Market Size of saudi arabia courier, express, and parcel (cep) Industry
| Icons | Lable | Value |
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 1.27 Billion |
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Market Size (2030) | USD 1.88 Billion |
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Largest Share by Destination | Domestic |
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CAGR (2024 - 2030) | 6.76 % |
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Fastest Growing by Destination | International |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Saudi Arabia Courier, Express, and Parcel (CEP) Market Analysis
The Saudi Arabia Courier, Express, and Parcel (CEP) Market size is estimated at 1.27 billion USD in 2024, and is expected to reach 1.88 billion USD by 2030, growing at a CAGR of 6.76% during the forecast period (2024-2030).
1.27 Billion
Market Size in 2024 (USD)
1.88 Billion
Market Size in 2030 (USD)
5.89 %
CAGR (2017-2023)
6.76 %
CAGR (2024-2030)
Fastest Growing Market by Speed of Delivery
7.74 %
Projected CAGR, Express, 2024-2030
The introduction of specialized services specific to express delivery is majorly driving the segment's growth.
Fastest Growing Market by Model
8.78 %
Projected CAGR, Business-to-Consumer (B2C), 2024-2030
E-commerce, a major driver, is a pivotal element of Saudi Arabia's Vision 2030, for which the government is working toward boosting the segment for increased smoother operations.
Largest Market by Shipment Weight
52.15 %
value share, Light Weight Shipments, 2023
Online orders of goods like apparel, beauty products, personal care products, and groceries are majorly driving demand in the segment.
Largest Market by End User Industry
42.90 %
value share, E-Commerce, 2023
E-commerce is a major delivery demand generator, and it is driven by demand from a younger population of online shoppers, favorable government policies, and rising internet penetration.
First Leading Market Player
15.91 %
market share, Aramex, 2022
In Saudi Arabia, Aramex inaugurated a new 5,900 sq. m express courier handling facility with a capacity of up to 100,000 shipments a day.
Industry advancements coupled with increasing e-commerce are driving growth
- E-commerce has been a major driver for domestic and international CEP market growth. The biggest player in the Saudi Arabian e-commerce market is extra.com. The store had a revenue of USD 278.3 million in 2022. This was followed by amazon.sa and nahdionline.com as the second- and third-largest stores, with revenues of USD 242.0 million and USD 211.6 million, respectively. The top three stores collectively accounted for 31.8% of the top 100 online stores' revenue in Saudi Arabia in 2022. With e-commerce user penetration projected to reach 73% by 2027, the Saudi Arabian CEP market is expected to grow significantly.
- Due to the COVID-19 pandemic, there was a surge in the CEP market as the demand for e-commerce increased. In 2021, as restrictions were relaxed, there was a surge in all the sectors in Saudi Arabia, which drove the growth of CEP in the country. E-commerce is one of the major factors driving market growth. With higher connectivity rates, a young working population, and advanced infrastructure, the country is one of the major markets in online retailing in the Middle East. The “Pick-Up and Drop-Off” (PUDO) collection points are expected to gain popularity in the future. Currently, around 15% to 20% of the e-commerce orders are collected at a physical location operated by the courier companies or their partners. It also makes return management easy for the companies.
- In 2021, the domestic segment of the Saudi Arabian CEP market had a share contribution of 65.68% in terms of revenue. In 2021, the international segment had a 34.32% share contribution to the Saudi Arabian CEP market in terms of revenue. The overall CEP market value is projected to record a CAGR of 7.03% during 2023-2029, owing to increasing demand for e-commerce in the country.
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Understand The Key Trends Shaping This Market
