Market Size of Saudi Arabia Third-Party Logistics (3PL) Industry
| 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 |
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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.
