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Saudi Arabia Contract Logistics Market Size (2024 - 2029)

The Saudi Arabia Contract Logistics Market is experiencing significant growth, driven by the rapid modernization and expansion of the Saudi economy. The demand for logistics services has surged due to the establishment of new channels for commodity movement, supported by substantial government investments in transportation, logistics, and warehousing. These investments have enhanced production and efficiency, positioning Saudi Arabia as a leading nation in the Middle East with advanced infrastructure and logistics services. The sector's development strategy includes activating logistics platforms and creating industrial cities and hubs to foster industrial growth, modernization, and job creation, ultimately aiming to transform the nation into a competitive global economy and boost its GDP.

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Market Size of Saudi Arabia Contract Logistics Industry

Saudi Arabia Contract Logistics Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 5.50 %
Market Concentration Medium

Major Players

Saudi Arabia Contract Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Contract Logistics Market Analysis

The size of the Saudi Arabia Contract Logistics Market is valued at about USD 2850 million in the current year and is anticipated to register a CAGR of over 5.5% during the forecast period. The need for logistics services has significantly increased as a result of the fast-paced modernization and expansion of the Saudi economy.

  • Beginning in 2023, the Saudi Arabian logistics industry will experience extraordinary expansion. This is because more people across the nation need logistics services as a result of the establishment of new channels for the movement of commodities.
  • Over the past few years, the Saudi government has made investments in the transportation, logistics, and warehousing sectors, which have helped to increase production and efficiency.
  • With its cutting-edge infrastructure and top-notch logistical services, the Saudi Kingdom has been able to establish itself as one of the most prosperous nations in the Middle East thanks to these investments.
  • Due to an expenditure of 2.1 billion Saudi rials (USD 559 million), 208 logistics contracts and 3.2 million square meters of leased space have been made possible.
  • The sector's development strategy also calls for the activation of logistics platforms that have been approved by the Supreme Committee for Transport and Logistics Services.
  • These industrial cities and logistics hubs are created to support Saudi Arabia's industrial growth and modernization by giving firms a place to operate and creating new job opportunities.
  • The goal is to make the Middle Eastern nation into a modern, competitive economy by opening up its markets to the rest of the globe. They are also anticipated to significantly increase the nation's Gross Domestic Product (GDP).

Saudi Arabia Contract Logistics Industry Segmentation

Contract logistics refers to the outsourcing of resource management duties to a third-party company. Contract logistics companies handle a variety of duties including supply chain development and planning, facility design, warehousing, delivery, and distribution, order processing, payment collection, inventory management, and some types of customer assistance.

The report provides a comprehensive background analysis of the Saudi Arabia Contract Logistics market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the industry's competitive landscape. Additionally, the COVID-19 impact has been incorporated and considered during the study. The Saudi Arabia Contract Logistics Market is segmented By Type (Insourced and Outsourced), By End User (Manufacturing and Automotive, Consumer Goods and Retail, High-Tech, Healthcare, Pharmaceuticals, Chemicals, Petrochemicals, and Other End Users). The report offers the Saudi Arabia Contract Logistics market size and forecasts in values (USD billion) for all the above segments.

By Type
Insourced
Outsourced
By End User
Manufacturing and Automotive
Consumer Goods and Retail
High-tech
Healthcare
Pharmaceuticals
Chemicals
Petrochemicals
Other End Users
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Saudi Arabia Contract Logistics Market Size Summary

The Saudi Arabia contract logistics market is experiencing significant growth, driven by the rapid modernization and economic expansion within the country. The government's strategic investments in transportation, logistics, and warehousing have enhanced production and efficiency, positioning Saudi Arabia as a leading logistics hub in the Middle East. The establishment of new logistics platforms and industrial cities is part of a broader strategy to support industrial growth and create job opportunities, aligning with the nation's vision to become a competitive global economy. The market is characterized by its fragmented nature, with various specialized service providers contributing to the expansion of logistical processes and cross-border trade.

The increasing consumer demand for e-commerce and advanced payment options is further fueling the growth of the logistics sector in Saudi Arabia. With high smartphone penetration and rapid internet adoption, the e-commerce market is poised for continued expansion. Additionally, the government's focus on healthcare privatization and infrastructure development under Vision 2030 is expected to bolster the logistics market. Initiatives such as the establishment of logistics zones and partnerships with global companies like DHL aim to enhance supply chain efficiency and sustainability. These developments are set to strengthen Saudi Arabia's role in regional and global logistics, supporting its economic diversification goals.

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Saudi Arabia Contract Logistics Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Value Chain/Supply Chain Analysis

    3. 1.3 Government Regulations and Initiatives

    4. 1.4 Technological Trends

    5. 1.5 Insights on the E-commerce Industry (Domestic and Cross-border E-commerce)

    6. 1.6 Insights on Contract Logistics in the Context of After-sales/Reverse Logistics

    7. 1.7 Brief on Different Services Provided by Contract Logistics Players (Integrated Warehousing and Transportation, Supply Chain Services, and Other Value-added Services)

    8. 1.8 Spotlight - Freight Transportation Costs/Freight Rates

    9. 1.9 Insights on Free Trade Zones in Saudi Arabia

    10. 1.10 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Insourced

      2. 2.1.2 Outsourced

    2. 2.2 By End User

      1. 2.2.1 Manufacturing and Automotive

      2. 2.2.2 Consumer Goods and Retail

      3. 2.2.3 High-tech

      4. 2.2.4 Healthcare

      5. 2.2.5 Pharmaceuticals

      6. 2.2.6 Chemicals

      7. 2.2.7 Petrochemicals

      8. 2.2.8 Other End Users

Saudi Arabia Contract Logistics Market Size FAQs

The Saudi Arabia Contract Logistics Market is projected to register a CAGR of greater than 5.5% during the forecast period (2024-2029)

Almajdouie Group, Mosanada Logistics Services , DHL, Hala Supply Chain Services and GAC are the major companies operating in the Saudi Arabia Contract Logistics Market.

Saudi Arabia Contract Logistics Market Report Snapshots

Saudi Arabia Contract Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)