
Retail
E-commerce
Packers & Movers
Enterprises
Consumers
Relocation & Shifting
Vehicle Movement

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About Astute Analytica
Astute Analytica is a global analytics and advisory company that has built a solid reputation in a short period, thanks to the tangible outcomes we have delivered to our clients. We pride ourselves in generating unparalleled, in-depth, and uncannily accurate estimates and projections for our very demanding clients spread across different verticals. We have a long list of satisfied and repeat clients from a wide spectrum including technology, healthcare, chemicals, semiconductors, FMCG, and many more. These happy customers come to us from all across the Globe. They are able to make well-calibrated decisions and leverage highly lucrative opportunities while surmounting the fierce challenges all because we analyze for them the complex business environment, segment-wise existing and emerging possibilities, technology formations, growth estimates, and even the strategic choices available. In short, a complete package. All this is possible because we have a highly qualified, competent, and experienced team of professionals comprising business analysts, economists, consultants, and technology experts. In our list of priorities, you-our patron-come at the top. You can be sure of best cost-effective, value-added package from us, should you decide to engage with us.

Aamir Beg
Astute Analytica
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