Middle East And Africa Route Optimization Software Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Component (Software, Services), By Application (Food Delivery, Ride Hailing Services, E-Commerce, Others), And By Country - Forecasts From 2022 To 2027

The Middle East and Africa route optimization software market is projected to grow at a CAGR of 9.46% during the forecast period to reach US$80.918 million by 2027, from US$42.989 million in 2020.

The methodology of picking the optimal route for service to take in sequence to get a parcel from the transit hub to its final recipient as rapidly and cost-effectively as feasible is part of route optimization. This does not always imply taking the shortest distance. It is much more concerned with minimizing total commuting time when making any number of trips, considering various factors such as vehicle load capacity, weight or volume, delivery time windows, and others. Driver itinerary, proximity to the driver, hub position, congestion in the roadways, road traffic accidents, and distance between various stops in the route influence the end results. Picking the ideal ways is a time-consuming and nearly impossible procedure when done by hand. If you only have a few vehicles with ten stops each, there are many alternative route options. The software manipulates all of this quickly and efficiently. The performance and reliability of software for optimizing routes are expected to drive the growth of the Middle East And Africa route optimization software market.

Benefits of Route Optimization Software Market in the Middle East And Africa

Route optimization software converts transfer route options into a visual map, allowing handlers and motorists to see a quick look at where the various checkpoints are, who is heading where, and any notifications based on real-time traffic situations. This degree of automation relieves delivery administrators of a significant administrative overhead by incorporating smart GPS-style products and services. Delivery decision-makers can use Onfleet to establish standards that instantaneously allocate deliveries based on proximity and route location while gathering proof of delivery directly from their smartphone. However, an optimized delivery trail can save 20% to 40% on drive and fuel time, so it's worth investigating. There's always an aspect of human expertise that no algorithm can account for, so conventional tweaking is frequently required. The advanced feature cost-effectiveness and efficient timer qualities of route optimization software are expected to drive the Middle East and Africa route optimization software market's growth over the forecasted period.

The Middle East and Africa Route Optimization Software Market Growth Factors

The rising demand for route optimization software is expected to be driven by reduced fuel consumption, shorter stop durations, optimal average miles, shorter distances, and lower operating costs. The main factor anticipated to drive market growth is the rapid acceptance of the software, particularly in the service segment.

 The continued growth of online grocery shopping and digital cab services around the region is expected to drive market growth. This is due to the on-time delivery, real-time tracking, and ease of use, 

 As a result, it fuels market growth for the MEA route optimization software market.

Restraints

The lack of acumen in using advanced technologies, the ability to manage organized or unorganized statistics, and the security concern associated with optimizing route software are expected to suppress the market of MEA route optimization.

COVID-19 Impact on Route optimization Software Market in the Middle East and Africa

The work-from-home evolution has created a wide range of opportunities for employees, which has positively influenced the MEA route optimization software market during pandemics. This trend is consistent post-pandemic, as many businesses have begun to incorporate advanced analytics solutions to improve information integrity and optimize overall business productivity. Because of the COVID-19 outbreak, the government enforced stringent regulations and shutdown measures, disrupting several businesses and distribution networks. Further, amassing and internet ordering boosted the economy for two-day, same-day, and last-mile delivery by customizing route optimization applications. As a result of its implementation in the end-user industry, disease outbreaks had a significant positive impact on the MEA route optimization software market. 

Regional Outlook for Route Optimization Software Market

According to World Bank data, the percentage of internet users in the Middle East and Africa is 78 percent of the region's total population, which was 464,542,370 in 2020, and the region's rising GDP, which was UD$3.04 trillion in 2020, is propelling online shopping growth. The growing number of internet users will increase e-commerce sales, which will drive the growth of route optimization software in the country. The Middle East digital commerce market is increasingly expanding. It reached US$69 billion in 2020, doubling its size within a few years. The Gulf Cooperation Council (GCC) region is expected to be the driving force behind this expansion, with the UAE leading the way in eCommerce. It drives the region's overall growth to an 11 percent CAGR. E-groceries are a US$200 million market in the GCC—consumers in the UAE trust digital payments more than traditional payment methods by 84 percent. The UAE has the highest annual spending per online shopper at US$1648. The MEA rising online shopping awareness contributes to the growth of food delivery services, which helps the delivery companies to adopt the technology for efficient and cost-effective delivery and provide enhanced customer experience. The Middle East and Africa's expanding automobile segment is expected to drive the growth of route optimization software in the country. Aside from that, the use of digital services in organizations to improve efficiency and customer satisfaction and the emerging consumer-based solution is expected to propel the region's route optimization software market.

Key Market Segments

• By Component
  • Software
  • Service
• By Applications
  • Food Delivery
  • Ride-Hailing
  • E-Commerce
  • Others
• By Countries
  • Saudi Arabia
  • UAE
  • Israel
  • Others