Latest News- Logistics Market in United Arab Emirates: Transportation is expected to lead the Application segment during 2025-2029

The Logistics Market in United Arab Emirates is being driven by Growing e-commerce industry

The Logistics Market in United Arab Emirates is expected to grow at a CAGR of 7.1% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 11371.1 million. Blockchain technology, a decentralized and cryptographically secured digital ledger, is revolutionizing the logistics industry in the United Arab Emirates. Each block in this chain contains encrypted information and a pointer to the previous block, ensuring data integrity and transparency. By implementing blockchain technology, logistics operations become more visible, enabling effective product tracking throughout the supply chain. The technology records the involvement of stakeholders and specific product details with each movement, ensuring a secure and tamper-proof record. This enhances efficiency, reduces errors, and builds trust among all parties involved. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Application
  • Transportation
  • Inventory holding
  • Administration
• End-user
  • Manufacturing
  • Retail
  • Healthcare
  • Automobile
  • Others
• Channel
  • B2B
  • B2C
• Type
  • 3PL
  • 2PL
  • 4PL
  • 1PL
• Geography
  • United Arab Emirates

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing e-commerce industry
• Increasing use of multimodal transport
• Increased outsourcing of logistics services

However, the market also witnesses some limitations, which are as follows:

• Increased lead time and supply-demand imbalance
• High operational costs of logistics
• Growing number of cargo thefts

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Market Scope in Logistics Market in United Arab Emirates Research Report

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Research Analysis Overview

The logistics sector in the United Arab Emirates has seen significant growth due to the genesis of e-commerce, tax reforms, and private sector participation. Goods and services, including information, transportation, warehousing, and resources, are in high demand. Supply chain management is crucial, with freight forwarding being a key service mix component. Sea freight and air freight, particularly for perishable items like pharma, are popular mode of transports.

Market Research Overview

The logistics market in the United Arab Emirates (UAE) is a significant segment of the global air freight and logistics industry. This market encompasses revenue generated by companies offering air freight transportation, courier services, and comprehensive logistics solutions, including package and mail delivery, customs agents, cold storage, and container freight stations (CFS). According to Technavio, the global air freight and logistics market size is determined by the revenues of air freight and logistics service providers. Key growth drivers for this market include the surge in cross-border e-commerce activities, the UAE's strategic location as a global trade hub, and the ongoing expansion of airports and infrastructure development, which enhances connectivity for air freight and logistics operations. These factors contribute to the increasing demand for efficient and reliable logistics services in the UAE.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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