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Armenia Freight and Logistics Market Size (2024 - 2029)

The Armenia Freight and Logistics Market is projected to experience significant growth over the forecast period, driven by various economic factors and increasing demand from small and medium-sized enterprises. The market's expansion is influenced by the country's robust GDP growth, particularly in the services sector, despite challenges such as high inflation and rising poverty rates. The integration of digitalization and innovation in cross-border payments is crucial for enhancing consumer experiences and maintaining competitiveness in the global marketplace. Government initiatives have also played a vital role in supporting businesses affected by global disruptions, further contributing to the market's development.

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Market Size of Armenia Freight and Logistics Industry

Armenia Freight and Logistics Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 1.20 Billion
Market Size (2029) USD 1.57 Billion
CAGR (2024 - 2029) 5.43 %
Market Concentration Low

Major Players

Armenia Freight and Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

Armenia Freight and Logistics Market Analysis

The Armenia Freight and Logistics Market size is estimated at USD 1.20 billion in 2024, and is expected to reach USD 1.57 billion by 2029, growing at a CAGR of 5.43% during the forecast period (2024-2029).

Armenia experienced GDP growth of 11 percent during the first half of 2022 compared to the same period in 2021. This strong growth performance was driven mainly by growth in services, particularly tourism, finance, and IT.

  • High demand and high international food and fuel commodity prices pushed Inflation to 10.3 percent in June 2022, with food and fuel price increases accounting for two-thirds of total Inflation.
  • According to the Armenian Statistical Committee, the poverty rate in 2020 was 27%. Experts predict the figure will rise to 43 percent due to the combined effects of low agricultural output in Armenia in 2022, lower-than-expected remittances from Russia, and issues the government will have in reducing the impact of Inflation on disadvantaged Armenians.
  • Demand is also increasing among small and medium-sized firms (SMEs), who utilize such instruments to conduct transactions with new counterparts, receive better trade terms, and obtain financing under more favorable terms. Armenian banks assist SMEs by providing services tailored to their specific requirements. COVID-19 imposed global limitations and increased worries about the timely supply of goods and services. Government-imposed lockdowns resulted in massive business losses and interrupted operations and supply lines. However, Armenia witnessed the implementation of various government programs to assist businesses in dealing with the impact of the lockdowns and delays.
  • Cross-border payments have become well-integrated into corporate operations as international e-commerce grows exponentially. Digitalization and innovation have emerged as critical components for enhancing the consumer experience. The key focus on improvement is to provide smooth, quick, and cheaper cross-border payments for the banks to remain competitive among peers and keep pace with technological progress in the global marketplace.

Armenia Freight and Logistics Industry Segmentation

The Armenia freight and logistics market report provides insights into the technology trends, growth of e-commerce in the country, and free trade agreements, among others. A comprehensive background analysis of the Armenia Freight and Logistics Market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. The impact of COVID-19 has also been incorporated and considered during the study.

Armenia Freight and Logistics market is segmented by function (Freight Transport, Freight Forwarding, Warehousing, Value-added Services, and Other Services) and by end-users (Construction, Oil and Gas, Mining, and Quarrying, Agriculture, Fishing, Forestry, Manufacturing, and Automotive, Distributive Trade, Others). The report offers market size and forecasts for the Armenia Freight and Logistics Market in value (USD Billion) for all the above segments.

By Function
Freight Transport
Road
Rail
Air
Freight Forwarding
Warehousing
Value-added Services
By End User
Construction
Oil and Gas, Mining, and Quarrying
Agriculture, Fishing, and Forestry
Manufacturing and Automotive
Distributive Trade (Wholesale and Retail Segments - FMCG included)
Other End Users (Telecommunications, Pharmaceuticals, etc.)
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Armenia Freight and Logistics Market Size Summary

The Armenia freight and logistics market is poised for significant growth over the forecast period, driven by a combination of economic expansion and increasing demand for efficient logistics solutions. The sector is characterized by a fragmented landscape with a strong presence of local players, alongside major international companies such as CEVA, DHL, and Hellmann Worldwide Logistics. The market is experiencing heightened competition due to high logistics costs, prompting companies to innovate and offer competitive pricing. The growth trajectory is supported by the country's robust trade relationships, particularly with Iran and EU nations, and the increasing integration of digital solutions to enhance cross-border payment processes and streamline supply chain operations.

Economic factors such as GDP growth, inflation, and changes in trade dynamics are influencing the logistics sector in Armenia. The rise in international trade, especially with countries like China, the United States, and the UAE, underscores the expanding role of Armenia as a logistics hub. The market is also witnessing a surge in demand from small and medium-sized enterprises (SMEs), which are leveraging tailored banking services to improve trade terms and financing options. Despite challenges posed by global events like COVID-19, government initiatives have been instrumental in mitigating disruptions, supporting businesses in maintaining operational continuity. The focus on digitalization and innovation is crucial for enhancing consumer experiences and maintaining competitiveness in the evolving global marketplace.

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Armenia Freight and Logistics Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Dynamics

      1. 1.2.1 Drivers

      2. 1.2.2 Restraints

      3. 1.2.3 Opportunity

    3. 1.3 Technology Innovation in the Freight and Logistics

    4. 1.4 Insights on E-commerce Growth in the Market

    5. 1.5 Government Regulations and Initiatives on Logistics Sector (Free Trade Agreements and Policies)

    6. 1.6 Insights on Courier, Express, and Parcel Segment (includes market sizing data)

    7. 1.7 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.7.1 Threat of New Entrants

      2. 1.7.2 Bargaining Power of Buyers/Consumers

      3. 1.7.3 Bargaining Power of Suppliers

      4. 1.7.4 Threat of Substitute Products

      5. 1.7.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Function

      1. 2.1.1 Freight Transport

        1. 2.1.1.1 Road

        2. 2.1.1.2 Rail

        3. 2.1.1.3 Air

      2. 2.1.2 Freight Forwarding

      3. 2.1.3 Warehousing

      4. 2.1.4 Value-added Services

    2. 2.2 By End User

      1. 2.2.1 Construction

      2. 2.2.2 Oil and Gas, Mining, and Quarrying

      3. 2.2.3 Agriculture, Fishing, and Forestry

      4. 2.2.4 Manufacturing and Automotive

      5. 2.2.5 Distributive Trade (Wholesale and Retail Segments - FMCG included)

      6. 2.2.6 Other End Users (Telecommunications, Pharmaceuticals, etc.)

Armenia Freight and Logistics Market Size FAQs

The Armenia Freight and Logistics Market size is expected to reach USD 1.20 billion in 2024 and grow at a CAGR of 5.43% to reach USD 1.57 billion by 2029.

In 2024, the Armenia Freight and Logistics Market size is expected to reach USD 1.20 billion.

Armenia Freight and Logistics Market Report Snapshots

Armenia Freight and Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)