The UAE freight forwarding market is a vital component of the nation’s transportation infrastructure that allows smooth transfer of goods both locally and globally. Freight forwarders manage cargo transport logistics using multiple modes of transportation such as sea, air, and land to facilitate just-in-time deliveries. They offer value-added services including customs clearance, warehousing, tracking and documentation. The freight forwarding market has become increasingly important given the UAE’s strategic location between Asia, Africa and Europe which has made it a regional trade and transit hub.
The Global UAE Freight Forwarding Market is estimated to be valued at US$ 20.11 Bn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024-2031.
Key Takeaways
Key players operating in the UAE freight forwarding market are DHL Global Forwarding, DB Schenker, CEVA Logistics, Emirates SkyCargo, Aramex, Agility, Kuehne + Nagel, GAC, Expeditors International, and Al-Futtaim Logistics. These companies have integrated digital technologies to streamline supply chain operations and provide real-time cargo tracking and visibility.
The growing cross-border trade activities between the UAE and other countries in the Middle East, Africa, Asia and Europe have boosted demand for freight forwarding services. Major imports into the UAE include electronics, machinery and vehicles while key exports are petrochemicals, minerals and plastics. This growing trade volume is driving greater adoption of freight forwarding solutions.
Major global freight forwarders are actively expanding their presence and capabilities across UAE airports and seaports to handle rising cargo volumes and benefit from the nation’s position as a trade and logistics hub. New strategic partnerships and investments in warehousing infrastructure will allow forwarding companies to provide seamless cargo movement both to and from the UAE.
Market Key Trends
One of the key trends witnessed in the UAE freight forwarding market is the increasing digital transformation of supply chain operations. Major players are heavily investing in the latest technologies like AI, IoT, blockchain and predictive analytics to enhance visibility, optimize routing, automate documentation and slash costs. Digital platforms facilitate paperless transactions between forwarders and their customers as well as between different modes of transport. This improves overall service quality and coordinates multi-leg shipments efficiently across complex international trade routes.
Porter’s Analysis
Threat of new entrants: High capital requirements limit new entrants in the market.
Bargaining power of buyers: Large buyers have high bargaining power due to consolidations in end-user industries.
Bargaining power of suppliers: Well-established suppliers and dependency of buyers on suppliers limits their bargaining power.
Threat of new substitutes: Low threat of new substitutes due to lack of alternatives for freight forwarding services. Competitive rivalry: Strong competitive rivalry exists between existing players to gain market share.
Geographical concentration: The UAE freight forwarding market, in terms of value, is majorly concentrated in Dubai. It handles about 80% of the total cargo traffic passing through the UAE annually. The emirate acts as a major re-exporting hub for freight movement between Europe and Asia.
Fastest growing region: China is projected to witness the fastest growth in the UAE freight forwarding market during the forecast period. This can be attributed to strong trade relationships between China and UAE along with the presence of China as a major trading partner of UAE.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
What Are The Key Data Covered In This UAE Freight Forwarding Market Report?
:- Market CAGR throughout the predicted period
:- Comprehensive information on the aspects that will drive the UAE Freight Forwarding ‘s growth between 2024 and 2031.
:- Accurate calculation of the size of the UAE Freight Forwarding and its contribution to the market, with emphasis on the parent market
:- Realistic forecasts of future trends and changes in consumer behaviour
:- UAE Freight Forwarding Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa
:- A complete examination of the market’s competitive landscape, as well as extensive information on vendors
:- Detailed examination of the factors that will impede the expansion of UAE Freight Forwarding vendors
FAQ’s
Q.1 What are the main factors influencing the UAE Freight Forwarding ?
Q.2 Which companies are the major sources in this industry?
Q.3 What are the market’s opportunities, risks, and general structure?
Q.4 Which of the top UAE Freight Forwarding companies compare in terms of sales, revenue, and prices?
Q.5 Which businesses serve as the UAE Freight Forwarding ’s distributors, traders, and dealers?
Q.6 How are market types and applications and deals, revenue, and value explored?
Q.7 What does a business area’s assessment of agreements, income, and value implicate?
About Author - Ravina Pandya
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