The United Arab Emirates route optimization software market is evaluated at US$9.212 million for the year 2020, growing at a CAGR of 10.51% reaching the market size of US$18.538 million by 2027.
Route optimization software is a kind of software used to find the quickest and most cost-friendly route among several available routes. The optimized route is concluded based upon metrics like the number of stop locations and time taken for each delivery spot between the start and end of the route. The route optimization software market for the United Arab Emirates is anticipated to grow substantially because of the robust projects and initiatives taken by the government to digitally transform the economy of the United Arab Emirates. The autonomous vehicle adaption in Dubai is another vital factor for the anticipated growth of the United Arab Emirates route optimization software market. According to the United Arab Emirates government portal, the UAE secured the first position in multiple global indices like mobile broadband internet subscriptions, mobile network coverage per population, wireless broadband, entrepreneurship, public-private partnership, and so forth. The launch of the Projects of the 50 by the UAE government in 2021, includes a range of high-tech and economic projects and initiatives to be carried out. Technological advancements and government-aided projects are highly anticipated to propel the growth of the route optimization software market in the United Arab Emirates.
The COVID-19 impact on the United Arab Emirates route optimization software market was negative owing to the travel restrictions and lockdown in the region, The Road and Transport Authority of Dubai suspended inter-city buses between Abu Dhabi, Dubai, Sharjah, Ajman, and Hatta during the COVID-19 period, as mentioned on the Dubai RTA website. Also, global supply chain disruptions lead to the hampering of road and air freight because of border sealing and flight cancellations, which eventually led to the domestic logistical decline, thereby leading to the decline in the demand and overall route optimization market in the United Arab Emirates during the coronavirus pandemic.
Projects of the 50, autonomous transportation and internet penetration
The United Arab Emirates government, in 2021, launched ‘Projects of the 50’ which is a series of projects and initiatives planned to transform the United Arab Emirates into an ideal hub for talent as well as investors. According to the United Arab Emirates Government Portal website, the ‘Projects of the 50’ comprises the first set of projects, including visa schemes, global campaigns for attracting investment from foreign countries and regions, major global economic partnerships, and programmes for the support of applications of the 4th Industrial Revolution in all sectors to promote the United Arab Emirates. The second set comprises a federal programme called “NAFIS” which has thirteen initiatives for the provision of private jobs and other benefits for the Emiratis in the region. ‘Projects of the 50’ includes some significant initiatives like targeting to attract 3,000 coders every month and increasing the numbers from 64,000 to 100,000 in a year. Additionally, the UAE government launched the 4th Industrial Revolution Network under the ‘Projects of the 50’ to establish 500 national companies with advanced technologies and a technically sound workforce. Under the Industrial Revolution Network, 15 leading national companies will transfer knowledge and train 100 CEOs on the latest digital trends. Also, under the same ‘Projects of the 50’, the ‘Tech Drive’ program, with a value of AED 5 billion, will help in integrating advanced technologies into the industrial sector of the United Arab Emirates. Also, as per the same portal of the United Arab Emirates government, ‘Pycon Summit’, the largest programming summit in the Middle East, will be hosted by the United Arab Emirates in the second half of the year 2022 for developing digital talent along with innovative technology projects for enhancing the overall digital economy. The massive project initiatives and developments were undertaken by the government of the United Arab Emirates to advance technological developments in the region are anticipated for the future rise of the route optimization software market in the United Arab Emirates. Additionally, as per the Digital Transformation UAE Report of 2020, Dubai Self-Driving Smart Transport Strategy aims to transform 25% of the transportation in Dubai to be autonomous, which will lead to annual returns worth 22 billion dirhams and a 13% increase in the individual productivity. Also, the same report stated that out of 9.94 million of the total UAE population, 9.84 million are internet users. Autonomous transportation, governmental tech development projects, and the large internet penetration are vital factors for the projected growth of the route optimization software market in the United Arab Emirates during the forecast period.
Overshadowing of the national population by ex-pats
As per the December 2020 release by the official government portal of the United Arab Emirates, the population of the UAE increased to 8.3 million by 2010, with UAE citizens numbering less than a million. The burdening ratio of expatriates to national citizens can lead to sudden migration, leading to a major shortage in human resources, resulting in the overall decline of the United Arab Emirates economy, thereby projecting the anticipated restraint on the route optimization software market. With the future anticipated geopolitical tensions of the United Arab Emirates with any country, the volatility of the workforce availability might lead to severe consequences as the expatriates will leave the nation, leading to a major disruption in the cycles of economic and industrial projects all over the United Arab Emirates, thereby restraining the overall market growth of the route optimization software market in the United Arab Emirates during the forecast period.
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