Middle east & Africa E-commerce Logistics Market Outlook, 2029

Internet penetration in the Middle East and Africa was estimated to be nearly 67% up to the last year. In the same year, nearly 183.21 billion internet users were recorded in the Middle East & Africa region. On the other hand the smart-phone penetration was calculated to be around 75%. During the past decade, globalisation and technology have created new openings for internationalization, boosting supply chains and competitiveness across the region. The region has been relatively slow to adopt e-commerce, but the COVID-19 pandemic has brought a step change in behaviour.

Consumers across the Gulf Cooperation Council, South Africa, and Turkey have done a lot more shopping online during the pandemic than before, amid higher demand for groceries, personal care, and household supplies. In fact, consumers in Saudi Arabia and the UAE have seen among the highest rates of new or increased users of online deliveries and communications. While many of the region’s imports have historically come from China, growing numbers of shoppers are buying from further afield. Across the Middle East, Amazon and eBay are used just as frequently as local sites such as Cobone, Souq, and Sukar.

According to the research report, “Middle East & Africa E-commerce Logistics Market Outlook, 2029”, the market is expected to grow with 15.31% CAGR by 2024-29. The e-commerce logistics market in the Middle East and Africa is driven by several major factors that significantly contribute to its growth. A primary driver is the rapid expansion of the e-commerce sector, fuelled by increasing internet penetration and a growing number of digital consumers. This shift towards online shopping has heightened the demand for efficient logistics solutions, particularly in last-mile delivery, which is critical for customer satisfaction.

Additionally, strategic geographic locations in the region facilitate international trade, making it easier for logistics companies to connect with global markets. Investments in infrastructure development, including modern transportation networks and fulfilment centers, further enhance logistics capabilities, enabling faster and more reliable service. The rise of mobile commerce also plays a crucial role, as consumers increasingly use smartphones for shopping, necessitating agile logistics responses.

The Middle East and Africa e-commerce logistics market is segmented by service type into warehousing, transportation, and other services such as return and inventory management. Among these, the transportation category emerges as the leading segment, driven by the increasing demand for efficient and reliable delivery systems in the rapidly growing e-commerce industry. Transportation services play a pivotal role in connecting businesses with customers across diverse geographies, from urban centers to remote areas, ensuring timely delivery of goods. The region’s logistics providers are heavily investing in road, air, and sea transport networks to accommodate the unique challenges of varied terrains and international trade.

Warehousing services also hold a significant share, as they are essential for inventory storage and order fulfilment, with a growing focus on modern, automated facilities to streamline operations. Other services like returns and inventory management are gaining traction, particularly as e-commerce platforms emphasize customer satisfaction and operational efficiency.

According to the report, the Middle East & Africa e-commerce logistics market is segmented into two operational areas, including domestic and international. Among these types, the domestic segment is expected to acquire a higher market share during the forecast period. As more and more people adopt online shopping across the region, domestic e-commerce sales will increase. In terms of e-commerce service types, the market is divided into warehousing, transportation, return, and inventory management. Among these types, the transportation segment is projected to have a higher market share by the upcoming time frame, being the most essential component of logistics service.

Further, the market is segmented into four transportation modes, including road, rail, air, and sea. Among these types, the road transportation segment is anticipated to acquire the largest portion of the market share by 2029. As domestic e-commerce sales are increasing in the upcoming timeframe, demands for instant delivery are also increasing. That creates a higher need for essential transportation services across the region. However, based on product types, the electronics segment is projected to acquire a higher market share by 2029.

The e-commerce logistics market in the Middle East and Africa showcases a wide array of product segments, including electronics, clothing and accessories, home furnishings, health and beauty products, automotive parts, baby items, books, and more. Electronics and clothing lead the market, propelled by increasing digital connectivity and a surge in online shopping. High-value electronics like smartphones, laptops, and home devices are particularly popular, reflecting the demand for technology in both urban and suburban areas. The clothing and accessories sector thrives on a growing fashion-savvy consumer base that seeks stylish and affordable options online.

Both categories benefit from sophisticated logistics solutions designed for secure, swift, and dependable deliveries, enhancing customer satisfaction in a competitive landscape. Additionally, home furnishings and health products are gaining popularity as e-commerce becomes a go-to for lifestyle and wellness needs. The automotive sector is expanding, and baby products are in demand due to a youthful demographic. While smaller, categories like books add to the market's overall diversity.

Mobile shopping in Saudi Arabia has become a trend with current technological enhancement and increased smartphone use. In Saudi Arabia, major players were introduced and became popular, such as Souq.com, which launched its app in 2014, and IKEA, who introduced the mobile app in 2013. Furthermore, the country is working extremely hard to position itself as a leisure destination, shifting from its conservative model towards becoming a digital nation.

For this reason, it is expected that this evolving market will experience unprecedented growth. Also, Saudi Arabia is located at the crossroads of an international trade route that connects Asia, Europe, and Africa. This strategic location provides Saudi Arabia with a unique advantage over other nations, thus enabling it to become a leading regional logistics hub.

COVID-19 Impact

With the spread of the coronavirus disease (COVID-19) and the growing use of social distancing measures, a large portion of the population in the Middle East & Africa region is moving away from brick-and-mortar establishments and toward internet stores. The overall market is being driven by these retailers, which provide a hassle-free shopping experience. However, there was a heavy impact on the supply chain for e-commerce across the region that affected market growth. The demand for e-commerce and e-commerce logistics has increased as a result of changing consumer behaviour and technological advancements.

Major Companies present in the market

FedEx Corporation, Deutsche Post AG, SF Express Co. Limited, United Parcel Service, Inc., Aramex International, XPO Logistics, Inc., Deutsche Bahn AG, Nippon Express Co., Limited, Kerry Logistics Network Limited, Rhenus Group, Clipper Logistics plc, Gati Limited, Kenco Group, Inc., ZTO Express.

Considered in this report

• Geography: Middle East & Africa
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Middle East & Africa E-Commerce Logistics market with its value and forecast along with its segments
• Country-wise e-commerce logistics market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Countries covered in the report

• UAE
• Saudi Arabia
• South Africa

By service type in the report

• Warehousing
• Transportation
• Other Service (Return, Inventory management)

By operational area in the report

• International
• Domestics

By transportation mode in the report

• Road
• Rail
• Air
• Sea

By product type in the report

• Electronics
• Apparel and Accessories
• Home Furnishing Products
• Health, Personal Care and Beauty
• Auto and Parts
• Baby Products
• Books
• Others

The approach of the report

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to e-commerce logistics industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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