Reliable Data You Can Trust
Reliable Data You Can Trust
A recent report published by
Infinium Global Research on GCC last mile delivery market provides an in-depth
analysis of segments and sub-segments in the GCC as well as the regional GCC last mile delivery market. The study also highlights the impact of drivers,
restraints, and macro indicators on the GCC and regional GCC last mile delivery market over the short term as well as long term. The report is a comprehensive
presentation of trends, forecasts, and dollar values of the GCC last mile delivery market. According to the report, the GCC last mile delivery market is projected
to grow at a CAGR of 7.82% over the forecast period of 2021-2027.
GCC last mile delivery market was
valued at USD 1106.22 million in 2020 and is expected to reach USD 1,850 million in 2027, with a CAGR of 7.82% during the forecast period. In the Gulf
Cooperation Council (GCC) region, the logistics industry is evolving rapidly.
The factors such as increasing non-oil sector contribution to GDP, the
emergence of free trade zones and industrial parks, infrastructure development,
and increased trade cooperation are driving GCC's last mile delivery market in
this region. Last-mile delivery is an entire ecosystem that brings a variety of
goods to consumers’ doorsteps and the final stage in the network of the
courier, express, and parcel companies (CEP). The focus of Last-mile delivery
logistics is to deliver products to the end user as fast as possible.
The expansion of the e-commerce
industry in GCC coupled with changing consumer behavior is a key driving factor
for the last mile delivery market. The e-commerce retail business has matured
considerably due to the increasing internet penetration, smartphone usage, and
diversity on e-commerce platforms. As e-Commerce grows, the last mile delivery
industry will increasingly become a valuable arena for brands and the logistics
providers who deliver for them. Growing demand for parcel services in retail
and online food delivery will further propel the growth of the market. The
integration of advanced technologies into existing systems and the rising
demand for just-in-time delivery are expected to propel the demand for last mile delivery market. This emergence of modern technology enables greater
efficiency and an effective operating model is expected to escalate the growth
of the GCC last mile delivery market. However, customer nuances and shortage of
local delivery resources for Last-mile delivery hinder the growth of the last mile delivery logistics market. Also, the implementation of self-driving
and electric vehicles or drones can support market growth. In addition, the use
of AI can considerably cut delivery costs which will add value to Last-mile
delivery. The novel coronavirus started to spread in GCC countries in the first
quarter of 2020. By the second quarter of 2020, the virus spread all across the
country. One of the direct implications of the pandemic was a noticeable growth
in online shopping, especially in areas such as online grocery stores, and online
pharmacies. This shift caused by the pandemic will continue rather than
consumers returning to physical stores, which will augment the growth of the last mile delivery sector in the market.
Geographically, Saudi Arabia holds
the largest market share in the GCC last mile delivery market. The country is developing
in terms of e-commerce and is the number one market in the GCC in terms of
growth and size. According to the Jeddah Chamber of Commerce and Industry, the
average e-commerce revenues in the Kingdom amounted to $4.930 billion during
the year 2019. Developments in Last-mile delivery technology, including drones,
droids, and automated fulfillment centers, will increase both the speed and
handling capacity of logistic providers. In the UAE, Logistics and Last-mile
delivery providers are seeing an opportunity, being fuelled by the growth of a
rapid shift to online buying.
The report on GCC last mile delivery market covers segments such as service type, vehicle type, and end
user application. On the basis of service type, the sub-markets include
business-to-business (B2B), business-to-consumer (B2C), and
customer-to-customer (C2C). On the basis of vehicle type, the sub-markets
include motorcycle, light commercial vehicle, heavy commercial vehicle, drones,
and autonomous vehicle. On the basis of end user application, the sub-markets
include retailers, groceries, food and beverage, postal service, and healthcare
& pharmacy.
The report provides profiles of
the companies in the market such as SMSA Express Transportation Company Ltd,
DHL International GmbH, Aramex, Saudi Post, Saee, and Other companies.
The report provides deep insights
into the demand forecasts, market trends, and micro and macro indicators. In
addition, this report provides insights into the factors that are driving and
restraining the growth in this market. Moreover, The IGR-Growth Matrix analysis
given in the report brings an insight into the investment areas that existing
or new market players can consider. The report provides insights into the
market using analytical tools such as Porter's five forces analysis and DRO
analysis of GCC last mile delivery market. Moreover, the study highlights
current market trends and provides forecasts from 2021-2027. We also have
highlighted future trends in the market that will affect the demand during the
forecast period. Moreover, the competitive analysis given in each regional
market brings an insight into the market share of the leading players.