Saudi Arabia Warehousing Market Outlook to 2027
Driven by Government Support, demand for E-Commerce and Infrastructure Investment in the country
June 2023
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About the Report
About the Report
The report provides a comprehensive analysis of the potential of Warehousing Industry in KSA. The report covers an overview and genesis of the industry, and market size in terms of revenue generated.
The report has market segmentation which includes segments by Market Segmentation by Ownership, City, End User by Revenues and more; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, 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 Market Size of KSA Warehousing has shown an increasing trend from 2017 to 2022. KSA's strategic location as a gateway between Europe, Asia, and Africa makes it an attractive hub for trade. The country has been actively promoting foreign trade and industrialization, attracting international companies to set up manufacturing facilities and distribution centers. This leads to an increased demand for warehousing services to support import, export, and local supply chains.
- There has been a significant rise in the number of 3PL companies in the country over the years. A rising number of logistic companies are shifting to renting out warehouses and fleet from 3PLs, thus leading to the growth of 3PLs in the country.
- KSA Warehousing Association (SLA) has begun piloting the use of Automated Guided Vehicles (AGVs) with local robotics firm Hope Technik in a third-party Warehousing (3PL) warehouse. It will help not only to reduce cost but also to minimize human errors and reduce time lags.
Key Trends by Market Segment:
By Ownership: Owned Companies dominated in Warehouse Market in Saudi Arabia, 2022.
By City: Jeddah has remained the most popular location for logistic service providers in Saudi Arabia mainly due to supportive infrastructure, availability of manpower, location near the tourist cities of Mecca and Medina and city itself being a port city.
Competitive Landscape:
Saudi Arabia warehousing market is highly fragmented with many organized and unorganized small players concentrated in major cities like Riyadh, Jeddah and Dammam. Some of the top players are LSC Logistics, Agility Logistics, and Almajdouie Logistics.
Future Outlook:
Market Size of KSA Warehousing is expected to show an increasing trend from 2022 to 2027. The rapid shift of the distribution of food products from traditional markets toward supermarkets and convenience stores is increasing the need for reefer trucks as major distributors hire 3PL for shipping via insulated trucks. There are important elements that have fueled the expansion of cold storage facilities and cold storage logistics in Saudi Arabia including the adoption of advanced technologies like automation and WMS (warehouse management systems) to improve functionality and efficiency.
Scope Of The Report
Scope of the Report
|
KSA Warehousing Market Segmentation |
|
|
By Ownership |
Owned 3PL |
|
By City |
Riyadh Jeddah Others including Damam and more |
|
By End-Users |
Consumer Retail Food and Beverages Healthcare Automotive Others |
|
By Business Model |
Industrial/Retail Warehouses CFS/ICD Warehouses Cold Storage Agriculture and Other Warehouses |
Products
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:
- E-commerce Companies
- Third-Party Logistic Providers
- Potential Market Entrants
- Freight Forwarding Companies
- Warehousing Companies
- Cold Storage Companies
- Industry Associations
- Consulting Agencies
- Government Bodies & Regulating Authorities
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Year: 2022
- Forecast Period: 2022-2027
Companies
Major Players Mentioned in the Report:
- LSC Logistics
- Agility Logistics+DSV
- Almajdouie Logistics
- Mosanada Logistics
- Tamer Logistics
- BAFCO International Logistics and Shipping Co.
- Hala Supply Chain
- United Warehousing Co.
- Wared Logistics
- Kanoo Terminal
- Logipoint
- DHL Global Forwarding
- GAC
Table of Contents
Table of Contents
1. Executive Summary
1.1 Executive Summary for Saudi Arabia Warehousing Market Outlook to 2027
2. Country Overview of Saudi Arabia
2.1 Saudi Arabia Country Overview
2.2 Saudi Arabia Population Analysis
3. Saudi Arabia Warehousing Market Overview and Genesis
3.1 Overview of Saudi Arabia’s Logistics Sector
3.2 Popular Economic Zones in Saudi Arabia
3.3 Industry Ecosystem- Saudi Arabia Warehousing Industry
3.4 Business Cycle and Genesis of Saudi Arabia Warehousing Market
4. Saudi Arabia Warehousing Market Size, 2022
4.1 Saudi Arabia Warehousing Market Size, 2017-2022
5. Saudi Arabia Warehousing Market Segmentations, 2022
5.1 Saudi Arabia Warehouse Market Segmentation by Business Model, 2022
5.2 Saudi Arabia Warehouse Market Segmentation by End Users, 2022
5.3 Saudi Arabia Warehouse Market Segmentation by Area and by 3PL/Owned, 2022
5.4 Saudi Arabia Warehouse Market Segmentation by Regions, 2022
5.5 Space Segmentation By Type of Warehouses in Riyadh: Demand Side, 2019-2022
5.6 Riyadh Warehousing Supply-Demand Gap Analysis,2019-2022
5.7 Space Segmentation By Type of Warehouses in Jeddah: Supply Side, 2019-2022
5.8 Space Segmentation By Type of Warehouses in Jeddah: Demand Side, 2019-2022
5.9 Jeddah Warehousing Supply-Demand Gap Analysis, 2019-2022
6. Industry Analysis of Saudi Arabia Warehousing Market
6.1 Trends and Developments of Saudi Arabia Warehousing Market
6.2 Issues and Challenges of Saudi Arabia Warehousing Market
6.3 Warehouse Registration Application through GAZT Portal
6.4 Bonded Warehouses in Saudi Arabia
6.5 Commercial Models in Saudi Arabia Warehousing Market
6.6 Government Warehouse Rules and Procedures
6.7 Modern Warehousing Technologies Ecosystem in Saudi Arabia Warehousing Market
6.8 Evolution of Warehousing Technology Automation
6.9 Major Digitalization Milestones Achieved by the Saudi Government
6.10 Impact of COVID-19 on Saudi Arabia Logistics
7. End User Analysis of Saudi Arabia Warehousing Market
7.1 Decision Making Parameters of End Users in Saudi Arabia Warehousing Market
7.2 Analysis of End Users in Saudi Arabia Warehousing Market
7. Competition Framework
7.3 Cross Comparison between Major Warehousing Companies in Saudi Arabia
8. Future Outlook and Market Size for Saudi Arabia Warehousing Market 2022-2027
8.1 Saudi Arabia Warehousing Market Future Market Size and Projections, 2022-2027
9. Future Outlook and Market Segmentations for Saudi Arabia Warehousing Market, 2022-2027
9.1 Saudi Arabia Warehousing Market Future Segmentation on the basis of Business Model and
End Users, 2022-2027
9.2 Saudi Arabia Warehousing Market Future Segmentation on the basis of City, Ownership,
and Type, 2022-2027
9.3 Space Segmentation By Type of Warehouses in Riyadh: Supply Side, 2022-2027
9.4 Space Segmentation By Type of Warehouses in Riyadh: Demand Side, 2022-2027
9.5 Riyadh Warehousing Supply-Demand Gap Analysis, 2022-2027
9.6 Space Segmentation By Type of Warehouses in Jeddah: Supply Side, 2022-2027
9.7 Space Segmentation By Type of Warehouses in Jeddah: Demand Side, 2022-2027
9.8 Jeddah Warehousing Supply-Demand Gap Analysis, 2022-2027
10. Analyst Recommendations
10.1 Cluster Analysis: KSA Warehousing Market
10.2 Recommendations for setting up a warehouse in Saudi Arabia
10.3 Ansoff’s Matrix
10.4 Ansoff’s Matrix– Market Penetration
10.5 Ansoff’s Matrix– Product Development
10.6 Ansoff’s Matrix– Market Development
10.7 Ansoff’s Matrix– Diversification
11. Research Methodology
11.1 Market Definitions
11.2 Methodology Used for Primary, Secondary and Sanity Checking
11.3 Limitations and Future Conclusions
12. Appendix
12.1 Logistics Infrastructure in Saudi Arabia: Airports
12.2 Logistics Infrastructure in Saudi Arabia: Seaports
12.3 Logistics Infrastructure in Saudi Arabia: Road Network
12.4 Logistics Infrastructure in Saudi Arabia: Rail Network
Disclaimer
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Research Methodology
Research Methodology
Step: 1 Identifying Key Variables:
Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step: 2 Market Building:
Collating statistics on Warehousing over the years, penetration of marketplaces and service providers ratio to compute revenue generated for Warehousing services. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.
Step: 3 Validating and Finalizing:
Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step: 4 Research output:
Our team will approach multiple Warehousing and warehousing services providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from Warehousing and warehousing providers.
Frequently Asked Questions
Frequently Asked Questions
01 What is the Study Period of this Market Report?
The KSA Warehousing Market is covered from 2017–2027 in this report, including a forecast for 2022-2027.
02 What is the Future Growth Rate of the KSA Warehousing Market?
The KSA Warehousing Market is expected to witness a CAGR of ~6.9% over the next years.
03 What are the Key Factors Driving the KSA Warehousing Market?
Rising Cold Chain and Retail Industry, Technological Development along with Government Policies and Increase in Purchasing Power of Customers are likely to fuel the growth in the KSA Warehousing Market.
04 Which is the largest ownership Type Segment within the KSA Warehousing Market?
The self-ownership type segment held the largest share of the KSA Warehousing Market in 2022.
05 Who are the Key Players in the KSA Warehousing Market?
LSC Logistics, Agility Logistics, Almajdouie Logistics.
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