Saudi Arabia Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Kingdom of Saudi Arabia (KSA) Contract Logistics Market is segmented By Type (Insourced and Outsourced), By End User (Manufacturing and Automotive, Consumer Goods and Retail, High-Tech, Healthcare, Pharmaceuticals, Chemicals, Petrochemicals, and Other End Users). The report offers the Saudi Arabia Contract Logistics market size and forecasts in values (USD billion) for all the above segments.

Saudi Arabia Contract Logistics Market Size

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Saudi Arabia Contract Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 5.50 %
Market Concentration Medium

Major Players

Saudi Arabia Contract Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Saudi Arabia Contract Logistics Market Analysis

The size of the Saudi Arabia Contract Logistics Market is valued at about USD 2850 million in the current year and is anticipated to register a CAGR of over 5.5% during the forecast period. The need for logistics services has significantly increased as a result of the fast-paced modernization and expansion of the Saudi economy.

  • Beginning in 2023, the Saudi Arabian logistics industry will experience extraordinary expansion. This is because more people across the nation need logistics services as a result of the establishment of new channels for the movement of commodities.
  • Over the past few years, the Saudi government has made investments in the transportation, logistics, and warehousing sectors, which have helped to increase production and efficiency.
  • With its cutting-edge infrastructure and top-notch logistical services, the Saudi Kingdom has been able to establish itself as one of the most prosperous nations in the Middle East thanks to these investments.
  • Due to an expenditure of 2.1 billion Saudi rials (USD 559 million), 208 logistics contracts and 3.2 million square meters of leased space have been made possible.
  • The sector's development strategy also calls for the activation of logistics platforms that have been approved by the Supreme Committee for Transport and Logistics Services.
  • These industrial cities and logistics hubs are created to support Saudi Arabia's industrial growth and modernization by giving firms a place to operate and creating new job opportunities.
  • The goal is to make the Middle Eastern nation into a modern, competitive economy by opening up its markets to the rest of the globe. They are also anticipated to significantly increase the nation's Gross Domestic Product (GDP).

Saudi Arabia Contract Logistics Market Trends

Growth in E-commerce Driving the Market

Saudi consumer's appetite for online shopping increases as they spend more time and money doing it. As a result, we continue to witness a rise in consumer demand for cutting-edge new payment options, from Buy Now, Pay Later to cryptocurrencies and digital wallets.

The e-commerce market in Saudi Arabia is poised for further expansion. Saudi Arabians are predicted to have 33.6 million internet users for e-commerce (buying and selling) by 2024, up 42% from 2019. Saudi Arabia has one of the highest rates of smartphone penetration (97%) in the world, more mobile broadband internet subscribers than the majority of developed markets, the tenth-fastest internet speed in the world, and a relatively high proportion of people (72%) who are over the age of 15 and have a bank account. With 78% of Saudi customers indicating that they will maintain or raise their current level of e-commerce spending until 2023, the future appears to be even more promising.

Saudi Arabia Contract Logistics Market: E-commerce Penetration Rate, In Percentage, Saudi Arabia, From 2019 to 2022

Pharmaceutical and Healthcare Spending is Increasing the Contract Logistics Market

Saudi Arabia largely finances healthcare spending in the Gulf Cooperation Council (GCC), and the Saudi government continues to place a high premium on the industry. Healthcare and social development will account for USD 36.8 billion in 2022, or 14.4% of its overall budget and the third-largest line item after education and the military. The privatization of the healthcare industry is a goal of the Saudi Arabian government.

The Saudi Arabian government has budgeted about USD 65 billion to develop the healthcare system as part of Vision 2030. Additionally, it aims to privatize 290 hospitals and 2,300 primary health centres by 2030, increasing private sector participation from 40% to 65%. The MOH intends to establish health clusters across Saudi Arabia to encourage preventive and integrated care and to increase access to health services. In line with Vision 2030 and the National Transformation Program, the Saudi government wants to increase the private sector's contribution to the nation's healthcare system. Plans outlined in the Vision 2030 & National Transformation Program (NTP) include increasing the privatization of public services, implementing health IT and digital records, doubling the number of competent Saudi nurses by 2020, and increasing the number of registered medical institutions from 40 to 100 by the same year. To achieve its objective of replacing imports in crucial areas and preventing future shortages, the Kingdom is concentrating on creating new sources of competitiveness. To become a major producer and innovation in the MENA area, it seeks to maximize the value added by the local cluster while shifting to increasingly sophisticated products.

Saudi Arabia Contract Logistics Market: Healthcare expenditures in Saudi Arabia, In USD Billion, From 2011 to 2022

Saudi Arabia Contract Logistics Industry Overview

The market for contract logistics in Saudi Arabia is incredibly fragmented. In Saudi Arabia, the market for contract logistics is booming. It is frequently viewed as the greatest approach for companies to expand their logistical processes while managing the expanding cross-border flow of commodities. Cost reduction, the presence of specialized service providers, the existence of industrial zones, and the expansion of industrialization are the market's driving forces.

Saudi Arabia Contract Logistics Market Leaders

  1. Almajdouie Group

  2. Mosanada Logistics Services

  3. DHL

  4. Hala Supply Chain Services

  5. GAC

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Contract Logistics Market Concentration
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Saudi Arabia Contract Logistics Market News

  • March 2023: To improve the sustainability and efficiency of the supply chain, Aramco and DHL Supply Chain have announced the signing of a shareholders' agreement for a new procurement and logistics hub in Saudi Arabia. It would be the first such center in the area, serving clients in the industrial, energy, chemical, and petrochemical industries. To serve businesses in the industrial, energy, chemical, and petrochemical industries, the joint venture plans to start operating in 2025. It will offer dependable end-to-end integrated procurement and supply chain services. The combined business would concentrate initially on Saudi Arabia, with plans to grow throughout the MENA region.
  • October 2022: According to the Saudi Press Agency and citing the Minister of Transport and Logistics, Saudi Arabia is seeking to launch 59 logistic zones to strengthen supply chains and logistic services. The Kingdom will be able to play both a regional and a global role thanks to these zones. 18 industrial zones in total were chosen to broaden their company operations and develop into a logistical industrial center.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Value Chain/Supply Chain Analysis

    3. 4.3 Government Regulations and Initiatives

    4. 4.4 Technological Trends

    5. 4.5 Insights on the E-commerce Industry (Domestic and Cross-border E-commerce)

    6. 4.6 Insights on Contract Logistics in the Context of After-sales/Reverse Logistics

    7. 4.7 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-added Services)

    8. 4.8 Spotlight - Freight Transportation Costs/Freight Rates

    9. 4.9 Insights on Free Trade Zones in Saudi Arabia

    10. 4.10 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 SAG'S Increased Focus Toward Transportation Infrastructure, Including Railways, Airports, And Seaports

      2. 5.1.2 Establishment Of Special Economic Zones

    2. 5.2 Market Restraints

      1. 5.2.1 Limited Visible of Shipments

      2. 5.2.2 Increasing Transportation

    3. 5.3 Market Opportunities

      1. 5.3.1 Digitization in the Logistics Industry

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers/Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Type

      1. 6.1.1 Insourced

      2. 6.1.2 Outsourced

    2. 6.2 By End User

      1. 6.2.1 Manufacturing and Automotive

      2. 6.2.2 Consumer Goods and Retail

      3. 6.2.3 High-tech

      4. 6.2.4 Healthcare

      5. 6.2.5 Pharmaceuticals

      6. 6.2.6 Chemicals

      7. 6.2.7 Petrochemicals

      8. 6.2.8 Other End Users

  7. 7. COMPETITIVE LANDSCAPE

  8. 8. Overview (Market Concentration and Major Players)

  9. 9. Company Profiles

    1. 9.1 Almajdouie Group

    2. 9.2 DHL

    3. 9.3 Careem

    4. 9.4 Move One

    5. 9.5 Exel Saudi Arabia

    6. 9.6 Agility

    7. 9.7 Mosanada Logistics Services

    8. 9.8 Yusen Logistics

    9. 9.9 DSV

    10. 9.10 Maresk

    11. 9.11 J & T Express Middle East

    12. 9.12 Hala Supply Chain Services

    13. 9.13 GAC

    14. 9.14 Aramex*

  10. *List Not Exhaustive
  11. 10. FUTURE OUTLOOK OF THE MARKET

  12. 11. APPENDIX

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Saudi Arabia Contract Logistics Industry Segmentation

Contract logistics refers to the outsourcing of resource management duties to a third-party company. Contract logistics companies handle a variety of duties including supply chain development and planning, facility design, warehousing, delivery, and distribution, order processing, payment collection, inventory management, and some types of customer assistance.

The report provides a comprehensive background analysis of the Saudi Arabia Contract Logistics market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. Additionally, the COVID-19 impact has been incorporated and considered during the study. The Saudi Arabia Contract Logistics Market is segmented By Type (Insourced and Outsourced), By End User (Manufacturing and Automotive, Consumer Goods and Retail, High-Tech, Healthcare, Pharmaceuticals, Chemicals, Petrochemicals, and Other End Users). The report offers the Saudi Arabia Contract Logistics market size and forecasts in values (USD billion) for all the above segments.

By Type
Insourced
Outsourced
By End User
Manufacturing and Automotive
Consumer Goods and Retail
High-tech
Healthcare
Pharmaceuticals
Chemicals
Petrochemicals
Other End Users
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Frequently Asked Questions

The Saudi Arabia Contract Logistics Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Almajdouie Group, Mosanada Logistics Services , DHL, Hala Supply Chain Services and GAC are the major companies operating in the Saudi Arabia Contract Logistics Market.

The report covers the Saudi Arabia Contract Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Contract Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Saudi Arabia Contract Logistics Industry Report

Statistics for the 2024 Saudi Arabia Contract Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Contract Logistics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Saudi Arabia Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)