The Q-Commerce Industry In UAE Market size is estimated at USD 157.55 million in 2024, and is expected to reach USD 236.56 million by 2029, growing at a CAGR of greater than 10.5% during the forecast period (2024-2029).
The coronavirus pandemic significantly impacted worldwide order management, fulfillment, and distribution operations. A 2020 study found that 40.2% of respondents cited general labor issues or a lack of workers as the pandemic's main labor-related challenge. More than 10% of them also noted one of the difficulties the pandemic brought about was managing a rising volume of returns.
The primary focus of q-commerce is on micro to lower quantities of a select few commodities, such as food, medications, personal care items, and stationery. Q-commerce refers to "on-demand delivery" and "e-grocery" interchangeably while focusing on customers' small order sizes. Due to the rising popularity of Q-commerce, online vendors are progressively moving their inventory from traditional, massive warehouses on the outskirts of cities to smaller, closer-to-the-delivery facilities in the UAE. Overall, it can be argued that Q-commerce represents the future of business and online vendors, who will switch from old business models to Q-commerce ones in the coming years. Foreign Q-commerce and E-Commerce, which refers to UAE consumers making purchases outside of the nation, is also growing and is predicted to account for 32% of all e-commerce sales in 2025, up from 23% in 2019 and 26% in 2018. According to statista.com, a global provider of market research, the corresponding amount for q-commerce in the region is predicted to increase from USD 9 billion in 2020 to USD 20 billion by 2024. In 13 nations, including the UAE, Algeria, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, and Tunisia, the report polled an unspecified number of respondents.
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The coronavirus pandemic significantly impacted worldwide order management, fulfillment, and distribution operations. A 2020 study found that 40.2% of respondents cited general labor issues or a lack of workers as the pandemic's main labor-related challenge. More than 10% of them also noted one of the difficulties the pandemic brought about was managing a rising volume of returns.
The primary focus of q-commerce is on micro to lower quantities of a select few commodities, such as food, medications, personal care items, and stationery. Q-commerce refers to "on-demand delivery" and "e-grocery" interchangeably while focusing on customers' small order sizes. Due to the rising popularity of Q-commerce, online vendors are progressively moving their inventory from traditional, massive warehouses on the outskirts of cities to smaller, closer-to-the-delivery facilities in the UAE. Overall, it can be argued that Q-commerce represents the future of business and online vendors, who will switch from old business models to Q-commerce ones in the coming years. Foreign Q-commerce and E-Commerce, which refers to UAE consumers making purchases outside of the nation, is also growing and is predicted to account for 32% of all e-commerce sales in 2025, up from 23% in 2019 and 26% in 2018. According to statista.com, a global provider of market research, the corresponding amount for q-commerce in the region is predicted to increase from USD 9 billion in 2020 to USD 20 billion by 2024. In 13 nations, including the UAE, Algeria, Egypt, Iran, Israel, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, and Tunisia, the report polled an unspecified number of respondents.
UAE Q-Commerce Market Trends
Busy Lifestyles Supporting the Industry
Q-commerce's main goal is to provide clients with goods and services more quickly than a traditional retail outlet. It is a platform that offers people in the UAE quick and easy processes. Customers have the option to deliver orders whenever it is convenient for them, thanks to the q-commerce business model. Customers are not restricted to the company's set business hours. For people in UAE, where they are more work-oriented, rapid commerce acts as a one-stop shop where they may get all of their requirements met at one location. Businesses that use the fast commerce model of operation create their own apps so that customers may order a variety of goods from a single source.
Increase in the Usage of Smartphones and Latest Technology is Driving the Market
The number of users of digital channels increases along with their number. A Standard Chartered survey found that nearly half of consumers in the region now favor making online purchases over those made in-person with cards or cash, marking a major shift from earlier transaction patterns. Financial inclusion is believed to improve with more ICT use, but e-commerce growth requires greater financial sector participation. According to a poll by logistics company UPS, 67% of the SMEs in the Middle East do not offer any online sales at all, despite the fact that two-thirds of customers in the region now anticipate access to digital services when buying or conducting business. Only 15% of companies in the area, according to Gartner, have an online presence.
UAE Q-Commerce Industry Overview
The report covers major players operating in the Q-commerce industry in the UAE. In terms of market share, few major players currently dominate the market. However, with technological advancements and product innovations, mid-size to smaller companies are increasing their market presence by securing new contracts and tapping into new markets.Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS AND INSIGHTS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Methodology
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