Saudi Arabia Courier, Express, and Parcel (CEP) Market Analysis
The Saudi Arabia Courier, Express, and Parcel (CEP) Market size is estimated at 1.38 billion USD in 2025, and is expected to reach 1.88 billion USD by 2030, growing at a CAGR of 6.48% during the forecast period (2025-2030).
Saudi Arabia's logistics landscape is undergoing significant transformation, driven by ambitious infrastructure development initiatives and regulatory reforms. The government has outlined plans to invest over USD 100 billion in aviation expansion, aligning with its Vision 2030 strategy to establish the country as a global logistics hub. This commitment is evident in the ongoing transformation of Riyadh's King Salman International Airport into a six-runway facility, projected to handle 3.5 million tons of cargo by 2050. The modernization extends beyond air infrastructure, with substantial investments in road networks and the implementation of new regulations for delivery drivers, including mandatory uniforms and facial recognition technology implementation in 2024.
The postal sector has witnessed remarkable growth, with daily delivery requests surging from 238,000 to 577,000 in 2022, representing a 142% increase. This growth has been accompanied by technological advancements and service innovations from major industry players. For instance, in June 2024, J&T Global Express introduced J&T SPEED, achieving impressive delivery times of 58 hours on average and recording a 30% increase in order volume in key cities like Riyadh and Jeddah. These developments demonstrate the industry's commitment to enhancing operational efficiency and meeting evolving customer expectations.
The market is experiencing a significant shift toward digitalization and automation of logistics operations. In January 2024, the Transport General Authority (TGA) introduced six new regulations aimed at modernizing the order delivery sector, focusing on enhancing efficiency, reliability, and safety standards. This regulatory framework is complemented by innovations in last-mile delivery solutions, including the testing of autonomous delivery vehicles and the implementation of smart locker systems. The integration of advanced technologies is reshaping traditional delivery models and improving service reliability.
The sector's growth is further supported by strategic partnerships and infrastructure developments across various industries. In the healthcare sector alone, the government has committed to investing more than USD 65 billion in infrastructure development, creating new opportunities for specialized delivery services. Major delivery companies in Saudi Arabia are responding by establishing dedicated facilities and specialized services, such as temperature-controlled transportation for medical supplies and specimens. This diversification of services, coupled with the expansion of delivery networks and the adoption of innovative technologies, is creating a more robust and efficient CEP market in Saudi Arabia.
Saudi Arabia Courier, Express, and Parcel (CEP) Market Trends
Saudi Arabia invested around USD 133 billion to boost the transport infrastructure of the economy
- As of February 2024, the Makkah region in Saudi Arabia has initiated 20 road projects valued at USD 373 million to enhance connectivity and travel within the area. These projects cover 385 km of roadways and include a 24 km direct route linking Jeddah to Makkah and the doubling of the 90 km Allaith-Makkah Road. Expansion of the Bisha-Raniyah-Al-Khurma Road is also planned. The road projects signify a substantial infrastructure investment focused on boosting connectivity and enriching transportation for both residents and visitors.
- In 2024, Saudi Arabia actively started working toward cementing its position in the aviation sector, which is in line with its ambitious Vision 2030. This vision aims to attract 120 million annual visitors by 2030 while simultaneously diversifying the economy away from oil dependence. To support this, the government has allocated USD 30.11 billion for investments in the aviation ecosystem. These investments will focus on upgrading domestic airports, bolstering local airlines, and enhancing supporting infrastructure.
Rising fuel prices due to Saudi Aramco price hikes, supported by government-led domestic fuel price reforms
- Saudi Aramco announced that starting from January 1, 2024, the retail price of diesel would surge by 53% to USD 0.3067 per liter. This marked the third increase since 2016. Also, prices for natural gas and other fuels saw an increase in 2024. These price hikes were part of the Saudi government's reforms aimed at restructuring domestic fuel prices. In November 2024, Saudi Arabia indicated plans to reduce prices for the majority of crude grades sold to Asia, starting December 2024, in response to the declining trend of the Middle East benchmark, Dubai.
- Saudi Aramco plans to cut its oil production capacity by 1.2 million barrels per day (bpd) in 2024, reflecting shifting global energy trends. For decades, Saudi Arabia has held the world's significant spare oil capacity, offering a buffer for global supplies in case of major disruptions. Despite being the largest oil exporter, the kingdom currently pumps around 9 million bpd, well below its 12 million bpd capacity due to production cuts agreed upon with OPEC and allies in 2023. OPEC anticipates a demand growth of 1.3 million bpd by the end of 2025.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Saudi Arabia's unemployment rate drops to 7.1%, reflecting progress in economic diversification and workforce participation
- Saudi Arabia aims to diversify its economy by bolstering non-oil sectors
- The e-commerce industry in KSA experienced a growth of over 13% YoY, driven by widespread internet penetration
- Saudi Arabia is positioning itself to become a leading exporter of hydrogen globally
- Saudi Arabia rank 38 in the Logistic Performance Index due to advancements in its transportation and logistics infrastructure
- Saudi Arabia announced a USD 51 billion investment plan aimed at diversifying its economy beyond oil dependence
- WPI and CPI rising due to increase in transportable goods, electricity and fuel prices & household costs
- Saudi Arabia plans to invest USD 1.3 trillion into its economy by 2030, with a focus on strengthening the manufacturing sector
- Saudi Arabia aims to localize 85% of its food imports by 2030 to promote domestic entrepreneurship
- Saudi Arabia invested more than USD 1 trillion in infrastructure to transform economy and expand maritime sector
Segment Analysis: By Destination
Domestic Segment in Saudi Arabia CEP Market
The domestic segment dominates the Saudi Arabian Courier, Express, and Parcel (CEP) market, commanding approximately 65% market share in 2024. This significant market position is driven by several key factors, including the surge in domestic courier service in Saudi Arabia e-commerce activities and the government's initiatives to strengthen local postal and parcel services. The Communications and Information Technology Commission (CITC) has been instrumental in expanding the sector, with quarterly postal item volumes increasing substantially from 8 million to 28 million items. The number of licensees has grown remarkably to 145 companies, while daily delivery requests have more than doubled from 238,000 to 577,000, reflecting the robust growth in domestic parcel movement. Additionally, the introduction of innovative delivery solutions like OMINIC's planned deployment of 2,000 lockers nationwide by 2026 further strengthens the domestic segment's market position.
International Segment in Saudi Arabia CEP Market
The international segment is experiencing the fastest growth in the Saudi Arabian CEP market, with a projected growth rate of approximately 7% from 2024 to 2029. This accelerated growth is primarily driven by increasing cross-border e-commerce activities, with around 60% of Saudi consumers making purchases from international businesses and retailers. China leads as Saudi Arabia's primary cross-border e-commerce partner, followed by significant trade volumes with the United States and the United Arab Emirates. The segment's growth is further supported by strategic initiatives such as DHL Supply Chain and Aramco's joint venture, ASMO, which aims to strengthen Saudi Arabia's position as a global logistics hub. The expansion of international courier services in Saudi Arabia, exemplified by FedEx's introduction of Regional Economy and Regional Economy Freight services in the Middle East, continues to facilitate cross-border trade growth.
Segment Analysis: By Speed of Delivery
Non-Express Segment in Saudi Arabia CEP Market
The non-express delivery segment dominates the Saudi Arabian Courier, Express, and Parcel (CEP) market, commanding approximately 74% market share in 2024. This significant market position is primarily driven by the surge in cross-border e-commerce orders that predominantly utilize non-express delivery services. Companies are actively launching new services to cater to this growing demand, as evidenced by FedEx Express's introduction of FedEx Regional Economy and FedEx Regional Economy Freight services in 2023 to address the increasing cross-border trade requirements in the Middle East. The segment's growth is further supported by the rising popularity of PUDO (Pick-Up and Drop-Off) collection points, with 15-20% of e-commerce orders being retrieved from designated physical locations managed by courier companies or their affiliates. This system not only provides convenience for customers but also simplifies return management processes for businesses.
Express Segment in Saudi Arabia CEP Market
The express parcel delivery segment in the Saudi Arabian CEP market is experiencing robust growth, projected to expand at approximately 7% during 2024-2029. This acceleration is driven by several key developments in the market, particularly the significant surge in deliveries during peak seasons. For instance, during Ramadan in 2023, parcel companies experienced a remarkable 56% increase in deliveries compared to the previous year, with over 14 million shipments dispatched across the Kingdom. The segment's growth is further bolstered by innovative service launches, such as AJEX Logistics Services' introduction of AJEX Domestic Same Day and AJEX Reverse Pick-up services in Dammam, Riyadh, and Jeddah in 2023. Additionally, the postal sector has witnessed substantial expansion, with daily delivery requests increasing from 238,000 to 577,000, representing a growth rate of 142%.
Segment Analysis: By Model
B2C Segment in Saudi Arabia CEP Market
The Business-to-Consumer (B2C) segment dominates the Saudi Arabian Courier, Express, and Parcel market, commanding approximately 56% of the total market value in 2024. This segment's prominence is primarily driven by the robust growth of e-commerce in the country, which has emerged as a pivotal element of Saudi Arabia's Vision 2030 strategy. The government's commitment to boosting e-commerce operations, coupled with increasing internet penetration and a tech-savvy young population, has significantly contributed to the segment's growth. The segment is also experiencing the fastest growth trajectory, supported by major developments such as Amazon's expansion with three fulfillment centers and eleven delivery stations across Saudi Arabia, employing over 1,400 people. Additionally, the rise of domestic e-commerce platforms and international retailers establishing their presence in Saudi Arabia has further strengthened the B2C segment's position in the market.
Remaining Segments in Saudi Arabia CEP Market by Model
The Business-to-Business (B2B) and Consumer-to-Consumer (C2C) segments complete the Saudi Arabian CEP market landscape, each serving distinct market needs. The B2B segment primarily caters to corporate deliveries, industrial shipments, and inter-business transactions, benefiting from Saudi Arabia's growing manufacturing sector and increased business activities across various industries. The C2C segment, while smaller in scale, has gained traction with the rise of social commerce and peer-to-peer trading platforms. This segment has been particularly boosted by the launch of innovative platforms like Soum, a re-commerce platform that facilitates consumer-to-consumer transactions. The growth in both segments is further supported by the Saudi government's initiatives to transform the country into a global logistics hub, including significant investments in infrastructure and the implementation of advanced digital solutions for improved delivery services.
Segment Analysis: By Mode of Transport
Road Segment in Saudi Arabia CEP Market
The road transport segment dominates the Saudi Arabian Courier, Express, and Parcel (CEP) market, commanding approximately 34% market share in 2024. The segment's strong performance is driven by the country's comprehensive and highly developed network of roads extending over 75,000 km, facilitating commercial and economic movements across cities. Major players like FedEx, DHL, DB Schenker, UPS, ROAD LOGISTICS, and DAMCo are actively leveraging this extensive road infrastructure. The government's commitment to strengthening road networks is evident through its substantial investment of over SAR 40 billion in local infrastructure projects. Additionally, the introduction of innovative delivery solutions, including refrigerated trucks and testing of fully electric vehicles for e-commerce delivery, is further enhancing the segment's capabilities and reach across the Kingdom.
Air Segment in Saudi Arabia CEP Market
The air transport segment is emerging as the fastest-growing segment in the Saudi Arabian CEP market, with an anticipated growth rate of approximately 7% during 2024-2029. This growth is primarily driven by the country's ambitious Vision 2030 objective of transforming Riyadh's King Salman International Airport into a prominent logistics hub with six runways. The government's USD 100 billion aviation expansion plan is attracting major e-commerce and logistics players like Amazon.com Inc., Alibaba Group Holding Ltd, and Deutsche Post AG's DHL to scale up their cargo operations. The segment's growth is further supported by the rising demand for time-sensitive shipments and the government's initiatives to enhance air cargo capacity to handle up to 3.5 million tons of cargo by 2050.
Remaining Segments in Mode of Transport
Other modes of transport in the Saudi Arabian CEP market primarily include rail and sea transportation services. The railway segment is witnessing significant development with Saudi Arabia possessing the largest existing rail network in the region, supported by substantial investments through initiatives like the Transport Minister's economic and industrial opportunities forum. The maritime transport segment plays a crucial role in facilitating cross-border trade, with over 90% of the country's global trade dependent on this industry. The advancement of these alternative transport modes is essential for creating a diverse and resilient logistics network, particularly as Saudi Arabia positions itself as a global logistics hub in line with its Vision 2030 objectives.
Segment Analysis: By End User Industry
E-Commerce Segment in Saudi Arabia CEP Market
The e-commerce segment dominates the Saudi Arabian Courier, Express, and Parcel (CEP) market, commanding approximately 44% market share in 2024. This significant market position is driven by the country's robust digital infrastructure, with over 90% internet penetration and increasing consumer preference for online shopping. The segment's growth is further supported by Saudi Arabia's Vision 2030 goals, which aim for 70% of transactions to be cashless. Major courier players including Aramex, Barq Express, Saudi Post, and UPS are actively expanding their e-commerce delivery capabilities across the kingdom. The establishment of dedicated e-commerce logistics facilities, such as Noon's 45,000-square-meter customer fulfillment center, demonstrates the segment's strong market presence. Additionally, strategic partnerships between international e-commerce platforms and local courier services, such as AliExpress's collaboration with Naqel Express, are enhancing the segment's market position.
Healthcare Segment in Saudi Arabia CEP Market
The healthcare segment is emerging as one of the fastest-growing segments in the Saudi Arabian CEP market. This growth is primarily driven by the Saudi government's massive investment of over USD 65 billion towards healthcare infrastructure development under Vision 2030. The segment's expansion is supported by specialized delivery services for critical medical shipments, including diagnostic equipment, biological specimens, and pharmaceutical products. Companies like SMSA have established partnerships with the Ministry of Health to serve over 3,500 hospitals and clinics, while Aramex's Biocare cold chain solution provides next-day delivery for clinical samples across the kingdom. The implementation of innovative technological solutions and specialized storage facilities by major courier companies is further accelerating the segment's growth. Additionally, the country's focus on building an integrated, high-quality healthcare system, coupled with the annual 10% growth in medical devices value, is creating sustained demand for specialized courier services in this segment.
Remaining Segments in End User Industry
The Saudi Arabian CEP market encompasses several other significant segments including Financial Services (BFSI), Manufacturing, Primary Industry, and Wholesale and Retail Trade. The BFSI segment is driven by the increasing demand for secure delivery of banking documents, credit cards, and financial products, supported by the kingdom's push toward digital transformation. The manufacturing segment benefits from the country's industrial expansion and the National Industrial Strategy's goal to increase factories to 36,000 by 2035. The primary industry segment, comprising agriculture, fishing, forestry, and oil and gas, continues to generate steady demand for specialized delivery services. The wholesale and retail trade segment is evolving with the integration of omnichannel strategies, while maintaining traditional delivery requirements. Each of these segments contributes uniquely to the market's dynamics, supported by Saudi Arabia's broader economic diversification initiatives under Vision 2030.
Saudi Arabia Courier, Express, and Parcel (CEP) Industry Overview
Top Companies in Saudi Arabia CEP Market
The competitive landscape of Saudi Arabia's courier, express, and parcel market is characterized by continuous innovation and strategic expansion initiatives by major players. Companies are increasingly focusing on automated sorting systems, digital tracking capabilities, and sustainable delivery solutions, including electric vehicles and drone deliveries, to enhance operational efficiency. Strategic partnerships, particularly in the e-commerce sector, have become a crucial trend as companies aim to strengthen their last-mile delivery networks. Players are expanding their physical infrastructure through new fulfillment centers, automated warehouses, and delivery stations while also investing in temperature-controlled facilities for specialized deliveries. The market has witnessed significant technological advancement with companies implementing cloud-based transportation management systems, upstream data linking for last-mile optimization, and artificial intelligence-driven routing solutions. Notably, Naqel Express Saudi Arabia is playing a pivotal role in these advancements.
Market Structure Shows Mixed Global-Local Presence
The Saudi Arabia CEP market exhibits a moderately consolidated structure with a mix of global logistics giants and strong regional players. Global companies like DHL, FedEx, and UPS leverage their international networks and technological capabilities, while regional leaders like Aramex and Saudi Post capitalize on their local market knowledge and established infrastructure. The market has witnessed significant consolidation through strategic acquisitions, notably Saudi Post's acquisition of Naqel Express Saudi Arabia to strengthen its position as an integrated logistics provider. The competitive dynamics are further shaped by specialized players focusing on specific segments such as e-commerce logistics or temperature-controlled deliveries, while larger conglomerates offer end-to-end supply chain solutions.
The market is characterized by increasing collaboration between traditional logistics players and technology companies to enhance digital capabilities and service offerings. Major players are establishing joint ventures and partnerships to combine their strengths in areas such as warehouse automation, last-mile delivery optimization, and cross-border e-commerce solutions. The emergence of new local players, particularly in the e-commerce fulfillment space, has intensified competition while also driving innovation in service delivery models and customer experience enhancement. Among the top 10 courier companies in Saudi Arabia, these collaborations are crucial for maintaining a competitive edge.
Innovation and Digital Integration Drive Success
Success in the Saudi Arabia CEP market increasingly depends on companies' ability to integrate digital solutions and enhance operational efficiency. Incumbent players are focusing on expanding their automated facility networks, implementing advanced tracking systems, and developing specialized solutions for high-growth segments like e-commerce and healthcare logistics. Companies are also investing in sustainable delivery solutions and alternative fuel vehicles to align with government initiatives and changing customer preferences. The development of value-added services, such as reverse logistics capabilities and specialized handling solutions, has become crucial for maintaining competitive advantage.
For new entrants and challenger brands, success factors include developing niche market expertise, establishing strategic partnerships with e-commerce platforms, and leveraging technology for operational optimization. The ability to offer flexible delivery options, maintain high service reliability, and provide competitive pricing while ensuring profitability is crucial. Companies must also navigate regulatory requirements, particularly in areas such as customs clearance and cross-border shipments, while maintaining strong relationships with government entities. The increasing focus on sustainability and digital transformation initiatives under Saudi Vision 2030 presents both opportunities and challenges for market players to align their strategies with national development goals. Companies like Saudi Xpress and Arabia Express are examples of how new entrants can leverage these opportunities.
Saudi Arabia Courier, Express, and Parcel (CEP) Market Leaders
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Aramex
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DHL Group
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FedEx
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Saudi Post- SPL (including Naqel Express)
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SMSA Express Transportation Company Ltd.
- *Disclaimer: Major Players sorted in no particular order
Saudi Arabia Courier, Express, and Parcel (CEP) Market News
- October 2024: UPS had enhanced its air network, enabling faster deliveries for customers across Asia, Africa, and the Middle East, covering over 35 countries. Customers from major Asia Pacific economies had enjoyed next-day delivery to Seoul, South Korea, and from Bangkok to various destinations in the region. In Vietnam, Ho Chi Minh City customers had benefited from next-day services to select regional cities. Shipments from Hanoi to certain Australian cities were completed in just two business days. Additionally, UPS had rolled out Saturday pick-ups in Hanoi for deliveries heading to Sydney, offering businesses more flexibility and accelerating their speed-to-market. Furthermore, deliveries from select Australian cities to Europe were made in as little as two business days.
- September 2024: FedEx partnered with and invested in Nimble, an AI robotics and autonomous e-commerce fulfillment technology company, to scale FedEx Fulfillment with their fully autonomous 3PL model. FedEx offered a comprehensive approach to help e-commerce and omnichannel brands make faster, smarter supply chain decisions. With more than 130 warehouse and fulfillment operations in North America and 475 million returns processed annually, FedEx Supply Chain helped brands consolidate functions, increase agility, and accelerate click-to-door speed to maximize supply chain value.
- August 2024: FedEx introduced new digital visibility products, enhancing the experience for shippers and recipients by merging digital solutions with essential data. These paid solutions catered to the rising market demand for advanced data analytics. Businesses harnessed near real-time insights and predictive analytics, refining their customers' post-purchase experience. FedEx also offered paid data integration solutions, granting third-party providers access to shipment tracking information, including the Track API, Track EDI, and new webhook subscriptions, all designed to enhance premium post-purchase tracking and supply chain visibility.
Free With This Report
We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 60+ free charts, the section covers difficult to find data on various regions pertaining to e-commerce industry trends, economic contribution of the transportation & storage sector, export-import trends, logistics performance among other key indicators.
List of Tables & Figures
- Figure 1:
- POPULATION DISTRIBUTION BY GENDER, COUNT, SAUDI ARABIA, 2017 - 2030
- Figure 2:
- POPULATION DISTRIBUTION BY DEVELOPMENT AREA, COUNT, SAUDI ARABIA, 2017 - 2030
- Figure 3:
- POPULATION DENSITY, POPULATION/SQ. KM, SAUDI ARABIA, 2017 - 2030
- Figure 4:
- GROSS DOMESTIC PRODUCT (GDP) SHARE OF FINAL CONSUMPTION EXPENDITURE (IN CURRENT PRICES), SHARE % OF GDP, SAUDI ARABIA, 2017 - 2023
- Figure 5:
- FINAL CONSUMPTION EXPENDITURE, ANNUAL GROWTH (%), SAUDI ARABIA, 2017 - 2023
- Figure 6:
- POPULATION DISTRIBUTION BY MAJOR CITY, COUNT, SAUDI ARABIA, 2023
- Figure 7:
- DISTRIBUTION OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, SHARE %, SAUDI ARABIA, 2023
- Figure 8:
- GROWTH OF GROSS DOMESTIC PRODUCT (GDP) BY ECONOMIC ACTIVITY, CAGR %, SAUDI ARABIA, 2017 - 2023
- Figure 9:
- WHOLESALE PRICE INFLATION RATE, %, SAUDI ARABIA, 2017 - 2023
- Figure 10:
- CONSUMER PRICE INFLATION RATE, %, SAUDI ARABIA, 2017 - 2023
- Figure 11:
- GROSS MERCHANDISE VALUE (GMV) OF E-COMMERCE INDUSTRY, USD, SAUDI ARABIA, 2017 - 2030
- Figure 12:
- SECTORAL SHARE IN E-COMMERCE INDUSTRY GROSS MERCHANDISE VALUE (GMV), SHARE %, SAUDI ARABIA, 2023
- Figure 13:
- GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY (IN CURRENT PRICES), USD, SAUDI ARABIA, 2017 - 2023
- Figure 14:
- SECTORAL SHARE IN GROSS VALUE ADDED (GVA) OF MANUFACTURING INDUSTRY, SHARE %, SAUDI ARABIA, 2023
- Figure 15:
- VALUE OF TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), USD, SAUDI ARABIA, 2017 - 2022
- Figure 16:
- TRANSPORT AND STORAGE SECTOR GROSS DOMESTIC PRODUCT (GDP), SHARE % OF GDP, SAUDI ARABIA, 2017 - 2022
- Figure 17:
- VALUE OF EXPORTS, USD, SAUDI ARABIA, 2017 - 2023
- Figure 18:
- VALUE OF IMPORTS, USD, SAUDI ARABIA, 2017 - 2023
- Figure 19:
- FUEL PRICE BY TYPE OF FUEL, USD/LITER, SAUDI ARABIA, 2017 - 2023
- Figure 20:
- RANK OF LOGISTICS PERFORMANCE, RANK, SAUDI ARABIA, 2010 - 2023
- Figure 21:
- LENGTH OF ROADS, KM, SAUDI ARABIA, 2018 - 2022
- Figure 22:
- SHARE OF ROAD LENGTH BY SURFACE CATEGORY, %, SAUDI ARABIA, 2022
- Figure 23:
- SHARE OF ROAD LENGTH BY ROAD CLASSIFICATION, %, SAUDI ARABIA, 2022
- Figure 24:
- RAIL LENGTH, KM, SAUDI ARABIA, 2017 - 2022
- Figure 25:
- CONTAINERS HANDLED AT MAJOR PORTS, TWENTY-FOOT EQUIVALENT UNITS (TEUS), SAUDI ARABIA, 2022
- Figure 26:
- CARGO WEIGHT HANDLED AT MAJOR AIRPORTS, TONS, SAUDI ARABIA, 2022
- Figure 27:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 28:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 29:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, NUMBER OF PARCELS, SAUDI ARABIA 2017 - 2030
- Figure 30:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, USD, SAUDI ARABIA 2017 - 2030
- Figure 31:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2017 - 2030
- Figure 32:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2017 - 2030
- Figure 33:
- VOLUME OF DOMESTIC COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 34:
- VALUE OF DOMESTIC COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 35:
- VALUE SHARE OF DOMESTIC COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 36:
- VOLUME OF INTERNATIONAL COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 37:
- VALUE OF INTERNATIONAL COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 38:
- VALUE SHARE OF INTERNATIONAL COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 39:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, NUMBER OF PARCELS, SAUDI ARABIA 2017 - 2030
- Figure 40:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, USD, SAUDI ARABIA 2017 - 2030
- Figure 41:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, %, SAUDI ARABIA, 2017 - 2030
- Figure 42:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SPEED OF DELIVERY, %, SAUDI ARABIA, 2017 - 2030
- Figure 43:
- VOLUME OF EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 44:
- VALUE OF EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 45:
- VALUE SHARE OF EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 46:
- VOLUME OF NON-EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 47:
- VALUE OF NON-EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 48:
- VALUE SHARE OF NON-EXPRESS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 49:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, NUMBER OF PARCELS, SAUDI ARABIA 2017 - 2030
- Figure 50:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, USD, SAUDI ARABIA 2017 - 2030
- Figure 51:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, %, SAUDI ARABIA, 2017 - 2030
- Figure 52:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODEL, %, SAUDI ARABIA, 2017 - 2030
- Figure 53:
- VOLUME OF BUSINESS-TO-BUSINESS (B2B) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 54:
- VALUE OF BUSINESS-TO-BUSINESS (B2B) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 55:
- VALUE SHARE OF BUSINESS-TO-BUSINESS (B2B) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 56:
- VOLUME OF BUSINESS-TO-CONSUMER (B2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 57:
- VALUE OF BUSINESS-TO-CONSUMER (B2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 58:
- VALUE SHARE OF BUSINESS-TO-CONSUMER (B2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 59:
- VOLUME OF CONSUMER-TO-CONSUMER (C2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 60:
- VALUE OF CONSUMER-TO-CONSUMER (C2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 61:
- VALUE SHARE OF CONSUMER-TO-CONSUMER (C2C) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 62:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, NUMBER OF PARCELS, SAUDI ARABIA 2017 - 2030
- Figure 63:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, USD, SAUDI ARABIA 2017 - 2030
- Figure 64:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, %, SAUDI ARABIA, 2017 - 2030
- Figure 65:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY SHIPMENT WEIGHT, %, SAUDI ARABIA, 2017 - 2030
- Figure 66:
- VOLUME OF HEAVY WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 67:
- VALUE OF HEAVY WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 68:
- VALUE SHARE OF HEAVY WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 69:
- VOLUME OF LIGHT WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 70:
- VALUE OF LIGHT WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 71:
- VALUE SHARE OF LIGHT WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 72:
- VOLUME OF MEDIUM WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 73:
- VALUE OF MEDIUM WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 74:
- VALUE SHARE OF MEDIUM WEIGHT SHIPMENTS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 75:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, NUMBER OF PARCELS, SAUDI ARABIA 2017 - 2030
- Figure 76:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, USD, SAUDI ARABIA 2017 - 2030
- Figure 77:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, %, SAUDI ARABIA, 2017 - 2030
- Figure 78:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY MODE OF TRANSPORT, %, SAUDI ARABIA, 2017 - 2030
- Figure 79:
- VOLUME OF AIR COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 80:
- VALUE OF AIR COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 81:
- VALUE SHARE OF AIR COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 82:
- VOLUME OF ROAD COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 83:
- VALUE OF ROAD COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 84:
- VALUE SHARE OF ROAD COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 85:
- VOLUME OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 86:
- VALUE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 87:
- VALUE SHARE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2024 VS 2030
- Figure 88:
- VOLUME OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, NUMBER OF PARCELS, SAUDI ARABIA 2017 - 2030
- Figure 89:
- VALUE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, USD, SAUDI ARABIA 2017 - 2030
- Figure 90:
- VALUE SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2017 - 2030
- Figure 91:
- VOLUME SHARE OF COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY END USER INDUSTRY, %, SAUDI ARABIA, 2017 - 2030
- Figure 92:
- VOLUME OF E-COMMERCE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 93:
- VALUE OF E-COMMERCE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 94:
- VALUE SHARE OF E-COMMERCE COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2024 VS 2030
- Figure 95:
- VOLUME OF FINANCIAL SERVICES (BFSI) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 96:
- VALUE OF FINANCIAL SERVICES (BFSI) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 97:
- VALUE SHARE OF FINANCIAL SERVICES (BFSI) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2024 VS 2030
- Figure 98:
- VOLUME OF HEALTHCARE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 99:
- VALUE OF HEALTHCARE COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 100:
- VALUE SHARE OF HEALTHCARE COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2024 VS 2030
- Figure 101:
- VOLUME OF MANUFACTURING COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 102:
- VALUE OF MANUFACTURING COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 103:
- VALUE SHARE OF MANUFACTURING COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2024 VS 2030
- Figure 104:
- VOLUME OF PRIMARY INDUSTRY COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 105:
- VALUE OF PRIMARY INDUSTRY COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 106:
- VALUE SHARE OF PRIMARY INDUSTRY COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2024 VS 2030
- Figure 107:
- VOLUME OF WHOLESALE AND RETAIL TRADE (OFFLINE) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 108:
- VALUE OF WHOLESALE AND RETAIL TRADE (OFFLINE) COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 109:
- VALUE SHARE OF WHOLESALE AND RETAIL TRADE (OFFLINE) COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2024 VS 2030
- Figure 110:
- VOLUME OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, NUMBER OF PARCELS, SAUDI ARABIA, 2017 - 2030
- Figure 111:
- VALUE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET, USD, SAUDI ARABIA, 2017 - 2030
- Figure 112:
- VALUE SHARE OF OTHERS COURIER, EXPRESS, AND PARCEL (CEP) MARKET BY DESTINATION, %, SAUDI ARABIA, 2024 VS 2030
- Figure 113:
- MOST ACTIVE COMPANIES BY NUMBER OF STRATEGIC MOVES, COUNT, SAUDI ARABIA, 2017 - 2023
- Figure 114:
- MOST ADOPTED STRATEGIES, COUNT, SAUDI ARABIA, 2017 - 2023
- Figure 115:
- VALUE SHARE OF MAJOR PLAYERS, %, SAUDI ARABIA
Saudi Arabia Courier, Express, and Parcel (CEP) Industry Segmentation
Domestic, International are covered as segments by Destination. Express, Non-Express are covered as segments by Speed Of Delivery. Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C) are covered as segments by Model. Heavy Weight Shipments, Light Weight Shipments, Medium Weight Shipments are covered as segments by Shipment Weight. Air, Road, Others are covered as segments by Mode Of Transport. E-Commerce, Financial Services (BFSI), Healthcare, Manufacturing, Primary Industry, Wholesale and Retail Trade (Offline), Others are covered as segments by End User Industry.Destination | Domestic |
International | |
Speed Of Delivery | Express |
Non-Express | |
Model | Business-to-Business (B2B) |
Business-to-Consumer (B2C) | |
Consumer-to-Consumer (C2C) | |
Shipment Weight | Heavy Weight Shipments |
Light Weight Shipments | |
Medium Weight Shipments | |
Mode Of Transport | Air |
Road | |
Others | |
End User Industry | E-Commerce |
Financial Services (BFSI) | |
Healthcare | |
Manufacturing | |
Primary Industry | |
Wholesale and Retail Trade (Offline) | |
Others |
Domestic |
International |
Express |
Non-Express |
Business-to-Business (B2B) |
Business-to-Consumer (B2C) |
Consumer-to-Consumer (C2C) |
Heavy Weight Shipments |
Light Weight Shipments |
Medium Weight Shipments |
Air |
Road |
Others |
E-Commerce |
Financial Services (BFSI) |
Healthcare |
Manufacturing |
Primary Industry |
Wholesale and Retail Trade (Offline) |
Others |
Market Definition
- Courier, Express, and Parcel - The Courier, Express, and Parcel services, often called as CEP Market, refers to the logistics and postal service providers which specialize in moving small goods (parcels/packages). It captures the overall market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express), (4) domestic as well as international shipments.
- Demographics - To analyse total addressable market demand, population growth & forecasts have been studied and presented in this industry trend. It represents population distribution across categories like gender (male/female), development area (urban/rural), major cities among other key parameters like population density and final consumption expenditure (growth and share % of GDP). This data has been used for assessing the fluctations in demand & consumption expenditure, and the major hotspots (cities) of potential demand.
- Domestic Courier Market - Domestic Courier Market refers to the CEP shipments wherein the origin and destination is within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (2) Business Customer packages viz. Business-to-Business (B2B) & Business-to-Consumer (B2C) as well as private customer packages (C2C), (3) non-express parcel delivery services (Standard and Deferred) as well as express parcel delivery services (Day-Definite-Express and Time-Definite-Express).
- E-Commerce - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the e-tailers, through online sales channel, on Courier, Express, and Parcel (CEP) services. The scope includes (i) the supply chain of a company's online customer orders being fulfilled, (ii) the process of getting a product from the point of manufacturing to the point at which it is delivered to consumers. It involves managing inventory (deferred as well as time critical), shipping, and distribution.
- Export Trends and Import Trends - Overall logistics performance of an economy is positively and significantly (statistically) correlated to its trade performance (exports and imports). Hence, in this industry trend, total value of trade, major commodities/ commodity groups and the major trade partners, for the studied geography (country or region as per the scope of report) have been analysed alongside the impact of major trade/logistics infrastructure investments & regulatory environment.
- Financial Services (BFSI) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the BFSI players, on Courier, Express, and Parcel (CEP) services. CEP is important to the financial services industry in shipping of confidential documents and files. The establishments in this sector are engaged in (i) financial transactions (that is, transactions involving the creation, liquidation, or change in ownership of financial assets) or in facilitating financial transactions, (ii) financial intermediation, (iii) the pooling of risk by underwriting annuities and insurance, (iv) providing specialized services that facilitate or support financial intermediation, insurance and employee benefit programs, and (v) monetary control - the monetary authorities.
- Fuel Price - Fuel price spikes can cause delays and diruption for logistics service providers (LSPs), while drops in the same can result in higher short-term profitability and increased market rivalry to offer consumers with the best deals. Hence, the fuel price variations have been studied over the review period and presented along with the causes as well as market impacts.
- GDP Distribution by Economic Activity - Nominal Gross Domestic Product and distribution of the same, across major economic sectors in the geography studied (country or region as per scope of the report) have been studied and presented in this industry trend. As GDP is positively related to the profitability and growth of logistics industry, this data has been used in adjunction to the input-output tables/ supply-use tables for analyzing the potential major contributing sectors towards the logistics demand.
- GDP Growth by Economic Activity - Growth of Nominal Gross Domestic Product across major economic sectors, for the geography studied (country or region as per scope of the report) have been presented in this industry trend. This data has been utilized for assessing the growth of logistics demand from all the market end users (economic sectors considered here).
- Healthcare - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Healthcare players (Hospitals, clinics, mrdical centres) , on Courier, Express, and Parcel (CEP) services. The scope includes CEP services involved in the defrerred as well time critical movement of medical goods & supplies (surgical supplies and instruments, including gloves, masks, syringes, equipment). The establishments in this sector (i) include the ones providing medical care exclusively (ii) deliver services by trained professionals (iii) involve processes, including labor inputs of health practitioners with the requisite expertise (iv) are defined based on the educational degree held by the practitioners included in the industry.
- Inflation - Variations in both Wholesale Price Inflation (YoY change in producer price index) and Consumer Price Inflation have been presented in this industry trend. This data has been used to assess the inflationary environment as it plays a vital role in smooth functioning of the supply chain, directly impacting the logistics operational cost components e.g., pricing of tyres, driver wages & benefits, energy/fuel prices, maintenace costs, toll charges, warehousing rents, custom brokerage, forwarding rates, courier rates etc. hence impacting the overall freight and logistics market.
- Infrastructure - As infrastructure plays a vital role in an economy's logistics performance, variables like length of roads, distribution of road length by surface category (paved v/s unpaved), distribution of road length by road classification (expressways v/s highways v/s other roads), rail length, volume of containers handled by major ports and tonnage handled by major airports have been analysed and presented in this industry trend.
- International Express Service Market - International Express Service Market refers to the CEP shipments wherein the origin or destination is not within the boundary of the geography studied (country or region as per the scope of report). It captures the market size (USD) and market volume (number of parcels) of (1) the shipments/parcels/packages which are under 70kgs/ 154lbs weight, including light weight shipments, medium weight shipments and heavy weight shipments (ii) Inter-Region as well as Intra-Region Shipments
- Key Industry Trends - The report section named "Key Industry Trends" include all the key variables/parameters studied to better analyze the market size estimates and forecasts. All the trends have been presented in the form of data points (time series or latest available data points) along with analysis of the paramter in the form of concise market relevant commentary, for the geography studied (country or region as per the scope of report).
- Key Strategic Moves - The action taken by a company to differentiate from its competitor or used as a general strategy is referred to as a key strategic move (KSM). This includes (1) Agreements (2) Expansions (3) Financial Restructuring (4) Mergers and Acquisitions (5) Partnerships, and (6) Product Innovations. Key players (Logistics Service Providers, LSPs) in the market have been shortlisted, their KSM have been studied and presented in this section.
- Logistics Performance - Logistics Performance and Logistics Costs are the backbone of trade, and influences trade costs, making countries compete globally. Logistics performance is influenced by market wide adopted supply chain management strategies, government services, investments & policies, fuel/ energy costs, inflationary environment etc. Hence, in this industry trend, the logistics performance of the geography studied (country/ region as per the scope of report) has been analysed and presented over the review period.
- Manufacturing - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the Manufacturing industry (including Hi-Tech/Technology) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in the chemical, mechanical or physical transformation of materials or substances into new products. Logistics Service Providers (LSPs) play a crucial role in maintaining a smooth flow of raw materials across the supply chain, enabling timely delivery of finished goods to distributors or end customers and storing & supplying the raw materials to clients for just-in-time manufacturing.
- Other End Users - Other end user segment captures the external (outsourced) logistics expenditure incurred by the construction, real estate, educational services, and professional services (administrative, waste management, legal, architectural, engineering, design, consulting, scientific R&D), on Courier, Express, and Parcel (CEP) services. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of time critical supplies and documents to/from these industries such as transporting any equipment or resources required, shipping confidential documents and files.
- Primary Industry - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the AFF (Agriculture, Fishing, and Forestry) and Extraction indsutry (Oil &Gas, Quarrying and Mining) players, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments (i) primarily engaged in growing crops, raising animals, harvesting timber, harvesting fish & other animals from their natural habitats and providing related support activities; (ii) that extract naturally occurring mineral solids, such as coal and ores; liquid minerals, such as crude petroleum; and gases, such as natural gas. Herein, Logistics Service Providers (LSPs) (i) play a crucial role in acquisition, storage, handling, transportation, and distribution activities for the optimal & continuous flow of inputs (seeds, pesticides, fertilizers, equipment, and water) from manufacturers or suppliers to the producers and smooth flow of output (produce, agro-goods) to distributors/ consumers; (ii) cover entire phases from upstream to downstream and play a crucial role in the transportation of machinery, drilling equipments, extracted minerals, crude oil & natural gas and refined/ processed products from one place to another. This includes both termperature controlled and non-temperature controlled logistics, as and when required according to the shelf life of goods being transported or stored.
- Producer Price Inflation - It indicates inflation from viewpoint of the producers viz. the average selling price received for their output over a period of time. Annual change (YoY) of producer price index is reported as wholesale price inflation in the "Inflation" industry trend. As WPI captures dynamic price movements in most comprehensive way, it is widely used by governments, banks, industry, business circles and is deemed important in formulation of trade, fiscal and other economic policies. The data has been used in adjunction to consumer price inflation for better understanding the inflationary environment.
- Segmental Revenue - Segmental Revenue has been triangulated or computed and presented for all the major players in the market. It refers to the courier, express, and parcel (CEP) market specific revenue earned by the company, over the base year of study, in the geography studied (country or region as per the scope of report). It is computed through the study and analysis of major parameters like financials, service portfolio, employee strength, fleet size, investments, number of countries present in, major economies of concern, etc. that have been reported by the company in its annual reports, webpage. For companies having scarce financial disclosures, paid databases like D&B Hoovers, Dow Jones Factiva have been resorted to and verified through industry/expert interactions.
- Transport and Storage Sector GDP - Value and growth of Transport and Storage Sector GDP has a direct relation to the freight and logistics market size. Hence, this variable has been studied and presented over the review period, in value terms (USD) and as share % of total GDP, in this industry trend. The data has been supported by concise and relevant commentary around the investments, developments, and current market scenario.
- Trends in E-Commerce Industry - Enhanced internet connectivity and boom in smartphone penetration, coupled with increasing disposable incomes, has led to a phenomenal growth in the e-commerce market globally. Online shoppers require fast and efficient delivery of their orders leading to an increase in the demand for logistics services especially e-commerce fulfilment services. Hence, the Gross Merchandise Value (GMV), historial and projected growth, breakup of major commodity groups in e-commerce industry for the studied geography (country or region as per scope of the report) have been analysed and presented in this industry trend.
- Trends in Manufacturing Industry - Manufacturing industry involves the transformation of raw materials into finished products, while logistics industry ensures the efficient flow of raw materials to the factory, and the transport of manufactured products to the distributors & consumers. Demand-Supply of both industries are highly cross-linked and critical for a seamless supply chain. Hence, the Gross Value Added (GVA), breakup of GVA into major manufacturing sectors, and growth of manufacturing industry over the review period have been analysed and presented, in this industry trend.
- Wholesale and Retail Trade (Offline) - This end user industry segment captures the external (outsourced) logistics expenditure incurred by the wholesalers and retailers, through offline sales channel, on Courier, Express, and Parcel (CEP) services. The end user players considered are the establishments primarily engaged in wholesaling or retailing merchandise, generally without transformation, and rendering services incidental to the sale of merchandise. Logistics Service Providers (LSPs) plays a crucial role in the reliable movement of supplies to and finished products from production houses to the distributors and finally to the end customer covering activites like material sourcing, transportation, order fulfillment, warehousing & storage, demand forecasting, inventory management etc.
Keyword | Definition |
---|---|
Axle Load | The axle load refers to the total load (weight) bearing on the roadway through wheels connected to a given axle. Across the globe, there are systems in place to ensure axle load monitoring, wherein surpassing the defined limits set by the concerned regulatory authority can lead to penalty/fine. For transportation of goods via road this can be an important determinant of costs as knowledge about the axle load limits can be used to (i) load the vehicle optimally for maximizing profits (ii) avoid exceeding the same and hence the probable fines associated (iii) avoid wear and tear of the vehicle (iv) avoid damage to pavement resulting in noticeable public maintenance and repair costs (v) achieve better turnaround time. |
Back Haul | Backhaul is the return movement of a transport vehicle from its original destination to its original point of departure, and can include full, partial, or empty truck loads (all or part of the way) depending on the visibility of the local freight ecosystem. In this regard, transportation of empty containers to the point of origin, known as deadheading is also a significant factor, considering the supply/container shortages across the geographies, resulting in cost escalation and under optimized profit potential attainment. Generally, the carriers offer discounts on the backhaul, to secure freight for the trip. |
Bill of Lading (BOL) | A bill of lading is a legal contract document issued by a carrier to a shipper to acknowledge reception of their cargo, and is evidence for the contract of carriage between the two parties. Broadly it details the (i) type, quantity, and other specifications of the goods being carried (ii) destination, and terms & conditions of the shipment (iii) carrier and drivers with all the necessary information to process the shipment, which can be used for insurance and customs clearance purposes (iv) assurance that the consignment is damage-free and ready to be shipped to the consignee. In this regard, a house bill of lading (HBL) is a document issued by a freight forwarder or a non-vessel operating common carrier (NVOCC) to acknowledge receipt of items for shipment (to a shipper). If shipments from several shippers are involved a master bill of lading (MBL) might be involved which is a consolidated version of the same for all the shipments being taken care of by the carrier (to a common destination) and might be issued by the carrier to the freight forwarder or the shipper (depending on who books the transport). |
Bunkering | Bunkering is the process of supplying fuel to power the propulsion system of a ship. It includes the logistics of loading and distributing the fuel among available shipboard tanks. In this regard, (i) Bunker fuel is technically any type of fuel oil used aboard ships. It gets its name from the containers on ships and in ports that it is stored in; in the days of steam they were coal bunkers but now they are bunker-fuel tanks, (ii) Bunker refers to the spaces (Tank) on board a vessel to store fuel, (iii) Bunker trader refers to a person dealing in trade of bunker (fuel), (iv) Bunker call is made when a cargo ship anchors or berths in a port to take on bunker oil or supplies, (v) Bunkering service is the supply of a requested quality and quantity of bunkers to a ship. Bunkering is signficant from point of view of freight rates applicable to the shipper as Bunker Contribution (BUC)/ Fuel Adjustment Factor (FAF)/ Bunker Adjustment Factor (BAF) are applied by shipping lines to offset the effect of fluctuations in the cost of bunkers. |
Cabotage | Transport by a vehicle registered in a country, performed on the national territory of another country. Cabotage law may restrict domestic cargo traffic to be carried in its own nationally registered, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cabotage that can be serviced by foreign registered fleet. |
C-commerce | Collaborative commerce (also known as C-commerce), (i) describes electronically enabled business interactions among an enterprise’s internal personnel, business partners and customers throughout a trading community (industry, industry segment, supply chain or supply chain segment); (ii) is the optimization of supply and distribution channels to capitalize on the global economy by using new technology efficiently. Advantages of C-commerce, to detail few include (i) maximization of organization's efficiency and profitability (ii) technology integration with physical channels to allow companies to work together (iii) increased information exchange such as inventory and product specifications, using the web as an intermediary (iv) increased competitiveness by reaching a broader audience. Examples of C-commerce, also known as peer-to-peer commerce, include (i) companies that allow consumers to rent things from each other, or marketplaces, such as Meta (formerly Facebook) Marketplace, that allow the sale of used goods; (ii) DoorDash teamed up with many national brands, such as McDonald’s and Chipotle, to offer fast food delivery, building their business model on c-commerce. They have since expanded their delivery service from restaurants to retailers and even offer 'fleets' of drivers to businesses. |
Courier | A business/company that delivers packages/parcels/shipments (upto 70 kgs) including quick door to door pickup and delivery service for goods or documents, domestically or internationally, on a commercial contract basis. Example, DHL Group, FedEx, United Parcel Service of America, Inc., USPS, International Distributions Services, J&T Express, SF Express among several others |
Cross docking | Cross docking is a practice in logistics management that includes unloading incoming delivery vehicles and loading the materials directly into outbound delivery vehicles, omitting traditional warehouse logistical practices and saving time and money. It requires close synchronization of both inbound and outbound movements. It is highly significant in reduction of costs pertaining to warehousing & storage (and the associated Value Added Services). |
Cross Trade | International transport between two different countries performed by a vehicle registered in a third country. A third country is a country other than the country of loading/embarkation and the country of unloading/disembarkation. Cross Trade law may restrict international cargo traffic to be carried by respective country's registered vehicles, and sometimes built and crewed vehicles, though regulations vary across industries/commodity groups/countries and sometimes specify maximum allowable percentage of cross trade that can be serviced by foreign registered fleet. |
Customs Clearance | The process of declaring and clearing cargoes through customs. It includes the procedures involved in getting cargo released by Customs through designated formalities such as presenting import license/permit, payment of import duties and other required documentations by the nature of the cargo. In this regard, a customs broker is a person or company licensed by the respective department of the country to act on behalf of freight importers and exporters. |
Dangerous Goods | Dangerous goods (or hazardous materials or HAZMAT) include flammable liquids/solids, gases (compressed, liquified, dissolved under pressure), corrosives, oxidising substances, explosive substances and articles, substances which on contact with water emit flammable gasses, organic peroxides, toxic substances, infectious substances, radioactive materials, miscellaneous dangerous goods and articles. |
First mile Delivery | First mile delivery refers to the (i) first stage of the freight/shipment/cargo/courier transportation (ii) the transportation of goods from a merchant’s premises or warehouse to the next fulfillment centre/warehouse/hub from where the goods are forwarded (iii) shipping goods from local distribution centers to stores (For retailers) (iv) transportation of finished goods from a plant or a factory to a distribution center (For manufacturers), (v) pick up of goods from the end-customer’s home or store followed by movement to a warehouse or storage location (movers and packers), (vi) process where goods are picked up from a retailer and then transferred to third-party logistics providers or courier service providers to be delivered to the end-consumer (e-commerce). Once the package reaches the next warehouse or the courier’s hub, it is then sorted and transported further until it reaches the customer’s doorstep. Example, if one chooses UPS as a courier, first-mile delivery will be the product being delivered from manufacturer's/retailer's warehouse to the UPS’s warehouse/ fulfilment centre. |
Last Mile Delivery | Last mile delivery refers to the very last step of the delivery process when a parcel is moved from a transportation hub (warehouse or a distribution center or fulfillment centre) to its final destination, which usually is a personal residence/retail store/ business, or parcel locker. It accounts for around half of the total cost involved in entire process of first mile, middle mile, and last mile delivery, though it can vary shipment to shipment, based on commodity, business model and similar factors. |
Milkrun | A Milk Run is a delivery method used to transport mixed loads from various suppliers to one customer, using lean management principles applied to logistics. Instead of each supplier sending a truck every week to meet the needs of one customer, one truck (or vehicle) visits the suppliers to pick up the loads for that customer. This method of transport got its name from the dairy industry practice, where one tanker used to collect milk from several dairy farms for delivery to a milk processing company. A milk run can be a more efficient way to handle logistics but require proper planning. If the route involves products from different companies, there is need for an agreement about cost-sharing and other aspects of the cooperative delivery arrangement. Once the group settles these issues, this delivery method can save time and money for everyone by pooling operation costs and resources. |
Multi country consolidation | Multi-Country Consolidation (MCC) is a cost-effective solution that consolidates one's cargo from different countries of origin to build Full Container Loads (FCL). MCC is most suitable for companies that import light volumes of goods from multiple countries but want to take advantage of the more economic FCL freight rates. Apart from costing some of the other advantages include (i) flexibility to choose suppliers from a wider range of origin countries without worrying about the logistics to final destination from each origin, (ii) ability to pick the most suitable suppliers from many different countries for one's business operations. The increase in one's sourcing options by MCC provides the kind of flexibility needed in competitive global markets. |
Q-commerce | Q-commerce, also referred to as quick commerce, is a type of e-commerce where emphasis is on quick deliveries, typically in less than an hour. The companies providing Q-Commerce services might have vertically intergrated model or might be using third party delivery platforms (outsourced logistics). It has advantages like (i) competitve USP, (ii) potential to earn greater profit margins, (iii) better customer experience, (iv) guaranteed availability of products, (v) traceability, and (vi) scaleability. |
ReverseLogistics | Reverse logistics is a type of supply chain management that moves goods from customers back to the sellers or manufacturers and may involve ciruclar economy principles (3Rs) viz. recycling, reuse (repurposing, reselling), reducing or repairing. In this regard, reverse commerce (or Recommerce) is the selling of previously owned items through physical or online marketplaces/distribution channels to buyers who reuse, recycle or resell them. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is considered to be a part of the pricing, and the average selling price (ASP) is varying throughout the forecast period for each country
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms