GCC Finished Vehicle Logistics Market Size (2024 - 2029)

The GCC finished vehicle logistics market is experiencing growth driven by increased vehicle registrations, organized transportation, and investments in the automotive sector. Despite disruptions caused by the COVID-19 pandemic, which affected manufacturing and sales, the market is expanding due to the development of intermodal freight transportation and the adoption of blockchain technology, enhancing transparency and efficiency in logistics operations. However, challenges such as vehicle damage during transport, a shortage of truck drivers, and high logistics costs continue to impede market growth.

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Market Size of GCC Finished Vehicle Logistics Industry

GCC Finished Vehicle Logistics Market Summary
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

GCC Finished Vehicle Logistics Market 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 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
Warehousing
Other Value-added Services
By Country
United Arab Emirates
Saudi Arabia
Rest of GCC
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GCC Finished Vehicle Logistics Market Size Summary

The GCC finished vehicle logistics market is poised for significant growth, driven by increasing vehicle registrations and organized transportation activities across the region. The market is experiencing a resurgence following the disruptions caused by the COVID-19 pandemic, which had led to manufacturing shutdowns and restricted movement of goods. The expansion of automobile manufacturing plants and the growth of intermodal freight transportation are key factors propelling the market forward. Additionally, the adoption of blockchain technology is enhancing the efficiency and transparency of logistics operations, further supporting market expansion. However, challenges such as vehicle damage during transportation, a shortage of truck drivers, and high logistics costs continue to pose hurdles to market growth.

The automotive industry in the GCC region is witnessing robust growth, particularly in countries like Saudi Arabia and the UAE, driven by rising automobile sales and population growth. The region's reliance on imports and the strategic initiatives like Saudi Arabia's Vision 2030 are set to transform the GCC into a preferred logistics hub, boosting the finished vehicle logistics market. The establishment of new electric vehicle manufacturing facilities and partnerships among major logistics players are expected to create lucrative opportunities. Companies are increasingly investing in expanding warehouse facilities and adopting new technologies to enhance service offerings. Collaborative efforts, such as joint ventures and memorandums of understanding, are further strengthening the automotive logistics supply chain in the region.

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GCC Finished Vehicle Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Insights into Logistics Technological Advancements

    3. 1.3 Insights into Inbound, Outbound Services, and Other Services (Vehicle Recall)

    4. 1.4 Insights into Areas such as Reverse Logistics Services, Contract Logistics, and Third Party Logistics Market

    5. 1.5 Value Chain/Supply Chain Analysis

    6. 1.6 Government Regulations and Initiatives

    7. 1.7 Trends in Intermodal Transportation in GCC

    8. 1.8 Impact of the COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Activity

      1. 2.1.1 Transportation

        1. 2.1.1.1 Roadways

        2. 2.1.1.2 Railways

        3. 2.1.1.3 Maritime

        4. 2.1.1.4 Airways

      2. 2.1.2 Warehousing

      3. 2.1.3 Other Value-added Services

    2. 2.2 By Country

      1. 2.2.1 United Arab Emirates

      2. 2.2.2 Saudi Arabia

      3. 2.2.3 Rest of GCC

GCC Finished Vehicle Logistics Market Size FAQs

The GCC Finished Vehicle Logistics Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

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.

GCC Finished Vehicle Logistics Report Snapshots

GCC Finished Vehicle Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)