Qatar Third Party Logistics (3PL) 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 |
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Qatar Third Party Logistics (3PL) Market Analysis
The Qatar Third-Party Logistics (3PL) market is estimated to register a CAGR of greater than 5% during the forecast period (2023-2028).
- Qatar's economy undoubtedly experienced some challenges throughout 2020 and the first half of 2021, due to the dual shock of the drop in oil prices and the impact of the pandemic, which led to an overall decline in economic output of -3.7%. This also had a similar impact on 3PL sector in the country. However, the rise in the eCommerce sector during the pandemic had a positive impact on the market. The economic recovery is now gaining pace supported by a range of factors, including energy price recovery, which will contribute to 3PL market as well.
- The fact that the country is one of the largest LNG suppliers in the world has supported the growth of the logistics market. Moreover, the country's LNG expansion plans and growth in the eCommerce sector are expected to support the growth of the 3PL market through the forecast period. Qatar tops all GCC countries for domestic logistics and is the 7th most competitive of the world's leading emerging markets, a performance driven by its strong business conditions and digital readiness.
- The country's strategic location, world-class infrastructure, and experienced workforce make it an ideal partner for businesses that need to move goods around the globe. Therefore, many businesses are partnering with transport and logistics companies in Qatar. Qatar's transportation and logistics sector is proliferating, and the government is investing heavily in developing the country's infrastructure. This is making it an increasingly attractive destination for businesses that need to transport goods internationally.
- Qatar has a strategic location that makes it an ideal partner for transport and logistics companies. The country is situated on major shipping routes and is within easy reach of markets in Asia, Africa, and Europe. Qatar also has world-class infrastructure, including an extensive network of highways, railways, and airports.
- Qatar is expected to become a global center for technology, life sciences, health care, logistics, and a hub for temperature and time-sensitive commodities with its well-developed airport infrastructure and services. The Qatari government aims to develop the country into a new logistical and regional center, with the country's peninsular geography allowing its ports to offer significant competitive trade advantages, particularly for oil and gas exports. These plans will fuel the market growth. Despite the many benefits of transport and logistics in Qatar, there are also some challenges that could hamper the market growth. These challenges include the high cost of transport and logistics services and the time-consuming process of customs clearance.
Qatar Third Party Logistics (3PL) Market Trends
This section covers the major market trends shaping the Qatar Third-Party Logistics (3PL) Market according to our research experts:
eCommerce Sector Driving the Market Growth
Qatar's e-commerce market is developing and was expected to exceed QAR 11.7 billion (USD 3.2 billion) by 2022 compared to QAR 4.7 billion (USD 1.3 billion) in 2017. Over 350 e-commerce websites have been registered with the Ministry of Transport & Communication (MOTC) so far. The development of the sector has many reasons. Qatar has one of the world`s highest internet adoption rates and ranks among the top countries in terms of acceptance of information and communication technologies (ICT). The e-commerce penetration rate in the country increased from 15% in 2018 to 37% in 2019. The outbreak of Covid-19 has forced many clients and consumers to opt for e-commerce platforms and banks to launch new products and services to enable businesses to maintain their operations. Many retail outlets, start-ups, scale-ups, and small and medium-sized enterprises (SMEs) have explored social media platforms to advertise their products and services to attract more clients and boost sales.
The Ministry of Communications and Information Technology (MCIT) is helping develop e-commerce in Qatar by establishing regulations and requirements to be trusted and has introduced several initiatives to support ideas of entrepreneurs in the field of e-commerce. MCIT has developed the eCommerce Guidelines to guide and help Qatar's eMerchants understand and achieve eCommerce best practices. Theqa is Qatar's e-commerce trustmark, is an active programme that will certify local online merchants based on a set of identified criteria and monitor its members adherence to the code of conduct. It empowers consumers and companies to quickly and safely grow the local e-commerce market. There are a total of 269 certified eMerchants. In Qatar, there are three types of service providers in the e-commerce system: eCommerce Website Services, Payment Gateways & Payment Solutions, Logistics Providers. The e-commerce market is showing a significant growth rate in the country widening its opportunities in business sectors to expand further. Qatar is claimed to be one of the largest e-marketplaces in the Middle East and North Africa. With the growth of e-commerce in Qatar, the need for additional high-value services is also increasing. Online business owners are increasingly outsourcing professionals in areas as diverse as fulfillment, delivery, web hosting, technical support, website development and design, customer service, and administrative support.
Plans to Raise LNG Output Creating Opportunites in the Market
Qatar has plans to raise the country's LNG production capacity to 126 million tons per annum (mtpa) by 2027, marking a 64% increase from the current 77 mtpa, according to the Minister of State for Energy Affairs and President and CEO of Qatar Petroleum. In July 2022, QatarEnergy signed a deal with Shell for the Gulf state's North Field East expansion, the first phase of the world's largest liquefied natural gas (LNG) project, following agreements with TotalEnergies , Exxon , ConocoPhillips and Eni. Shell will take a 6.25% stake in the North Field East expansion project, TotalEnergies and Exxon will also hold 6.25% stakes. In all, the expansion plan includes six LNG trains that will ramp up Qatar's liquefaction capacity to 126 million tonnes per annum (mtpa) from 77 by 2027. This expansion plan will lead to a major boom in the maritime transport and logistics services industry in the country,
Many developments have already been achieved during the past few years, including the opening of Hamad Port and the start of operating new navigation lines with several countries in the world and the establishment of integrated logistics areas. In November 2022, QatarEnergy and China Petroleum & Chemical Corporation (Sinopec) have entered into a 27-year sale and purchase agreement (SPA) for the supply of 4 million tons per annum (mtpa) of liquefied natural gas (LNG) to China. The contracted LNG volumes will be supplied from QatarEnergy's North Filed East (NFE) LNG expansion project and will be delivered to Sinopec's receiving terminals in China. In August 2022, Malaysian energy logistics group MISC Berhad and its consortium partners - shipping companies Nippon Yusen Kabushiki Kaisha (NYK), Kawasaki Kisen Kaisha (K-Line) and China LNG Shipping (Holdings) Limited (CLNG) - have been awarded long-term time charter contracts by Qatar's state-owned oil and gas company QatarEnergy for seven newbuild liquefied natural gas (LNG) carriers. Such developments show the growth of LNG sector in Qatar is ongoing. This ongoing growth will create opportunities for 3PL service providers in the market.
Qatar Third Party Logistics (3PL) Industry Overview
The market is fairly fragmented with very few local and many international players active in the market. Some of the major players include BDP International Qatar WLL, Aramex, Falcon Express (FedEx), Links Shipping, and Cargo World contributing as key players in the market. Despite the global shipping sector challenges, the country is emerging as one of the bright spots. Transported volumes are increasing and global carriers are adding more services to the region as demand rises. Being at the midway point of China's Belt and Road project, the country is expected to evidence an increased interest in container terminal developments.
Qatar Third Party Logistics (3PL) Market Leaders
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BDP International
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Aramex
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Falcon Express Services Qatar
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Links Shipping
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Cargo World
*Disclaimer: Major Players sorted in no particular order
Qatar Third Party Logistics (3PL) Market News
- June 2022: GWC (Q.P.S.C.), the leading logistics provider in the State of Qatar, has signed an agreement with Ponticelli Frères Group, by which GWC will handle the freight forwarding, customs brokerage, and transport for Ponticelli in the State of Qatar for a period of three years. The agreement is aimed at enhancing the speed of delivery and efficiency of operations for both Ponticelli and its customers in the State of Qatar. Ponticelli Frères is an independent and family-owned group providing industrial services mainly to companies in the oil and gas, energy, chemical, pharmaceutical, and steelworks sectors.
- December 2022: GAC Qatar has opened a new sustainably-built 27,000 m2 multi-user contract logistics facility and office building in Ras Bufontas Free Zone, in partnership with Qatar Free Zones Authority (QFZA), adding to the company's existing infrastructure and boosting customer services and offerings in local and international markets. The new facility features up to 40,000 pallet positions, as well as four temperature and humidity-controlled chambers, to meet the requirements of a wide range of sectors, including food and beverages, fast-moving consumer goods, retail, and telecommunications. It also features 500 m² of dedicated value-added services space and 2,000 m² of mezzanine storage.
Qatar Third Party Logistics (3PL) 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 DYNAMICS AND INSIGHTS
- 4.1 Current Market Scenario
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4.2 Market Dynamics
- 4.2.1 Drivers
- 4.2.2 Restraints
- 4.2.3 Opportunities
- 4.3 Value Chain / Supply Chain Analysis
- 4.4 Government Regulations and Initiatives
- 4.5 General Trends in Warehousing Market
- 4.6 Demand From Other Segments, such as CEP, Last Mile Delivery, Cold Chain Logistics Etc.
- 4.7 Insights on Ecommerce Business
- 4.8 Technological Trends
- 4.9 Industry Attractiveness - Porter's Five Forces Analysis
- 4.10 Impact of Covid-19 on the Market
5. MARKET SEGMENTATION
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5.1 By Services
- 5.1.1 Domestic Transportation Management
- 5.1.2 International Transportation Management
- 5.1.3 Value-added Warehousing and Distribution
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5.2 By End-User
- 5.2.1 Manufacturing & Automotive
- 5.2.2 Oil, Gas & Chemicals
- 5.2.3 Distributive Trade (Wholesale and Retail trade including e-commerce)
- 5.2.4 Pharma & Healthcare
- 5.2.5 Construction
- 5.2.6 Other End Users
6. COMPETITIVE LANDSCAPE
- 6.1 Overview (market concentration and major players)
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6.2 Company Profiles
- 6.2.1 AMCO Logistics Services
- 6.2.2 Aramex
- 6.2.3 BDP International Qatar WLL
- 6.2.4 Cargo World Freight Services
- 6.2.5 CEVA Logistics
- 6.2.6 DHL
- 6.2.7 Doha Express
- 6.2.8 Falcon Express (FedEx)
- 6.2.9 Geodis
- 6.2.10 Kuehne + Nagel
- 6.2.11 Links Shipping
- 6.2.12 Maersk
- 6.2.13 Panalpina
- 6.2.14 GAC
- 6.2.15 GWC*
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
- 8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of Transport and Storage Sector to economy)
- 8.2 External Trade Statistics - Exports and Imports, by Product
- 8.3 Insights into Key Export Destinations and Import Origin Countries
Qatar Third Party Logistics (3PL) Industry Segmentation
Third-party logistics in logistics and supply chain management is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services. The Qatar Third-Party Logistics (3PL) market is segmented by Type (Domestic Transportation Management, International Transportation Management, and Value-added Warehousing and Distribution), and by End-Users (Manufacturing & Automotive, Oil, Gas & Chemicals, Distributive Trade, Pharma & Healthcare, Construction, and Other End-users). The report offers market sizes and forecasts (USD Billion) for all the above segments.
| By Services | Domestic Transportation Management |
| International Transportation Management | |
| Value-added Warehousing and Distribution | |
| By End-User | Manufacturing & Automotive |
| Oil, Gas & Chemicals | |
| Distributive Trade (Wholesale and Retail trade including e-commerce) | |
| Pharma & Healthcare | |
| Construction | |
| Other End Users |
Qatar Third Party Logistics (3PL) Market Research FAQs
What is the current Qatar Third-Party Logistics (3PL) Market size?
The Qatar Third-Party Logistics (3PL) Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Qatar Third-Party Logistics (3PL) Market?
BDP International, Aramex, Falcon Express Services Qatar, Links Shipping and Cargo World are the major companies operating in the Qatar Third-Party Logistics (3PL) Market.
What years does this Qatar Third-Party Logistics (3PL) Market cover?
The report covers the Qatar Third-Party Logistics (3PL) Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Qatar Third-Party Logistics (3PL) Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Qatar 3PL Industry Report
Statistics for the 2024 Qatar 3PL market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Qatar 3PL analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
