GCC Finished Vehicle Logistics Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 13.34 Billion |
| Market Size (2029) | USD 16.31 Billion |
| CAGR (2024 - 2029) | > 4.10 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
GCC Finished Vehicle Logistics Market Analysis
The GCC Finished Vehicle Logistics Market size is estimated at USD 13.34 billion in 2024, and is expected to reach USD 16.31 billion by 2029, at a CAGR of greater than 4.10% during the forecast period (2024-2029).
- In GCC countries, rising vehicle registrations, organized transportation and warehousing activities, increased investments, and the expansion of automobile manufacturing plants, alongside the growth of intermodal freight transportation, are propelling the growth of the finished vehicles logistics market.
- Furthermore, the integration of blockchain technology into finished vehicle logistics systems stands out as a pivotal development, poised to fuel market expansion in the years ahead. Many companies are leveraging this technology to streamline operations and achieve cost savings in vehicle logistics. Blockchain's adoption in the finished vehicle logistics sector enhances transparency and efficiency in transportation. It not only boosts the visibility and predictability of logistics operations but also hastens the movement of goods. Several market players are harnessing this technology for real-time tracking of each vehicle unit and automating transaction management.
- Nonetheless, challenges such as vehicle damage during transit, a shortage of truck drivers, and the high costs tied to finished vehicle logistics pose hurdles to the growth of the GCC finished vehicles logistics market.
GCC Finished Vehicle Logistics Market Trends
Government Investments In Road Infrastructure is Driving the market
According to the Ministry of Transport and Logistics Services (MTLS), Saudi Arabia's road network stretches over 73,000 km. Of this, 49,000 km consists of single-lane roads, which the Kingdom plans to upgrade to two-lane roads, while motorways make up 5,000 km. Additionally, Saudi Arabia boasts 144,000 km of functional dirt roads.
The Kingdom is leveraging its road network not just to bolster logistics growth but also to enhance passenger transport. In February 2023, the government inked investment contracts to roll out a nationwide bus network. This network aims to link over 200 locations through 76 distinct routes. Designed to serve intercity needs, the bus services target an annual ridership of 6 million passengers. Furthermore, the initiative aligns with national sustainability goals by aiming to curtail car journeys. Economically, this venture is projected to inject approximately SAR 3.2 billion (USD 853 million) into the annual GDP.
In April 2023, the government revealed tendering for several motorway projects: Jeddah-Makkah (64 km), Yanbu-Jubail (447 km), Asir-Jazan (136 km), and Jeddah-Jazan (570 km). These projects are part of the National Center for Privatization (NCP) efforts, focusing on privatization and public-private partnerships (PPP). The MTLS is overseeing the tendering process. Once completed, these projects are set to bolster the Kingdom's high-capacity, high-speed road transport capabilities significantly. Overall, these initiatives underscore Saudi Arabia's commitment to enhancing its transportation infrastructure and logistics, driving economic growth, and achieving sustainability goals.
Saudi Arabia is dominating the region
Saudi Arabia's automotive industry, with imports surpassing one million vehicles annually, ranks among the world's top 20 vehicle import markets and stands as the largest in the Arab World. The consistent growth of Saudi Arabia's automotive sector is primarily attributed to the government's dedication to enhancing the automotive value chain and increasing local content, all part of a broader initiative to rejuvenate the manufacturing landscape.
As the nation pushes forward with its ambitions, it targets an annual production of 300,000 cars by 2030, alongside 3–4 original equipment manufacturers (OEMs) aiming to produce over 400,000 passenger vehicles. Notably, Saudi Arabia currently dominates the GCC, accounting for more than half of its car sales. By 2030, the county aims to produce 300,000 cars annually and has 3–4 original equipment manufacturers (OEMs) producing over 400,000 passenger vehicles. Ceer, the Saudi EV brand, is poised to inject USD 8 billion into the nation's GDP by 2034. The Saudi automotive aftermarket, valued at USD 4.2 billion, constitutes 40% of the entire GCC aftermarket industry. Initiatives like the National Automotive and Vehicles Academy (NAVA) and the Automotive Manufacturers Association (AMA) are specifically designed to nurture local capabilities, particularly in the emerging EV sector, accelerating overall sector development.
As the Saudi automotive industry continues its rapid ascent, the appetite for aftermarket products and services—ranging from spare parts and accessories to maintenance—will inevitably surge. Currently, the cumulative value of the Saudi automotive aftermarket stands at an impressive USD 4.2 billion, making up roughly 40% of the entire GCC aftermarket landscape. With these strategic advancements, the Finished Vehicle Market in Saudi Arabia is poised for significant growth, solidifying its position as a key player in the global automotive industry.
GCC Finished Vehicle Logistics Industry Overview
GCC Finished Vehicle Logistics Market has become increasingly competitive and fragmented with a large number of local and regional players and a few global players. Some of the major players in the GCC region include Gallega Global Logistics, RSA Global, Almajdouie Logistics, Al-Futtaim Logistics, Gulf Agency Company Ltd., and many more. Major companies in the market have adopted new technology adoption, partnerships, business expansions, and acquisitions as their key developmental strategies to offer better services to customers in the industry. For instance, PPG Member, Almajdouie Logistics (MLC) and GEFCO Group have announced the formation of 50-50 joint ventures in automotive logistics. They have partnered to provide finished vehicle logistics services to Almajdouie Auto (MMC), the importer of Hyundai in Saudi Arabia.
GCC Finished Vehicle Logistics Market Leaders
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Gallega Global Logistics
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RSA Global
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Almajdouie Logistics
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Al-Futtaim Logistics
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Gulf Agency Company Ltd.
*Disclaimer: Major Players sorted in no particular order
GCC Finished Vehicle Logistics Market News
- October 2024: CEVA Logistics, a global leader in third-party logistics, and Almajdouie Logistics, a prominent end-to-end logistics solutions provider in the Middle East, finalized their joint venture agreement yesterday in the Kingdom of Saudi Arabia (KSA). Initially announced in July 2024 and later sanctioned by the pertinent Saudi authorities, the newly minted joint venture—CEVA Almajdouie Logistics—aims to harness the combined strengths of both firms. This collaboration seeks to cater to the surging demand for integrated logistics solutions in Saudi Arabia, bolstering the Kingdom's expanding logistics sector and its broader economy. CEVA Logistics and Almajdouie Logistics have a history of collaboration, including a prior joint venture focused on the finished vehicle logistics market.
- November 2023: Saudi Arabia Railways, in partnership with Al-Jabr Automotive, is set to transport thousands of vehicles annually via train from King Abdulaziz Port in Dammam. This collaboration seeks to enhance operational efficiency, curtail costs, and reduce both damage and carbon emissions. Under a four-year contract, the focus is on streamlining operational processes, cutting costs, and reducing damage during the transportation and handling of new cars. This agreement highlights SAR's unwavering dedication to sustainable solutions in the transport and logistics arena. In line with the National Strategy for Transport and Logistics, SAR has set an ambitious goal: a 25% reduction in carbon emissions by 2030, echoing the Kingdom's broader environmental objectives.
GCC Finished Vehicle Logistics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Market Scenario
4.2 Insights into Logistics Technological Advancements
4.3 Insights into Inbound, Outbound Services, and Other Services (Vehicle Recall)
4.4 Insights into Areas such as Reverse Logistics Services, Contract Logistics, and Third Party Logistics Market
4.5 Value Chain/Supply Chain Analysis
4.6 Government Regulations and Initiatives
4.7 Trends in Intermodal Transportation in GCC
4.8 Insights on the Effect of Geopolitical Events on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Automotive Industry is driving the market
5.1.2 Rising demand for Electric Vehicles
5.2 Market Restraints/Challenges
5.2.1 Rising Cost and Driver Shortage
5.2.2 The Rise in Fuel cost
5.3 Market Opportunities
5.3.1 Green transport Solutions
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Activity
6.1.1 Transportation
6.1.1.1 Roadways
6.1.1.2 Railways
6.1.1.3 Maritime
6.1.1.4 Airways
6.1.2 Warehousing
6.1.3 Other Value-added Services
6.2 By Country
6.2.1 United Arab Emirates
6.2.2 Saudi Arabia
6.2.3 Rest of GCC
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 Gallega Global Logistics
7.2.2 RSA Global
7.2.3 Almajdouie Logistics
7.2.4 Al-Futtaim Logistics
7.2.5 Gulf Agency Company Ltd.
7.2.6 CEVA Logistics
7.2.7 DHL
7.2.8 Kuehne + Nagel International AG
7.2.9 Yusen Logistics Co., Ltd.
7.2.10 GEFCO*
- *List Not Exhaustive
7.3 Other Companies
8. FUTURE OF THE MARKET
9. APPENDIX
9.1 Macroeconomic Indicators (GDP Distribution, by Activity)
9.2 Economic Statistics - Transport and Storage Sector Contribution to the Economy
9.3 External Trade Statistics - Export and Import, by Product
9.4 Insight into Key Export Destinations
9.5 Insight into Key Import Origin Countries
GCC Finished Vehicle Logistics Industry Segmentation
Finished vehicle logistics refers to the activities involved in the movement of a vehicle from the time it leaves the OEM production line until it reaches the dealer or final customer. Storage, post-production modification, maintenance, repair, port processing, shipyard management, claims management and pre-delivery inspection are additional significant operations in addition to the actual transportation of the vehicle, which can be accomplished by road, rail, sea, or even air.
The report provides a comprehensive background analysis of the market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry.
The GCC Finished Vehicle Logistics Market is Segmented by Activity (Transportation (Roadways, Railways, Maritime, and Airways), Warehousing, and Other Value-added services), and By Country (United Arab Emirates, Saudi Arabia and Rest of GCC). The report offers the market size and forecasts in value (USD) for all the above segments.
| By Activity | ||||||
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| Warehousing | ||||||
| Other Value-added Services |
| By Country | |
| United Arab Emirates | |
| Saudi Arabia | |
| Rest of GCC |
GCC Finished Vehicle Logistics Market Research FAQs
How big is the GCC Finished Vehicle Logistics Market?
The GCC Finished Vehicle Logistics Market size is expected to reach USD 13.34 billion in 2024 and grow at a CAGR of greater than 4.10% to reach USD 16.31 billion by 2029.
What is the current GCC Finished Vehicle Logistics Market size?
In 2024, the GCC Finished Vehicle Logistics Market size is expected to reach USD 13.34 billion.
Who are the key players in GCC Finished Vehicle Logistics Market?
Gallega Global Logistics, RSA Global, Almajdouie Logistics, Al-Futtaim Logistics and Gulf Agency Company Ltd. are the major companies operating in the GCC Finished Vehicle Logistics Market.
What years does this GCC Finished Vehicle Logistics Market cover, and what was the market size in 2023?
In 2023, the GCC Finished Vehicle Logistics Market size was estimated at USD 12.79 billion. The report covers the GCC Finished Vehicle Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the GCC Finished Vehicle Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
GCC Finished Vehicle Logistics Industry Report
Statistics for the 2024 GCC Finished Vehicle Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. GCC Finished Vehicle Logistics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
GCC Finished Vehicle Logistics Market Report Snapshots
