Market Trends of Middle East and Africa Conveyors Industry
This section covers the major market trends shaping the MEA Conveyors Market according to our research experts:
Airports is Expected to Hold Significant Share
- The Middle East is poised to be the fastest-growing region in the airline industry over the forecast period, with the highest growth, in terms of new airline capacity and revenue passenger kilometer (RPK). For instance, King Abdulaziz International Airport, known for its Hajj Terminal, is the busiest airport in Saudi Arabia. It is currently undergoing expansion, which is expected to increase the airport's capacity from 13 million passengers per year to 80 million passengers every year. The project is expected to be completed by 2035.
- Moreover, in the Middle Eastern region, the vast number of airport capital expansion programs are led by the rising demand, primarily due to the growth of domiciled carriers and geographic proximity to major source markets, such as the intercontinental traffic flows and the Indian subcontinent. In December 2019, Saudi Arabia's General Authority of Civil Aviation (GACA) started the new Arar airport's trial operation phase. Once operational, the new Arar airport will have the capacity for 1.04 million annual passengers and more than 10,000 flights per year. The main terminal at the new Arar Airport also has an advanced luggage handling system with two conveyor belts.
- South Africa is a significant tourist attraction in Africa, is investing heavily in airports, and is the single largest and fastest-growing segment in the MEA. Three South African Airports, Cape Town, Durban, and Johannesburg's international airports were considered the best globally and were awarded in the 2019 Skytrax World Airport Awards. Israel has a low air passenger ratio, globally. To boost winter tourism and provide an alternative for conflict times, Israel opened a new airport in January 2019. This airport is expected to handle 4.25 million annual passengers. These factors are expected to propel the growth of the market studied.
- The region is home to some of the world's most advanced airports, including Dubai International, King Abdulaziz International, and many others under construction. However, these facilities are empty due to the COVID-19 pandemic. However, once travel resumes, these airports will play a critical role in restarting economic activity, particularly for tourism and travel in the Middle East. In June 2020, Oman Airports has announced a bevy of safety measures to be followed when operations resume, such as sterilizing devices for luggage trolleys and continuous sterilization of airport facilities and all luggage on conveyor belts.
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United Arab Emirates is Expected to Hold Significant Share
- The United Arab Emirates (UAE) is one of the world's major tourist destinations and attracts many foreign tourists. This increase in the country's average air traffic is propelling the demand for baggage handling systems in the airport end-user segment. Although the slowdown of the global oil market and restrictions on productions are likely to reduce the aviation sector's investments, considerable recovery is expected in the coming years. The UAE's status as an attractive destination in the region, where start-ups in the UAE remain the most active in attracting funding, with steady investor appetite in UAE-headquartered companies by both local and global majors is expected to impact the market in the country positively.
- Logistics infrastructure readiness is essential to support the growth of eCommerce, and in this regard, the UAE is at par with specifically developed markets globally. The country enjoys an advantage as a significant global transshipment hub with Dubai's airports and the port of Jebel Ali, providing a high standard of logistics infrastructure. In June 2020, UAE-based merchant acquirer Network International confirmed that nearly 2,000 businesses in the UAE are either looking to develop e-commerce capabilities. After the ongoing COVID-19 pandemic, firms in the country are expected to adapt to the rising e-commerce needs of consumers placing online orders. Such instances are expected to augment the conveyors market.
- In December 2019, DHL Express officially opened its Dubai World Central Facility. The new export and import gateway and service center will see DHL invest USD 5.5 million in the coming years to support the significant growth of e-commerce in the UAE and the region. Strategically located at the Logistics District at Dubai World Central (DWC), the center occupies 4,870 sqm area and can manage 2,400 shipments per hour and up to 57,600 shipments a day. The facility will have an automated bi-directional conveyor system, which will enable faster and more efficient sorting of packages.
- In April 2020, SAFEEN, Abu Dhabi Ports' maritime service arm, announced an acquisition of a Post Panamax bulk carrier, making it one of the largest vessels ever in its inventory. It will initially undergo an extensive conversion before commencing operations. The refitting will include cranes and conveyor systems, which, when combined with other design parameters, will render the vessel a potent and efficient transshipment platform, enabling SAFEEN to provide concrete bulk cargo transshipment services. Commencing from January 2021, the vessel will assist in transporting bulk iron ore bound for Emirates Steel from incoming bulk carriers more efficiently.
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