GCC Road Freight Market, Forecast to 2025

GCC Road Freight Market, Forecast to 2025

Infrastructure Development and Economic Diversification Will Open Opportunities in the Road Freight Transportation Market

RELEASE DATE
24-Dec-2019
REGION
South Asia, Middle East & North Africa
Research Code: 9AB2-00-E7-00-00
SKU: TP00194-SA-MR_23932

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Description

The Gulf Cooperation Council (GCC) countries are emerging as highly competitive countries in terms of road infrastructure and government initiatives to improve the same. The GCC countries have a large pipeline of road infrastructure development projects in the pipeline, boosting the sector. Emerging technologies like driverless trucks and platooning are on the horizon. Despite being in the developmental stages, these technologies have the potential to be transformative. Among the GCC nations, Saudi Arabia's logistics market is the largest, accounting for nearly 40% of the total market size in the region. The full truck load (FTL) and less than truck load (LTL) segment currently constitute almost half of the total road freight market in the GCC and will continue to rise in the coming years due the region's strategic position and its free trade zones and economic cities. FTL constitutes the major share in the GCC road freight segment at 30% owing to high volume and large ticket size of orders and consignments. The GCC road freight market is highly fragmented with a low level of technology adoption and efficiency in operations. The density of the road network in the region is low, driver qualifications also do not meet the benchmarks set by western counterparts. Major drivers for the road freight market includes increasing technology adoption such as digital freight platforms, increasing demand for fleet management solutions, road infrastructure development plans, and eCommerce growth, increasing growth in intra-GCC trade, the introduction of new road freight regulations and tax reforms (VAT), and the development of rail networks, free trade zones, and economic cities in the region. Online freight marketplaces, eCommerce, and digitization is expected to streamline the road freight market in the GCC countries. Strategic partnerships with a focus on horizontal and vertical integration are increasingly being adopted by various service providers.

The road freight market in the GCC countries is forecasted to grow by a CAGR of 5% between 2020 and 2025.

This study analyses key road freight market trends and provides the growth outlook for the GCC road freight market in terms of the size of market segments, such as FTL, LTL, bulk, temperature-controlled, and courier, parcel, and last-mile delivery services. It also covers the technology adoption trends, infrastructure development plans, intra-GCC trade snapshots, road freight regulations, fuel prices and subsidies, and their implications for the freight transportation and supply chain service providers. In addition to the analysis of the impact of new business models like connectivity and convergence, segment-specific competitive landscape and opportunities for the road freight market have also been included in the analysis.

Author: Urvashi Mishra

Table of Contents

Key Findings

GCC Road Freight Market Snapshot

Road Freight Market by Segment

Upcoming Trends in GCC Road Freight

Research Scope and Methodology

Key Questions this Study will Answer

Market Definitions

Road Freight Market Size Forecast

Market Segmentation—Road Freight Market

Key Road Freight Metrics and Index

UAE Ranked 1st in Terms of Logistics Performance Index

Key Industry Segments in GCC Road Freight Market

Key Industry Segments in GCC Road Freight Market (continued)

Cost of Road Freight Transportation and Trucks on Road

Road Freight Companies—Capacity Assessment

Key Enablers and Constraints

Technology-enabled Transformations Roadmap

Logistics and Road Infrastructure Strategic Development Plans

Logistics and Road Infrastructure Strategic Development Plans (continued)

eCommerce Transforming Logistics Landscape

Growing Intra GCC Trade

Road Freight Regulations Set to Streamline Logistics

Road Freight Regulations Set to Streamline Logistics (continued)

Road Freight Regulations Set to Streamline Logistics (continued)

Road Freight Regulations Set to Streamline Logistics (continued)

Existing Trade Network in GCC

Existing Trade Network in GCC (continued)

Gulf Rail Connection—Changing The GCC Transportation Landscape

Impact of Mega Trends

Key Challenges

Challenges and Opportunities in the FTL Segment

Challenges and Opportunities in the Bulk Segment

Challenges and Opportunities in the Temperature Controlled Segment

Challenges and Opportunities in the LTL Segment

Challenges and Opportunities in the Focus—Courier/parcel/last-mile Segment

Competitive Landscape—Road Freight Market Segments

Competitive Landscape—Road Freight Market Segments (continued)

Service Offerings and Industry Focus for Players Specializing the in FTL Segment

Fleet and Strategic Focus for Players Specializing in the FTL Segment

Service Offerings and Industry Focus for Players Specializing in the LTL and Bulk Segments

Fleet and Strategic Focus for Players Specializing in the LTL and Bulk Segments 

Service Offerings and Industry Focus for Players Specializing in the Temperature Controlled Segment

Fleet and Strategic Focus for Players Specializing in the Temperature Controlled Segment

Service Offerings and Industry Focus for Players Specializing in the Courier/Parcel/Last-mile Segment

Fleet and Strategic Focus for Players Specializing in the Courier/Parcel/Last-mile Segment

Logistics Startups Transforming GCC Road Freight Services

Logistics Ecosystem and Online Freight Services

Growth Opportunity—Road Freight

Strategic Imperatives for Success and Growth

Growth Opportunities in Technology Lead Transformation

Growth Opportunities by Segments

The Last Word—3 Big Predictions

Legal Disclaimer

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition: Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
The Gulf Cooperation Council (GCC) countries are emerging as highly competitive countries in terms of road infrastructure and government initiatives to improve the same. The GCC countries have a large pipeline of road infrastructure development projects in the pipeline, boosting the sector. Emerging technologies like driverless trucks and platooning are on the horizon. Despite being in the developmental stages, these technologies have the potential to be transformative. Among the GCC nations, Saudi Arabia's logistics market is the largest, accounting for nearly 40% of the total market size in the region. The full truck load (FTL) and less than truck load (LTL) segment currently constitute almost half of the total road freight market in the GCC and will continue to rise in the coming years due the region's strategic position and its free trade zones and economic cities. FTL constitutes the major share in the GCC road freight segment at 30% owing to high volume and large ticket size of orders and consignments. The GCC road freight market is highly fragmented with a low level of technology adoption and efficiency in operations. The density of the road network in the region is low, driver qualifications also do not meet the benchmarks set by western counterparts. Major drivers for the road freight market includes increasing technology adoption such as digital freight platforms, increasing demand for fleet management solutions, road infrastructure development plans, and eCommerce growth, increasing growth in intra-GCC trade, the introduction of new road freight regulations and tax reforms (VAT), and the development of rail networks, free trade zones, and economic cities in the region. Online freight marketplaces, eCommerce, and digitization is expected to streamline the road freight market in the GCC countries. Strategic partnerships with a focus on horizontal and vertical integration are increasingly being adopted by various service providers. The road freight market in the GCC countries is forecasted to grow by a CAGR of 5% between 2020 and 2025. This study analyses key road freight market trends and provides the growth outlook for the GCC road freight market in terms of the size of market segments, such as FTL, LTL, bulk, temperature-controlled, and courier, parcel, and last-mile delivery services. It also covers the technology adoption trends, infrastructure development plans, intra-GCC trade snapshots, road freight regulations, fuel prices and subsidies, and their implications for the freight transportation and supply chain service providers. In addition to the analysis of the impact of new business models like connectivity and convergence, segment-specific competitive landscape and opportunities for the road freight market have also been included in the analysis. Author: Urvashi Mishra
More Information
No Index No
Podcast No
Author Urvashi Mishra
Industries Transportation and Logistics
WIP Number 9AB2-00-E7-00-00
Is Prebook No
GPS Codes 9800-A6,9B01-A6,9694,9AF6-A6