Logistics and Warehousing Market Outlook provides a comprehensive analysis of the Logistics & Warehousing, express logistics, 3PL, Warehousing and Value added services market in Qatar. The report covers various aspects such as overall size of logistics & warehousing market in terms of value, segmentation on the basis of Service mix and segmentation on the basis of industries, Freight forwarding, warehousing, 3PL and air and ground express logistics market. The report also covers value chain analysis for logistics & warehousing market, comparative analysis of Qatar logistics market with GCC and global logistics market. The report also provides the competitive landscape of major players along with detailed profile of leading and emerging players operating in the market. The report also includes future outlook and projection of the Qatar logistics & warehousing market, freight forwarding market, warehousing market, 3 PL market and express logistics market.
Warehousing & Logistics Industry
The growth in contract and express logistics led the industry growth during 2017-2019. The market for logistics and warehousing increased to USD ~ billion by 2018. The period 2017-2019 has been the period of adjustments with fluctuating oil prices and reduced investments. Even though, there has been a fall in oil and gas projects for the logistics providers, the warehousing segment has been on rise with improved warehousing solutions provided by major players such as Bu Sulba Warehousing Park and LVQ. It has also been observed that there has been a concentration in the competitive structure of the market with surge in strategic partnerships such as the one between GWC and UPS in 2017.
Qatar has been the largest supplier of Natural Gas since past 3 years. The export of oil and gas to other countries has witnessed a robust growth over the past few years. This is the major reason which has attributed the Oil & gas industry to be the largest contributor in the overall logistic & warehousing industry in terms of revenues during 2018.
Freight Forwarding Market
Freight Forwarding has been the leading segment of the overall logistics and warehousing market over the past few years. During the period 2011-2013, the freight forwarding segment has increased due to the burgeoning infrastructural developments in the country. Retail and FMCG industry in the country has also played an important role in the growth of logistics market in Qatar. The years 2015-2019 showcased low growth pace as compared to other years due to a fall in oil and gas projects even when the country remained the largest supplier of natural gas. Sea freight movement has majorly dominated the market for Logistics in Qatar
The warehousing in Qatar has been an important revenue source apart from the freight forwarding segment. The country has observed the prices rise of around 5-10% annually in warehousing rental.
Major players in the country have been observed to increase their warehousing capabilities such as GWC has recently completed their fifth phase of expansion of LVQ. The expansion of manufacturing and industrial activities in the country has also aided the market growth during the recent period. The improvement in infrastructure and expansion of construction sector has also increased the requirement of warehousing facilities in the country.
The third party logistics in the country has grown from ~% of the market in 2011 to around ~% of the logistics market on the basis of revenues in 2018. The growth has been due to rapidly growing e-commerce industry in the country. The ecommerce companies generally prefer to partner with a logistics provider and focus more on their functional area of expertise. Moreover the growth in the third party logistics has also spurred due to the increasing number of contracts offered since many corporations have not been able to manage their complex supply chains and hence outsource the contracts to their logistics partners.
Express Logistics Market
During 2014-2016, the E-commerce market has grown at a tremendous pace in the country with highest per capita spend by an internet user. This has resulted in the increase in the demand of express logistics in the country. The rising number of E-commerce companies has positively impacted the growth of the express logistics services.
The express delivery market in the Qatar has been dominated by a few key players namely; Aramex, DHL, TNT Express and Fed Ex. Aramex and DHL are two largest players in Express logistics market. They have had a strong presence in the express delivery market of the Qatar since 2011-2012.
The Express delivery market is expected to grow at a CAGR of over 20% from 2016-2021. Growth in the E-commerce market will drive the express delivery market for B2C business segment. Huge growth in B2C parcel volumes and consumers of e-commerce are now demanding more convenient methods of collecting their parcels as well as more efficient methods of returns.
Free trade agreement between the GCC countries which has been commenced during 2017 is also projected to provide the impetus for growth in the logistics market in the country. In the short run, the market is expected to grow. The high growth in the future is expected to be owed to the high rate of growth in the warehousing segment as compared to the low margin freight forwarding segment. The key catalyst of the logistics and warehousing market growth in the long run is the development of infrastructure and construction sector owing to the FIFA cup that is to be held in 2022. This has caused a spree of development in the country which has increased the trade and warehousing activity in the country. It is anticipated that the market for logistics and warehousing in Qatar will reach USD ~ billion by 2025.