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Kuwait Warehousing Market Space to increase at a CAGR of 10.7% from 2021-2026F and is expected to reach at ~7 Mn sqm in 2026F: Ken Research

03-21-2023 07:36 AM CET | Logistics & Transport

Press release from: Ken Research Pvt .Ltd

Kuwait Warehousing Market Space to increase at a CAGR of 10.7%

1. The Kuwait warehousing industry is in the growing stage and is undergoing radical changes as warehouses are becoming increasingly sophisticated

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The warehousing segment in Kuwait is becoming increasingly sophisticated & advanced with time & is expected to witness innovation in upcoming years. Kuwait is majorly focusing on improving its trade relations which led to the growth in import and export in terms of value and volume. Companies manufacturing or importing products in Kuwait usually outsource all or part of their supply chain to logistics specialists when it's not a core. Along with warehousing services (picking up, packing and labeling), logistics suppliers have extended their traditional core into extra value-added services, such as postponed manufacturing (light assembly, kitting, manufacturing and quality control), and even payment and customer management. Moreover, government initiatives are also expected to boost the overall market growth. Kuwait government's plans to invest across strategic sectors under Kuwait Development Plan (KDP) 2015-2020 has positively impacted the market.

2. Advanced sortation systems, Drones, IoT and Automated guided vehicles are some of the emerging technologies in the Kuwait warehousing ecosystem

Kuwait Warehousing Market is expected to witness innovation in terms of technology in upcoming years. Advanced sortation systems, Drones, IoT and Automated guided vehicles are some of the emerging technologies in the market. Automated guided vehicles or AGV's can be used to transport raw materials, work-in-progress, and finished goods around the warehouse whereas technologies such as the IoT can help warehouses to reduce risk and avoid mistakes or accidents that can create losses in the supply chain by early detection. It is also expected that in future many warehouses will be able to use drones to track their inventory. This will give warehouses of all sizes the ability to conduct comprehensive inventory counts and audits at the drop of a hat. Safety concern is holding back drones from becoming part of the warehouses.

3. The growth of local companies within the logistics sector points to widening industry potential in the country with total warehousing space growing @10.7% CAGR (2021-2026F)

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Kuwait is developing its transportation infrastructure across ports, airport and rail with a view to position the country as a hub for regional trade. This, combined with Kuwait's reliance on imports, logistics and warehousing presents considerable opportunities for international players. Technological Advancements are expected to improve and enhance supply chain transparency and security leading to improved cost efficiency while SMEs are expected to increase in the FMCG, Pharma & manufacturing sector which will induce freight handling of these goods. Moreover, expansion of logistics infrastructure such as intermodal connectivity, logistics parks and ports to create business opportunities.

For more insights on the market intelligence, refer to below link:-
https://www.kenresearch.com/automotive-transportation-and-warehousing/logistics-and-shipping/kuwait-warehousing-market-outlook-to-2026/574443-100.html

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Ken Research is a Market Research and Consulting Firm, based out of India, Indonesia and UAE. Since 2011, we have been assisting clients globally with our Syndicate and Bespoke Market Research and Advisory Services.

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