Middle East and African Freight Logistics Market on Steady Growth Path, Set to Reach USD 235.84 Billion by 2034

Middle East and African Freight Logistics Market driven by e-commerce growth, infrastructure investments, trade route expansion

VANCOUVER, BRITISH COLUMBIA, CANADA, August 28, 2025 /EINPresswire.com/ -- The Middle East and African Freight Logistics Market is witnessing strong momentum, fueled by e-commerce growth, infrastructure investments, and expanding trade routes. The market size is expected to reach USD 162.25 billion in 2024 and grow to USD 235.84 billion by 2034, recording a steady CAGR of 6.36%.

Market Drivers

The region’s logistics growth is largely driven by the boom in e-commerce, which has been expanding at an annual rate of nearly 15%. Online shopping and rising consumer expectations for faster deliveries are pushing logistics providers to strengthen networks and digital solutions.

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Another major growth factor is government investment in infrastructure. The UAE, for example, has allocated over USD 30 billion towards expanding ports, airports, and logistics hubs as part of Vision 2021. Similarly, Nigeria is improving road and rail networks to support its growing trade and economy.

The expansion of global trade routes, such as China’s Belt and Road Initiative, is further enhancing regional connectivity, reducing costs, and creating opportunities for freight operators.

On the technology front, the adoption of digital freight platforms, IoT, and AI is transforming the industry. These innovations are improving visibility, cutting costs by up to 20%, and reducing delivery times by 30%. Sustainability is also gaining traction, with logistics companies investing in green technologies to lower their carbon footprint.

Market Challenges

Despite strong prospects, the market faces obstacles. Geopolitical instability in certain parts of the Gulf and North Africa can disrupt supply chains and increase costs. Rising fuel prices, regulatory hurdles, and uneven infrastructure development across countries also remain challenges. For instance, while the UAE has world-class facilities, several African nations lag in logistics readiness.

Market Segmentation

The Middle East and African Freight Logistics Market is diverse, with significant growth across different segments:

By Product Type:

Road Freight remains the largest segment, valued at USD 60 billion in 2024, expected to reach USD 85 billion by 2034.

Sea Freight is the fastest-growing, with a CAGR of 8.2%, boosted by expanding ports in the UAE and Nigeria, and growing oil exports.

By Application:

E-commerce leads as the largest and fastest-growing segment, forecasted to grow from USD 45 billion in 2024 to USD 80 billion by 2034.

Oil and Gas continues to be a critical driver, growing steadily at a 4.2% CAGR.

By End User:

Retail is the largest end-user, reaching USD 75 billion by 2034.

Energy is the fastest-growing segment with a 7.5% CAGR, supported by rising investments in renewable and traditional energy infrastructure.

By Technology:

Digital Freight Platforms dominate and are expected to expand rapidly from USD 20 billion in 2024 to USD 45 billion by 2034, at an 8.5% CAGR.

IoT solutions are also expanding, enabling cost reductions and efficiency improvements.

By Distribution Channel:

Third-Party Logistics (3PL) is the largest segment, valued at USD 90 billion in 2024 and forecasted to reach USD 130 billion by 2034.

Direct logistics investments are also rising as companies seek more control over supply chains.

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Middle East And African Freight Logistics Competitive Strategies & Notable Developments

Top 10 Companies

Agility Logistics

DP World

Imperial Logistics

Aramex

Bolloré Logistics

CEVA Logistics

DHL Global Forwarding

Kuehne + Nagel

Maersk

MSC Mediterranean Shipping Company

Strategy

Top players in the Middle East and African Freight Logistics Market are competing through strategic partnerships, technology adoption, and vertical integration. Agility Logistics, for instance, has expanded its market presence through strategic acquisitions and investments in digital freight platforms. DP World is leveraging its extensive port network and investing in smart logistics solutions to enhance operational efficiency. Imperial Logistics is focusing on expanding its footprint in key African markets through strategic partnerships and investments in infrastructure.

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Middle East And African Freight Logistics Market Segmentation

By Product Type

Road Freight

Rail Freight

Air Freight

Sea Freight

By Application

E-commerce

Oil and Gas

Agriculture

Manufacturing

By End User

Retail

Energy

Automotive

Healthcare

By Technology

Digital Freight Platforms

IoT Solutions

Blockchain

AI and Machine Learning

By Distribution Channel

Direct

Third-Party Logistics (3PL)

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