Middle East & Africa Express Delivery Market Outlook, 2029

The Middle East and Africa (MEA) express delivery market presents a landscape brimming with potential. As economies across the region diversify and technological advancements become more widespread, the demand for fast, reliable, and cost-effective express delivery solutions is on the rise. This market caters to a wide range of businesses and individual consumers, facilitating the movement of goods within and across countries. Express delivery companies operating within the MEA region play a crucial role in supporting economic growth, fostering international trade, and enhancing customer convenience.

One unique characteristic of the MEA express delivery market is the presence of a large young population with a growing affinity for online shopping. This demographic is tech-savvy and comfortable with making purchases through e-commerce platforms. However, traditional retail models are still prevalent in many MEA countries. This creates an interesting convergence of online and offline retail channels, with a growing demand for omnichannel delivery solutions. Omnichannel delivery allows retailers to offer customers a seamless experience, enabling them to purchase online and choose options like in-store pickup, same-day delivery to their home, or delivery to a designated pick-up point.

Express delivery companies that can cater to this omnichannel approach and provide flexible delivery options will be well-positioned to thrive within the evolving MEA market. This focus on omnichannel delivery is driven by several factors. Firstly, urbanization across the MEA region is leading to a rise in densely populated cities with limited parking space. Offering convenient delivery options like pick-up points or locker deliveries becomes crucial for customers in these urban environments.

Secondly, the growing smartphone penetration within the region allows for real-time tracking of deliveries, enhancing customer convenience and transparency throughout the delivery process. Finally, the increasing disposable incomes of a young and aspirational demographic fuels the demand for faster delivery options and a wider variety of goods available through online platforms. By understanding these unique dynamics and catering to the evolving needs of online and offline retailers, express delivery companies can become key partners in the MEA region's economic growth and e-commerce development.

According to the report, the Middle East and Africa Express Delivery market is anticipated to grow at more than 7% CAGR from 2024 to 202. Emerging economies undergoing rapid industrialization. One unique characteristic of the MEA express delivery market is the emergence of innovative homegrown delivery companies. Unlike some other regions dominated by established global players, the MEA market is witnessing the rise of local and regional express delivery companies who understand the specific needs and nuances of the local landscape. These companies are often nimble and adaptable, able to cater to the diverse requirements of customers across different countries within the MEA region.

For instance, they may offer flexible pick-up and drop-off options tailored to local preferences, or leverage mobile money platforms for convenient cash-on-delivery transactions, catering to a population where traditional banking services might not be as widely used. Furthermore, these homegrown companies often have strong local partnerships, collaborating with established businesses and leveraging existing infrastructure to create efficient delivery networks. The presence of these innovative local players adds a unique dynamic to the MEA express delivery market, fostering competition and driving innovation within the sector. This focus on local expertise extends beyond just delivery companies.

The MEA region also boasts a growing number of e-commerce platforms catering to specific cultural preferences and product categories. These online marketplaces understand the local demand for modest fashion, ethnic beauty products, or regionally specific food items. Partnering with these e-commerce platforms allows express delivery companies to tap into a niche market with specific delivery requirements. For instance, these partnerships might involve ensuring temperature-controlled delivery for perishable food items or offering secure and discreet packaging for culturally sensitive products. This focus on catering to local e-commerce platforms with culturally relevant offerings strengthens the express delivery ecosystem within the MEA market.

However, the MEA express delivery market also faces some logistical hurdles. Infrastructure limitations in certain parts of the region can pose challenges for ensuring efficient and timely deliveries. Limited road networks, underdeveloped postal systems, and challenges with customs clearance in some countries can create bottlenecks within the delivery process. Express delivery companies in the MEA region need to be innovative in their approach, exploring alternative transportation methods like air cargo for remote locations or partnering with local logistics providers to overcome these infrastructural limitations.

Market Drivers

• Rapid growth of e-commerce in the MEA region: Increasing internet penetration, particularly on mobile devices, coupled with a growing young population comfortable with online shopping, is driving a surge in e-commerce activity. This translates into a heightened demand for reliable and efficient express delivery services to fulfill customer orders promptly and ensure a positive online shopping experience. Unlike established e-commerce markets, where traditional retail infrastructure is well-developed, the MEA region presents an opportunity for e-commerce to leapfrog traditional brick-and-mortar stores, especially in remote areas. Express delivery services play a crucial role in facilitating this shift towards online retail by bridging the gap between online vendors and geographically dispersed customers.
• Growing demand for intra-regional trade within the MEA: The establishment of free trade zones and regional economic blocs like the African Continental Free Trade Area (AfCFTA) are fostering increased trade activity between countries within the MEA region. This intra-regional trade creates a need for efficient and reliable express delivery solutions to ensure the smooth movement of goods across borders. Express delivery companies that can navigate the complexities of customs regulations within the MEA and offer seamless cross-border delivery services are well-positioned to benefit from this growing trend of intra-regional trade.

Market Challenges

• Fragmented and underdeveloped infrastructure: Poor road networks, limited air cargo capacity, and inadequate logistics facilities can significantly hinder the efficiency and timeliness of express deliveries. Investing in infrastructure development, including improved roads, efficient customs clearance processes, and strategically located sorting hubs, is crucial for overcoming these logistical hurdles and ensuring smooth delivery across the region. Public-private partnerships between governments and express delivery companies can play a vital role in driving infrastructure improvements within the MEA region.
• Cash-on-delivery (COD) preference: Another key challenge lies in the cash-on-delivery (COD) preference prevalent among many online shoppers within the MEA. COD presents challenges for express delivery companies due to the additional complexities of cash collection and potential security risks. Encouraging a shift towards online payment methods through secure payment gateways and educating consumers about the benefits of digital transactions will be crucial for streamlining the delivery process and reducing cash handling risks within the MEA express delivery market.

Based on the report, the Express Delivery market is segmented into B2C (Business-to-Consumer) and B2B (Business-to-Business) on the basis of business.

Based on the report, the Express Delivery market is segmented into Domestic and International on the basis of destination.

On the business side, the segment breakdown falls into two main categories: Business-to-Consumer (B2C) and Business-to-Business (B2B). The B2C segment is experiencing a significant surge, fueled by the rise of e-commerce platforms across the MEA region. This growth is particularly evident in countries with high internet penetration rates and a growing middle class with disposable income, such as the UAE and Saudi Arabia. Consumers are increasingly turning to online marketplaces for a wider selection of goods, competitive prices, and the convenience of home delivery, creating a strong demand for fast and reliable B2C express delivery services. The B2B segment, however, remains a vital component of the MEA express delivery market.

Established trade routes and ongoing economic diversification initiatives within the region are driving B2B express delivery demand. For instance, businesses in sectors like manufacturing and pharmaceuticals require efficient and secure delivery solutions for time-sensitive goods and critical components. Furthermore, the presence of special economic zones and free trade agreements within the MEA region incentivize cross-border trade, further fueling the B2B express delivery segment. However, the B2B segment also faces challenges due to complex documentation requirements and customs clearance procedures at borders, necessitating expertise in navigating these regulations for efficient delivery.

By destination, the MEA express delivery market can be segmented into domestic and international deliveries. Domestic express delivery caters to the growing demand for fast and reliable intra-country shipments. This segment is particularly important in geographically vast countries like Saudi Arabia, where efficient delivery solutions are crucial for businesses and consumers alike. The development of e-commerce platforms often stimulates domestic express delivery, as companies require reliable partners to fulfill customer orders within their countries. International express delivery, on the other hand, plays a vital role in connecting the MEA region to global markets.

Countries like the UAE have established themselves as key trade hubs, facilitating the movement of goods between Africa, Asia, and Europe. International express delivery services cater to businesses seeking to export their products or source materials from overseas suppliers. However, factors like limited air cargo capacity on certain routes and underdeveloped logistics infrastructure in some parts of the MEA region can pose challenges for international express delivery operations.

According to the report, the Express Delivery market is segmented into Wholesale and Retail Trade (E-commerce), Services (BFSI (Banking, Financial Services and Insurance)), Manufacturing, Construction, and Utilities, Automotive, Others (Agriculture, Resources etc.) on the basis of end user.

The wholesale and retail trade sector, heavily influenced by the e-commerce boom, stands out as a dominant player. The rapid growth of online marketplaces across the MEA region, particularly in countries like the UAE and Saudi Arabia, has fueled a surge in demand for fast and reliable express delivery services for online purchases. This segment is characterized by high-volume deliveries, often requiring efficient last-mile delivery solutions to cater to geographically dispersed customer bases within urban areas.

Understanding the specific needs of e-commerce businesses, such as faster delivery times, cash-on-delivery options, and integration with e-commerce platforms, is crucial for express delivery companies targeting this segment within the MEA market. Beyond e-commerce, the services sector, particularly Banking, Financial Services and Insurance (BFSI), presents another significant segment within the MEA express delivery market. BFSI institutions require secure and time-sensitive delivery of documents, financial instruments, and other sensitive items.

Express delivery companies catering to this segment need to offer robust security measures, track-and-trace capabilities, and dedicated customer service channels to ensure the safe and timely delivery of critical documents within the region. Furthermore, the growing adoption of digital banking solutions within the MEA region is creating demand for express delivery services for physical authentication tools like security tokens or hardware keys. The manufacturing, construction, and utilities sectors represent another important segment within the MEA market. These industries rely on express delivery for time-sensitive parts, urgent repairs, and critical equipment deliveries to minimize production downtime.

Express delivery companies can cater to this segment by offering specialized services like same-day delivery within specific regions or temperature-controlled transportation for delicate equipment. Understanding the just-in-time inventory management practices prevalent within these sectors is crucial for tailoring delivery solutions that minimize disruptions and ensure smooth operations. The automotive sector, while a significant player in the MEA region's economy, presents a unique situation. Established automotive manufacturers often have well-developed in-house logistics networks for parts and vehicle deliveries.

However, the growing demand for aftermarket parts and accessories creates an opportunity for express delivery companies to partner with auto parts retailers and workshops, offering fast and reliable delivery solutions to end consumers. Finally, the "Others" segment, encompassing sectors like agriculture, resources, and mining, represents a nascent but potentially high-growth segment within the MEA express delivery market. The perishability of agricultural products necessitates rapid and temperature-controlled transportation solutions. Express delivery companies can partner with agricultural companies to deliver fresh produce directly to consumers or grocery stores, potentially creating new revenue streams. Similarly, the mining and resources sector may require express delivery services for urgent spare parts or critical equipment to remote locations.

Based on the report, the major countries covered include the UAE, South Africa, Saudi Arabia, and the rest of the Middle East and Africa.

Within the MEA express delivery market, Saudi Arabia emerges as a leading player driven by a confluence of factors. A key driver is the country's burgeoning e-commerce sector, fueled by a young, tech-savvy population and increasing internet penetration. This surge in online shopping translates into a heightened demand for fast and reliable express delivery services. Saudi Arabia's government actively supports e-commerce growth through initiatives like the Vision 2030 plan, fostering an environment conducive to online retail and express delivery businesses.

Furthermore, the presence of a well-developed logistics infrastructure, including major seaports and a network of highways, facilitates the efficient movement of goods across the country, which is crucial for timely express deliveries. Beyond e-commerce, Saudi Arabia's economic diversification efforts present additional opportunities for the express delivery market. The focus on developing sectors like manufacturing and establishing special economic zones attracts foreign investments and creates demand for express delivery services to transport raw materials, finished products, and time-sensitive documents.

Similarly, the oil and gas industry, a cornerstone of the Saudi Arabian economy, relies on express delivery for urgent spare parts, equipment repairs, and critical documents, ensuring smooth operations and minimizing downtime. This diversification beyond e-commerce broadens the customer base for express delivery companies and strengthens Saudi Arabia's position within the MEA market. Furthermore, Saudi Arabia's strategic geographical location at the crossroads of three continents positions it as a potential regional hub for express delivery. The country boasts well-developed infrastructure that can support efficient cross-border express deliveries to neighboring countries within the MEA region. Additionally, government investments in logistics facilities and streamlined customs procedures can further enhance Saudi Arabia's attractiveness as a regional hub, attracting major express delivery companies and facilitating faster transit times for international shipments.

Years considered in this report:

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in the report:

• Express Delivery market outlook with its value and forecast, along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Business:

• B2C (Business-to-Consumer)
• B2B (Business-to-Business)

By Destination:

• Domestic
• International

By End User:

• Wholesale and Retail Trade (E-commerce)
• Services (BFSI (Banking, Financial Services and Insurance))
• Manufacturing, Construction, and Utilities, Automotive
• Others (Agriculture, Resources etc.)

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. After this, the research team made primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once the research team attained the primary data, they verified the details obtained from secondary sources.

Intended Audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Express Delivery 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.