Global GCC e-commerce logistics market is growing at a considerable CAGR of 3.1% during the forecast period (2024-2031). The enlarging network of railways primarily drives the market growth. Additionally, the developed infrastructure in major GCC countries and the availability of an emigrant workforce are contributing significantly to the market growth. The expanding scope for backward and horizontal integration is creating novel opportunities for market growth. However, political instability facing economies is restraining market growth.
The global GCC e-commerce logistics market is segmented by products (baby products, personal care products, books, home furnishing products, apparel products, electronics products, automotive products, and others), by services (transportation services, warehousing services, and others), by locations (urban, rural and semi-urban), and by geographies (North America, Europe, Asia-Pacific, and Rest of the World).
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Market Dynamics
Transportation services hold a significant share of the GCC e-commerce logistics market. It provides effective movement for the finished goods. Efficient transportation is acting as an important economic benefit to the business along with consumers for getting their placed order on time. The increasing demand for railways, waterways, and roadways for transporting e-commerce products to consumers more rapidly and effectively, is driving market growth. Additionally, the rising cross-border e-commerce activities are creating novel opportunities for e-commerce transportation services.
Saudi Arabia is anticipated to hold a major market share during the forecast period owing to the well-developed infrastructure, and a considerable increase in the product offerings by the market players. Additionally, internet usage in the region is also contributing considerably to the market growth.
The major players in the global GCC e-commerce logistics market include Deutsche Post AGHL, FedEx, Gulf Pinnacle Logistics, Emirates Post Group Corp., and Prime Express among others. The market players are contributing significantly to the market growth, by the adoption of various business strategies, such as collaborations, mergers and acquisitions, product portfolio diversification, and more.
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Recent Developments
- In September 2024, AJEX Logistics Services announced a partnership with Widect, a 100% subsidiary of Turkish Airlines. The partnership aims to expand shipping solutions on the Turkiye to the Middle East route and enhance last-mile delivery services for the growing e-commerce sector across MENA.
- In July 2024, EMX announced the launch of ‘EMX International’, its new international solution for eCommerce parcel delivery across the Gulf Cooperation Council (GCC) region. The service aims to streamline delivery procedures in Saudi Arabia, Oman, Kuwait, Bahrain, Qatar, and Jordan.
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