Saudi Arabia Third-Party Logistics (3PL) Market Size

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.