Market Overview
| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 14.57 Billion |
| Market Size (2030) | USD 19.86 Billion |
| Growth Rate (2025 - 2030) | 6.38% CAGR |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Saudi Arabia Third-Party Logistics Market Analysis
The Saudi Arabia Third-Party Logistics Market size is estimated at USD 14.57 billion in 2025, and is expected to reach USD 19.86 billion by 2030, at a CAGR of 6.38% during the forecast period (2025-2030).
Saudi Arabia's logistics landscape is undergoing a transformative phase driven by robust industrial growth and infrastructure development initiatives. The manufacturing sector demonstrated remarkable momentum with a 10.1% increase in June 2023, reflecting the growing demand for sophisticated logistics solutions. The government's Vision 2030 reform program is actively diversifying the economy beyond oil dependency, with significant investments in urban infrastructure projects including the USD 22.5 billion Riyadh Metro and Rapid Bus System. These developments are reshaping the logistics network, creating new opportunities for third-party logistics providers to optimize their service offerings and expand their operational footprint.
The digital transformation of logistics operations is accelerating, particularly in the e-commerce sector, which has witnessed substantial growth with approximately 36,330 registered companies as of Q3 2023, marking a 12% year-over-year increase. This digital revolution has prompted 3PL providers to incorporate advanced technologies and logistics automation into their supply chain management services, enhancing operational efficiency and meeting evolving consumer demands for faster delivery times. The integration of robotics and artificial intelligence in warehousing operations is becoming increasingly prevalent, with companies like Geek+ and Starlinks deploying over 250 autonomous mobile robots in new fulfillment centers.
The kingdom's strategic geographical position at the crossroads of international trade routes connecting Asia, Europe, and Africa has catalyzed significant investments in logistics infrastructure. The Saudi government has unveiled an ambitious master plan to establish 59 logistics centers across the kingdom, spanning over 100 million square meters, aimed at strengthening the country's position as a global logistics hub. This extensive network of logistics facilities is designed to enhance supply chain management efficiency and support the growing demands of cross-border trade, particularly in emerging markets.
The road transportation sector remains a crucial component of the logistics landscape, with approximately 40,000 trucks operating in the market as of 2022, creating a competitive environment that benefits from low-cost trucking advantages. Major industry developments include the launch of ASMO, a joint venture between DHL and Aramco in February 2024, aimed at providing comprehensive end-to-end integrated logistics services for the energy, chemicals, and industrial sectors. This strategic collaboration exemplifies the industry's evolution towards more integrated and specialized logistics solutions, particularly in serving Saudi Arabia's core industrial sectors while enhancing supply chain resilience across the Middle East and North Africa region.
Saudi Arabia 3PL Market Trends
E-commerce Growth Fueling 3PL Industry
The robust growth of e-commerce in Saudi Arabia has emerged as a primary catalyst for the third-party logistics industry's expansion. The kingdom has witnessed remarkable digital adoption rates, with over 90% of the population having access to internet services by 2023, complemented by a 97% mobile phone penetration rate that ranks among the world's highest. This digital infrastructure has created a fertile ground for e-commerce operations, with approximately 80% of active internet users engaging in online shopping, rivaling adoption rates seen in major markets like China. The presence of a growing tech-savvy young population has further accelerated this transition, making Saudi Arabia a key market player in the region's digital commerce landscape.
The evolution of consumer behavior and retail operations has necessitated sophisticated logistics solutions from 3PL providers. In January 2024, the International Trade Administration of the United States recognized Saudi Arabia's e-commerce sector as an increasingly viable sales channel for international companies, highlighting the country's 10th global ranking in internet speed. This digital transformation has prompted retailers and logistics providers to enhance their capabilities, with many companies investing in advanced tracking systems, last-mile delivery solutions, and expanded transportation networks to support the growing e-commerce ecosystem. The collaboration between government initiatives and private sector participants has been crucial in modernizing logistics infrastructure to meet the demands of digital commerce, fostering economic growth and employment opportunities in the process.
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Strategic Infrastructure Development and Regional Connectivity
Saudi Arabia's commitment to developing world-class logistics infrastructure has positioned the country as an emerging regional logistics hub. The landmark King Abdullah Port Project, backed by a substantial investment of SAR 40 billion (USD 10.66 billion), exemplifies this commitment to infrastructure development. The port's strategic significance is evidenced by its impressive 2.3% growth in container traffic during the first quarter of 2023, demonstrating its increasing capability in handling international trade volumes. As the first fully private sector-owned and operated port in the region, it has introduced innovative operational models that have enhanced efficiency and service quality in the transportation and logistics sector.
The kingdom's infrastructure development strategy has gained further momentum through international partnerships and initiatives. In September 2023, Saudi Arabia's participation in the India-Middle East-Europe Economic Corridor and Partnership for Global Infrastructure and Investment (PGII) alongside major global powers has opened new avenues for trade and logistics operations. This strategic alliance is expected to enhance connectivity, reduce trade barriers, and create new opportunities for supply chain services providers. Additionally, the Saudi government's ambitious plan to establish 59 logistics centers across the kingdom, with a combined area exceeding 100 million square meters, demonstrates its commitment to creating a comprehensive logistics network that can support both domestic and international trade operations. The integration of logistics automation and advanced supply chain management practices is anticipated to further streamline operations and boost efficiency across the sector.
Segment Analysis: By Service
Domestic Transportation Management Segment in Saudi Arabia 3PL Market
The Domestic Transportation Management segment dominates the Saudi Arabia third-party logistics market, commanding approximately 56% of the total market share in 2024. This segment's prominence is driven by the proliferation of e-commerce businesses in Saudi Arabia, where 3PL firms have established strategic partnerships for e-commerce fulfillment. These companies offer a comprehensive range of services, including reverse logistics, storage, and distribution services for the domestic market. The segment's growth is further supported by the Kingdom's extensive transportation and logistics infrastructure development, including 73,000 km of national roads, 4,900 km of highways, and 4,500 km of rail networks with an annual capacity of 11 million tons. The government's National Transport and Logistics Strategy has been instrumental in expanding and digitizing the entire transportation ecosystem, focusing on improving sea-to-air and rail-to-road connectivity.
Value-Added Services Segment in Saudi Arabia 3PL Market
The Value-Added Services segment is emerging as the fastest-growing segment in the Saudi Arabia 3PL market, projected to grow at approximately 7% during the forecast period 2024-2029. This robust growth is attributed to the increasing demand for customized and value-enhanced logistics solutions among businesses. Third-party logistics providers are expanding their service offerings to include specialized activities such as packaging, kitting, inventory management, and other value-added warehousing services that are challenging to maintain during in-house warehouse operations. The segment's growth is further driven by the rising need for customized and personalized services in Saudi Arabia, creating opportunities for 3PL providers to offer tailored solutions that help customers optimize their supply chain operations while reducing inventory costs and increasing availability.
Remaining Segments in Service-based Saudi Arabia 3PL Market
The International Transportation Management segment plays a crucial role in Saudi Arabia's 3PL market by facilitating global trade connections and supporting the Kingdom's position as a logistics hub. This segment encompasses comprehensive services for managing cross-border shipments, including freight forwarding, customs clearance, international freight forwarding, and global supply chain coordination. The segment benefits from Saudi Arabia's strategic location at the intersection of three continents and its extensive infrastructure development initiatives. The integration of advanced tracking systems, optimization of international routes, and implementation of efficient customs procedures have enhanced the segment's capability to serve diverse industry verticals and support the Kingdom's vision of becoming a global logistics hub.
Segment Analysis: By End User
Distributive Trade Segment in Saudi Arabia 3PL Market
The distributive trade segment, which includes wholesale and retail trade including e-commerce, dominates the Saudi Arabia third-party logistics market with approximately 35% market share in 2024. This segment's prominence is driven by the rapid growth of e-commerce, increasing demand for efficient transportation and logistics solutions, and the government's support for domestic FMCG product development. The segment has been particularly boosted by the transformation of retail landscapes, with modern trade channels gaining significance and discounters reaching 64% of the region's population. The rise of online shopping platforms, coupled with Saudi Arabia's position as the largest importer of food and agricultural products among GCC countries, has further strengthened this segment's market leadership. Additionally, the increasing adoption of cold chain logistics solutions and specialized infrastructure for temperature-sensitive products has enhanced the segment's capabilities in serving diverse retail and e-commerce needs.
Pharmaceuticals & Healthcare Segment in Saudi Arabia 3PL Market
The pharmaceuticals and healthcare segment is emerging as the fastest-growing sector in the Saudi Arabia 3PL market, with a projected growth rate of approximately 7% during 2024-2029. This remarkable growth is primarily driven by Saudi Arabia's healthcare transformation initiatives under Vision 2030, which aims to increase private sector contribution from 40% to 65% by 2030. The segment's expansion is further supported by the government's significant investment plans exceeding USD 65 billion to develop healthcare infrastructure, including the privatization of 290 hospitals and 2,300 primary health centers. The growth is also fueled by the increasing focus on localizing the pharmaceutical sector, with recent regulations encouraging local manufacturing and the development of specialized logistics firms serving the medical industry. The implementation of advanced tracking and monitoring systems, along with temperature-controlled transportation solutions, is attracting more 3PL providers to invest in healthcare-specific logistics capabilities.
Remaining Segments in Saudi Arabia 3PL Market End User Segmentation
The remaining segments in the Saudi Arabia 3PL market include manufacturing & automotive, oil, gas & chemicals, construction, and others, each contributing significantly to the market's diversity. The manufacturing & automotive segment is driven by Vision 2030's focus on industrial development and the growing automotive sector. The oil, gas & chemicals segment remains crucial due to Saudi Arabia's position as a global energy hub, while the construction segment is benefiting from massive infrastructure development projects across the kingdom. The 'others' segment encompasses various industries including telecommunications, high-tech, and mining sectors, which are experiencing growth due to digital transformation initiatives and the kingdom's push towards economic diversification. These segments collectively demonstrate the market's broad scope and its vital role in supporting Saudi Arabia's economic transformation.
Saudi Arabia 3PL Industry Overview
Top Companies in Saudi Arabia Third-Party Logistics Market
The Saudi Arabian third-party logistics market features a mix of established global players and strong regional operators, with companies like DSV (Agility Logistics), Almajdouie Logistics, WARED, and BLC leading the market. These companies are increasingly focusing on technological integration, with significant investments in automation, robotics, and digital platforms to enhance operational efficiency. Strategic partnerships and joint ventures have become commonplace, particularly in specialized segments like cold chain logistics and e-commerce fulfillment. Companies are expanding their warehouse networks across key economic zones while simultaneously developing value-added logistics solutions such as supply chain consulting and custom logistics solutions. The market leaders are also prioritizing sustainability initiatives, including investments in electric vehicles and energy-efficient warehousing facilities, aligning with Saudi Vision 2030's environmental goals.
Fragmented Market with Strong Growth Potential
The Saudi Arabian 3PL market exhibits a fragmented structure, characterized by the presence of both international logistics conglomerates and specialized local players. Global giants like DSV and DHL leverage their extensive international networks and advanced technological capabilities, while local players such as Almajdouie and WARED capitalize on their deep understanding of regional markets and established relationships with local businesses. The market has witnessed significant consolidation activity, exemplified by strategic acquisitions such as DSV's acquisition of Agility's Global Integrated Logistics business, which has reshaped the competitive landscape and enhanced service capabilities across the region.
The market dynamics are further influenced by the increasing presence of specialized service providers focusing on niche segments such as cold chain logistics, e-commerce fulfillment, and chemical logistics. Joint ventures between international and local players have become a prominent strategy for market expansion, combining global expertise with local market knowledge. The competitive intensity is particularly high in major economic zones and urban centers, where players compete through service differentiation, technological capabilities, and value-added offerings rather than purely on price-based competition.
Innovation and Adaptability Drive Market Success
Success in the Saudi Arabian 3PL market increasingly depends on companies' ability to adapt to evolving customer needs and technological advancements. Market leaders are investing heavily in digital transformation, including warehouse automation, artificial intelligence-driven routing systems, and real-time tracking capabilities. The development of specialized solutions for high-growth sectors such as e-commerce, healthcare, and manufacturing has become crucial for maintaining competitive advantage. Companies are also focusing on building sustainable practices and green logistics solutions, recognizing their growing importance in customer decision-making and regulatory compliance.
For new entrants and smaller players, success lies in identifying and serving underserved market segments or geographical areas while developing strategic partnerships to overcome infrastructure and scale limitations. The ability to offer flexible, customized logistics service provider solutions while maintaining cost efficiency is becoming increasingly important as customer expectations evolve. Companies must also navigate the regulatory landscape, particularly regarding localization requirements and environmental standards, while building strong relationships with key stakeholders in the Saudi market. The development of specialized expertise in handling specific product categories or industry verticals offers a pathway for differentiation in this competitive market.
Saudi Arabia 3PL Market Leaders
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Almajdouie Group
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Al-Futtaim Logistics
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Wared Logistics
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Deutsche Post DHL Group - DHL Supply Chain
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Aramex
- *Disclaimer: Major Players sorted in no particular order
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Saudi Arabia 3PL Market News
- December 2023: Omniful, a company that offers an order management system to third-party logistics, raised USD 5.85 million in seed funding led by VentureSouq. It will use the funds to improve its platform, which is called plug-and-play. Omniful's cloud platform, known for its flexibility and configurable features, can be configured to suit your needs. Its API-first strategy facilitates smooth integration with various global and local e-commerce platforms, marketplaces, ERP systems, POS systems, and shipping tech stacks.
- March 2023: One of the leading players, DHL, signed an end-to-end procurement and logistics hub joint venture with Saudi giant Saudi Aramco. This joint undertaking aims to enter operations in 2025 and provide a wide range of integrated supply chain and procurement services for companies from all sectors, including industry, energy, chemicals, and petrochemicals. The joint venture will focus on Saudi Arabia to grow across the Middle East and North Africa.
- May 2023: Aramex, one of the leading 3PL players in the region, signed a strategic partnership with AD Ports Group, the leading facilitator of global trade and logistics, to operate and develop 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 intends to increase the number of containers in the medium- to long-term.
Saudi Arabia 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.
A complete background analysis of the African cold chain logistics market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.
The Saudi Arabian third-party logistics market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution) and end user (automotive and manufacturing, oil and gas, chemical, 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 all the above segments in value (USD).
| By Service | Domestic Transportation Management |
| International Transportation Management | |
| Value-added Warehousing and Distribution | |
| By End User | Automotive and Manufacturing |
| Oil and Gas | |
| Chemical | |
| Distributive Trade (Wholesale and Retail Trade, including E-commerce) | |
| Pharmaceutical and Healthcare | |
| Construction | |
| Other End Users |
By Service
| Domestic Transportation Management |
| International Transportation Management |
| Value-added Warehousing and Distribution |
By End User
| Automotive and Manufacturing |
| Oil and Gas |
| Chemical |
| Distributive Trade (Wholesale and Retail Trade, including E-commerce) |
| Pharmaceutical and Healthcare |
| Construction |
| Other End Users |
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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 14.57 billion in 2025 and grow at a CAGR of 6.38% to reach USD 19.86 billion by 2030.
What is the current Saudi Arabia Third-Party Logistics Market size?
In 2025, the Saudi Arabia Third-Party Logistics Market size is expected to reach USD 14.57 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 2024?
In 2024, the Saudi Arabia Third-Party Logistics Market size was estimated at USD 13.64 billion. The report covers the Saudi Arabia Third-Party Logistics Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Saudi Arabia Third-Party Logistics Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
