Saudi Arabia CEP Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Top Saudi Arabia Courier, Express, and Parcel (CEP) Market is segmented by Business (B2B (Business-to-Business), and B2C (Business-to-Consumer)), Destination (Domestic and International), and by End-User (Services, Wholesale & Retail Trade, Life Sciences/ Healthcare, Industrial manufacturing, and Other End-Users). The report offers market sizes and forecasts in value (USD billion) for all the above segments.

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Saudi Arabia CEP Market Size

Saudi Arabia Courier, Express, and Parcel (CEP) Market Summary
Study Period 2019 - 2028
Base Year For Estimation 2022
Market Size (2023) USD 1.11 Billion
Market Size (2028) USD 1.82 Billion
CAGR (2023 - 2028) 10.31 %
Market Concentration Low

Major Players

Saudi Arabia Courier, Express, and Parcel (CEP) Market Major Players

*Disclaimer: Major Players sorted in no particular order
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Saudi Arabia CEP Market Analysis

The Saudi Arabia Courier, Express, and Parcel (CEP) Market size is expected to grow from USD 1.11 billion in 2023 to USD 1.82 billion by 2028, at a CAGR of 10.31% during the forecast period (2023-2028).

The growth of e-commerce and technological advancement in Saudi Arabia is driving the market. And increasing cross-border shipments is also supporting the growth of the market.

  • Due to COVID-19, there was a surge in the CEP market as e-commerce surged, but other sectors, such as manufacturing, government, and financial services, dipped due to lockdown restrictions. In 2021, as the restrictions were relaxed, there was a surge in all the sectors in Saudi Arabia, driving the CEP growth in the Kingdom.
  • E-commerce is one of the major factors driving market growth, with higher connectivity rates, a young working population, and advanced infrastructure. Saudi Arabia is one of the Middle East's major markets in online retailing. The pickup and dropoff (PUDO) collection points are expected to gain popularity in the future. Currently, around 15% to 20% of e-commerce orders are collected at a physical location operated by courier companies or their partners. It also makes return management easy for companies.
  • Saudi Arabia has become an important market for domestic and international shipments, with major companies entering and expanding networks in the market. The international players are making strategic investments to establish a regional logistics network, such as opening new distribution centers, smart warehouses, etc.
  • Technology has become a key enabler for companies to be competitively aligned with market trends and dynamics. Logistics companies, especially in the CEP business, must consider technological investments that can otherwise disrupt the business. According to industry sources, maintaining the consistency of quality for service and managing costs is a challenge for all the industry players. There is still a strong preference for cash on delivery while shopping online, so interactive delivery management and customer communications are becoming more important.

Saudi Arabia CEP Market Trends

This section covers the major market trends shaping the Saudi Arabia Courier, Express, & Parcel Market according to our research experts:

Growth in E-commerce sector supporting the market

  • The e-commerce segment accounts for the majority of the B2C CEP market. In addition to e-commerce, the banking and financial services sector and other document delivery from the education, telecom, or government and public services sectors significantly contribute to the B2C segment.
  • Namshi.com is the dominant participant in the Saudi Arabian e-commerce business. In 2021, the store generated USD 153 million in sales. Amazon.sa and Jarir.com are the second and third-largest stores after Namshi.com, with USD 124 million and USD 105 million, respectively. The top three Internet retailers in Saudi Arabia collectively generate 5% of the country's online sales. Amazon is among the online retailers in Saudi Arabia with the quickest growth rate. In 2021, the store generated net online sales of around USD 0.1 billion. In the previous year, its revenues increased by 316%.
  • The e-commerce logistics in Saudi Arabia is at a nascent stage compared to many other mature markets. More business models are expected to evolve involving outsourcing and focus on specific parts of the value chain, such as the first mile, long haul, and last mile. The majority of the customers of SMEs, around two-thirds of all customers, are individuals. This indicates the large addressable market for B2C CEP companies from these SMEs.
Saudi Arabia Courier, Express, and Parcel (CEP) Market trend - Top Online E-commerce Stores, By Net Sales, in USD Million, Saudi Arabia, 2021

International trade in Saudi Arabia driving the market

  • Saudi Arabia's economy ranked 20 globally in terms of GDP in 2020, 30 globally in terms of total exports and imports, 46 globally in terms of GDP per person, and 32 globally in terms of economic complexity. The top five imports into Saudi Arabia are automobiles, radio and television equipment, refined petroleum, packaged medicines, and mobile phones, with the bulk coming from China, the United Arab Emirates, the United States, Germany, and India.
  • According to the General Authority for Statistics (GASTAT), Saudi Arabia experienced a 43% increase in air traffic and a 7% increase in marine traffic in 2021. In all, 497 foreign and domestic aircraft landed and took off from Saudi Arabian airports in 2021. When compared to 2020, there was an increase of 43%.
  • Regarding freight transportation, the authority stated that airfreight registered an increase of 501,000 tons, representing a growth of 53%, of which domestic freight amounted to around 79,000 tons, representing a growth of 44%. Additionally, GASTAT showed that 2,20,000 tons were transported by international aircraft, while 3,60,000 tons were transported by Saudi airlines.
Saudi Arabia Courier, Express, and Parcel (CEP) Market trend -Volume of U.S. exports of trade goods to Saudi Arabia, in USD Million, 2017-2021

Saudi Arabia CEP Industry Overview

The Saudi Arabia courier, express, and parcel (CEP) market is relatively consolidated. The top five domestic and international players dominate the market, accounting for more than 65-70% of the share. SMSA Express, DHL, Aramex, and Saudi Post are the top players in the domestic CEP market, while DHL and Aramex have very high market shares in the international CEP market. Digitally enabled logistics startups are rising in the country to capitalize on the high growth of the e-commerce sector and increase the operational efficiency in package delivery.

For instance, Trukkin offers a seamless and powerful platform designed to enhance efficiency, consistency, transparency, and reliability in the transportation and logistics ecosystem. Also, the companies operating in the country focus on improving their digital capabilities.

Saudi Arabia CEP Market Leaders

  1. SMSA Express

  2. Aramex

  3. Deutsche Post DHL group

  4. Naqel Express

  5. Saudi Post Corporation

*Disclaimer: Major Players sorted in no particular order

Saudi Arabia Courier, Express, and Parcel (CEP) Market Concentration
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Saudi Arabia CEP Market News

  • June 2022: Geidea, a leading Saudi Fintech firm has teamed up with delivery-as-a-service startup BARQ to enable point-of-delivery digital payments for BARQ clients via the Geidea-enabled BARQ App. The partnership provides BARQ, which offers bullet delivery for any business, with a customized suite of payment solutions powered by Geidea, letting its delivery fleet accept payments from clients upon delivery via the BARQ mobile application.
  • March 2022: The BATIC Investments & Logistics Company (BATIC) declared that it is considering buying the entire Afkar Logistics Company stock. Through its subsidiary Mubarrad, which offers B2B first-mile services, BATIC claimed to have inked an MOU with Afkar, a provider of last-mile delivery services. According to the announcement, the acquisition increases the company's local investment volume while also aligning with the National Industrial Development and Logistics Program of Vision 2030.

Saudi Arabia CEP Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Government Regulations

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Insights on Saudi Parcel Volumes (number of parcels in million, 2016 - 2025)

    6. 4.6 Overview of Logsitics and Warehousing Market in Saudi

    7. 4.7 Brief on Freight Rates (average cost per parcel for domestic and international transport, trends, etc.)

    8. 4.8 Spotlight on 3PL Market in Saudi Arabia

    9. 4.9 Insights on Reverse Logistics

    10. 4.10 Impact of Covid-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Industry Attractiveness - Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitutes

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Destination

      1. 6.1.1 Domestic

      2. 6.1.2 International

    2. 6.2 By Business

      1. 6.2.1 B2B (Business-to-Business)

      2. 6.2.2 B2C (Business-to-Consumer)

    3. 6.3 By End User

      1. 6.3.1 Services (includes BFSI (Banking, Financial Services and Insurance), etc.)

      2. 6.3.2 Wholesale and Retail Trade (including E-commerce)

      3. 6.3.3 Life Sciences/ Healthcare

      4. 6.3.4 Industrial manufacturing

      5. 6.3.5 Other End Users

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Overall Market Share, Market Concentration and Major Players, and Companies' Comparison Analysis)

    2. 7.2 Market Shares (Domestic CEP Market Share, and International CEP Market Share)

    3. 7.3 Company Profiles

      1. 7.3.1 SMSA Express

      2. 7.3.2 Aramex

      3. 7.3.3 Deutsche Post DHL group

      4. 7.3.4 Saudi Post Corporation

      5. 7.3.5 Naqel Express

      6. 7.3.6 Zajil Express

      7. 7.3.7 Alma Express

      8. 7.3.8 FedEx/SAB Express

      9. 7.3.9 Abdul Latif Jameel Logistics

      10. 7.3.10 United Parcel Service Inc.

      11. 7.3.11 Esnad Express

      12. 7.3.12 Noon logistics*

    4. *List Not Exhaustive

    5. 7.4 Other Companies (Key information/overview)

    6. 7.5 Insights on Potential Players to Enter the Market

  8. 8. FUTURE OF THE MARKET

  9. 9. APPENDIX

    1. 9.1 Macroeconomic Indicators (GDP Distribution by Activity, Contribution of Transport and the Storage Sector to Economy)

    2. 9.2 Insights on Capital Flows (Investments in the Transport and Storage Sector)

    3. 9.3 E-commerce and Consumer Spending-related Statistics

    4. 9.4 External Trade Statistics - Export and Import, by Product and Country

    5. 9.5 Demographics of Saudi Arabia (Total Population, Population Breakdown by Age, Gender, City/Region, etc.)

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Saudi Arabia CEP Industry Segmentation

"Courier, express, and parcel services" is referred to as CEP. It refers to postal and logistical firms that specialize in moving products that are relatively light in both weight and volume, like letters, small packages, paperwork, or small objects. A complete background analysis of the Saudi Arabia courier, express, and parcel (CEP) 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 included in the report.

The Saudi Arabia Courier, Express, and Parcel (CEP) Market is segmented by Business (B2B (Business-to-Business), and B2C (Business-to-Consumer)), Destination (Domestic and International), and by End-User (Services, Wholesale & Retail Trade, Life Sciences/ Healthcare, Industrial manufacturing, and Other End-Users). The report offers market size and forecasts for the Saudi Arabia Courier, Express, and Parcel (CEP) market in values (USD billion) for all the above segments.

By Destination
Domestic
International
By Business
B2B (Business-to-Business)
B2C (Business-to-Consumer)
By End User
Services (includes BFSI (Banking, Financial Services and Insurance), etc.)
Wholesale and Retail Trade (including E-commerce)
Life Sciences/ Healthcare
Industrial manufacturing
Other End Users
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Saudi Arabia CEP Market Research FAQs

The Saudi Arabia Courier, Express, and Parcel (CEP) Market size is expected to reach USD 1.11 billion in 2023 and grow at a CAGR of 10.31% to reach USD 1.82 billion by 2028.

In 2023, the Saudi Arabia Courier, Express, and Parcel (CEP) Market size is expected to reach USD 1.11 billion.

SMSA Express, Aramex, Deutsche Post DHL group, Naqel Express and Saudi Post Corporation are the major companies operating in the Saudi Arabia Courier, Express, and Parcel (CEP) Market.

Saudi Arabia CEP Industry Report

Statistics for the 2023 Saudi Arabia CEP market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Saudi Arabia CEP analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Saudi Arabia CEP Market Report Snapshots

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