Uae Third Party Logistics Market
UAE Third-Party Logistics (3PL) Market, By Service Type (Dedicated Contract Carriage (DCC), Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution (W&D), Value-added Logistics Services (VALs)), Warehousing & Transportation); By Transport (Roadways, Railways, Waterways, Airways); By End User (Manufacturing, Retail, Healthcare, Automotive), Competitive Landscape & Forecast, 2019–2029
- Published Date: October 2023
- Report ID: BWC23833
- Available Format: PDF
- Page: 200
Report Overview
Expanding e-commerce trends, infrastructure development, globalization of supply chains, and increasing demand for efficient warehousing and distribution solutions are expected to drive the UAE Third-Party Logistics (3PL) Market during the forecast period between 2023 and 2029.UAE Third-Party Logistics (3PL) Market – Industry Trends & Forecast Report, 2029
UAE third-party logistics (3PL) market size was estimated at USD 5.7 billion in 2022. During the forecast period between 2023 and 2029, the size of UAE third-party logistics (3PL) market is projected to grow at a CAGR of 7.1% reaching a value of USD 9.3 billion by 2029. The growth of the UAE third-party logistics (3PL) market is driven by expanding e-commerce activities, increasing focus on core competencies by businesses, advanced infrastructure, strategic geographic location facilitating global trade, and a government emphasis on economic diversification. Also, rising consumer expectations for efficient deliveries and customized solutions, coupled with the adoption of technology-driven solutions like AI, IoT, and blockchain, are further propelling market expansion, enabling streamlined supply chains, cost savings, and enhanced customer experiences.
UAE Third-Party Logistics (3PL) Market - Overview
Third-party logistics (3PL) involves outsourcing supply chain operations to specialized companies. These providers offer services such as transportation, warehousing, distribution, and inventory management. By leveraging 3PL services, businesses can streamline operations, reduce costs, and enhance efficiency. 3PL providers bring expertise, technology, and resources, enabling companies to focus on core competencies while delegating logistical tasks. This model suits industries seeking flexible, scalable solutions without extensive investments in infrastructure. Overall, 3PL facilitates seamless logistics management, optimizing the movement of goods from production to consumption.
Growth Drivers
E-commerce Boom Propels UAE 3PL Market Growth
The exponential surge in e-commerce activities within the UAE is propelling the third-party logistics (3PL) market to unprecedented growth. As online retail booms, businesses are increasingly outsourcing their logistics operations to specialized 3PL providers to ensure efficient warehousing, order fulfillment, and last-mile delivery. This strategic partnership not only optimizes supply chain processes but also enables companies to focus on core competencies while adapting to shifting consumer trends. The UAE's strategic geographical location, coupled with advanced infrastructure, further cements its position as a regional e-commerce hub, fostering remarkable expansion opportunities for the 3PL sector.
Restraints
Regulatory Challenges Pose Significant Restraint to Growth of UAE 3PL Market
One key restraint affecting the UAE third-party logistics (3PL) market is the intricate regulatory landscape. The UAE government has stringent regulations and customs requirements governing the logistics sector. Navigating these rules demands substantial time and resources, which can hinder the efficiency of 3PL operations. Frequent changes in regulations and compliance standards also add complexity, making it challenging for 3PL providers to adapt swiftly. Compliance failures can result in penalties and operational disruptions, further dampening the growth prospects of the UAE 3PL market. Hence, regulatory compliance remains a pivotal restraint in this thriving industry.
UAE Third-Party Logistics (3PL) Market
Segmental Coverage
UAE Third-Party Logistics (3PL) Market – By Service Type
Based on service type, UAE third-party logistics (3PL) market is divided into Dedicated Contract Carriage (DCC), Domestic Transportation Management (DTM), International Transportation Management (ITM), Warehousing & Distribution (W&D), Value-Added Logistics Services (VALs)), and Warehousing & Transportation segments. 'Warehousing & Distribution (W&D)' is the largest service type segment in the UAE third-party logistics (3PL) market. The W&D segment encompasses various activities related to storing and distributing goods, which play a crucial role in supply chain management. It involves storage, order fulfillment, inventory management, and timely distribution of products to their destinations. The UAE's strategic geographical location as a global trade hub contributes to the significance of efficient warehousing and distribution services, making this segment a key driver of the country's 3PL industry.
UAE Third-Party Logistics (3PL) Market – By Transport
By transport, UAE third-party logistics (3PL) market is divided into Roadways, Railways, Waterways, and Airways segments. The roadways segment emerges as the largest and most influential. This dominance stems from the country's extensive road network, which serves as a vital artery for domestic and cross-border transportation. The well-developed road infrastructure efficiently connects major industrial hubs, commercial centers, and ports, facilitating the seamless flow of goods across the UAE and beyond. The roadways segment becomes pivotal in supporting supply chain efficiency, bolstering trade partnerships, and ensuring timely deliveries.
UAE Third-Party Logistics (3PL) Market – By End User
By end user, UAE third-party logistics (3PL) market is divided into Manufacturing, Retail, Healthcare, and Automotive segments. Manufacturing stands out as the largest end-user segment, driving substantial demand for 3PL services in the UAE. The robust manufacturing industry relies heavily on efficient logistics solutions to streamline supply chains and meet production demands. Simultaneously, the retail, healthcare, and automotive segments also play pivotal roles in the 3PL market, demonstrating the diverse range of industries benefitting from outsourced logistics services in the UAE's dynamic business landscape.
Competitive Landscape
Major players in the UAE third-party logistics (3PL) market include Agility Logistics1, GAC (Gulf Agency Company), DB Schenker, DHL Supply Chain, FedEx Supply Chain, CEVA Logistics, Panalpina World Transport, Gulf Warehousing Company, Sharaf Group, and Al-Futtaim Logistics. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.
Recent Developments
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In June 2022 - FedEx Express announced that it had begun the first international trial of its delivery robot in Dubai. The autonomous trial for Roxo, the SameDay Bot, took place in the Dubai Silicon Oasis (DSO) community, according to the company, a subsidiary of FedEx Corp. For the trial, the company worked with the Roads and Transport Authority (RTA) and the Dubai Integrated Economic Zones Authority (DIEZ).
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2019–2022 |
Base Year – 2022 |
|
Estimated Year – 2023 |
|
Forecast Period – 2023–2029 |
|
Facts Covered |
Revenue in USD Million |
Market Coverage |
UAE |
Product/ Service Segmentation |
Service Type, Transport, End Users |
Key Players |
Agility Logistics1, GAC (Gulf Agency Company), DB Schenker, DHL Supply Chain, FedEx Supply Chain, CEVA Logistics, Panalpina World Transport, Gulf Warehousing Company, Sharaf Group, Al-Futtaim Logistics |
By Service Type
-
Dedicated Contract Carriage (DCC)
-
Domestic Transportation Management (DTM)
-
International Transportation Management (ITM)
-
Warehousing and Distribution (W&D)
-
Value-Added Logistics Services (VALs)
-
Warehousing & Transportation
By Transport
-
Roadways
-
Railways
-
Waterways
-
Airways
By End User
-
Manufacturing
-
Retail
-
Healthcare
-
Automotive
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Executive Summary
- UAE Third-Party Logistics (3PL) Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Rise of e-commerce
- Continuous investment in transportation infrastructure
- Foreign investment and business setup
- Restraints
- Competition and price pressure
- Dependence on imports
- Opportunities
- Growing technological innovations
- Challenges
- Cybersecurity risks
- Increasing focus on sustainability and environmental regulations
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- UAE Third-Party Logistics (3PL) Market Overview
- Market Size & Forecast, 2019–2029
- By Value (USD Million)
- Market Share & Forecast
- By Service Type
- Dedicated Contract Carriage (DCC)
- Domestic Transportation Management (DTM)
- International Transportation Management (ITM)
- Warehousing and Distribution (W&D)
- Value-Added Logistics Services (VALs))
- Warehousing & Transportation
- Others
- By Transport
- Roadways
- Railways
- Waterways
- Airways
- By End Users
- Manufacturing
- Retail
- Healthcare
- Automotive
- Others
- By Service Type
- Market Size & Forecast, 2019–2029
- Competitive Landscape
- List of Key Players and Their Range
- UAE Third-Party Logistics (3PL) Company Market Share Analysis, 2022
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Development (Merger, Acquisition, Partnership)
- Impact of Covid-19 on UAE Third-Party Logistics (3PL) Market Industry
- Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook, SWOT Analysis)
- Agility Logistics
- GAC (Gulf Agency Company)
- DB Schenker
- DHL Supply Chain
- FedEx Supply Chain
- CEVA Logistics
- Panalpina World Transport
- Gulf Warehousing Company
- Sharaf Group
- Al-Futtaim Logistics
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Country
- Assumption & Limitation
- Qualitative Research
*Financial information of non-listed companies can be provided as per availability.
**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.
List of Figures
Figure 1 UAE Third-Party Logistics (3PL) Segmentation
Figure 2 UAE Third-Party Logistics (3PL) Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2022
Figure 4 UAE Third-Party Logistics (3PL) Market Size, By Value (USD Million), 2019–2029
Figure 5 UAE Third-Party Logistics (3PL) Market Share, By Service Type, By Value, 2019–2029
Figure 6 UAE Third-Party Logistics (3PL) Market Share, By Transport, By Value, 2019–2029
Figure 7 UAE Third-Party Logistics (3PL) Market Share, By End-Users, By Value, 2019–2029
List of Tables
Table 1 UAE Third-Party Logistics (3PL) Market Size, By Service Type, By Value, 2019–2029
Table 2 UAE Third-Party Logistics (3PL) Market Size, By Transport, By Value, 2019–2029
Table 3 UAE Third-Party Logistics (3PL) Market Size, By End User, By Value, 2019–2029
Table 4 Agility Logistics Company Overview
Table 5 Agility Logistics Financial Overview
Table 6 GAC (Gulf Agency Company) Company Overview
Table 7 GAC (Gulf Agency Company) Financial Overview
Table 8 DB Schenker Company Overview
Table 9 DB Schenker Financial Overview
Table 10 DHL Supply Chain Company Overview
Table 11 DHL Supply Chain Financial Overview
Table 12 FedEx Supply Chain Company Overview
Table 13 FedEx Supply Chain Financial Overview
Table 14 CEVA Logistics Company Overview
Table 15 CEVA Logistics Financial Overview
Table 16 Panalpina World Transport Company Overview
Table 17 Panalpina World Transport Financial Overview
Table 18 Gulf Warehousing Company: Company Overview
Table 19 Gulf Warehousing Company Financial Overview
Table 20 Sharaf Group Company Overview
Table 21 Sharaf Group Financial Overview
Table 22 Al-Futtaim Logistics Company Overview
Table 23 Al-Futtaim Logistics Financial Overview
Market Segmentation
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