The report titled “Saudi Arabia Logistics and Warehousing Market Outlook to 2023 (Second Edition) – Expected Recovery in Demand Growth with Rising Infrastructure Spending, Government Reforms and Surge in Trade” provides a comprehensive analysis of the logistics market of Saudi Arabia. The report also covers logistics infrastructure in the country, cross comparison of the market with other GCC countries, value chain analysis, industry revenue, segmentation by service mix, end users, by mode of freight, type of delivery, level of freight, owned and third party logistics, flow corridors and domestic and international companies for freight forwarding market; segmentation by business model, type of warehouses, end users, cities and ownership for warehousing market; segmentation by level of courier, type of international express, type of domestic express and business model for express logistics market; segmentation by time duration, mode of payment and location for e-commerce logistics market; segmentation by market type for third party logistics market; trade scenario in the country, trends and developments, issues and challenges, government role and regulations, SWOT analysis, recent mergers and acquisitions, competitive scenario, company profiles, strengths and weakness, heat map and directory of major players. The report concludes with market projection and analyst recommendations highlighting the major opportunities and cautions.
Saudi Arabia Logistics and Warehousing Market Size
The Saudi Arabia logistics and warehousing market was witnessed to remain buoyant over the past five years despite the temporary stagnation of the economy and decrease in oil prices owing to the global oil price shock. The market increased at a positive CAGR during the period 2012 to 2018. The improving road infrastructure, rise in government support in the form of incentives and subsidies, improving corporate working environment due to large availability of expatriate workforce and rise in the industrial activities are expected to support the growth of the market in future. Freight forwarding segment has dominated the logistics and warehousing industry in Saudi Arabia over the past few years.
Saudi Arabia Freight Forwarding Market: Freight forwarding industry has observed a slight decline in past few years, which is majorly due to the decrease in freight movement in the country. However, expanding FMCG, retail, food & e-commerce industry in the kingdom is expected to stabilize the growth of the freight forwarding industry in future. The market decreased at a single digit CAGR during the period 2012 to 2018. Introduction of Saudization has resulted in several labour immigrants to leave the kingdom which has further resulted in the decrease of expatriate population in the country. Additionally, a decrease in oil prices and stagnation of the economy has resulted in low freight movement in the country. International freight forwarding contributed the majority share in the overall revenue of the industry. Major companies operating in this segment include DHL, Panalpina, UPS, DB Schenker, Kuehne + Nagel and several others. It is forecasted that the market will moderately grow at a positive CAGR during the review period of 2018-2023.
Saudi Arabia Warehousing Market: The warehousing sector in Saudi Arabia has increased at a positive CAGR during the review period 2012-2018. The country is experiencing a major rise in the demand for warehousing services. Industrial and retail warehousing has led the warehousing industry by acquiring majority of the total revenue share in 2018. The expanding e-tail companies in the country have also triggered the growth of this industry. Online stores have become quite popular in the kingdom lately. The major reason for their popularity is the convenience of placing an order while sitting at home and getting the product delivered at the door step. The growth in the market is also driven by increased demand for the outsourcing of warehouse services. Vendors in the market provide multiple value-added services to customers, including packaging and kitting, inventory management and others which is difficult to maintain during in-house warehouse operations thereby accelerating the demand for warehousing on lease and rent on third party logistics basis. In case of warehousing market segmentation by city, Jeddah contributed the majority revenue share in warehousing industry. In future, it is anticipated that the market will continue to grow at a single digit positive CAGR during the period 2018-2023.
Saudi Arabia Express Logistics Market: Despite the high cost of express logistics in comparison with non-express logistics, the revenue share of express delivery has been observed grow at a positive CAGR during the review period 2012-2018. Express logistics has been observed as a premium segment of the logistics industry as it involves time sensitive shipments of goods via multi-modal modes of transportation. The rising prominence of online shopping has attributed to the increasing demand for express delivery, especially by B2C segments over the past few years in the kingdom. The express logistics market has evolved from the delivery of documents and parcels to specialist items such as high-tech products, semiconductors and general airfreight commodities. The services provided by the companies such as guaranteed delivery services, door to door delivery, track your orders and others have strengthened the growth of the logistics. Air express has dominated the market by acquiring majority revenue share in 2018 owing to the presence of well planned airport infrastructure to support cargo. In case of express logistics segmentation by business model, B2B dominated the market. The leading companies in this segment include DHL, Aramex, UBS, FedEx-TNT, SMSA, Naqel Express, Zajil Express, Almajdouie Logistics and Abdul Latif Jameel Logistics.
Saudi Arabia E-Commerce Logistics Market: E-Commerce Market in Saudi Arabia has increased at a single digit positive CAGR during the period 2012-2018. The customers have begun demanding quick deliveries which has led to an increase in the logistics and warehousing requirements in the country. E-commerce companies such as Souq.com, Noon, JollyChic, Wadi, and Ali Express are some of the major players that promise one day delivery to its clients. Thus, the rise in demand for quick delivery requires streamlined freight movement thereby augmenting the e-commerce contribution. In the forecast period of 2018-2023, the market is anticipated to grow at a double digit positive CAGR.
Saudi Arabia Third Party Logistics (3PL) Market: Third party logistics market witnessed a marginal increase over the past five years in Saudi Arabia. Third-party logistics (3PL) outsourcing is rapidly gaining prominence as more corporations across the world are entering the kingdom and are unable to manage their complex supply chains and hence are outsourcing logistics activities to the 3PL service providers.
Future Outlook and Projections for Saudi Arabia Logistics and Warehousing Market: Saudi Arabia logistics and warehousing market is expected to grow at a single digit CAGR during the review period of 2018 to 2023. Rising demand of warehousing and cold storage, growing E-commerce and retail industry, entry of foreign players, rising government support, increasing trade with other major import & export countries will drive the market in coming future. Rising retail and FMCG industry of the country will accelerate the demand for warehouses storage and transportation & logistics facility. Freight forwarding services will majorly contribute in the overall market of logistics by acquiring maximum revenue share in 2023. This decline in share of the freight forwarding market is anticipated to be followed by a corresponding increase in the revenue share of warehousing sector of the kingdom.
Key Segments Covered
Logistics and Warehousing:
By Service Mix (Freight Forwarding, Warehousing and Value Added Services)
By End User Industry (Oil and Gas, Food and Beverages, Automotive, Industrial/Retail Sector, Engineering Equipment, Metals and Others)
By Mode of Freight (Road Freight, Sea Freight and Air Freight)
By Type of Delivery (Non-Express and Express Delivery)
By Level of Freight (International and Domestic Freight)
By Owned and Third Party Logistics
By Flow Corridors (Asian Countries, North American Countries, European Countries, Middle East, NAFTA and Others)
By International and Domestic Companies
By Business Model (Industrial / Retail, Container Freight/Inland Container Depot and Cold Storage)
By Cities (Jeddah, Riyadh, Dammam and Others)
By Type of Warehouses (Closed Temperature Controlled, Closed Non-Temperature Controlled, Cold Storage and Open Yards)
By Owned and Third Party Logistics
By End Users (Food and Beverages, Automotive, Consumer Retail, Healthcare, Automotive and Others)
By Level of Courier (Domestic and International Express)
By Type of International Express (Air and Ground Express)
By Type of Domestic Express (Air and Ground Express)
By Business Model (B2B, B2C and C2C)
By Time Duration (6-12 Hours, 1 Day, 2 Day and More than 2 Day Delivery)
By Mode of Payment (Cash on Delivery and Online Payment)
By Location (Intra-City and Inter City)
Third Party Logistics:
By Market Type (Freight Forwarding and Warehousing)
Key Target Audience
Cold Chain Companies
Express Logistics Companies
E-Commerce Logistics Companies
Investors and Private Equity Companies
Time Period Captured in the Report:
Historical Period: 2012 – 2018
Forecast Period: 2019E – 2023E
Freight Forwarding Market:
Basem International Shipping and Logistics Co. Ltd.
FedEx – TNT
Mubarrad (Saudi Transport and Investment Co.)
LSC Logistics and Warehousing
BAFCO International Shipping and Logistics Co. Ltd.
Hala Supply Chain Services
United Warehouse Co. Ltd.
Etmam Logistics (Shahini Group)
Panda Retail Company
Express Logistics Market:
Abdul Latif Jameel Logistics
Third Party Logistics Market:
Kuehne + Nagel
Key Topics Covered in the Report
Logistics Infrastructure in Saudi Arabia Logistics and Warehousing Market
Cross Comparison of Saudi Arabia Logistics and Warehousing with GCC Countries
Value Chain Analysis of Saudi Arabia Logistics and Warehousing Market
Saudi Arabia Logistics and Warehousing Market
Saudi Arabia Freight Forwarding Market
Saudi Arabia Warehousing Market
Saudi Arabia Express Logistics Market
Saudi Arabia E-Commerce Logistics Market
Saudi Arabia Third Party Logistics (3PL) Market
Trade Scenario in Saudi Arabia Logistics and Warehousing Market
Trends and Developments in Saudi Arabia Logistics and Warehousing Market
Issues and Challenges in Saudi Arabia Logistics and Warehousing Market
Government Role and Regulations in Saudi Arabia Logistics and Warehousing Market
SWOT Analysis of Saudi Arabia Logistics and Warehousing Market
Recent Mergers and Acquisitions in Saudi Arabia Logistics and Warehousing Market
Saudi Arabia Logistics and Warehousing Market Future Outlook and Projections
Analyst Recommendations for Saudi Arabia Logistics and Warehousing Market
For more information on the research report, refer to below link:
Ankur Gupta, Head Marketing & Communications