Middle East Last Mile Delivery

Middle East Last Mile Delivery

Last-mile delivery is the final stage of the delivery process, where goods are transported from a distribution center or hub to the end destination, which is typically a residential or commercial address. It is called the "last mile" because it represents the final and often most challenging leg of the delivery journey. This stage is critical as it directly impacts customer satisfaction and can be the supply chain's most expensive and time-consuming part. Last-mile delivery is essential in e-commerce, where customers expect fast and reliable delivery of their online purchases.

The Middle East Last Mile Delivery Market is expected to grow at a strong CAGR of 10.5% during the forecast period owing to increasing government support. For example, in Saudi Arabia, the government has launched initiatives such as Vision 2030, which aims to diversify the economy and promote the growth of the e-commerce sector. These initiatives include investments in infrastructure development, such as improving road networks and implementing smart city technologies, which are expected to drive the growth of the last-mile delivery market in the region. Additionally, governments across the Middle East are introducing regulations to support the e-commerce sector, which is expected to further boost the demand for last mile delivery services.

• Based on Destination, the Middle East last mile delivery market is segmented into Domestic and International. The domestic segment held the dominant share of the market in 2023. This dominance can be attributed to the growing trend of online shopping within the region, driven by increasing internet penetration and the convenience offered by e-commerce platforms. For example, countries like the UAE and Saudi Arabia have witnessed a significant increase in online shopping activities, leading to higher demand for domestic last-mile delivery services.
• By Service Type, the Middle East last mile delivery market is segmented into Business-To-Business (B2B), Business-To-Consumer (B2C), and Customer-To-Customer (C2C). The Business-To-Consumer (B2C) segment held the dominant market share in 2023. This can be attributed to the rise of e-commerce platforms catering to individual consumers, which has increased the volume of B2C deliveries. Additionally, the convenience of online shopping and the availability of multiple delivery options have contributed to the growth of the B2C last-mile delivery market in the Middle East.
• Based on Delivery Mode, the Middle East last mile delivery market is segmented into Regular Delivery and Same-Day Delivery or Express Delivery. The Regular Delivery segment held the dominant share of the market in 2023. This can be attributed to the fact that regular delivery services are more commonly used and are often more cost-effective for both businesses and consumers. However, with the increasing demand for faster delivery times, the same-day delivery segment is expected to proliferate in the coming years.
• By Application, the Middle East last mile delivery market is segmented into E-Commerce, Retail and FMCG, Healthcare, Mails and Packages, and Others. The E-Commerce segment held the dominant share of the market in 2023. This can be attributed to the rapid growth of the e-commerce sector in the region, driven by factors such as increasing smartphone penetration, rising disposable incomes, and the convenience of online shopping. E-commerce companies are increasingly focusing on improving their last-mile delivery services to meet customer expectations and gain a competitive edge in the market.
• Based on Vehicle Type, the Middle East last-mile delivery market is segmented into Motorcycles, LCVs, HCVs, and Drones. The LCV segment held the dominant share of the market in 2023. This can be attributed to the fact that LCVs are versatile and can transport a wide range of goods, making them well-suited for last-mile delivery operations. LCVs are also more cost-effective and more accessible to maneuver in urban areas than larger vehicles such as HCVs.
• By Mode of Operation, the Middle East last mile delivery market is segmented into Non- Autonomous and Autonomous. The Non- Autonomous segment held the dominant share of the market in 2023. This can be attributed to the fact that non-autonomous delivery vehicles are currently more widely used and accepted in the market. However, with technological advancements and the growing interest in autonomous delivery solutions, the autonomous segment is expected to proliferate in the coming years as companies look for ways to improve delivery efficiency and reduce costs.
• To better understand the market adoption of the last mile delivery industry, the Middle East market is analyzed based on its presence in countries such as UAE, Saudi Arabia, Egypt, Iran, and the Rest of Middle East. Saudi Arabia held a dominant share of the market in 2023. This dominance can be attributed to several factors, including the country's large population, high internet penetration rate, and strong government support for the e-commerce sector. For example, Saudi Arabia's Vision 2030 initiative aims to transform the country's economy and society, focusing on enhancing the e-commerce ecosystem. As a result, Saudi Arabia has seen significant investments in infrastructure development, such as new roads and logistics hubs, which have contributed to the growth of the country's last-mile delivery market. Additionally, the rising demand for online shopping and the increasing number of e-commerce players in Saudi Arabia has further fueled the growth of the country's last-mile delivery industry.
• Some major players operating in the market include Aramex, Fetchr, Talabat, Zajil Express, HungerStation, Marsool, Tawseel, Wadi, Carriage, and Mrsool.