Market Size of Egypt 3PL Industry
Study Period | 2020 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 3.59 Billion |
Market Size (2029) | USD 4.89 Billion |
CAGR (2024 - 2029) | 6.35 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Egypt Third Party Logistics (3PL) Market Analysis
The Egypt 3PL Market size is estimated at USD 3.59 billion in 2024, and is expected to reach USD 4.89 billion by 2029, growing at a CAGR of 6.35% during the forecast period (2024-2029).
The growth of the 3PL market in Egypt is primarily driven by the expansion of maritime transportation, while some obstacles, such as high logistics costs, may restrain market expansion. The increased maritime traffic is one of the main factors fueling growth in Egypt's 3PL industry. With access to the Red Sea and the Mediterranean Sea, Egypt's location makes the marine industry one of the nation's most important transportation sectors.
- More than 90% of the country's foreign trade is carried out by maritime transit. The maritime transportation industry is expanding thanks to the expansion of key industries like oil and gas, textiles, food processing, and construction.
- A customs and logistics center will be built and run by Agility, a pioneer in supply chain services, infrastructure, and investment, in the Suez Canal Economic Zone. Agility has spent USD 60 million to construct two 100,000 SQM customs and logistics centers, one in the industrial area of Ein Sokhna and the other in East Port Said. The project will be carried out in the second half of 2023.
- The maritime transportation industry is expanding due to the expansion of key industries like oil and gas, textiles, food processing, and construction. With 8.0% of global maritime traffic flowing through the Suez Canal annually, followed by an increase in foreign companies from Turkey, Spain, India, and China, Egypt is being exploited as a logistic hub for goods destined for the European market. In turn, this is expected to fuel the expansion of Egypt's 3PL market throughout the forecast period.
Egypt Third Party Logistics (3PL) Industry Segmentation
A 3PL (third-party logistics) provider offers outsourced logistics services, which include managing one or more aspects of procurement and fulfillment activities. The Egypt 3PL Market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution) and by end user (manufacturing & automotive, oil & gas and chemical, distributive trade (wholesale and retail trade including e-commerce), pharma and healthcare, construction, and other end users). The report offers market size and forecasts for the Egypt 3PL market in value (USD Billion) for all the above segments.
By Service | |
Domestic Transportation Management | |
International Transportation Management | |
Value-added Warehousing and Distribution |
By End User | |
Manufacturing and Automotive | |
Oil & Gas and Chemical | |
Distributive Trade (Wholesale and Retail trade including e-commerce) | |
Pharma & Healthcare | |
Construction | |
Other End Users |
Egypt 3PL Market Size Summary
The 3PL market in Egypt is poised for significant growth, driven by the expansion of maritime transportation and strategic investments in logistics infrastructure. Egypt's geographical advantage, with access to the Red Sea and Mediterranean Sea, positions it as a crucial hub for maritime trade, with over ninety percent of the country's foreign trade conducted via maritime routes. The expansion of key industries such as oil and gas, textiles, and construction further fuels the growth of the 3PL sector. Notable developments include Agility's investment in customs and logistics centers within the Suez Canal Economic Zone, and Hutchison Ports' substantial investments in new port facilities. These initiatives, alongside the expansion of the Suez Canal, are expected to enhance Egypt's role as a logistics hub for goods destined for the European market.
The Egyptian 3PL market is characterized by a fragmented landscape with both domestic and international players, including major companies like DHL, FedEx, and Aramex. The market is witnessing a shift towards technological advancements, with logistics service providers adopting innovations such as RFID, cloud storage, and automation to improve efficiency and reduce costs. The government's focus on infrastructure development, with plans for numerous transportation projects, offers substantial investment opportunities. Additionally, strategic acquisitions, such as AD Ports Group's stake in Egyptian maritime firms, highlight the ongoing efforts to strengthen the logistics and transport sectors. These developments, coupled with the ambitious 'Vision 2030' initiative, underscore the dynamic growth trajectory of Egypt's 3PL market.
Egypt 3PL Market Size - Table of Contents
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1. MARKET DYNAMICS AND INSIGHTS
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1.1 Current Market Scenario
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1.2 Market Dynamics
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1.2.1 Drivers
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1.2.2 Restraints
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1.2.3 Opportunities
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1.3 Value Chain / Supply Chain Analysis
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1.4 Industry Policies and Regulations
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1.5 General Trends in the Warehousing Market
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1.6 Demand from Other Segments, Such as CEP, Last Mile Delivery, and Cold Chain Logistics
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1.7 Insights into the E-commerce Business
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1.8 Technological Developments in the Logistics Sector
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1.9 Industry Attractiveness - Porter's Five Forces Analysis
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1.9.1 Threat of New Entrants
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1.9.2 Bargaining Power of Buyers/Consumers
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1.9.3 Bargaining Power of Suppliers
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1.9.4 Threat of Substitute Products
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1.9.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Service
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2.1.1 Domestic Transportation Management
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2.1.2 International Transportation Management
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2.1.3 Value-added Warehousing and Distribution
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2.2 By End User
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2.2.1 Manufacturing and Automotive
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2.2.2 Oil & Gas and Chemical
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2.2.3 Distributive Trade (Wholesale and Retail trade including e-commerce)
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2.2.4 Pharma & Healthcare
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2.2.5 Construction
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2.2.6 Other End Users
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Egypt 3PL Market Size FAQs
How big is the Egypt 3PL Market?
The Egypt 3PL Market size is expected to reach USD 3.59 billion in 2024 and grow at a CAGR of 6.35% to reach USD 4.89 billion by 2029.
What is the current Egypt 3PL Market size?
In 2024, the Egypt 3PL Market size is expected to reach USD 3.59 billion.