Nigeria Logistics Industry | Nigeria warehousing Market: Ken Research

Nigeria Courier, Express and Parcel Logistics Market

The overall revenue generated by the CEP Logistics market has increased from USD ~ Million in 2013 to USD ~ Million in 2018 at a positive CAGR of ~%during the period.

By B2B, B2C, and C2C: The growth of e-commerce business has led to a convergence of B2B and B2C traffic, with parcel logistics providers increasingly embracing both to serve clients’ Omnichannel supply chains. B2C is the segment that is contributing the most revenue in Nigeria. The B2B and C2C are contributing ~% and ~% revenue in the Nigeria CEP Market.

By International/Air and Domestic/Ground Express: The Revenue of International shipments increased from USD ~ Million to USD ~ Million in the period 2013-2018. The international shipments are done majorly by air which is expensive than the nominal charges of road express delivery. Hence, the revenue of international shipments dominates the market.

By Delivery Period:

It is contributing ~% in the courier, express and parcel market. It has a smaller share in the market but is expanding by the International companies and local players even to the International locations from Nigeria. Next day delivery, Two days and Three days delivery and more hold a greater share in the market.

nigeria-logistics-and-warehousing-market

By Intercity and Intracity:

Almost ~% of the revenue is coming from intercity shipments from cities such as Lagos as it is the commercial hub of the country and ~% of the revenue is coming from Intracity shipments. Intercity shipments are more than Intracity Shipments.

By Region:

Lagos State is holding a dominating share in the market due to the presence of major companies and Nipost followed by Abuja and Kano due to populated areas. Others include Nassaraw, Port Harcourt, Enugu, Calabar and more.

Snapshot on Nigeria Road Trucking Aggregators

There are few trucking aggregators that have emerged due to the problem of empty trucks traveling on the road leading to high logistics costs in the country. Various platforms such as Kobo360 and Lori systems have recently moved into the country where the company connects truckers and companies for delivery services through an application.

This is solving problems by providing reverse logistics in the country and also providing additional facilities such as financial aid, HMO facilities, and insurance. Big companies are partnering with aggregator platforms to reduce their logistics cost and also help self-employed truckers to earn better income by more number of trips.

Nigeria Third Party Logistics Market

The overall Nigeria 3PL market has grown from USD ~ Million in 2013 to USD ~ Million in 2018 at a positive CAGR of ~%. The companies do not generally invest in fleets and outsource the services to local players for their technology updated vehicles and assets.

By Market Type: The freight forwarding segment within Nigeria 3PL market dominated with a massive revenue share of ~% in the year 2018. The logistics companies especially the international companies instead of purchasing their own fleet for transportation of goods, outsource the contract to 3PL logistics companies.

Nigeria 3PL Market Competitive Scenario and Market Share of Major Players:

The Nigeria Logistics market is dominated by 3PL firms since the infrastructural challenges and low level of technological advancements discouraged core logistics firms to invest heavily in their own assets. The 3PL services are provided by international players such as DHL, UPS and domestic players such as MDS, GMC, GMT, Flux Logistics, Tranex and many more.

Snapshot on Nigeria E-Commerce Logistics Market

The overall e-commerce logistics revenue has increased from USD ~ million in 2013 to USD ~ million in 2018 with a CAGR of ~% which has further provided an impetus to the growth of logistics the market in the country.

The e-commerce sector is facing problems due to the pay on delivery option as the customers cancel the orders at the time of delivery causing loss to the e-commerce players. Poor customer service and questionable return policies have seen the trust deficit largely worsen among Nigerian customers. Major E-Commerce players in Nigeria are Jumia Nigeria, Konga, Payporte, OLX (used cars), Jiji Nigeria, and Mall for Africa, WaWooh and many more.

Competitive Landscape of the Market

The competition within Nigeria Logistics and Warehousing Market is highly fragmented in nature with the presence of national and international players such as DHL, FedEx-Redstar, UPS, GMT Logistics, MDS logistics, GIG, ABC transport, Bollore, Maersk Line, TSL and many more. The competition in the freight forwarding companies is more than warehousing due to the presence of multiple players with diversified solutions at competitive prices.

The logistic cost in the market is high leading to contraction of the manufacturing sector in the GDP. The warehouses that are near to Lagos are generally charged higher than other places due to its strategic location, trade centralization, and the presence of Industrial parks.

Nigeria Logistics and Warehousing Market Future Outlook and Projections

The overall Logistics Market in Nigeria is expected to increase from USD ~ Million in 2018 to USD ~ Million in 2023 at a positive CAGR of ~% during the period.

The key growth drivers for the market include the rising demand for products through online purchases which has augmented the E-commerce market. The increasing international trade volumes and domestic manufacturing are expected to increase the demand for freight forwarding services.

The key growth drivers of the warehousing sector will be the increasing investment in the industrial parks in export promoting zones with the PPP framework. The growing middle-class population and increasing retail stores and supermarkets will increase the demand for warehousing in the future. The logistics companies are expected to invest in advanced technologies solutions such as autonomous logistics, real-time tracking, and automation in order to provide improved customer service.

Key Segments Covered:-

Freight Forwarding Market

By Mode of Freight

Road Freight

Rail Freight (Volume and Revenue)

Air Freight (Airfreight in Nigeria (Volume- Imports and Exports of Cargo and Mail by Airports)

Sea Freight (Volume By Import –Export And Cargo Type, Logistic cost, Container Freight Rates, Cargo duty, General Cargo Delivery Charges, And Ship Dues)

By Type of Freight

International Freight Revenue

Domestic Freight Revenue

By Flow Corridors

Asian Countries

European Countries

Middle East

America

African Countries

By Contract and Integrated

Contract Logistics Revenue

Integrated Logistics Revenue

By End-User

Food and Beverages

Industrial and Retail

Automotive

Others (Chemical products, fertilizers, pharmaceutical products, perfumes, etc)

Warehousing Market

Revenue by Business Model

Industrial/Retail

CFS/ICD

Cold storage and agriculture

Revenue by Region

Lagos

Kano

Kaduna

Ogun

Nassaraw

Others

Revenue by Type of Warehouses

Open warehouses

Closed warehouse

Revenue by Contract and Integrated warehouses

Contract warehouses

Integrated warehouses

Revenue by End User

Food and Beverages

Automotive

Consumer retail

Health care

Others (Agricultural products and other perishable commodities)

Revenue by Market Structure

Regulated

Unregulated

Courier, Express and Parcel Logistics Market

Revenue by International and Domestic Shipments

International Shipments

Domestic Shipments

Revenue by Type of Express

Air Express

Ground Express

Revenue by Market Structure

B2B

B2C

C2C

Volume by Delivery Period

Same Day Delivery

Next Day Delivery

Two or More Days Delivery

Revenue by Intra City and InterCity

Intra City

InterCity

Revenue by Region

Lagos

Abuja

Kano

Others (Enugu, Port Harcourt, Calabar and many more)

3PL Logistics Market

By Market Type (Freight Forwarding and Warehousing)

Snapshot on E-Commerce Logistics Market in Nigeria

Snapshot on Trucking Aggregators

Kobo360

Lori system

Companies Covered

DHL

BHN Logistics

ABC Transport

UPS (United Postal Services)

Redstar Logistics

Maersk Line

MSC (Mediterranean Shipping Company)

TSL Logistics

Bollore Transport and Logistics

UPS (United Postal Services)

GMT Logistics

GIG logistics

Nipost (Nigerian Postal Service)

MDS logistics

Key Target Audience

Freight Forwarding Companies

E-Commerce Logistics Companies

3PL Companies

Consultancy Companies

Express Delivery Logistics Companies

Logistics/Warehousing Companies

Real Estate Companies/ Industrial Developers

Time Period Captured in the Report:-

Historical Period – 2013-2018

Forecast Period – 2019-2023F

Key Topics Covered in the Report:-

Logistics Industry Nigeria

Open warehouse Market Share

Import and Export Shipment Cost Nigeria

Industrial parks in Nigeria

Special Economic zones in Nigeria

Nigeria food and beverages industry

Nigeria Packaged food industry

International trade of Nigeria

Nigeria logistics and warehousing services

Nigeria export Revenue Market

Bollore Transport and logistics market share

UPS Nigeria Logistics Market Analysis

For More Information, Refer To Below Link:-

Nigeria Logistics and Warehousing Market

Related Reports by Ken Research:-

South Africa Logistics Market Outlook to 2023 – By Sea, Land, Air Freight Forwarding; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding; By Warehousing (Industrial/ Retail, ICD/CFS, Cold Storage, Others), 3PL Warehousing, Cold Chain; By Express Logistics and E-commerce Logistics

Kenya Freight Forwarding Market Outlook to 2023 – By Sea, Land, Air, Rail, and Pipeline Freight; International and Domestic Freight, Integrated and Contract Logistics Freight Forwarding

Indonesia Logistics and Warehousing Market Outlook To 2023 – Driven By Infrastructure Spending For Airport And Seaports Albeit By Poor Existing Road Network

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Ken Research
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Ankur@kenresearch.com

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