Market Size of Armenia Freight and Logistics Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.20 Billion |
| Market Size (2029) | USD 1.57 Billion |
| CAGR (2024 - 2029) | 5.43 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Armenia Freight and Logistics Market Analysis
The Armenia Freight and Logistics Market size is estimated at USD 1.20 billion in 2024, and is expected to reach USD 1.57 billion by 2029, growing at a CAGR of 5.43% during the forecast period (2024-2029).
Armenia experienced GDP growth of 11 percent during the first half of 2022 compared to the same period in 2021. This strong growth performance was driven mainly by growth in services, particularly tourism, finance, and IT.
- High demand and high international food and fuel commodity prices pushed Inflation to 10.3 percent in June 2022, with food and fuel price increases accounting for two-thirds of total Inflation.
- According to the Armenian Statistical Committee, the poverty rate in 2020 was 27%. Experts predict the figure will rise to 43 percent due to the combined effects of low agricultural output in Armenia in 2022, lower-than-expected remittances from Russia, and issues the government will have in reducing the impact of Inflation on disadvantaged Armenians.
- Demand is also increasing among small and medium-sized firms (SMEs), who utilize such instruments to conduct transactions with new counterparts, receive better trade terms, and obtain financing under more favorable terms. Armenian banks assist SMEs by providing services tailored to their specific requirements. COVID-19 imposed global limitations and increased worries about the timely supply of goods and services. Government-imposed lockdowns resulted in massive business losses and interrupted operations and supply lines. However, Armenia witnessed the implementation of various government programs to assist businesses in dealing with the impact of the lockdowns and delays.
- Cross-border payments have become well-integrated into corporate operations as international e-commerce grows exponentially. Digitalization and innovation have emerged as critical components for enhancing the consumer experience. The key focus on improvement is to provide smooth, quick, and cheaper cross-border payments for the banks to remain competitive among peers and keep pace with technological progress in the global marketplace.
