GCC Finished Vehicle Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 5.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
GCC Finished Vehicle Logistics Market Analysis
The GCC finished vehicle logistics market is expected to register a CAGR of more than 5% during the forecast period (2023 - 2028).
- The COVID-19 outbreak has widely disrupted the GCC automotive industry, directly affecting the finished vehicles logistics industry in GCC. It has resulted in the shutdown of manufacturing facilities and a decline in sales volume. Furthermore, the movement of goods was restricted, which led to a decline in the demand for finished vehicle logistics services in GCC. These restrictions adversely affected the GCC finished vehicles logistics market.
- The rise in vehicle registrations in GCC countries coupled with organized transportation and warehousing activities of automotive and an increase in investments in the automotive industry, expansion of automobile manufacturing plants, and growth of intermodal freight transportation drive the growth of the GCC finished vehicles logistics market.
- Moreover, the use of blockchain technology in finished vehicle logistics systems is one of the key developments projected to drive market growth in the coming years. Most companies are using this technology to conduct cost-saving business operations for vehicle logistics. The use of blockchain in the finished vehicle logistics industry will make the transportation process more transparent and efficient. It not only improves the visibility and predictability of logistics operations but also accelerates the movement of goods. Some market players are implementing this technology to track each vehicle unit in real-time and manage transactions automatically.
- However, vehicle damage during transportation, shortage of truck drivers hampers the market, and high costs associated with finished vehicle logistics hinder the growth of the GCC finished vehicles logistics market.
GCC Finished Vehicle Logistics Market Trends
This section covers the major market trends shaping the GCC Finished Vehicle Logistics Market according to our research experts:
Growing Automotive Industry
The automotive industry is witnessing significant growth in the GCC region owing to a rise in automobile sales, especially in countries such as UAE, and Saudi Arabia. According to the International organization of Motor Vehicle Manufacturers data, in 2021, the highest number of vehicles sold in the Gulf Cooperation Council countries was in Saudi Arabia at about 556.6 thousand vehicles. It was followed by the United Arab Emirates where the number of vehicles sold was about 188.8 thousand vehicles.
Moreover, the growth in the population is leading to the need for automobiles for convenient travel, which is driving the market growth. Some of the major automobile-producing countries in the GCC are Saudi Arabia, Oman, Qatar, etc., During the COVID-19 pandemic, UAE-based third-party logistics company, Gallega Global Logistics, has opened a 325,000-square meter facility in Khalifa Industrial Zone Abu Dhabi (KIZAD) to meet the growing regional demand for automotive supply-chain services. Thus, as the production of automobiles increases, there will be a rise in the need for finished vehicle logistics for transporting and warehousing these vehicles from the manufacturing plant to dealer showrooms. Hence, it will lead to the growth of the market focus during the forecast period.
The automotive industry in the GCC region is highly dependent on imports from different countries. Saudi Arabia announced its Vision 2030 which includes transforming the Kingdom into a preferred logistics hub. Surging automotive manufacturing plants of various brands to contribute to the growth of the automotive logistics industry in Saudi Arabia. Additionally, the government is restructuring the regulations and structures for the logistics sector and opening the way for market liberalization and private sector participation. Therefore, the growth of the automotive industry is expected to fuel the growth of the GCC finished vehicles logistics market during the forecast period.
Increase in Demand for Electric Vehicles
To meet the rise in demand for electric vehicles, in April 2022, the UAE opened its first electric vehicle manufacturing facility in Dubai Industrial City, built at a total cost of USD 408 million. The facility is expected to produce 55,000 cars per year. Saudi Arabia aims for at least 30 percent of its cars to be electric powered by 2030, following its pledge to reach net zero carbon emissions by 2060. Last year, EV manufacturer Lucid announced a long-term plan to build the first international manufacturing plant in Saudi Arabia, targeting 150,000 vehicles per year at the King Abdullah Economic City.
M Glory Holding Group, a technology investment firm based in Dubai, launched an EV production facility in May 2022 as part of the UAE's plan to expand its electric vehicle manufacturing industry. With a total land area of 93,000 square meters, the Dh1.5 billion (0.41 billion) plant at Dubai Industrial City will be one of the largest in the Middle East and aim to produce 55,000 EVs annually as the demand for electric vehicles rises.
Major vehicle manufacturers are investing in the expansion of warehouse facilities which is likely to drive the finished vehicles logistics market in GCC. For instance, in March 2022, the Saudi Ports Authority (Mawani) signed an agreement with CMA CGM Group to build an integrated logistics platform at Jeddah Islamic Port. The new facility of specialized container depots and warehouses will be established on 130,000 sq. meters of land leased by the port administration.
The Kingdom of Saudi Arabia's Ministry of Industry in January 2023 signed a memorandum of understanding with the South Korean company Hyundai Motors to build a factory for the complete assembly of electric cars in the Kingdom of Saudi Arabia. The manufacturing companies rely on their supply chain partners to manage finished vehicle logistics, provide high levels of service and optimize finished vehicle inventories. Hence, an increase in demand for electric vehicles provides lucrative opportunities for the GCC finished vehicles logistics market during the forecast period.
GCC Finished Vehicle Logistics Industry Overview
GCC Finished Vehicle Logistics Market has become increasingly competitive and fragmented with a large number of local and regional players and a few global players. Some of the major players in the GCC region include Gallega Global Logistics, RSA Global, Almajdouie Logistics, Al-Futtaim Logistics, Gulf Agency Company Ltd., and many more. Major companies in the market have adopted new technology adoption, partnerships, business expansions, and acquisitions as their key developmental strategies to offer better services to customers in the industry. For instance, PPG Member, Almajdouie Logistics (MLC) and GEFCO Group have announced the formation of 50-50 joint ventures in automotive logistics. They have partnered to provide finished vehicle logistics services to Almajdouie Auto (MMC), the importer of Hyundai in Saudi Arabia.
GCC Finished Vehicle Logistics Market Leaders
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Gallega Global Logistics
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RSA Global
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Almajdouie Logistics
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Al-Futtaim Logistics
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Gulf Agency Company Ltd.
*Disclaimer: Major Players sorted in no particular order
GCC Finished Vehicle Logistics Market News
- September 2022: Bahri Logistics (a business unit of the national shipping carrier of Saudi Arabia), and the MOSOLF Group (one of the leading system service providers for the automotive industry in Europe) announced the signing of a Memorandum of Understanding (MoU) aims to establish and develop an automotive logistics framework initially focused on Saudi Arabia with plans to expand across the Gulf Cooperation Council (GCC). The MoU between Bahri Logistics and MOSOLF seeks to further fortify the Kingdom's current automotive logistics supply chain.
- March 2022: A.P. Moller - Maersk (an integrated logistics company) inaugurated its first Integrated Logistics Centre in Dubai, UAE, at DP World's leading trade and logistics hub, Jafza. The 10,000 sq. m. warehousing, and distribution facility at Jabel Ali Free Zone (Jafza) in Dubai will cater to commodities across petrochemical, retail & lifestyle, fast-moving consumer goods (FMCG), technology, and automotive sectors, amongst others.
GCC Finished Vehicle Logistics Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Market Scenario
- 4.2 Insights into Logistics Technological Advancements
- 4.3 Insights into Inbound, Outbound Services, and Other Services (Vehicle Recall)
- 4.4 Insights into Areas such as Reverse Logistics Services, Contract Logistics, and Third Party Logistics Market
- 4.5 Value Chain/Supply Chain Analysis
- 4.6 Government Regulations and Initiatives
- 4.7 Trends in Intermodal Transportation in GCC
- 4.8 Impact of the COVID-19 on the Market
5. MARKET DYNAMICS
- 5.1 Market Drivers
- 5.2 Market Restraints/Challenges
- 5.3 Market Opportunities
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5.4 Industry Attractiveness - Porter's Five Forces Analysis
- 5.4.1 Threat of New Entrants
- 5.4.2 Bargaining Power of Buyers/Consumers
- 5.4.3 Bargaining Power of Suppliers
- 5.4.4 Threat of Substitute Products
- 5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
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6.1 By Activity
- 6.1.1 Transportation
- 6.1.1.1 Roadways
- 6.1.1.2 Railways
- 6.1.1.3 Maritime
- 6.1.1.4 Airways
- 6.1.2 Warehousing
- 6.1.3 Other Value-added Services
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6.2 By Country
- 6.2.1 United Arab Emirates
- 6.2.2 Saudi Arabia
- 6.2.3 Rest of GCC
7. COMPETITIVE LANDSCAPE
- 7.1 Overview (Market Concentration and Major Players)
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7.2 Company Profiles
- 7.2.1 Gallega Global Logistics
- 7.2.2 RSA Global
- 7.2.3 Almajdouie Logistics
- 7.2.4 Al-Futtaim Logistics
- 7.2.5 Gulf Agency Company Ltd.
- 7.2.6 CEVA Logistics
- 7.2.7 DHL
- 7.2.8 Kuehne + Nagel International AG
- 7.2.9 Yusen Logistics Co., Ltd.
- 7.2.10 GEFCO*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
- 9.1 Macroeconomic Indicators (GDP Distribution, by Activity)
- 9.2 Economic Statistics - Transport and Storage Sector Contribution to the Economy
- 9.3 External Trade Statistics - Export and Import, by Product
- 9.4 Insight into Key Export Destinations
- 9.5 Insight into Key Import Origin Countries
GCC Finished Vehicle Logistics Industry Segmentation
Finished vehicle logistics refers to the activities involved in the movement of a vehicle from the time it leaves the OEM production line until it reaches the dealer or final customer. Storage, post-production modification, maintenance, repair, port processing, shipyard management, claims management and pre-delivery inspection are additional significant operations in addition to the actual transportation of the vehicle, which can be accomplished by road, rail, sea, or even air.
The GCC Finished Vehicle Logistics Market is Segmented by Activity (Transportation (Roadways, Railways, Maritime, and Airways), Warehousing, and Other Value-added services), and By Country (United Arab Emirates, Saudi Arabia and Rest of GCC). The report offers the market size and forecasts in value (USD billion) for all the above segments.
| By Activity | Transportation | Roadways |
| Railways | ||
| Maritime | ||
| Airways | ||
| By Activity | Warehousing | |
| Other Value-added Services | ||
| By Country | United Arab Emirates | |
| Saudi Arabia | ||
| Rest of GCC |
GCC Finished Vehicle Logistics Market Research FAQs
What is the current GCC Finished Vehicle Logistics Market size?
The GCC Finished Vehicle Logistics Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in GCC Finished Vehicle Logistics Market?
Gallega Global Logistics, RSA Global, Almajdouie Logistics, Al-Futtaim Logistics and Gulf Agency Company Ltd. are the major companies operating in the GCC Finished Vehicle Logistics Market.
What years does this GCC Finished Vehicle Logistics Market cover?
The report covers the GCC Finished Vehicle Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the GCC Finished Vehicle Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Finished Vehicle Logistics Industry Report
Statistics for the 2024 GCC Finished Vehicle Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Finished Vehicle Logistics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
