Saudi Arabia Third-Party Logistics (3PL) Market Size
| Study Period | 2019 - 2028 |
| Base Year For Estimation | 2021 |
| Market Size (2023) | USD 12.88 Billion |
| Market Size (2028) | USD 17.55 Billion |
| CAGR (2023 - 2028) | 6.38 % |
| Market Concentration | Medium |
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*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Third-Party Logistics (3PL) Market Analysis
The Saudi Arabia Third-Party Logistics (3PL) Market size is expected to grow from USD 12.88 billion in 2023 to USD 17.55 billion by 2028, at a CAGR of 6.38% during the forecast period (2023-2028).
Because of the Covid-19 pandemic, which affected the volume of demand for goods in several sectors in Saudi Arabia, the import sector of retail products experienced an unprecedented decline due to widespread closure of retail stores and the imposition of travel restrictions, many challenges have arisen for the Third-party logistics sector in Saudi Arabia.
In Saudi Arabia, the third-party logistics sector is gaining a lot of traction as a way to manage the growing cross-border movement of commodities. Consumer preferences are changing, and there is a growing 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 partner with many countries of the globe owing to the large oil reserves present in the country. The accessibility to emerging markets hands significant trade advantage to the country and highlights the need to strengthen the transportation and logistics infrastructure of country. The lesser control of manufacturers on logistics service and delivery processes is anticipated to hinder the third-party logistics market for same in the coming years. Factors such as enabling cost reduction, availability of specialized service providers, the presence of industrial zones, and increasing industrialization, are driving the 3PL logistics market in Saudi Arabia.
Saudi Arabia Third-Party Logistics (3PL) Market Trends
This section covers the major market trends shaping the Saudi Arabia 3PL Market according to our research experts:
Growth in E-Commerce boosting the demand for 3PL services
The expansion in the e-commerce business drove the growth of the 3PL market in Saudi Arabia. COVID-19 lockdown measures had a significant impact on e-commerce in 2021. Despite the fact that sales were already strong throughout the review period, limits and curfews prompted most businesses to shift from in-store to e-commerce in order to offset losses (due to the absence of in-store shopping). With the expansion of the supply chain and the emergence of new technologies, new businesses have evolved, and existing businesses have grown even more.
Saudi Arabia has the largest population in the GCC, with a tech-savvy and growing young population, which makes it a key market player in the region. In 2021, around 90 percent of the population had internet access. These factors eased e-commerce adoption among the population, with around 80 percent of active internet users in Saudi Arabia engaging in online shopping, which is the same share as in China. Thus, Saudi Arabia's e-commerce market is one of the largest across the region and it is expected to continue growing. While the COVID-19 pandemic has shaken businesses around the world, e-commerce witnessed immense growth. Saudi Arabia was no exception to this general trend.
Drop in Trade Balance of Saudi Arabia
Saudi Arabia's positive trade balance fell during the economic downturn, recovered, but has declined in recent years. This is most likely attributable to a drop in export revenue due to lower crude oil prices in the region. This has had an impact on the economy, and the national debt is anticipated to rise as a result.
Saudi Arabia, as a significant oil producer and exporter, must manage international ties relating to the export of its most valuable resource while also maintaining regional peace. The country has been successful in doing so for the most part. Saudi Arabia's most major export partners are China, the United States, Japan, South Korea, India, and Singapore, all of which have large oil reserves around the area. Saudi Arabia is one of the most important players in the Muslim and Arab worlds, as one of the world's major oil producers and one of the world's wealthiest countries. Saudi Arabia exported items valued over USD 238.6 billion in 2021. In 2020, Saudi Arabia's trade balance surplus amounted to approximately USD 40.74 billion.
Saudi Arabia Third-Party Logistics (3PL) Industry Overview
- The market is fairly fragmented with a large number of domestic and international businesses competing. Among the major players are DHL, Agility Logistics, Mosanada Logistics Services, Almajdouie Logistics, Hala Supply Chain Services, Himmah Logistics, and LSC Logistics. Top companies in the industry are focusing on strategic market initiatives to expand their product capabilities and market presence. The dry warehouse is the most common type of warehousing, and it has seen significant growth in recent years. Given the potential of the region and the growing relevance of commercial ties, logistics and service organizations that currently have a huge foothold in Saudi Arabia are extending their operations.
Saudi Arabia Third-Party Logistics (3PL) Market Leaders
Kintetsu World Express
Agility
Hala Supply Chain Services
Kuehne + Nagel
DHL
*Disclaimer: Major Players sorted in no particular order
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Saudi Arabia Third-Party Logistics (3PL) Market News
March 2021: Amazon revealed its plans to expand its business network in Saudi Arabia, which includes the opening of 11 new centers and the provision of more than 1,500 job opportunities for citizens and residents. The delivery network will be developed to include 6 product storage warehouses and 13 delivery stations.
August 2021: Agility Finalizes Sale of Global Integrated Logistics (GIL) Business to DSV Panalpina. The all-shares transaction gives Agility 19,304,348 DSV shares upon full completion of the deal in all jurisdictions, representing approximately 8% of all post-transaction shares of DSV.
Saudi Arabia Third-Party Logistics (3PL) Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS & DYNAMICS
4.1 Current Market Scenario
4.2 Market Dynamics
4.2.1 Drivers
4.2.2 Restraints
4.2.3 Opportunities
4.3 Value Chain/Supply Chain Analysis
4.4 Industry Policies and Regulations
4.5 General Trends in Warehousing Market
4.6 Demand from Other Segments, such as CEP, Last Mile Delivery, and Cold Chain Logistics
4.7 Insights into the E-commerce Business
4.8 Technological Developments in the Logistics Sector
4.9 Industry Attractiveness - Porter's Five Forces Analysis
4.10 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Service
5.1.1 Domestic Transportation Management
5.1.2 International Transportation Management
5.1.3 Value-added Warehousing and Distribution
5.2 By End User
5.2.1 Automotive & Manufacturing
5.2.2 Oil and Gas
5.2.3 Chemical
5.2.4 Distributive Trade (Wholesale and Retail Trade, including E-commerce)
5.2.5 Pharmaceutical and Healthcare
5.2.6 Construction
5.2.7 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Kintetsu World Express
6.2.2 Agility Logistics
6.2.3 Hala Supply Chain Services
6.2.4 Kuehne + Nagel
6.2.5 DHL
6.2.6 Motion Supply Chain
6.2.7 Bahri Bollore Logistics
6.2.8 DB Schenker
6.2.9 DSV Panalpina
6.2.10 Deutsche Post DHL Group - DHL Supply Chain
6.2.11 CEVA Logistics
6.2.12 Aramex
6.2.13 LSC Logistics
6.2.14 Mosanada Logistics Services (MLS)
6.2.15 Almajdouie Group
6.2.16 LV Shipping
6.2.17 Al-Futtaim Logistics
6.2.18 Takhzeen Logistics Company (TLC)
6.2.19 Etmam Logistics
6.2.20 Logistics Solution Services Co.
6.2.21 Crescent Transportation Company Ltd*
- *List Not Exhaustive
7. FUTURE OF THE SAUDI ARABIA 3PL MARKET
8. APPENDIX
8.1 Macroeconomic Indicators (GDP Distribution, by Activity, Contribution of the Transport and Storage Sector to Economy)
8.2 External Trade Statistics - Exports and Imports, by Product
8.3 Insights into the Key Export Destinations and Import Origin Countries
Saudi Arabia Third-Party Logistics (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 (client) that does not have its own logistics department frequently uses a 3PL company. As a result, the 3PL handles some or all of the client's logistics requirements. This report provides a thorough background analysis of the Saudi Arabia Third-Party Logistics (3PL) Market, including current market trends, restraints, technological updates, and detailed information on the industry's various segments and competitive landscape. During the research, the impact of COVID-19 was also taken into consideration.
Saudi Arabia Third-Party Logistics (3PL) Market is Segmented By Service (Domestic Transportation Management, International Transportation Management, Value-added Warehousing, and Distribution), By End-User (Automotive & Manufacturing, Oil and Gas, Chemical, Distributive Trade (Wholesale and Retail Trade, including E-commerce), Pharmaceutical and Healthcare, Construction and Other End Users).
| By Service | |
| Domestic Transportation Management | |
| International Transportation Management | |
| Value-added Warehousing and Distribution |
| By End User | |
| Automotive & Manufacturing | |
| Oil and Gas | |
| Chemical | |
| Distributive Trade (Wholesale and Retail Trade, including E-commerce) | |
| Pharmaceutical and Healthcare | |
| Construction | |
| Other End Users |
Saudi Arabia Third-Party Logistics (3PL) Market Research FAQs
How big is the Saudi Arabia Third-Party Logistics (3PL) Market?
The Saudi Arabia Third-Party Logistics (3PL) Market size is expected to reach USD 12.88 billion in 2023 and grow at a CAGR of 6.38% to reach USD 17.55 billion by 2028.
What is the current Saudi Arabia Third-Party Logistics (3PL) Market size?
In 2023, the Saudi Arabia Third-Party Logistics (3PL) Market size is expected to reach USD 12.88 billion.
Who are the key players in Saudi Arabia Third-Party Logistics (3PL) Market?
Kintetsu World Express, Agility, Hala Supply Chain Services, Kuehne + Nagel and DHL are the major companies operating in the Saudi Arabia Third-Party Logistics (3PL) Market.
Third-Party Logistics (3PL) in Saudi Arabia Industry Report
Statistics for the 2023 Third-Party Logistics (3PL) in Saudi Arabia market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Third-Party Logistics (3PL) in Saudi Arabia analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
