KSA Transportation and Warehousing Market Outlook to 2025 (Third Edition)

Driven by Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenue

Region:Middle East

Author(s):Apoorva Narula and Nishika Chowcharia

Product Code:KR1114

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Published on

January 2022

Total pages


Table of Content

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About the Report

About the Report

The report titled “KSA Logistics and Warehousing Market Outlook to 2025F– Driven by Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenueprovides a comprehensive analysis on the status of the logistics market in KSA. The report covers various aspects including an overview of transportation infrastructure, major economic/industrial zones, overall logistics and warehousing market size, trends and developments, issues and challenges, regulatory landscape,, Price Models and Costing Analysis for Trucking Industry in Saudi Arabia, Viable Supply Chain Model for Adoption and Supplying Light Electric Vehicle in KSA, Opportunity Analysis of an LEV in Last Mile Delivery, Warehousing investment and operation model. The report concludes with market projections for future of the industry including forecasted industry size by revenue and business activity.
KSA Logistics and Warehousing Market

Saudi Arabia Logistics Market Overview and Size:
Saudi Arabia has been putting efforts towards diversifying its economy away from oil, thus embarking on an ambitious path to become the go-to logistics hub for the region. The market displayed a volatile growth trajectory with overall logistics market grew @3.0% CAGR during 2015-2020. KSA has invested more than ~$100 Bn in its transportation & logistics infrastructure as a part of Vision 2020, resulting in a comprehensive nationwide network over decade.

Saudi Arabia Road Freight Market Overview:

KSA Road Freight Industry is highly unorganized and fragmented with the presence of multiple players and revenues growing @ 4.7 % CAGR during 2015-2020. Total number of trucks on road in Saudi Arabia is growing @~7.0 CAGR from 2015 – to 2021, with the majority of the trucks imported from other countries. Expansion of logistics infrastructures such as intermodal connectivity, logistics parks and ports are creating business opportunities for road freight industry in KSA. Increased investment in the development of roads, excellent cross-border connectivity with other GCC countries along with cheaper mode in terms of freight transport are the major growth drivers in the industry. However, issues such as inadequate infrastructure, last mile connectivity, seasonal variations & loading/unloading inefficiencies affect the operational efficiency in road freight market. KSA Road Freight Market is expected to grow @5.3% CAGR during the forecasted period 2020-2025 owing to infrastructure development, technological advancements and economic diversification in the country.

Saudi Arabia Road Freight Market Segmentation:

By Type of Fleet Operators: The Road Freight Industry is dominated by the Small Fleet Operators (SFO’s) accounting for majority of the total operators in KSA. They generally work on a spot rate basis and transport goods on a LTL basis.
By LTL/FTL: FTL is the cheapest mode of Road Freight Transportation in KSA contributing majority share in 2020. However, emerging technologies such as GPS tracking on LTL freight is transforming the segment to ensure more reliability and efficiency.
By End Users: Food and Beverages contributed the highest revenue share in road transport market followed by retail industry in 2020. Population growth is expected to reach 1.5 Bn by 2050, which will significantly improve the demand for F&B, Retail and FMCG sector in the country.

Potential of Electrical Vehicles in Saudi Arabia Market

EVs are slowly gaining traction with less than 0.5% of vehicles deployed as PHEVs in Saudi Arabia. Efforts to create a market for EVs are consistent with the Saudi Crown Prince Muhammed bin Salman’s Vision 2030 plan, which aims to reduce the country’s dependence on oil, diversify the economy, and implement a range of social reforms. The EV infrastructure in Saudi Arabia is still lagging behind, as the government is yet to install charging stations in public areas.
However, KSA could witness an LEV penetration between 5-7% by 2025. The neutral case scenario predicts KSA will build a framework like UAE such as free charging stations, discounted car registrations, toll exemptions, and other perks to incentivize people to give up their traditional cars for EVs. However, barriers such as TCO parity, high battery cost & infrastructure challenges such as mass deployment of charging stations in public area may slow down the adoption rate. Introduction of new model vehicles to provide greater choice along with promotion of greater levels of understanding of the capabilities, benefits and imperatives for adopting EVs will accelerate adoption.
Saudi Arabia Market Warehousing Market Overview: Saudi Arabia is emerging as a transshipment hub and the warehousing market is rapidly growing @2.4% CAGR (2015-2020) owing to surge in manufacturing activities, burgeoning international trade, rising domestic consumption and ease in government regulation. Majority of overall warehousing space controlled by organized sector due to strict government regulation regarding licensing and certifications. More than 25% warehousing space in KSA is racked with economically developed cities such as Jeddah, Dammam and Riyadh accounting for higher share in the country. Increased automation due to rising investment in newer technologies is driving the demand for modern warehouses in KSA. KSA warehousing sector is expected to embrace structural revisions as a response to rapidly changing demand drivers & technological advances and is expected to grow @6.0% CAGR (2020-2025F).

Saudi Arabia Market Warehousing Market Segmentations:

By Business Model: Industrial Warehousing dominates the Warehousing Market in KSA occupying majority share in 2020 with Grade-A warehouses contributing 20% of the Industrial space. Grade-A Warehouses contributed 20% of Industrial space in 2020.

By End Users: 3PL contributed highest warehousing space in 2020 with the logistics companies usually taking warehouses from real estate companies on 1, 3 or 5 yearlong leases.

By Regions: Economically Developed cities of Jeddah and Riyadh in KSA account for largest warehousing supply in 2020 with Dammam having the highest rental rates. Jeddah’s warehousing districts are concentrated south and east of the metropolitan zones with Al Khomra district being the leading major hub for warehouses and L&D. Warehousing in other regions such as Burdaiah, Abha and Medina are underdeveloped with presence of majorly Grade B warehouses in each city.
Comparative Landscape in Saudi Arabia Logistics and Warehousing Market: Competition was observed to be highly fragmented in both freight forwarding and warehousing segment along with the presence of both international and domestic players. Nevertheless, the local / domestic players have a larger presence in the market and were observed to compete on the basis of key clientele, revenue matrix, logistics networking, average pricing, technological advancement and value added services.
Saudi Arabia Logistics and Warehousing Market Outlook and Projections: Overall logistics revenue in KSA expected to grow @6.7% CAGR during 2020-2025 with continuance of the government’s integrated strategy for sector development. Introduction & adoption of technologies such as telematics, V2V communications, and tracking to have a strong influence on delivery & service offerings. The KSA government is highly promoting the integration of multi-modal hubs across the country. FDI within the logistics infrastructure development, constructing regional & international logistics service centres and improving the efficiency of trade routes can collectively help the country in becoming a hub over long term.

Key Topics Covered in the Report

  • Executive Summary
  • Saudi Arabia Country Overview and Major Economic Zones
  • Saudi Arabia Logistics Industry Market Size, 2015-2025
  • Saudi Arabia Road Freight Market
  • KSA Transportation Market Size, 2015-2025
  • Overview of Trucking Industry in Saudi Arabia
  • Commercial Models in KSA Transportation Market
  • KSA Freight Aggregator Market  Overview
  • Price Models and Costing Analysis for Trucking Industry in Saudi Arabia
  • Genesis and Overview of KSA EV Market
  • Comparison of EV's Capacities with Traditional Vehicles
  • KSA Warehousing Market Size, 2015-2025
  • KSA Warehousing Split by Business Model and End Users
  • Regional Analysis (Warehousing Market in Jeddah, Riyadh, Khyobar, Abha, Medina and Buraidah)
  • Key Market Drivers in the KSA Logistics Industry
  • Competitive Factors and Assessment in KSA Logistics and Warehousing Market
  • Market Trends and Development
  • Market Issues and Challenges
  • Government Rules and Regulations
  • KSA Logistics Market Future Outlook
  • Upcoming Technologies in KSA Logistics Market



Key Target Audience

  • International Domestic Freight Forwarders
  • Warehousing Companies
  • Logistics Companies
  • Logistics Consultants


Time Period Captured in the Report:-

  • Historical Period – 2015-2020
  • Forecast Period –2020-2025F


Key Segments Covered

KSA Road Freight Market Segments

By Type of Fleet Operators

  • Small Fleet Operators (SFO’s)
  • Medium Fleet Operators (MFO’s)
  • Large Fleet Operators (LFO’s)
  • LTL
  • FTL
  • Food and Beverage
  • Retail
  • Oil and gas
  • Automotive and Spare Parts
  • Pharma
  • Others


By End Users

KSA Warehousing Market Segments

By Business Model

  • Industrial / Retail Warehouses
  • Container Freight / ICDs
  • Cold Storage
  • Agriculture and Others
  • Grade A Warehouses
  • Grade B and others
  • 3PL
  • FMCG
  • E-commerce
  • Retail
  • Automotive and Engineering
  • Manufacturing
  • Others

By Grade A, B and others

By End Users

Companies Covered

  • Almajdouie
  • Hala Supply Chain
  • BAFCO Logistics
  • Agility
  • United Warehousing Co
  • LSC warehousing
  • Wared Logistics
  • Mosanada Warehousing
  • Tamer logistics
  • Basem International Shipping & Logistics Co. Ltd.
  • Kuehne + Nagel
  • Panalpina
  • DB Schenker
  • DHL
  • Fedex-TNT
  • Mubarrad (Saudi Transport & Investment Co.)
  • Aramex
  • Naqel Express

Table of Contents

Table of Contents

1. Executive Summary

2. Saudi Arabia Country Overview and Major Economic Zones

2.1 Country Overview

2.2 Overview of Saudi Arabia’s Logistics Sector

2.3 Logistics Infrastructure in Saudi Arabia: Airports, Seaports, Rail Network and Road Network

2.4 Major Economic Cities in KSA

3. Saudi Arabia Logistics Market

3.1 Saudi Arabia Logistics Industry Market Size, 2015-2020

3.2 Initiatives by Government to establish KSA as a Logistics Hub

3.3 Saudi Arabia Logistics Industry Future Market Size, 2020-2025

4. Saudi Arabia Road Freight Market

4.1 Industry Ecosystem- KSA Road Freight Industry

4.2 Value Chain Analysis (Inter Entity relationships)

4.3 Major Challenges that have led to the rise of 3PL Companies

4.4 Industrial Characteristics of the Road Freight Industry of KSA

4.5 KSA Transportation Market Size, 2015-2020

4.6 Road Freight Market Segmentation By Type of Fleet Operators

4.7 Road Freight Market Segmentation by LTL/FTL

4.8 Road Freight Market Segmentation By End Users

5.  KSA Road Freight Industry Analysis

5.1 Overview of Trucks in Saudi Arabia

5.2 Truck Axle Norms in Saudi Arabia

5.3 Ranking Criteria for Different Types of Trucks

5.4 Commercial Models in KSA Transportation Market

5.5 Current Trends in the KSA Transportation Industry

5.6 Seasonality Trends in the Industry

5.7 Food Inflation Trends in Saudi Arabia

5.8 Issues Affecting Operational Efficiency in Road Freight Market

5.9 Technological Advancements in Transportation Industry

6. KSA Freight Aggregator Market

6.1 Freight Aggregator Market Overview

6.2 Role of Brokers or Freight Aggregators

6.3 Major Challenges of Freight Aggregators

6.4 Major Benefits of Freight Aggregators

6.5 Cross Comparison - Major Digital Truck Aggregators

7. Cost Component Model for Trucking Industry in Saudi Arabia

7.1 Price Models and Costing Analysis for Trucking Industry in Saudi Arabia

8. KSA Transportation Market Future Outlook and Projections

8.1 KSA Transportation Market Future Outlook, 2020-2025

8.2 Potential Business Models

8.3 Future Technologies and Trends

9.  Genesis and Overview of KSA EV Market

9.1 EV Scenario in Saudi Arabia vs Other Regions

9.2 Overview of EV in Saudi Arabia

9.3 Viable Supply Chain Model for Adoption and Supplying LEVs in KSA

9.4 Recent Deals /Partnerships in EV Industry in KSA

9.5 Adoption of EVs among End Users in Last Mile Deliveries, 2020-2025

9.6 Current Landscape of LEV Offering in KSA

9.7 Comparison of EV's Capacities with Traditional Vehicles

9.8 Cost Comparison of an Electric Vehicle with its alternatives

9.9 Future Scenarios for EV Deployment- 2021, 2025 and 2030

9.10 Opportunity Analysis of an LEV in Last Mile Delivery

10. Saudi Arabia Warehousing Market

10.1 KSA Warehousing Ecosystem

10.2 Business Cycle and Genesis of KSA Warehousing Market

10.3 KSA Warehousing Market Size, 2015-2020

10.4 Warehousing Space Segmentations, 2020

10.5 KSA Warehousing Split by Business Model, 2020

10.6 KSA Warehousing Split by End Users, 2020

10.7 Regional Analysis (Warehousing Market in Jeddah, Riyadh, Khyobar, Abha, Medina and Buraidah including parameters such as Warehousing Space, Potential WH Locations, Occupancy Rate, Rental rates including Grade A, Grade B, Racked and Unracked Rates, Handling Rates, Yield on CAPEX for Grade and Grade B, Major Industries in the area, Major Companies in this service in area  and others)

11. Saudi Arabia Warehousing Market Industry Analysis

11.1 Trends and Developments in the Market

11.2 Modern Warehousing Technologies Ecosystem in KSA

11.3 Major Challenge in KSA Warehousing Market

11.4 Government Warehouse Rules and Procedures

11.5 Overview of Bonded Warehouses in KSA

11.6 Commercial Models in KSA Warehousing Market

12.  KSA Warehousing Market Future Outlook and Projections

12.1 KSA Warehousing Market Future Projections based on Market Size, 2020-2025

12.2 KSA Warehousing Market Future Projections based on Business Model, 2025

12.3 KSA Warehousing Market Future Projections based on End Users, 2025

12.4 Technological Innovations in Warehousing Market

13. KSA Logistics and Warehousing Competition Scenario

13.1 Cross Comparison between Major Warehousing Companies in KSA on the basis of Establishment Year, Services, Fleet Size, Value, Type of Fleet, # of Warehouses, Warehouse Space, Average Price, Services, Location, Industries Catered, Pallet Size, Clientele, Average Client Retention Period, Technology, Certifications and others)

14. Appendix

14.1 Research Methodology

14.2 Definitions, Abbreviations, Sample Size Inclusion, Approach Used and Research Limitations


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