Saudi Arabia Third-Party Logistics (3PL) Market Size (2024 - 2029)

Saudi Arabia Third-Party Logistics 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).

In Saudi Arabia, the third-party logistics sector is gaining much traction to manage the growing cross-border movement of commodities. Consumer preferences are changing, and there is an increasing 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 ally with many nations owing to its large oil reserves. Saudi Arabia lies at the crossroads of crucial international trade routes between three continents: Asia, Europe, and Africa. The accessibility to emerging markets brings significant trade advantages to the country and highlights the growing demand for 3PL.

In February 2024, DHL and Aramco launched ASMO. ASMO is planned, in line with Saudi Arabia's growing demand for more robust and efficient supply chain services and the region's increased market potential, to become a significant trading gateway in the energy, chemicals, and industrial sectors. DHL launched ASMO with a plan to evolve as the market leader in Saudi Arabia and the Middle East and North Africa region. It plans to offer comprehensive end-to-end supply chain services that will create value for its customers and enhance the resilience of its supply chain.

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 low-cost trucking in the region an advantage. In addition, the government is investing in urban infrastructure undertakings such as the USD 22.5 billion Riyadh Metro and a Rapid Bus System to improve mobility throughout the country further.

Saudi Arabia 3PL Industry Segmentation

Third-party logistics, or 3PL, is a system in which one company offers another company inventory management and delivery services. A company that does not have its own logistics department frequently uses a 3PL company.

A complete background analysis of the African cold chain logistics market, including the assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and COVID-19 impact, is covered in the report.

The Saudi Arabian third-party logistics market is segmented by service (domestic transportation management, international transportation management, and value-added warehousing and distribution) and end user (automotive and manufacturing, oil and gas, chemical, distributive trade [wholesale and retail trade, including e-commerce], pharmaceutical and healthcare, construction, and other end users). The report offers market size and forecasts for all the above segments in value (USD).