Saudi Arabia Warehouse Automation Market Outlook to 2026
Bolstering Ecommerce Industry & Ambitious Government Plans for Digitalization to Pave Strong Grounds for Automation
December 2022
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About the Report
About the Report
The report provides a comprehensive analysis of the potential of Warehouse Automation industry in Saudi Arabia. The report covers an overview and genesis of the industry, and market size in terms of revenue.
Its market segmentations include by product category and component, by automated technology, by end-user; growth enablers and drivers; challenges and bottlenecks; trends and developments; regulatory framework; Porter five forces, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with each market segmentation's future projections and analyst recommendations.
Market Overview:
According to Ken Research estimates, the Saudi Arabia Warehouse Automation Market expanded at a CAGR of ~33.8% in between 2016 and 2021 on the basis of revenue generated. The market saw rapid growth owing to its emergence as a transhipment hub, rising number of logistics players, the influx of new investments, Saudi Vision 2030 and increasing focus on digitization. KSA Warehouse Automation Market is estimated to grow at a positive CAGR between 2021 and 2026F.
- Rapid digitalization, growing adoption of technology for improving efficiency & faster delivery and emergence of advanced technologies have led to the growth of the industry.
- The KSA FDI law now allows up to 100 per cent foreign ownership in more than 122 economic activities across 13 sectors including transport and storage.
Key Trends by Market Segments:
By Product Category: Semiautomated warehouses dominated KSA Warehouse Automation market by generating a revenue of ~ Mn in 2021. On the automation level, most of the warehouses in KSA are semi-automated as it helps in achieve efficiency by deploying automation on certain line of operations, including picking, sorting, handling, etc. Also, semiautomated warehouses are much affordable than fully automated warehouses, which require hefty investment on expensive robots & its maintenance. Major retailing giants, such as Amazon, Nahadi, Almarai, among others have highly automated warehousing facilities in KSA.
By Product Component: In 2021, conveyor system/sortation system accumulated the majority of the market share. The deployment of these systems reduces the need for additional warehouse workers, which further reduces spending on labor or reallocate those employees to other critical tasks. While, WMS has been observed to be an essential part of any automated warehouse in KSA to manage operations, including storage, replenishment, picking, etc.
Competitive Landscape
Future Outlook
The KSA Warehouse Automation Market witnessed significant growth during the period 2016-2021 with a CAGR of ~33%, owing to influx of FDI, integration of smart drones, growth in digitization and government initiatives.It is expected that Saudi Arabia WarehouseAutomation market will grow at a CAGR of ~19.7% for the 2021-2026F forecasted period.
Scope Of The Report
Scope of the Report
|
By Product Category |
Semi-Automated Fully Automated |
|
By Product Component |
Conveyor System/ Sortation System Automated Storage & Retrieval System Warehouse Management System AMR/AGV Others (Pick-to-Light and Put-to-Light Systems and automated packaging: wedging, volume reduction, personalization and more) Automatic Identification and Data Capture (AIDC) |
|
By Automated Technology |
Hardware Software |
|
By End-User |
E-Commerce Retail (Supermarkets, Hypermarket, Consumer Durables & More) 3PL/Logistics Others (Health & Beauty, Pharma, Furnishing) |
Products
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- International Domestic Freight Forwarders
- Warehousing Companies
- Logistics Companies
- Logistics Consultants
- Government Bodies & Regulating Authorities
Time Period Captured in the Report
- Historical Period: 2016-2021
- Base Period: 2022
- Forecast Period: 2023-2026F
Companies
Major Players Mentioned in the Report
- Savoye
- Konecranes
- ABB Ltd.
- SSI Schaefer
- Swisslog
- Diggipacks and more
Table of Contents
Table of Contents
1. Executive Summary
1.1 Executive Summary
2. Country Overview
2.1 Country Overview
2.2 Internet Penetration in Saudi Arabia
3. Market Overview
3.1 Global & Regional Market Comparison with Saudi Arabia
3.2 Demand Infrastructure- Ecosystem of Major End-Users Deploying Warehouse Automation & Allied Products
3.3 Supply Side Ecosystem of Major Players Selling Warehouse Automation & Allied Products
3.4 Evolution of Warehousing Technology Automation
4. Market Size
4.1 Saudi Arabia Warehouse Automation Market Size by Revenues, 2016-2021
5. Market Segmentation
5.1 Market Segmentation by Product Category (Conveyor System, WMS, ASRS, AMR/AGV, AIDC and others), 2021
5.2 Market Segmentation by Automated Technology (Semi and Fully Automated), 2021
5.3 Market Segmentation by Components (Hardware and software),2021
5.4 Market Segmentation by End Users (E commerce, 3PL, Retail and more), 2021
6. Industry Analysis
6.1 Growth Drivers of Saudi Arabia Warehouse Automation Industry
6.2 Major Digitalization Milestones Achieved by the Saudi Government
6.3 Porter’s Five Force Analysis of Saudi Arabia Warehouse Automation Industry
6.4 Trends and Developments in Saudi Arabia Warehouse Automation Market
6.5 Issues and Challenges in Saudi Arabia Warehouse Automation Market
6.6 Government Initiatives to establish KSA as a Logistics Hub
6.7 Government Warehouse Rules and Procedures
6.8 Impact of Covid-19 on Saudi Arabia’s Warehouse Automation Industry
7. Snapshot of Warehousing Industry in Saudi Arabia
7.1 Saudi Arabia Warehousing Ecosystem
7.2 Business Cycle and Genesis of Saudi Arabia Warehousing Market
7.3 Saudi Arabia Warehousing Market Size
7.4 Major Warehousing/Leasing Regions in Jeddah & Riyadh
7.5 Major Deciding Factors of Warehouse Automation Solutions
7.6 Demand Analysis of Saudi Arabia Warehouse Automation Market on the Basis of Major factors
7.7 Key Enablers of Ecommerce Industry in Saudi Arabia
8. Competitive Landscape
8.1 Cross Comparison of Major Warehouse Automation Players on the basis of Different Parameters (Vintage, Employees, type of Automation, Clients and more)
8.2 Key Developments in Warehouse Automation Market in Saudi Arabia
8.3 Case Study: Diggipacks
9. Future Outlook
9.1 Saudi Arabia Warehouse Automation Future Market Size, 2021-26F
9.2 Saudi Arabia Warehouse Automation Market Future Segmentations, 2026F
12. Analyst Recommendations
13. Industry Speaks
14. Research Methodology
14.1 Market Definitions
14.2 Abbreviations used
14.3 Market Sizing Approach- Saudi Arabia Warehouse Automation Market
14.4 Consolidated Research Approach
14.5 Primary Research Approach
14.6 Research Constraints
Disclaimer
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Research Methodology
Research Methodology
Step 1: Identifying Key Variables:
The research team framed a hypothesis about the market through an analysis of existing industry factors obtained from company reports, magazines, journals, online articles, ministries, government associations and data from the NMIS, IMF and World Bank, among others.
Step 2: Validating and Finalizing:
Computer-assisted telephonic interviews conducted (CATIs) with several industry veterans including decision makers from Diggipacks, ABM, Swisslog, SSI Schafer, and others in the ecosystem to get their insights on market and justify the hypothesis framed by the team.
Step 3: Research Methodology:
Bottom to Top Approach has been done for calculating the Market size of Each End User Category and then collated to understand the Current Market size of Saudi Arabia Warehouse Automation Market.The Market has been Sanity Checked by Understanding technological developments in the warehousing & logistics market and multiplied automation cost by their respective weights (weights have been obtained from the primaries) to calculate an average automation cost for basic automation and advanced automation warehouse to validate the market size of Saudi Arabia Warehouse Automation Market. Both public and proprietary databases were referred to define each market and collect data points about the same.
Frequently Asked Questions
Frequently Asked Questions
01 What is the Study Period of this Market Report?
The KSA Warehouse Automation Market is covered from 2016–2026F in this report, including a forecast for 2021-2026F.
02 What is the Future Growth Rate of the KSA Warehouse Automation Market?
The KSA Warehouse Automation Market is expected to witness a CAGR of 19.7% over the next five years.
03 What are the Key Factors Driving the KSA Warehouse Automation Market?
The emergence as transshipment hub, rising number of logistics players, influx of new investments, Saudi vision 2030 and increasing focus on digitization are the key factors driving the KSA Warehouse Automation market
04 Which is the largest Product Component for the KSA Warehouse Automation Market?
Conveyor System/ Sortation System is the largest product component for KSA Warehouse Automation Market in 2021.
05 Who are the Key Players in the KSA Warehouse Automation Market?
ABB, Konecranes, Swisslog, Diggipacks are the major player in KSA Warehouse Automation market.
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