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Saudi Arabia Freight And Logistics Market Size

The Saudi Arabia Freight and Logistics Market is poised for growth, driven by substantial investments in infrastructure and transportation. The government's strategic initiatives, including the enhancement of the road network and the development of a comprehensive transportation system, are key to expanding the market's scope. These efforts are part of a broader vision to position Saudi Arabia as a global logistics hub, supported by the significant expansion of its maritime fleet. The focus on integrating smart technology and urban development further underscores the country's commitment to advancing its logistics sector, aligning with its long-term economic goals.

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Market Size of saudi arabia freight and logistics Industry

Saudi Arabia Freight And Logistics Market Summary
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svg icon Study Period 2017 - 2030
svg icon Market Size (2024) USD 25.49 Billion
svg icon Market Size (2030) USD 35.9 Billion
svg icon Largest Share by Logistics Function Freight Transport
svg icon CAGR (2024 - 2030) 5.88 %
svg icon Fastest Growing by Logistics Function Courier, Express, and Parcel (CEP)
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Saudi Arabia Freight And Logistics Market Analysis

The Saudi Arabia Freight And Logistics Market size is estimated at 25.49 billion USD in 2024, and is expected to reach 35.9 billion USD by 2030, growing at a CAGR of 5.88% during the forecast period (2024-2030).

25.49 Billion

Market Size in 2024 (USD)

35.9 Billion

Market Size in 2030 (USD)

5.14 %

CAGR (2017-2023)

5.88 %

CAGR (2024-2030)

Fastest Growing Segment by Mode of Transport

7.14 %

Projected CAGR, Air, 2024-2030

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Aligned with the goals outlined in Vision 2030, Saudi Arabia is actively pursuing the transformation of Riyadh Airport into a prominent logistics hub and six-runway airport.

Largest Segment by Destination Type

65.48 %

value share, Domestic, 2023

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The e-commerce sector in the country grew by over 13% YoY in 2023, boosting the growth of the domestic CEP market.

Largest Segment by End User

30.88 %

value share, Wholesale and Retail Trade, 2023

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The Saudi e-commerce sector is projected to grow at a CAGR of 13.47% from 2023 to 2027, supporting the growth of the end-user industry.

Largest Segment by Temperature Control

78.16 %

value share, Non-Temperature Controlled, 2023

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During H1 2023, warehouse rents in Riyadh experienced a 20% increase, driven by the surging demand for specialized storage spaces amid the e-commerce growth.

Fastest Growing Segment by Temperature Control

6.79 %

Projected CAGR, Temperature Controlled, 2024-2030

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The year 2023 witnessed a surge in cold storage construction. For instance, in September 2023, Sadr Logistics Company unveiled plans for a USD 39.72 million logistics complex in Riyadh's Industrial Gate City.

Rising investment in infrastructure projects leading to smooth transportation supply chain in the country

  • To enhance the road network in Saudi Arabia, the government has formulated plans to invest SAR 40 billion (USD 10.6 billion). In 2023, the government initiated the construction of four highway projects through the Public-Private Partnership (PPP) model. With the goal of transforming the country into a prominent transportation hub, the Kingdom has ambitious plans to invest over USD 147 billion in the near future, specifically targeting the development of the transportation and logistics industry.
  • Saudi Arabia is making significant investments in infrastructure, which are laying the groundwork for its future development. In addition to these large-scale projects, the country is also focusing on social and urban development initiatives, such as the Sakani housing program, and leveraging smart technology to drive progress. To improve mobility within the Kingdom, the government is expanding transportation infrastructure with projects like the Riyadh Metro and Riyadh Rapid Bus Transit System, totaling an investment of USD 22.5 billion.
  • Over the past years, the maritime fleet of Saudi Arabia has experienced significant growth in terms of tonnage, boasting a fleet of 368 tankers and ships with a total capacity of 13.5 million tons. This substantial marine fleet plays a crucial role in the global maritime transport industry, which serves as the foundation for 90% of global trade. This reinforces Saudi Arabia's position and leadership on the international stage while also reaffirming its genuine ambition to establish itself as a global logistics center in alignment with the goals outlined in Vision 2030.
Saudi Arabia Freight And Logistics Market

Saudi Arabia Freight And Logistics Industry Segmentation

Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, Others are covered as segments by End User Industry. Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage are covered as segments by Logistics Function.

  • To enhance the road network in Saudi Arabia, the government has formulated plans to invest SAR 40 billion (USD 10.6 billion). In 2023, the government initiated the construction of four highway projects through the Public-Private Partnership (PPP) model. With the goal of transforming the country into a prominent transportation hub, the Kingdom has ambitious plans to invest over USD 147 billion in the near future, specifically targeting the development of the transportation and logistics industry.
  • Saudi Arabia is making significant investments in infrastructure, which are laying the groundwork for its future development. In addition to these large-scale projects, the country is also focusing on social and urban development initiatives, such as the Sakani housing program, and leveraging smart technology to drive progress. To improve mobility within the Kingdom, the government is expanding transportation infrastructure with projects like the Riyadh Metro and Riyadh Rapid Bus Transit System, totaling an investment of USD 22.5 billion.
  • Over the past years, the maritime fleet of Saudi Arabia has experienced significant growth in terms of tonnage, boasting a fleet of 368 tankers and ships with a total capacity of 13.5 million tons. This substantial marine fleet plays a crucial role in the global maritime transport industry, which serves as the foundation for 90% of global trade. This reinforces Saudi Arabia's position and leadership on the international stage while also reaffirming its genuine ambition to establish itself as a global logistics center in alignment with the goals outlined in Vision 2030.
End User Industry
Agriculture, Fishing, and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others
Logistics Function
Courier, Express, and Parcel (CEP)
By Destination Type
Domestic
International
Freight Forwarding
By Mode Of Transport
Air
Sea and Inland Waterways
Others
Freight Transport
By Mode Of Transport
Air
Pipelines
Rail
Road
Sea and Inland Waterways
Warehousing and Storage
By Temperature Control
Non-Temperature Controlled
Temperature Controlled
Other Services
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Saudi Arabia Freight And Logistics Market Size Summary

The Saudi Arabia Freight and Logistics Market is poised for substantial growth, driven by significant government investments and strategic initiatives aimed at transforming the country into a global logistics hub. The government's Vision 2030 plan underscores this ambition, with a focus on enhancing transportation infrastructure, including roads, railways, and airports. The Kingdom is investing heavily in projects such as the GCC railway and the expansion of maritime capabilities, which are integral to supporting its vision of becoming a major player in the global logistics industry. These efforts are complemented by urban development initiatives and the integration of smart technologies, which are expected to bolster the efficiency and capacity of the logistics sector.

The market landscape is characterized by a fragmented industry with key players like Almajdouie, Bahri, Binzagr Company, SMSA Express Transportation Company Ltd., and Wared Logistics holding significant shares. Recent developments, such as Aramex's expansion in Riyadh and Kuehne + Nagel's strategic agreements, highlight the ongoing efforts to enhance logistics capabilities and sustainability. These initiatives are part of a broader strategy to diversify the economy, reduce reliance on oil, and meet ambitious environmental targets. As Saudi Arabia continues to invest in its logistics infrastructure, the sector is expected to play a crucial role in the country's economic diversification and growth trajectory.

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Saudi Arabia Freight And Logistics Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (includes 1. Market value in USD for all segments 2. Market volume for select segments viz. freight transport, CEP (courier, express, and parcel) and warehousing & storage 3.Forecasts up to 2029 and analysis of growth prospects)

    1. 1.1 End User Industry

      1. 1.1.1 Agriculture, Fishing, and Forestry

      2. 1.1.2 Construction

      3. 1.1.3 Manufacturing

      4. 1.1.4 Oil and Gas, Mining and Quarrying

      5. 1.1.5 Wholesale and Retail Trade

      6. 1.1.6 Others

    2. 1.2 Logistics Function

      1. 1.2.1 Courier, Express, and Parcel (CEP)

        1. 1.2.1.1 By Destination Type

          1. 1.2.1.1.1 Domestic

          2. 1.2.1.1.2 International

      2. 1.2.2 Freight Forwarding

        1. 1.2.2.1 By Mode Of Transport

          1. 1.2.2.1.1 Air

          2. 1.2.2.1.2 Sea and Inland Waterways

          3. 1.2.2.1.3 Others

      3. 1.2.3 Freight Transport

        1. 1.2.3.1 By Mode Of Transport

          1. 1.2.3.1.1 Air

          2. 1.2.3.1.2 Pipelines

          3. 1.2.3.1.3 Rail

          4. 1.2.3.1.4 Road

          5. 1.2.3.1.5 Sea and Inland Waterways

      4. 1.2.4 Warehousing and Storage

        1. 1.2.4.1 By Temperature Control

          1. 1.2.4.1.1 Non-Temperature Controlled

          2. 1.2.4.1.2 Temperature Controlled

      5. 1.2.5 Other Services

Saudi Arabia Freight And Logistics Market Size FAQs

The Saudi Arabia Freight And Logistics Market size is expected to reach USD 25.49 billion in 2024 and grow at a CAGR of 5.88% to reach USD 35.90 billion by 2030.

In 2024, the Saudi Arabia Freight And Logistics Market size is expected to reach USD 25.49 billion.

Logistics Industry in Saudi Arabia Report Snapshots

Saudi Arabia Freight And Logistics Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030