The Saudi Arabia Third-Party Logistics Market size is estimated at USD 13.70 billion in 2024, and is expected to reach USD 18.67 billion by 2029, growing at a CAGR of 6.38% during the forecast period (2024-2029).
In Saudi Arabia, the third-party logistics sector is gaining much traction to manage the growing cross-border movement of commodities. Consumer preferences are changing, and there is an increasing desire for faster delivery times and more effective supply chain management; therefore, 3PL companies in the country are incorporating technology and automation into their supply chain services.
Saudi Arabia is a trade ally with many nations owing to its large oil reserves. Saudi Arabia lies at the crossroads of crucial international trade routes between three continents: Asia, Europe, and Africa. The accessibility to emerging markets brings significant trade advantages to the country and highlights the growing demand for 3PL.
In February 2024, DHL and Aramco launched ASMO. ASMO is planned, in line with Saudi Arabia's growing demand for more robust and efficient supply chain services and the region's increased market potential, to become a significant trading gateway in the energy, chemicals, and industrial sectors. DHL launched ASMO with a plan to evolve as the market leader in Saudi Arabia and the Middle East and North Africa region. It plans to offer comprehensive end-to-end supply chain services that will create value for its customers and enhance the resilience of its supply chain.
According to a business magazine in 2022, the Saudi Arabia 3PL market was mostly road-dominated and had around 40,000 trucks. The higher availability of trucks indicated fierce competition among the players, giving low-cost trucking in the region an advantage. In addition, the government is investing in urban infrastructure undertakings such as the USD 22.5 billion Riyadh Metro and a Rapid Bus System to improve mobility throughout the country further.
The market is fairly fragmented, with many domestic and international businesses competing. The major players are DHL, Almajdouie Logistics, Al-Futtaim Logistics, Wared Logistics, and Aramex. Top companies in the industry are focusing on strategic market initiatives to expand their product capabilities and market presence. The dry warehouse is the most common type of warehousing, and it has seen significant growth in recent years. Given the region's potential and the growing relevance of commercial ties, logistics and service organizations that currently have a huge foothold in Saudi Arabia are extending their operations.
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