Saudi Arabia Freight And Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Saudi Arabia Freight And Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Saudi Arabia Freight And Logistics Market is projected to register a CAGR of 5.35%

Key Highlights

• Sea and Inland Waterways is the Fastest-growing Mode Of Transport : Sea and inland waterways is the fastest-growing segment by mode of transport in Saudi Arabia. The country is strengthening its logistics competitiveness to increase the volume of non-oil exports.
• Domestic is the Largest Destination Type : The domestic segment is the largest segment by destination type, supported by the wholesale and retail trade end-user segment, which held a share of 55.8% in 2022.
• Wholesale and Retail Trade is the Largest End User : The wholesale and retail trade is the largest end-user segment, boosted by the e-commerce market in Saudi Arabia, which experienced a YoY rise of 16.91% in 2021.
• Non-Temperature Controlled is the Largest Temperature Control : The non-temperature-controlled segment recorded a higher revenue contribution during the review period. However, its percentage share decreased from 87.5% in 2017 to 86.6% in 2021.
• Temperature Controlled is the Fastest-growing Temperature Control : The temperature-controlled segment is expected to grow during the forecast period, as the Saudi pharma market is expected to grow by 5% YoY until 2025 to reach USD 10 billion.

Saudi Arabia Freight And Logistics Market Trends

Rising investment leading to smooth transportation supply chain in the country

• With ongoing technological advancements, Saudi Arabia is investing in diverse projects. The aim of such large-scale initiatives is to provide access to housing opportunities for lower-income groups, create new employment opportunities, and further diversify the economy. Saudi Arabia is planning to invest approx. USD 1 trillion in the country’s non-hydrocarbon sector by 2030. Some of the key projects include Neom, the Red Sea Project, Qiddiya Entertainment City, King Abdullah Financial District, and Amaala.
• These substantial infrastructure investments form the foundation for the Kingdom's new future. Along with these ""giga-projects,"" Saudi Arabia is also investing in many social and urban development projects, such as the Sakani housing program, further promoting the country’s commitment to driving development using smart tech. In order to further enhance mobility in the Kingdom, the government is investing in expanding the transportation infrastructure through city infrastructure projects, such as the USD 22.5 billion Riyadh Metro and Riyadh Rapid Bus Transit System. Saudi Arabia’s infrastructure and construction industry continues to be driven by technology adoption, dynamic approaches to construction delivery, and implementation of new operating standards, which further fuel infrastructure and construction growth in the country.
• The development of Saudi's logistics industry would require parallel progress of digital infrastructure to equip industry players with hyper-scale co-location capacity data centers, further emphasizing the need for foreign investments in the coming years. The Kingdom also plans to provide over USD 147 billion for developments surrounding the transportation and logistics industry, specifically to turn the country into a transportation hub.

Saudi Arabia Freight And Logistics Industry Overview

The Saudi Arabia Freight And Logistics Market is fragmented, with the top five companies occupying 12.35%. The major players in this market are Almajdouie Logistics, BAHRI, Gulf Agency Company (GAC), Saudi Arabian Logistics (SAL) and Wared Logistics (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support