Retail Delivery - United Arab Emirates

United Arab Emirates

Highlights

The Reail Delivery market in the United Arab Emirates is expected to reach a revenue of US$32.58m in 2024.
It is projected to experience an annual growth rate (CAGR 2024-2029) of 5.83%, resulting in a market volume of US$43.25m by 2029.
By 2029, the number of users in the Reail Delivery market is expected to reach 3.0m users.
The user penetration rate is predicted to be 24.2% in 2024 and is projected to increase to 29.7% by 2029.
The average revenue per user (ARPU) is estimated to be US$14.04.
In comparison to other countries, United States is expected to generate the highest revenue in the Reail Delivery market, with US$195.40bn in 2024.
The United States, on the other hand, is projected to have the highest user penetration rate of 30.4% in the Reail Delivery market.
The United Arab Emirates is witnessing a surge in online grocery delivery services due to the increasing demand for convenience and safety.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Retail Delivery market in United Arab Emirates has been developing rapidly in recent years.

Customer preferences: Customers in the UAE have been increasingly demanding faster and more convenient delivery options. With the rise of e-commerce and online shopping, consumers expect their purchases to be delivered quickly and efficiently. Additionally, there is a growing interest in sustainable and eco-friendly delivery options, such as electric vehicles and bike couriers.

Trends in the market: One of the main trends in the UAE Retail Delivery market is the growing popularity of same-day and next-day delivery options. Companies are investing in logistics and technology to ensure that they can deliver products to customers as quickly as possible. Another trend is the rise of mobile apps and online platforms that allow customers to track their deliveries in real-time and communicate with the delivery driver.

Local special circumstances: The UAE has a unique geography and infrastructure that has influenced the development of the Retail Delivery market. With a large expat population and a high demand for luxury goods, there is a need for specialized delivery services that can handle international shipments and high-value items. Additionally, the extreme heat in the summer months can pose a challenge for delivery companies, who must ensure that perishable items are kept at the correct temperature.

Underlying macroeconomic factors: The UAE has a strong economy and a high level of consumer spending, which has contributed to the growth of the Retail Delivery market. Additionally, the government has been investing in infrastructure and technology to support the growth of e-commerce and online retail. The UAE is also strategically located between Europe and Asia, making it an attractive destination for international companies looking to expand their operations in the region.

Data coverage:

The data encompasses B2C enterprises. Figures are based on Gross Merchandise Value (GMV) and represent what consumers pay for these products and services. The user metrics show the number of customers who have made at least one online purchase within the past 12 months.

Modeling approach / Market size:

Market sizes are determined through a bottom-up approach, building on predefined factors for each market. As a basis for evaluating markets, we use annual financial reports of the market-leading companies, third-party studies and reports, as well as survey results from our primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, GDP per capita, and internet connection speed. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing. The main drivers are internet users, urban population, usage of key players, and attitudes toward online services.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. GCS data is reweighted for representativeness.