GCC Logistics Outlook, 2021
GCC Logistics Outlook, 2021
Technology Adoption, Infrastructure Investment, and Diversification Leading Transition Toward an Integrated Regional Supply Chain Ecosystem
03-Aug-2021
South Asia, Middle East & North Africa
Description
Logistics industry growth in the Gulf Cooperation Council (GCC) region is catalyzed by the increasing contribution of the non-oil sector to GDP, infrastructure development, growth of free trade zones and industrial parks, and greater regional trade cooperation. Governments in the region undertake policy measures to bolster economic diversification efforts, tax reforms, attract investment, and encourage private sector participation to reduce dependence on oil exports. Pandemic-induced national and regional lockdowns, travel restrictions, customs clearance delays, port congestion, and restrictions increase last-mile delivery costs, disrupting logistics operations in the region. Despite these challenges, the health crisis also accelerates the adoption of digital technologies. As economies in the region recover from the pandemic, digital transformation initiatives will play a crucial role. Increased government focus on digitalization, the contribution of knowledge economy sectors, and the launch of 5G services to support artificial intelligence and cybersecurity technologies will spur the transformation of the logistics ecosystem. Mega-events such as the EXPO 2020 (postponed to 2021) and investment in digital infrastructure upgrades also cater to demand from the eCommerce sector, driving logistics industry growth.
Demand for modern warehouses creates warehouse automation and supply chain digitalization opportunities to address labor-intensive warehousing operations, rising costs, and inefficiencies from empty miles in freight transportation. Digital technologies pave the way toward manned and unmanned connected autonomous transportation and sensor-driven connected physical transportation infrastructure. Robotics, autonomous vehicles, big data analytics, the Internet of Things (IoT), and augmented reality are vital technologies to improve efficiency in sorting, order picking, inventory management, and packing operations in warehouses.
Start-ups will lead the transformation of the logistics ecosystem. Government measures include entrepreneurship programs and efforts to boost access to funding to position the GCC region as an innovation and knowledge hub. Government stimulus packages include equity-free grants or fee exemptions, subsidized housing and office space, and health insurance coverage for companies.
The healthcare sector, in particular, vaccine logistics, is forecast to become a key growth engine to support the growth of cold storage and air freight segments. Factors necessary for vaccine logistics include cargo monitoring with supply chain visibility and traceability, vaccine temperature monitoring, and stability testing. As such, the GCC region prioritizes vaccine distribution infrastructure development.
Expansion of non-oil economic sectors also drives demand for logistics outsourcing and eCommerce growth. Cross-border e-commerce is a key area of focus, contributing to 40% of total e-commerce value. Development of economic corridors and free zones at major port cities will be crucial to attract investment in non-oil economic sectors and drive demand for logistics outsourcing. Measures such as the Dubai eCommerce Strategy and development of logistics zones and infrastructure such as bonded facilities are critical to support the region’s growth as a major eCommerce hub.
Key Issues Addressed
- What is the significance of freight market trends, and how do they affect growth forecasts? What is the growth outlook for the air, ocean freight and warehousing segments?
- How are key logistics policies and initiatives influencing the revival of logistics industry growth?
- What are the major digital technologies that are transforming freight transportation, warehousing, logistics, and supply chain solutions?
- What growth opportunities exist in the logistics industry, and how can your organization leverage them? How can you reset and reposition your business for stability and growth? What are the strategic considerations for leading your business through the crisis?
- What is the impact of Coronavirus 2019 (COVID-19) on the GCC economy and on the logistics industry? What are the Post Pandemic growth opportunities emerging out of this crisis?
Table of Contents
Key Developments in 2020
2020 GCC Logistics Market—Actuals vs Forecast
Impact of COVID-19 on GCC Member States
Impact of COVID-19 on the Logistics Market
Impact of COVID-19 on Logistics Market Forecasts
Regional Predictions
Market Size by Country
Top Predictions for 2021
Logistics Market Outlook
Logistics Market Outlook (continued)
Growth Opportunities in Logistics Segments
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Logistics Industry
Growth Opportunities Fuel the Growth Pipeline Engine™
Research Scope
Logistics Market Segments
Key Questions this Study will Answer
Research Aim and Objectives
Top 5 2020 Global Economic Highlights
2021 World GDP Growth Snapshot
Top 3 Growth Opportunities by Region in 2021
GCC Economic Profile and Key Indicators
COVID-19 Status—Confirmed Daily New Cases by Country
Industry Structure by Segments
Logistics Market Segments
Sea Freight—Container Throughput
Air Freight Handled by Major Airports
Road Freight
Freight Transportation by Country
Warehouse Market Size by Country
Freight Forwarding by Country
CEP Size by Country
Logistics Market by Country
Logistics Industry Trends
Key Logistics Industry Enablers
FEZs and Major Economic Cities
Government Focus on Logistics Infrastructure Development
Regional Trade Integration and Transhipment Hubs
Vaccine Supplies Require a Strong Supply Chain Network
Logistics Infrastructure Development
Digitalization of Supply Chain Solutions
Start-Ups Provide Cost-Effective Logistics Solutions
Pandemic-induced Changes—Vaccine Logistics
Logistics Technologies Across Key Segments
Digitalization and Logistics Process Automation
Digitalization of Port Infrastructure
Technology Trends—Transportation Infrastructure
Technology Trends—Regional Connectivity
Technology Trends—Air-Sea Freight Partnerships
Technology Trends—Logistics Start-ups
Logistics Start-Ups—LMD
LMD Innovations
LMD Innovations (continued)
2021 Predictions—KSA
2021 Predictions—UAE
2021 Predictions—Oman
2021 Predictions—Qatar
2021 Predictions—Kuwait
2021 Predictions—Bahrain
Growth Opportunity 1—Increase in Logistics Outsourcing Demand Driven by the Expansion of Non-Oil Economic Sectors
Growth Opportunity 1—Increase in Logistics Outsourcing Demand Driven by the Expansion of Non-Oil Economic Sectors (continued)
Growth Opportunity 2—Emergence of the GCC Region as a Major Trade Hub will Boost Demand for Storage and Warehousing
Growth Opportunity 2—Emergence of the GCC Region as a Major Trade Hub will Boost Demand for Storage and Warehousing (continued)
Growth Opportunity 3—LMD Innovations are Expected to Transform eCommerce Logistics
Growth Opportunity 3—LMD Innovations are Expected to Transform eCommerce Logistics (continued)
Strategic Imperatives for Success and Growth
The Last Word
Abbreviations
Next Steps
List of Exhibits
List of Exhibits (continued)
List of Exhibits (continued)
Legal Disclaimer
Related Research
Popular Topics
Key Issues Addressed
- What is the significance of freight market trends, and how do they affect growth forecasts What is the growth outlook for the air, ocean freight and warehousing segments
- How are key logistics policies and initiatives influencing the revival of logistics industry growth
- What are the major digital technologies that are transforming freight transportation, warehousing, logistics, and supply chain solutions
- What growth opportunities exist in the logistics industry, and how can your organization leverage them How can you reset and reposition your business for stability and growth What are the strategic considerations for leading your business through the crisis
- What is the impact of Coronavirus 2019 (COVID-19) on the GCC economy and on the logistics industry What are the Post Pandemic growth opportunities emerging out of this crisis
No Index | No |
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Podcast | No |
Predecessor | PADD |
Author | Senthil Kumar |
Industries | Transportation and Logistics |
WIP Number | PBAA-01-00-00-00 |
Is Prebook | No |
GPS Codes | 9800-A6,9B01-A6,9963-A6,9694 |