GCC Automotive Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.38 Billion |
| Market Size (2029) | USD 7.95 Billion |
| CAGR (2024 - 2029) | 4.51 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
GCC Automotive Logistics Market Analysis
The GCC Automotive Logistics Market size is estimated at USD 6.38 billion in 2024, and is expected to reach USD 7.95 billion by 2029, growing at a CAGR of 4.51% during the forecast period (2024-2029).
- The Middle East is one of the most important markets for automotive manufacturers. Right from entry-level carmakers that focus on mass-market products to companies with a premium product lineup, every brand wants to gain and increase its market share in this region. Saudi Arabia remains a very important market for US automakers.
- GCC countries like Saudi Arabia and the United Arab Emirates are expanding their import and premium vehicle markets. They also witness rising aftermarket and second-hand vehicle volumes. Thus, logistics will be the key to unlocking the automotive industry's potential further in the region.
- Manufacturers and distributors depend on seamless flows to satisfy customer expectations and just-in-time supply chains and access the technologies that drive change across the global automotive industry, including electrification, autonomy, and connectivity.
- In the Gulf region, especially in Israel, Jordan, Oman, Saudi Arabia, and the United Arab Emirates, electric and hybrid means of transportation have gained popularity. The UAE government is taking steps to lessen road travel's impact on the environment, making the nation a prime site for promoting green mobility solutions (objectives include having 10% of Dubai's vehicles be electric by 2030).
GCC Automotive Logistics Market Trends
Electric and Hybrid Vehicle Adoption Accelerates in the Gulf, Led by UAE and Saudi Arabia
- Electric and hybrid modes of transport are gaining momentum in the Gulf region, particularly in Israel, Jordan, Oman, Saudi Arabia, and the United Arab Emirates. The UAE government has already started making efforts to reduce the contribution of road transport to its footprint so that it makes the country an ideal location to push the adoption rate of green mobility solutions (the objective is to reach 10% of EVs by 2030 in Dubai).
- The Middle East is known for its oil and gas, but the adoption of electric cars is expected to gain momentum through the forecast period. Low fuel prices and the passion for speed and luxurious automobiles in the region have meant that drivers have been relatively slow to shift to electric vehicles, especially compared to their counterparts in markets like China. However, the adoption of electric cars is set to enter the fast lane in the Gulf, especially in tech-savvy urban hubs like Dubai.
- As EVs are in the nascent stage, Saudi Arabia still needs to set out incentives for the deployment of EVs, such as free charging stations, Greenbank loans, etc. EV incentives are yet to be developed, especially when EV deployment starts on a commercial scale. However, the country has taken a few initiatives that are likely to boost the demand for EVs. For instance, Saudi Electricity Company has signed a deal with Nissan Motor, Takaoka Tokyo, and Tokyo Electric Power Company for the first EV pilot project in Saudi Arabia. Reportedly, the agreement provides for the development of fast-charger EV stations.
- Saudi Arabia signed an MoU with the United Kingdom in a move to reduce carbon emissions and support Saudi Vision 2030. The MoU commits both countries to cooperate and share expertise to develop technologies, including smart grids and EVs.
- The United Arab Emirates is another most developed market for EVs, not only in terms of sales but also in terms of charging infrastructure, with Dubai having 200 charging stations and Abu Dhabi around 20. The UAE government is targeting 42,000 electric cars on the roads in a few years.
Saudi Arabia's Automotive Manufacturing Sector Steers Economic Diversification
- Saudi Arabia actively seeks to reduce its reliance on oil exports, with a particular emphasis on bolstering its manufacturing sector. At the heart of this endeavor is the nation's thriving automotive industry, which aligns with its ambitious target of having 3-4 OEMs producing over 400,000 passenger vehicles within the country by 2030.
- In 2023, the automotive manufacturing sector took center stage as a pivotal driver in Saudi Arabia's strategic shift from importing finished products to domestic assembly and production of vehicle parts. This move aims to spur economic growth, generate revenue, and boost employment opportunities.
- As part of its "Made in Saudi" initiative under Vision 2030, Saudi Arabia is poised to manufacture over 7,600 locally-made products and expand its trade ties with 180 countries, particularly in the automotive sector. These developments underscore the nation's steadfast progress toward its outlined goals.
- Under the National Industrial Development and Logistics Program, Saudi Arabia is rapidly expanding its industries, striving to become a prominent global industrial and logistics hub. Driving this transformation are 160 vehicle manufacturers, many of whom are at the forefront of innovation, particularly in the realm of electric vehicles (EVs), a key focus in Saudi Arabia's localization efforts.
GCC Automotive Logistics Industry Overview
The GCC automotive logistics market is fragmented. The market is expected to grow during the forecast period due to the growing demand for electric vehicles and other similar factors. International players are dominant in the market, with companies like Ceva Logistics, DB Schenker, DHL, DSV, and Geodis holding the topmost positions.
The UAE rules on vehicle imports, low gasoline prices, low import taxes, high per capita disposable income, and a favorable tax structure are drawing automotive companies to Dubai and the United Arab Emirates. These elements contribute to the nation's reputation as one of the Gulf region's largest passenger vehicle markets.
GCC Automotive Logistics Market Leaders
Ceva Logistics
DB Schenker
DHL
DSV
Geodis
*Disclaimer: Major Players sorted in no particular order
GCC Automotive Logistics Market News
- January 2024: DHL Global, the freight division of DHL Group, finalized the acquisition of AEI Emirates from Danzas, and all facilities are now DHL branded. Full integration with DHL Global Forwarding has resulted in changes to the logo and name of DHL, as well as increasing operational capacity by transferring 1,100 employees and taking ownership of more than 20 facilities.
- October 2023: AD Ports Group's Logistics Cluster operations leader, Noatum, successfully finalized the acquisition of Grupo Sesé's Finished Vehicles Logistics (FVL) business. This strategic move aims to enhance Noatum's network and capabilities in the finished vehicles sector across Europe.
GCC Automotive Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Automobile in the GCC Region
4.2.2 Growing Population
4.3 Market Restraints
4.3.1 Lack of Standardized Regulations
4.3.2 Varying Infrastructure Levels
4.4 Market Opportunities
4.4.1 Advancement in Technology
4.4.2 Growth of Automotive Manufacturing Plants
4.5 Value Chain/Supply Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
4.7 Spotlight on the Effect of E-commerce on Traditional Automotive Logistics Supply Chain
4.8 Insights on Automotive Aftermarket and its Logistics Activities
4.9 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Transportation
5.1.2 Warehousing, Distribution, and Inventory Management
5.1.3 Other Services
5.2 By Type
5.2.1 Finished Vehicle
5.2.2 Auto Components
5.2.3 Other Types
5.3 By Country
5.3.1 Saudi Arabia
5.3.2 United Arab Emirates
5.3.3 Qatar
5.3.4 Kuwait
5.3.5 Oman
6. COMPETITIVE LANDSCAPE
6.1 Overview
6.2 Company Profiles
6.2.1 CEVA Logistics AG
6.2.2 DB Schenker
6.2.3 DHL
6.2.4 DSV
6.2.5 GEODIS
6.2.6 KUEHNE + NAGEL International AG
6.2.7 Nippon Express Co. Ltd
6.2.8 Ryder System Inc.
6.2.9 United Parcel Service Inc.
6.2.10 Yusen Logistics*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. APPENDIX
8.1 GDP Distribution, by Activity
8.2 Insights on Capital Flows
8.3 Economic Statistics-Transport and Storage Sector and Contribution to Economy
GCC Automotive Logistics Industry Segmentation
Automotive logistics refers to the efficient coordination and transportation of resources, including equipment, inventory, and materials, linked to both finished vehicles and automotive parts. This process ensures their smooth movement from their origin to the intended destination.
The GCC automotive logistics market is segmented by service (transportation, warehousing, distribution, & inventory management, and other services), type (finished vehicles, auto components, and other types), and country (United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman).
The report offers the market size and forecast values in USD for the above segments.
| By Service | |
| Transportation | |
| Warehousing, Distribution, and Inventory Management | |
| Other Services |
| By Type | |
| Finished Vehicle | |
| Auto Components | |
| Other Types |
| By Country | |
| Saudi Arabia | |
| United Arab Emirates | |
| Qatar | |
| Kuwait | |
| Oman |
GCC Automotive Logistics Market Research FAQs
How big is the GCC Automotive Logistics Market?
The GCC Automotive Logistics Market size is expected to reach USD 6.38 billion in 2024 and grow at a CAGR of 4.51% to reach USD 7.95 billion by 2029.
What is the current GCC Automotive Logistics Market size?
In 2024, the GCC Automotive Logistics Market size is expected to reach USD 6.38 billion.
Who are the key players in GCC Automotive Logistics Market?
Ceva Logistics, DB Schenker, DHL, DSV and Geodis are the major companies operating in the GCC Automotive Logistics Market.
What years does this GCC Automotive Logistics Market cover, and what was the market size in 2023?
In 2023, the GCC Automotive Logistics Market size was estimated at USD 6.09 billion. The report covers the GCC Automotive Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the GCC Automotive Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Automotive Logistics Industry Report
Statistics for the 2024 Automotive Logistics in GCC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive Logistics in GCC analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
