Qatar Warehousing and Logistics Industry Market Analysis – Ken Research
How Logistics &
Warehousing Market Is Positioned in
Qatar?
The resurgence of the global economy from the meltdown in
2009 continued to emerge through 2011 and 2012, albeit at a sluggish pace.
Logistics providers with strong infrastructure, efficient organization and
processes benefited from the improving business climate and were resilient in
challenging times. It was observed that the opportunities were arising in
different regions and products owing to the improvements in the business
climates; there was still a large pressure on the profit margins of even the
largest players in the market. This was due to the fierce competition with
large number of players trying to advantage from the growing opportunities.
The growth in contract and express logistics lead the
industry during 2015-2016. The market for logistics and warehousing increased
to USD ~ billion by 2016. The period 2015-2016 has been the period of
adjustments with fluctuating oil prices and reduced investments. Even though,
there has been a fall in oil and gas projects for the logistics providers, the
warehousing segment has been on rise with improved warehousing solutions
provided by major players such as Bu Sulba Warehousing Park and LVQ. It has
also been observed that there has been a concentration in the competitive
structure of the market with increase in strategic partnerships such as the one
between GWC and UPS in 2015.
How Freight
forwarding Market of Qatar is Performing?
Freight Forwarding has been the leading segment of the
overall logistics and warehousing market over the past few years. During the
period 2011-2013, the freight forwarding segment has increased due to the
expanding oil and gas projects along with burgeoning infrastructural
developments in the country leading to further development in the market. Retail and FMCG industry in the country has
also played an important role in the growth of logistics market in Qatar. These
industries demand freight forwarding services for transporting the goods from
manufacturing point to the selling point. The years 2015 and 2016 showcased low
growth pace as compared to other years due to a fall in oil and gas projects
even when the country remained the largest supplier of natural gas. Major
projects were signed with major players such as GWC and GAC as long term
contracts, especially in the oil and gas segment of the industry.
Sea freight movement has majorly dominated the market for
Logistics in Qatar. High amount of imports and exports in the country has
attributed to the increase in the percentage share of sea freight. The rising
import and export value from other countries has triggered the demand of sea
freight in Qatar.
In terms of domestic and international freight forwarding
segmentation, international freight forwarding has largely contributed in the
revenues of the industry.
What is the Role of
Warehousing Market in Qatar Logistics & Warehousing Market?
The warehousing in Qatar has been an important revenue source
apart from the freight forwarding segment. The country has witnessed the prices
rise of around ~% in warehousing rental annually. The warehousing industry in
the country has hence observed a growth in terms of revenues as well as the
volume handled by the warehouses in past few years.
Major players in the country have been observed to increase
their warehousing capabilities such as GWC has recently completed their fifth
phase of expansion of LVQ. The expansion of manufacturing and industrial
activities in the country has also aided the market growth during the recent
period. The improvement in infrastructure and expansion of construction sector
has also increased the requirement of warehousing facilities in the country.
What is the Role of
Express Delivery market in Qatar logistics & warehousing industry?
Due to the high cost of express delivery as compared to the
normal delivery, the share of express delivery remained low in early stages
during 2011-2013. Moreover, the initial express delivery started using the road
transport which faced major challenges owing to the border issues. The express
industry market has evolved from the delivery of documents and parcels to
specialist items such as high-tech products, semiconductors, fabrics and
garments as well. The services provided by the companies such as guaranteed
delivery services, door to door delivery, order tracking and others have
strengthened the growth of the express logistics market in the country During
2014-2016, the E-commerce market has grown at a tremendous pace in the country
and Qatar been the highest e commerce spending country in per capita terms.
This has resulted in the increase in the demand of express logistics in the
country. The rising number of E-commerce companies has positively impacted the
growth of the express logistics services.
How is the Third
party Logistics Market Evolving in Qatar?
Contract logistics in the country has been growing at a
tremendous rate in Qatar with contracts being awarded out for freight
forwarding and warehousing. During the period from 2011-2013, many major
players entered into the space while major growth was brought in by the leading
established logistics player which expanded their shares in the market. For an
instance during 2011, GWC added a new facility named 33k into contract
warehousing which has been the largest third party warehousing facility in
Qatar with a ~ square metres.
The third party logistics in the country has grown from a ~%
of the market in 2011 to around ~% of the logistics market on the basis of
revenues in 2016. The growth has been due to rapidly growing e commerce
industry in the country. The ecommerce companies generally prefer to partner
with a logistics provider and focus more on their functional area of expertise.
Moreover the growth in the third party logistics has also spurred due to the
increasing number of contracts offered since more and more corporations have
not been able to manage their complex supply chains and hence outsource the
contracts to their logistics partners.
Key Factors
Considered in the Report
Comprehensive analysis of Qatar Logistics & Warehousing
Market and its segments
Value chain analysis
of Qatar Logistics & Warehousing Market
Listed major players and their positioning in the market
Identified major industry developments in last few years and
assessed the future growth of the industry
For more coverage
click on the link below:
Related Reports:
Contact Us:
Ken Research
Ankur Gupta, Head Marketing & Communications
+91-9015378249
Post Your Ad Here
Comments