Report : Middle East & Africa Third Party Logistics Market Forecast to 2030 - Regional Analysis - by Mode of Transports (Roadways, Railways, Waterways, and Airways), Services (International Transportation, Warehousing, Domestic Transportation, Inventory Management, and Others), and End user (Automotive, Healthcare, Retail, Consumer Goods, and Others)

At 4.6% CAGR, Middle East & Africa Third Party Logistics Market is Speculated to be Worth US$ 143.66 Billion by 2030, says Business Market Insights

According to Business Market Insights' research, the Middle East & Africa third party logistics market was valued at US$ 100.00 billion in 2022 and is projected to reach US$ 143.66 billion by 2030, registering a CAGR of 4.6% from 2022 to 2030. Surging adoption of e-commerce and growing need for overall operational cost reduction, delivery management, and better operational efficiency are among the critical factors attributed to drive the Middle East & Africa third party logistics market growth.

Third-party logistics enterprises specialize in logistics, and their expertise in this field is always better than that of the core corporations. They can also meet technical needs. Furthermore, third-party logistics providers can aid in cutting inventory expenses and can strategize to lower a company's overall shipping and delivery costs. Many core companies may lack the time and competence to keep logistic services and systems up to date. During periods of rapid commercial expansion, the organization frequently faces difficulties in meeting product delivery deadlines.

Additionally, hiring third-party firms is more cost-effective than investing in one's logistic operations. According to a study conducted by NTT Data in 2022, over 65% of the total study respondents who use third-party logistics services admit that using third-party logistics has decreased logistic expenditures. Reduced logistic expenditure directly affected the overall profit of the shipping companies positively.

Besides, consumer preferences for delivery services have changed drastically in recent years. Consumers are opting for faster delivery and are willing to pay additional costs for the same. Choosing a third-party logistics firm enables the company to devote its time and resources to areas of core competency and actual business. Thus, the advantages above are anticipated to drive the market for third-party logistics.

On the contrary, reduced control of manufacturer hampers the growth of Middle East & Africa third party logistics market.

Based on mode of transports, the Middle East & Africa third party logistics market is segmented into roadways, railways, waterways, and airways. The roadways segment held 37.3% market share in 2022, amassing US$ 37.28 billion. It is projected to garner US$ 52.54 billion by 2030 to register 4.4% CAGR during 2022-2030.

In terms of services, the Middle East & Africa third party logistics market is segmented into international transportation, warehousing, domestic transportation, inventory management, and others. The domestic transportation segment held 30.5% share of Middle East & Africa third party logistics market in 2022, amassing US$ 30.49 billion. It is anticipated to garner US$ 37.38 billion by 2030 to expand at 2.6% CAGR during 2022-2030.

Based on end user, the Middle East & Africa third party logistics market is segmented into automotive, healthcare, retail, consumer goods, and others. The others segment held 52.1% market share in 2022, amassing US$ 52.14 billion. It is projected to garner US$ 58.69 billion by 2030 to register 1.5% CAGR during 2022-2030.

Based on country, the Middle East & Africa third party logistics market is categorized into Saudi Arabia, South Africa, the UAE, and the Rest of the Middle East & Africa. Our regional analysis states that the Rest of Middle East & Africa captured 77.5% share of Middle East & Africa third party logistics market in 2022. It was assessed at US$ 77.50 billion in 2022 and is likely to hit US$ 108.12 billion by 2030, registering a CAGR of 4.3% during 2022-2030.

Key players operating in the Middle East & Africa third party logistics market are C H Robinson Worldwide Inc, DB Schenker, DSV AS, GEODIS SA, Kuehne + Nagel International AG, Nippon Express Co Ltd, Sinotrans Ltd, and United Parcel Service Inc, among others.

  • In February 2022, Infor, the industry cloud company, and DB Schenker, a leader in supply chain management and logistics solutions, today announced a strategic partnership. The agreement will see DB Schenker's Logistics Service Provider (LSP) business leverage Infor Nexus technology to deliver a comprehensive supply chain solution to customers.

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