KSA LEV Market  _  Infographic-49cfd838

What is the current scenario of LEVS in LMD?

The advent of e-commerce, food and grocery deliveries is leading to a rapid increase in demand for last-mile deliveries. Approximately 30,000 Light Commercial Vehicles are employed throughout the kingdom for last mile delivery fulfilling more than 200 Million orders.

Most e-commerce retailers in KSA struggle with last-mile delivery as delays, reduced success rate & difficulty cash on delivery (COD) handling.

 E-com Retailers need to come up with solutions such as B2B SAAS Platform and Digital Freight Brokers/ Load Discovery Aggregator Platform to solve the last mile delivery problem in an efficient way to meet the growing customer demands.

EVs are slowly gaining traction with less than 0.5% of vehicles deployed as PHEVs in Saudi Arabia. Efforts to create a market for EVs are consistent with the Saudi Vision 2030 plan, which aims to reduce the country’s dependence on oil, diversify the economy, and implement a range of social reforms.

However, several gaps in the EV market such as a limited hybrid car range, high prices, insufficient battery life and an underdeveloped charging ecosystem are yet to be filled.

 Fleet operators need to create and manage vehicle service infrastructure and charging infrastructure on their own due to limited availability of existing set-ups in public domain for adoption of light electric vehicles in last mile delivery space.

Business Side Potential for LEVs in KSA CEP Industry

Domestic express courier dominates the market and is expected to register revenue growth at a CAGR of 4.4% and growth in shipments at a CAGR of 8.6% during the forecasted year 2020-2030. The express companies such as UPS, DHL and Saudi Post use four-wheelers particularly small vans, to deliver parcels/packages in Saudi Arabia. E-commerce delivery vans usually make 45-50 deliveries in a day, with an average trip length of 100 kms in Tier 1 cities and 50 kms in Tier 2/3 cities.

Business Side Potential for LEVs in Grocery Delivery

The industry is at nascent stage registering double digit growth rate between 30-40% in revenue terms. Grocery companies usually partner with third party operators to fulfil customer orders. Riyadh, Medina and Makkah are recognized as regions with maximum demand of online grocery service where LEVs could be initially deployed. Expanding in-house delivery fleet or partnering with fleet management companies on contractual basis will enable the companies to minimize the costs & gain a competitive edge in the industry.

Business Side Potential for LEVs in FOOD DELIVERY

The industry is expected to register a revenue growth of 7.2% CAGR during the forecaster year fulfilling over 200 million orders. The companies operate on pay per delivery model where the freelancers owning a car or a two wheeler are hired and paid on the basis of the number of orders delivered. Partnership with restaurants, malls, real-estate developers and other commercial hubs should be explored for the potential deployment of charging infrastructure for LEVs.

Expected EV Penetration in LMD Market

Given the nature of deliveries around a designated warehouse, last-mile deliveries make an excellent use case for electric mobility, overcoming the range anxiety. However, LEVs do not promise a higher adoption potential in the current scenario attributed to both a high cost disparity and a lack of vehicle. Small format EVs may gain momentum in the near future, given their lower fuel and maintenance costs. They are also less dependent on charging infrastructure, since their power requirements are lower, and they are more likely to come in models that allow battery swapping. Electric Vehicles in Food and Grocery Delivery sectors are expected to penetrate faster due to availability of hybrid models.

Future CATALYSTS IN KSA LEV Market

KSA could witness an LEV penetration between 5-7% by 2025. E-commerce companies and third-party logistics players across the board will eventually commit to including EVs in their fleet as a part of their sustainability initiatives. KSA will eventually build a framework like UAE such as free charging stations, discounted car registrations, toll exemptions, and other perks to incentivize people to give up their traditional cars for EVs. The mass production of batteries and available tax incentives will bring down the cost of EV, thus, making it the preferred choice. However, barriers such as TCO parity, high battery cost & infrastructure challenges such as mass deployment of charging stations in public area may slow down the adoption rate.

Key Segments Covered in LEV Adotpion in Last Mile Delivery Market in KSA

Business Side Potential for LEVs in KSA CEP Industry

CEP Market Size

Total Number of Courier Shipments

KSA E-Commerce Landscape

E-Commerce Market Major Categories

Total Number of E-Commerce Orders

Total Number of Vehicles Deployed

Competition Scenario in KSA CEP Market

Future Projections towards Penetration of LEVs in Courier Segment

Business Side Potential for LEVs in KSA Grocery Delivery Market

KSA Online Grocery Ecosystem

KSA Online Grocery Market Size

KSA Online Grocery Market Concentration

KSA Online Grocery Market Segmentations

Total Number of Orders

Total Number of Vehicles Deployed

Competition Scenario in KSA Grocery Delivery Market

Future Projections Towards Penetration of LEVs in Grocery Delivery Segment

Business Side Potential for LEVs in KSA Food Delivery Market

Landscape of Food Delivery Companies in Saudi Arabia

KSA Online Food Delivery Market Size

Total Number of Orders

Total Number of Vehicles Deployed

Competition Scenario in KSA Food Delivery Market

Future Projections Towards Penetration of LEVs in Food Delivery Segment

Key Target Audience

LEV Manufacturers

LEV Dealers/Distributors

Courier and Parcel Companies

E-Commerce Companies

Grocery Delivery Companies

Food Delivery Companies

Time Period Captured in the Report:

Historical Period: 2015-2020

Forecast Period: 2020–2030

Companies Covered:

EV Manufacturers

Tesla

BMW

Chevrolet

Renault

Hyundai

Nissan

CEP Industry

Saudi Post

Naquel Express

SMSA Express

DHL

Aramex

UPS

FedEx/TNT

Grocery Delivery Companies

Nana Direct

Zadfresh

Danube

Carrefour

Qareeb

Food Delivery Companies

Hungerstation

Careem

Jahez

Talabat

Mrsool

Key Topics Covered in the Report

Overview of Global EV Market

Genesis and Overview of KSA LEV Market

Ecosystem of Major Entities in Saudi Arabia LEV market

Charging Infrastructure for LEV Market in Saudi Arabia

Overview of KSA Last-Mile Delivery Market

Number of Orders/Shipments in KSA Last-Mile Delivery Market

Number of Fleets Deployed for Last Mile Delivery

Business Side Potential for LEVs in KSA CEP Industry including E-commerce Landscape in KSA

Business Side Potential for LEVs in KSA Grocery Delivery Market

Business Side Potential for LEVs in KSA Food Delivery Market

Regulatory Scenario and Framework in Saudi Arabia LEV Market

Opinions of Industry Experts regarding adoption of LEVs

Difference in EV costs compared to ICE vehicles- Cost Benefit Analysis

Viable Supply Chain Model for Adoption and Supplying LEVs in KSA

Current Landscape of LEV Offering in KSA

Major Deals/Transactions for LEVs in KSA

Impact of COVID 19 on EV sales

Future Analysis and Projections for LEVs in Saudi Arabia

Opportunity Analysis of an LEV in Last Mile Delivery

Case Studies for LEV Last-Mile Delivery

Recommendations / Success Factors

Research Methodology

Appendix

For more information on the research report, refer to below link:

Future Potential Market of LEVs in Last Mile Delivery Industry in KSA

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