Saudi Arabia E-commerce Logistics Market Size (2024 - 2029)

Saudi Arabia E-commerce Logistics Market Analysis

The Saudi Arabia E-commerce Logistics Market size is estimated at USD 2.02 billion in 2024, and is expected to reach USD 3.32 billion by 2029, growing at a CAGR of 10.94% during the forecast period (2024-2029).

• Electronic commerce is expected to flourish in Saudi Arabia, with total revenues reaching SAR 49 billion (USD 13.07 billion) by 2025, according to the Deputy Minister of Commerce and General Supervisor of the Saudi Center for Economic Business, which is creating a significant demand for efficient logistics solutions.
• The increasing internet penetration in the region is driving the market, which is widening the consumer base. According to industry experts, data suggests that the richer Middle Eastern nations have high internet adoption rates. Bahrain, Kuwait, Qatar, Saudi Arabia, and the UAE all reported over 99% of their online population in January 2024.
• Government initiatives to promote digital transformation are further propelling the market. For instance, The Saudi government has been actively supporting the growth of e-commerce in the country through initiatives such as the National Transformation Program (NTP) and Vision 2030. The younger demographic's inclination toward online shopping is also influencing market dynamics. The rise of online-only sales events, the efficiency of inventory management systems, and a growing emphasis on customer service quality also contribute to the market.
• Secure and various payment methods are offering consumers flexibility and trust, enhancing market growth. Moreover, the Saudi Arabian Government is taking steps to strengthen Saudis’ confidence in e-commerce and to spur the use of e-commerce platforms by strengthening the country’s e-commerce regulatory environment to protect consumers and logistics companies. Since online retailers depend more on 3PL service providers, it is expected to positively influence the Saudi e-commerce logistics sector.

Saudi Arabia E-commerce Logistics Industry Segmentation

E-commerce logistics, referred to as e-logistics, is a process e-commerce brands use to get an order out the door and into the hands of the customer. After shoppers make an online purchase, the order is packed, shipped, delivered, and sometimes returned. It includes inventory management, Pricing, Packing, Shipping, Order fulfillment, Warehousing, and Last-mile delivery.

The Saudi Arabia e-commerce logistics market is segmented by service (transportation, warehousing, and inventory management, and value-added services (labeling, packaging, etc.)), by business (B2B and B2C), destination (domestic and international/cross-border), by product (fashion and apparel, consumer electronics, home appliances, furniture, beauty and personal care products, and other products (toys, food products, etc.)). The report offers market size and forecasts in value (USD) for all the above segments.