Summary

The Middle East and Africa Third-Party Logistics (3PL) market is a rapidly growing industry that is critical to the region's supply chain management and logistics operations. This region, which includes countries in the Middle East and Africa, presents unique challenges and opportunities for 3PL providers due to its diverse range of industries, varying levels of infrastructure development, and a growing demand for efficient logistics services. Middle Eastern and African countries are enjoying rapid economic growth. As economies grow and diversify, so does the demand for effective logistics and supply chain solutions. By providing services that optimize the flow of products, 3PL providers play a critical role in supporting this expansion. The growth of e-commerce in the Middle East and Africa has increased the demand for services such as last-mile delivery, warehousing, and fulfillment. 3PL suppliers are adjusting to satisfy the growing consumer and business need for fast, dependable, and cost-effective delivery services. Some Middle Eastern countries are substantially investing in infrastructure development, such as ports, airports, and logistics parks. This initiative aims to improve the efficiency and capacity of logistics operations while also encouraging 3PL providers to help with these efforts. Some Middle Eastern countries are substantially investing in infrastructure development, such as ports, airports, and logistics parks. This initiative aims to improve the efficiency and capacity of logistics operations while also encouraging 3PL providers to help with these efforts. The retail and e-commerce sectors in the Middle East and Africa have grown significantly. As customer demand for online shopping grows, 3PL suppliers play an important role in e-commerce enterprises' efficient warehousing, order fulfillment, and last-mile delivery. Agriculture is an important industry in many African countries. 3PL companies serve this industry by handling agricultural product transportation and assisting farmers and agribusinesses in accessing regional and international markets.

According to the research report, “Middle East & Africa Third-Party Logistics (3PL) Market Outlook, 2028” published by Bonafide Research, the market is predicted to reach market size of more than USD 140 Billion by 2028. Intra-African commerce is picking up steam, and this trend is projected to continue. 3PL providers are crucial in easing the flow of commodities across African countries, linking diverse markets, and promoting economic integration. As of its strategic location at the crossroads of Europe, Asia, and Africa, the Middle East is a vital hub for global trade and logistics. Because of its proximity to key markets, the region serves as a gateway for imports and exports, fueling a high demand for 3PL services. The Suez Canal in Egypt, which connects the Mediterranean Sea to the Red Sea, is a significant point of trade for Europe and Asia, highlighting the region's importance even further. The Middle East has some of the world's greatest oil reserves. This sector plays a central role in the region's economy, and it heavily relies on 3PL services for the efficient transportation of energy resources, equipment, and infrastructure. 3PL providers specializing in oil and gas logistics are essential for maintaining the industry's operations and ensuring the timely delivery of critical supplies and materials. Countries in the Middle East are substantially investing in infrastructure development, such as ports, airports, and logistics parks. These expenditures are intended to improve the efficiency and capacity of logistics operations while also enticing 3PL companies to assist in these efforts. Logistics infrastructure development is critical for facilitating trade and economic progress. In recent years, there has been a strong emphasis on intra-African commerce. Regional trade agreements, such as the African Continental Free Trade Agreement (AfCFTA), aim to foster economic integration and lower trade barriers among African countries. This project has the potential to dramatically improve regional trade, and 3PL providers are positioned to play a key role in ensuring the seamless movement of commodities across African nations.

Based on report market is divided into three major countries United Arab Emirates, Saudi Arabia and South Africa. Saudi Arabia is expected to dominate the market of Middle East & Africa.

The third-party logistics (3PL) business in Saudi Arabia is a rapidly growing and dynamic sector, powered by numerous critical features that highlight the country's strategic position in the Middle East and commitment to diversifying its economy. The Saudi government is actively pursuing economic diversification in order to reduce its reliance on oil revenues. As a result, the country has promoted the development of non-oil sectors such as logistics and transportation, which has fueled the 3PL market's growth. Saudi Arabia has a strategic location at the crossroads of three continents: Asia, Europe, and Africa. Because of its geographic location, it serves as a significant transhipment hub for commodities passing between various regions, highlighting its importance in the global logistics and supply chain network. Saudi Arabia is ideally situated at the intersection of Asia, Europe, and Africa. Because of its geographical location, it is a perfect logistics hub, allowing for the efficient flow of commodities both regionally and globally. The country acts as a gateway for imports and exports, making it a focal point for regional logistics activities. Saudi Arabia's oil and gas sector, as one of the world's largest oil producers, is a major driver of the 3PL market. For the movement of energy resources, equipment, and infrastructure, this industry relies on specific logistics services, and 3PL suppliers have the knowledge to handle these unique demands. The Saudi government has invested heavily in infrastructure development, such as transportation networks, logistics parks, and economic cities. This investment is intended to improve the efficiency of logistics operations and attract 3PL providers, positioning Saudi Arabia as a logistics hub.

Based on mode of transportation market is bifurcated into roadways, railways, waterways and airways. Among them waterways is growing at significant pace in Middle East & Africa. Furthermore, based on services market is divided into domestic transportation management (DTM), international transportation management (ITM), dedicated contract carriage (DCC), warehousing & distribution (W&D), and value-added logistics by services (VAS).

Middle Eastern and African countries have made significant investments in extending and modernizing their ports and maritime infrastructure. These developments have enhanced port capacity and efficiency, allowing them to handle larger volumes of goods such as containers and bulk freight. Natural resources such as minerals, ores, and agricultural goods abound in the region. Waterways are well-suited to efficiently moving bulk freight, providing an economical method for exporting these commodities to worldwide markets. Some African countries have substantial inland waterway networks and navigable rivers, allowing goods to be transported further into the interior. Waterway transportation can provide access to remote locations that other means of transportation may not be able to reach. The region has established transhipment hubs and logistics parks near major ports. These hubs serve as consolidation points for cargo and facilitate efficient distribution, allowing 3PL providers to optimize their supply chain operations. The region's e-commerce expansion fueled by a more tech-savvy populace and expanding internet penetration, has resulted in an increase in demand for storage and distribution services. To meet the expectations of online shoppers, online retailers require efficient storage, order fulfillment, and last-mile delivery. Consumer expectations for speedier deliveries have altered, necessitating the necessity for strategically situated warehouses in urban areas. In order to ensure timely deliveries, warehousing companies are establishing distribution facilities in or near major cities. The Middle East and Africa retail industry is growing, with multinational and local retailers opening new locations and expanding their product offerings. In the direction to ensure that products are promptly available for consumers, efficient warehousing and distribution services are required.

Based on end-user industry market is segmented into manufacturing, healthcare, retailing, e-commerce, automotive, food & groceries, technological, and others. E-commerce industry is expected to grow at rapid pace in Middle East & Africa third-party logistics market.

In recent years, the Middle East and Africa have seen substantial expansion in the e-commerce business. As more people purchase online, e-commerce enterprises need efficient and dependable logistics services to keep up with client demand. To ensure that products are available and ready for distribution, e-commerce enterprises require effective inventory management. 3PL services can help e-commerce enterprises maintain the correct balance of supply and demand by assisting with warehousing, inventory tracking, and order fulfillment. E-commerce sales can be extremely seasonal and prone to sudden increases in demand, particularly during sales events and holidays. Scalability and flexibility are provided by 3PL providers, allowing e-commerce enterprises to expand or contract their logistics operations as needed. As more people shop online, the demand for effective e-commerce logistics services has increased. Last-mile delivery services are heavily used in e-commerce to ensure that things are delivered fast and efficiently to customers' doorsteps. E-commerce logistics 3PL suppliers provide solutions for dependable and timely last-mile delivery, a critical component of the e-commerce supply chain. Seasonal increases in demand, such as during the holiday season or promotional events are common for e-commerce enterprises. 3PL providers can provide scalable solutions to address these swings without requiring e-commerce enterprises to keep excess hardware on hand all year.

Companies Covered in this report:
DHL, FedEx Corporation, CH Robinson, Nippon Express, Kerry Logistics Network Limited, Maersk Logistics, DB Schenker, Kuehne + Nagel, DSV.

Considered in this report:
• Geography: Middle East & Africa
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Middle East & Africa Third-Party Logistics (3PL) market Outlook with its value and forecast along with its segments
• Country-wise Third-Party Logistics (3PL) market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:
• United Arab Emirates
• Saudi Arabia
• South Africa

By Mode of Transport:
• Roadways
• Railways
• Waterways
• Airways

By Services:
• Domestic Transportation Management (DTM)
• International transportation management (ITM)
• Dedicated contract carriage (DCC)
• Warehousing & Distribution (W&D)
• Value-Added Logistics By Services (VAS)

By End User:
• Manufacturing
• Healthcare
• Retailing
• Food & Groceries
• Automotive
• E-commerce
• Technological
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.



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