Saudi Arabia Third-Party Logistics (3PL) Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 13.70 Billion |
| Market Size (2029) | USD 18.67 Billion |
| CAGR (2024 - 2029) | 6.38 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Saudi Arabia Third-Party Logistics (3PL) Market Analysis
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).
The COVID-19 pandemic impacted the volume of demand for goods in several sectors in Saudi Arabia. The import sector of retail products experienced an unprecedented decline due to the widespread closure of retail stores and the imposition of travel restrictions, and many challenges have arisen for the Third-party logistics sector in Saudi Arabia.
In Saudi Arabia, the third-party logistics sector is gaining a lot of traction as a way to manage the growing cross-border movement of commodities. Consumer preferences are changing, and there is a growing 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 partner with many countries of the globe owing to the large oil reserves present in the country. Saudi Arabia lies at the crossroads of key international trade routes between three continents: Asia, Europe, and Africa. The accessibility to emerging markets hands significant trade advantages to the country and highlights the growing demand for 3PL in the country.
The lesser control of manufacturers on logistics service and delivery processes is anticipated to hinder the third-party logistics market for same in the coming years. Factors such as enabling cost reduction, availability of specialized service providers, the presence of industrial zones, and increasing industrialization are driving the 3PL logistics market in Saudi Arabia.
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 an advantage to low-cost trucking in the region. Moreover, In order to further enhance mobility in the country, 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 Third-Party Logistics (3PL) Market Trends
Growth in E-Commerce boosting the demand for 3PL services
- The expansion in the e-commerce business drove the growth of the 3PL market in Saudi Arabia. COVID-19 lockdown measures had a significant impact on e-commerce. Despite the fact that sales were already strong throughout the review period, limits and curfews prompted most businesses to shift from in-store to e-commerce to offset losses (due to the absence of in-store shopping). With the expansion of the supply chain and the emergence of new technologies, new businesses have evolved, and existing businesses have grown even more.
- Saudi Arabia has the largest population in the GCC, with a tech-savvy and growing young population, which makes it a key market player in the region. In 2022, more than 90 percent of the population had internet access. These factors eased e-commerce adoption among the population, with around 80 percent of active internet users in Saudi Arabia engaging in online shopping, which is the same share as in China.
- Thus, Saudi Arabia's e-commerce market is one of the largest in the region, and it is expected to continue growing. While the COVID-19 pandemic shook businesses around the world, e-commerce witnessed immense growth. Saudi Arabia was no exception to this general trend.
Increasing Maritime Trade in Saudi Arabia is Driving Demand for 3PL Services.
- Saudi Arabia’s marine industry has been changing rapidly, making the country a regional logistic hub and an international participant in global trade because the region is at a key location in the international trade route. Saudi Arabia has an advantage in the marine industry as it overlooks the Red Sea and the Arabian Gulf.
- Saudi Arabia is one of the main destinations for maritime activities and is on the path of becoming a complete logistic hub. All the development in the maritime sector is enhancing the logistic services of the country making it reach a better logistic position. This scenario has highly increased the need for 3PL logistics in Saudi Arabia to efficiently handle complex marine logistics processes.
- The King Abdullah Port Project, which drew an investment of SAR 40 billion (USD 10.66 billion), is contributing to increasing Saudi exports to more than SAR 600 billion (USD 159.96 billion) by 2030. King Abdullah Port is the first port that is fully owned and operated by the private sector. The port is known for its container handling capacity and is listed as one of the world’s largest ports.
- The Saudi government has recognized the importance of the maritime industry to expand its regional as well as international logistic services in the state. Saudi Arabia is now one of the main destinations for maritime activities and is on the path of becoming a complete logistic hub.
- In January 2022, Saudi Arabia and Greece signed a cooperation agreement for maritime transport. The deal includes developing commercial maritime navigation and increasing the traffic of commercial ships. It also aims to provide facilities to maritime transport companies. The agreement also includes a mechanism for the treatment of ships of both countries when accessing their ports, stay, and departure, and in cases of emergency and maritime accidents in their territorial waters.
Saudi Arabia Third-Party Logistics (3PL) Industry Overview
The market is fairly fragmented, with a large number of domestic and international businesses competing. Among 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 potential of the region and the growing relevance of commercial ties, logistics and service organizations that currently have a huge foothold in Saudi Arabia are extending their operations.
Saudi Arabia Third-Party Logistics (3PL) Market Leaders
Almajdouie Group
Al-Futtaim Logistics
Wared Logistics
Deutsche Post DHL Group - DHL Supply Chain
Aramex
*Disclaimer: Major Players sorted in no particular order
_Market_-_Market_concentration.webp)
Saudi Arabia Third-Party Logistics (3PL) Market News
- March 2023: One of the leading players, DHL, has signed an end-to-end procurement and logistics hub joint venture with Saudi giant Saudi Aramco. This joint venture aims to be operational in 2025 and provide reliable end-to-end integrated procurement and supply chain services for companies across the industrial, energy, chemical, and petrochemical sectors. The joint venture would initially focus on Saudi Arabia, with aspirations to expand across the MENA region.
- May 2023: Aramex, one of the leading 3PL Players in the region, has signed a strategic partnership with AD Ports Group, the leading facilitator of global trade and logistics, to develop and operate a new Non-Vessel Operating Common Carrier (“NVOCC”) enterprise. In the joint venture, Aramex has a stake of 49% and will further enhance and develop shipping connectivity across the GCC, Indian, and East and West African markets with a target of 10,000 containers in the short term and plans to increase the number of containers in the medium- to long-term.
- January 2022: Almajdouie Group expanded its logistical footprints in Saudi Arabia by announcing its partnership with Future Minerals Forum as the official carrier and logistics service provider.
Saudi Arabia Third-Party Logistics (3PL) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.1.1 Increasing Cross-Border Trade
4.2.1.2 Development of Transportation Infrastructure in the Country
4.2.1.3 Establishment of Special Economic Zones
4.2.2 Restraints
4.2.2.1 High Cost of 3PL Services
4.2.2.2 Skilled Labor Shortages
4.2.3 Opportunities
4.2.3.1 Saudi Vision 2030
4.2.3.2 Changing Consumer Demands
4.3 Value Chain/Supply Chain Analysis
4.4 Industry Policies and Regulations
4.5 General Trends in Warehousing Market
4.6 Demand from Other Segments, such as CEP, Last Mile Delivery, and Cold Chain Logistics
4.7 Insights into the E-commerce Business
4.8 Technological Developments in the Logistics Sector
4.9 Industry Attractiveness - Porter's Five Forces Analysis
4.9.1 Bargaining Power of Suppliers
4.9.2 Bargaining Power of Buyers/Consumers
4.9.3 Threat of New Entrants
4.9.4 Threat of Substitute Products
4.9.5 Intensity of Competitive Rivalry
4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By End-User
5.2.1 Automotive & Manufacturing
5.2.2 Oil and Gas
5.2.3 Chemical
5.2.4 Distributive Trade (Wholesale and Retail Trade, including E-commerce)
5.2.5 Pharmaceutical and Healthcare
5.2.6 Construction
5.2.7 Other End-Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Almajdouie Group
6.2.2 Al-Futtaim Logistics
6.2.3 WARED LOGISTICS
6.2.4 Deutsche Post DHL Group - DHL Supply Chain
6.2.5 Aramex
6.2.6 BAFCO International
6.2.7 Hala Supply Chain Services
6.2.8 Starlinks Logistics
6.2.9 LSC Logistics
6.2.10 Mosanada Logistics Services (MLS)
6.2.11 Motion Supply Chain
6.2.12 Etmam Logistics
6.2.13 Camels Party Logistics*
- *List Not Exhaustive
7. FUTURE OF THE SAUDI ARABIA 3PL MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of the Transport and Storage Sector to Economy)
8.2 External Trade Statistics - Exports and Imports, by Product
8.3 Insights into the Key Export Destinations and Import Origin Countries
Saudi Arabia Third-Party Logistics (3PL) Industry Segmentation
Third-party logistics, or 3PL, is a system in which one company offers another company inventory management and delivery services. A company that does not have its own logistics department frequently uses a 3PL company.
The market report covers the top third-party logistics companies in Saudi Arabia. It is segmented by service (domestic transportation management, international transportation management, value-added warehousing, and distribution), by end-user (automotive and manufacturing, oil and gas, chemicals, distributive trade (wholesale and retail trade, including e-commerce), pharmaceutical and healthcare, construction, and other end users).
The report offers market size and forecasts for the Saudi Arabian third-party logistics market in value (USD) for all the above segments.
| By Service | |
| Domestic Transportation Management | |
| International Transportation Management | |
| Value-added Warehousing and Distribution |
| By End-User | |
| Automotive & Manufacturing | |
| Oil and Gas | |
| Chemical | |
| Distributive Trade (Wholesale and Retail Trade, including E-commerce) | |
| Pharmaceutical and Healthcare | |
| Construction | |
| Other End-Users |
Saudi Arabia Third-Party Logistics (3PL) Market Research Faqs
How big is the Saudi Arabia Third-Party Logistics Market?
The Saudi Arabia Third-Party Logistics Market size is expected to reach USD 13.70 billion in 2024 and grow at a CAGR of 6.38% to reach USD 18.67 billion by 2029.
What is the current Saudi Arabia Third-Party Logistics Market size?
In 2024, the Saudi Arabia Third-Party Logistics Market size is expected to reach USD 13.70 billion.
Who are the key players in Saudi Arabia Third-Party Logistics Market?
Almajdouie Group, Al-Futtaim Logistics, Wared Logistics, Deutsche Post DHL Group - DHL Supply Chain and Aramex are the major companies operating in the Saudi Arabia Third-Party Logistics Market.
What years does this Saudi Arabia Third-Party Logistics Market cover, and what was the market size in 2023?
In 2023, the Saudi Arabia Third-Party Logistics Market size was estimated at USD 12.88 billion. The report covers the Saudi Arabia Third-Party Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Third-Party Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Saudi Arabia Third-Party Logistics (3PL) Industry Report
Statistics for the 2024 Saudi Arabia Third-Party Logistics (3PL) market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia Third-Party Logistics (3PL) 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.
