KSA Warehousing Automation Market Outlook to 2027

KSA Warehousing Automation Market Outlook to 2027


Market Overview:

A consolidated market with immense growth potential KSA’s warehousing automation market is being driven by expansion in KSA’s e-commerce industry and government institutions setting up industrial base in the country. Moreover, Rapid digitalization, growing adoption of technology and integration of advanced technologies have led to the growth of the industry. The country has 99.0% internet penetration in 2023.

Major government initiatives, such as Vision 2030, National Industrial Development & Logistics Program (NIDLP), etc. have cemented the growth of automated warehouses in the country. Moreover, significant Marine Network of Saudi Arabia Coupled with Surging Regional Ecommerce Market Have Necessitated the Requirement for Warehouses & Storage Facilities.

KSA Warehousing Automation Market Analysis

COVID-19 and sudden rise in e-commerce business are the major catalysts for KSA’s warehouse automation to bring efficiency in operation.

Lack of skilled professionals, improper implementation leading to inaccurate data commands, reluctance to adopt automation, among others have been the key challenges for warehouse automation players.

The market is majorly consolidated with few players in the Ecosystem currently; huge capital requirement has restricted new entrants into the market.

The KSA Government is aiming to establish the Kingdom as a logistics Hub under its Vision 2030 by development of SEZ’s, Integrated Transport Infrastructure and Reformation of Sea Ports.

Key Trends by Market Segment:

By Type of Product: Automated systems such as conveyor and sortation system are grown significantly in the future. Robots such as AMR are very expensive, and is expected to grow at a slower pace. But implementations of robots will gradually increase in the future. But in the meantime, the use of robots is less prevalent in KSA and very few companies are using robots on a wide scale due to lack of knowledge to operate them. Any warehouse with automated systems will definitely possess a WMS, which is an essential part of managing the operations. The growth of WMS will increase significantly in future. It's important to note that AS/RS and automated sortation systems are expensive. So even with less share, it's overall share to the revenue will be relatively higher.

By Captive vs 3PL Warehouse Automation: The Captive segment has been dominating the market for a while. Most of the revenue will be generated through captives in the upcoming years. The demand for captive warehouses is more than 3PL because it is most cost effective and efficient for an organization to have a captive fleet when the volume of order fulfilment is large in a given metropolitan area.

Competitive Landscape:

Number of SKUs, Brand collaborations and Geographical Presence are some of the key competition parameters in KSA Warehousing Automations Market.

KSA Warehousing Market is moving towards Real estate Investments with logistic companies promoting Partnerships.

The market is majorly consolidated with few players in the Ecosystem currently; huge capital requirement has restricted new entrants into the market.

SSI Schafer has highest market share of 20.0% in the market in 2022. It plans, designs and produces systems for establishing and optimizing warehouses and plants, manual and automatic storage, conveyor, order picking and sorting systems as well as solutions for waste technology and recycling.

SSI Schafer and ACME hold nearly 30.0% of the total market share in KSA automation warehouse market in 2022.

Recent Developments:

Agreement between Smart LOG and Four Principles to deepen their presence in Middle Eastern region, particularly KSA & the UAE, for providing warehouse automation to Ecommerce & e-grocery companies.

Government initiatives, such as Saudi Vision 2030, National Industrial Development and Logistics Program (NIDLP), etc., establishment of new logistic zones, among others is expected to bring massive greenfield investments. In turn, it would catalyze the requirement for multi-client warehouses in the country.

Saudi Arabia invested $ 800 Mn to expand & modernize the South Container Terminal at Jeddah Islamic Port and double its container capacity to 4 Mn TEUs by 2024.

Future Outlook:

The market is expected to grow at high pace in the coming 5 years owing to rapid digitalization and surge in investment.

The demand and market share of e-commerce and retail is expected to increase in the future due to increasing focus towards reducing the overall sales cycle duration.

Government initiatives, such as Saudi Vision 2030, National Industrial Development and Logistics Program (NIDLP), etc., establishment of new logistic zones, among others is expected to bring massive greenfield investments. In turn, it would catalyze the requirement for multi-client warehouses in the country.

AS/RS system is expected to increase due to rising consumer spending, heavy investment in R&D activities by companies.

The market is expected to be driven by ongoing labor shortage, a more integrated warehouse and the introduction of better and more affordable solutions such as automated supply chain module in KSA.

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1. Executive Summary
2. Country Overview
2.1 Country Overview
2.2 KSA Population Analysis
3. Market Overview
3.1 Global & Regional Market Comparison with Saudi Arabia
3.2 Demand Infrastructure- Ecosystem of Major End-Users Deploying Warehouse Automation & Allied Products
3.3 Supply Side Ecosystem of Major Players Selling Warehouse Automation & Allied Products
3.4 Evolution of Warehousing Technology Automation
4. Market Size
4.1 Saudi Arabia Warehouse Automation Market Size, 2016-2022
4.2 Saudi Arabia Warehouse Automation Market Insights & Facts
5. Market Segmentation
5.1 Number of warehouses by Automation Level, 2022
5.2 Segmentation and Cross Comparison by End Users, 2022
5.3 Number of Warehouses on the basis of size, 2022
5.4 Segmentation by Captive and 3PL, 2022
5.5 Segmentation by New Vs Maintenance Project in KSA Automation Warehouses, 2022
5.6 Segmentation by WMS Technology and AGV+AMR Technology, 2022
6. Industry Analysis
6.1 Growth Drivers of Saudi Arabia Warehouse Automation Industry
6.2 Major Digitalization Milestones Achieved by the Saudi Government
6.3 Porter’s Five Force Analysis of Saudi Arabia Warehouse Automation Industry
6.4 Trends and Developments in Saudi Arabia Warehouse Automation Market
6.5 Issues and Challenges in Saudi Arabia Warehouse Automation Market
6.6 Government Initiatives to establish KSA as a Logistics Hub
6.7 Government Warehouse Rules and Procedures
6.8 Impact of Covid-19 on Saudi Arabia’s Warehouse Automation Industry
7. Snapshot of Warehousing Industry in Saudi Arabia
7.1 Saudi Arabia Warehousing Ecosystem
7.2 Business Cycle and Genesis of Saudi Arabia Warehousing Market
7.3 Snapshot of Warehousing Industry in Saudi Arabia
7.4 Saudi Arabia Warehousing Market Size, 2017-2026
7.5 Major Warehousing/Leasing Regions in Jeddah & Riyadh
7.6 Snapshot of Warehousing Industry in Saudi Arabia
7.7 Saudi Arabia Warehousing Split by Regions
7.8 Demand Analysis of Saudi Arabia Warehouse Automation Market on the Basis of Major Factors
7.9 Demand Analysis of Saudi Arabia Warehouse Automation Market on the Basis of Major factors, 2020
7.10 Key Enablers of Ecommerce Industry in Saudi Arabia
7.11 Net Ecommerce Sales and Distribution of Shop Software of Top 100 Online Stores Demand Analysis: Saudi Arabia Ecommerce Market, 2016-2020
8. Competitive Landscape
8.1 Market Share of major Players in 2022
8.2 Cross Comparison of Major Warehouse Automation Players on the basis of Different Parameters
8.3 Key Developments in Warehouse Automation Market in Saudi Arabia
9. Future Outlook
9.1 Saudi Arabia Warehouse Automation Future Market Size, 2022-2027 Market Segmentation, 2027
10. Analyst Recommendations
11. Industry Speaks
12. Research Methodology
12.1 Market Definitions
12.2 Abbreviations used
12.3 Market Sizing Approach- Saudi Arabia Warehouse Automation Market
12.4 Consolidated Research Approach
12.5 1Primary Research Approach
12.6 Future Forecasting Methodology and Research Limitations
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