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)
Freight Forwarding:
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
Warehousing:
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)
Express Logistics:
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)
E-Commerce Logistics:
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
Logistics Companies
Warehousing Companies
Cold Chain Companies
Express Logistics Companies
E-Commerce Logistics Companies
E-Commerce Companies
Logistics Association
Government Association
Investors and Private Equity Companies
Time Period Captured in the Report:
Historical Period: 2012 - 2018
Forecast Period: 2019E - 2023E
Companies Covered:
Freight
Forwarding Market:
Basem International Shipping and Logistics Co. Ltd.
Kuehne Nagel
Panalpina
DB Schenker
DHL
Expeditors
FedEx – TNT
Mubarrad (Saudi Transport and Investment Co.)
Warehousing
Market:
LSC Logistics and Warehousing
Agility Logistics
Almajdouie Logistics
Mosanada Logistics
Tamer Logistics
BAFCO International Shipping and Logistics Co. Ltd.
Hala Supply Chain Services
United Warehouse Co. Ltd.
Wared Logistics
Takhzeen Logistics
Etmam Logistics (Shahini Group)
Aramex
Kaden Logistics
Panda Retail Company
Express
Logistics Market:
UPS
SMSA Express
Naqel Express
Zajil Express
Abdul Latif Jameel Logistics
Third Party Logistics Market:
Wared Logistics
Abudawood
Logistics
Mosanada
Logistics
Tamer
Logistics
DB
Schenker
Abudawood
Logistics
Kuehne
+ Nagel
DHL
Agility
Logistics
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:
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