Saudi Arabia Logistics Market Size, Share, Trends and Forecast by Model Type, Transportation Mode, End Use, and Region, 2025-2033

Saudi Arabia Logistics Market Size, Share, Trends and Forecast by Model Type, Transportation Mode, End Use, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A16517

Saudi Arabia Logistics Market Size and Share:

The Saudi Arabia logistics market size was valued at USD 52.7 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 81.2 Billion by 2033, exhibiting a CAGR of 4.9% from 2025-2033. Some of the factors driving the market are economic diversification, marine expansion to generate revenue, good facilitation in businesses, surging renewable projects, wide penetration of technology, and a greater requirement for logistics related to health and pharmaceutical needs.

Report Attribute
Key Statistics
Base Year
2024
Forecast Years
2025-2033
Historical Years
2019-2024
Market Size in 2024 USD 52.7 Billion
Market Forecast in 2033 USD 81.2 Billion
Market Growth Rate (2025-2033) 4.9%


The ambitious economic diversification and Saudi Vision 2030 plan has led to growth in the economy of various sectors, thus requiring heavy logistics services for the support, which is a major driver for its market growth. Following this, Saudi Arabia has strategically positioned itself as an important transportation and logistics hub for the partnership between Asia, Europe, and Africa by attracting investment opportunities, thereby allowing trade to grow and hence help in the expansion of the market. Apart from this, the rapid growth of the maritime industry, which is resulting in the construction of new ports and logistics infrastructure to meet the growing import and export activities, is creating a positive Saudi Arabia logistics market outlook.

Concurrently, supportive government initiatives for upgrading the ease of doing business, customs procedures, and trade facilitation enhance the efficiency of logistics activities in the country, fueling the growth of the market. In addition to this, the boosting focus on renewable energy projects, for example, the ambitious Saudi Green Initiative, created the logistical demands to transport renewable equipment and sources thereby expanding the market. Furthermore, ongoing developments in technology, such as the implementation of automated technologies, data analytics, and IoT in supply chain management, have optimized operations and reduced costs for logistics providers, which is positively impacting the market growth. Other than this, the growing demand for effective cold chain and pharmaceutical logistics services in distributing vaccines and medicines will develop solid opportunities for further development in the market.

Saudi Arabia Logistics Market Trends:

Expansion of Infrastructure and Mega-Projects

Saudi Arabia has invested heavily in infrastructure as part of the goals to reach Vision 2030. The development of transport networks, namely airports, ports, and road infrastructure, positively impacts the logistics market in this country. This year, in 2024, the Kingdom of Saudi Arabia has unveiled several projects aimed at enhancing logistics capabilities, such as the opening of the King Salman International Airport expansion in Riyadh. This infrastructure growth, therefore, serves to enhance international and domestic movement of goods alike. With reduction in transportation and cost of logistics, the market becomes more alluring to not only local but also international players, hence increased demand for logistic services. The expansion of the Jeddah Islamic Port by the Saudi ports authority in 2024, designed to accommodate larger container ships, also plays a crucial role in boosting the country's export and import capabilities.

E-commerce Boom and Digital Transformation

According to the Saudi Arabia Logistics industry research report, the expansion in the number of e-commerce channels is driving the demand for logistics services, especially regarding last-mile delivery solutions. In 2024, Saudi Arabia witnessed a dramatic rise in the country's e-commerce market, ranking it among the major e-commerce markets in the Middle East. This new development in online shopping has thus spurred a greater need for effective and flexible logistics solutions, mainly on smaller packages, faster delivery times, and tracking in real time. The rise of digital platforms and logistics technology, including the adoption of artificial intelligence and blockchain, has made the industry more efficient. And in 2024 companies expand their offerings and launch new logistics platforms to help e-commerce to evolve even more, as those platforms incorporate real-time tracking and automated sorting using AI along with smart optimization in delivery. According to IMARC Group’s forecast, by 2032, the e-commerce market of Saudi Arabia is bound to reach about USD 623 billion.

Government Initiatives and Strategic Partnerships

The Saudi government has played a very important role in propelling the Saudi Arabia logistics market growth through regulatory reforms and strategic partnerships with global logistics players. Several new initiatives have been introduced this year, 2024, such as tax incentives for logistics providers and the establishment of free zones, which attract foreign investment into the market. This positioned the market as more dynamic and competitive. Saudi Arabia also entered into new partnerships with international logistics companies for the development of its logistics network. These collaborations would contribute to the Kingdom's global competitiveness, both in terms of increasing international trade flows between the Kingdom and other countries, improving supply chain efficiency, and enhancing employment prospects in the logistics sector. For example, in 2024, Scan Global Logistics plans to add Riyadh and Jeddah to its global network to develop its operations.

Saudi Arabia Logistics Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Saudi Arabia logistics market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on model type, transportation mode, and end use.

Analysis by Model Type:

Saudi Arabia Logistics Market

  • 2 PL
  • 3 PL
  • 4 PL
     

2PL refers to companies, which provide mainly transportation-based logistic services. It provides necessary assets such as trucks, ships, and warehouses but do not offer comprehensive services of supply chain management. 2PL market segment has a very high transactional environment because businesses look for 2PL providers as a means for moving goods from one point to another. This model often finds use in firms which do not necessarily require the sophistication of managing an advanced supply chain.

The 3PL market segment is comprised of logistics providers offering a more diverse set of services than those provided by 2PL providers. This can range from transportation, warehousing, distribution, inventory management, and order fulfillment. These companies do not own the products but rather perform several different logistics operations on behalf of their clients, thereby making them more integrated into the supply chain. 3PL companies are flexible and scalable, appealing to businesses with the desire to outsource their logistics functions in pursuit of streamlining operations, saving costs, or focusing on the core competencies without managing the logistics in house.

The 4PL market segment extends beyond by providing an integrated solution involving not only logistics services but the management of the whole supply chain. A 4PL provider functions as a single point of contact, integrating and coordinating all logistics and supply chain activities often through advanced technology and software solutions. They manage and optimize the supply chain, overseeing multiple 3PL providers and providing strategic insights to improve efficiency and reduce costs. This model is best suited for companies that require a high level of integration and strategic oversight, and it allows businesses to focus on their core activities while benefiting from an optimized supply chain network.

Analysis by Transportation Mode:

  • Roadways 
  • Seaways 
  • Railways
  • Airways
     

Roadways are the most used and flexible mode for moving goods domestically and regionally. Trucking and courier services come under this segment, which moves goods in trucks, vans, or any other road vehicle. This transportation mode is most suited for short to medium distances and reaches almost all locations that have access through roads. This mode of transport is thus well suited for door-to-door delivery services. Road transport provides flexibility in the types of cargo carried, ranging from small parcels to large freight. It is very essential for those secors that require recurring and time-sensitive deliveries.

The seaways segment focuses on the transportation of goods via ships, cargo vessels, and other marine vessels across oceans, seas, and rivers. It is one of the most cost-effective modes for transporting bulk goods, raw materials, and large quantities of freight over long distances. Seaway transportation is essential for international trade and commerce, particularly for heavy, bulky, or non-perishable goods.

The railways transportation segment involves the use of trains to move goods across countries or regions, especially over land. This mode is highly efficient for bulk goods, including coal, minerals, steel, and agricultural products, and is often preferred for transporting goods over long distances within landlocked regions. Railways provide an environmentally friendly and cost-effective option for large-scale freight transport, especially in areas with well-established rail infrastructure.

The airways transportation segment is characterized by the use of aircraft to transport goods, and it is typically the fastest mode for long-distance shipments. This segment is particularly important for high-value, time-sensitive goods such as electronics, pharmaceuticals, luxury items, and perishables. Air freight offers significant advantages in terms of speed, reliability, and global reach, enabling businesses to quickly move products across continents. However, it is also one of the most expensive forms of transportation due to fuel costs and the limited capacity of aircraft.

Analysis by End Use:

  • Manufacturing
  • Consumer Goods 
  • Retail 
  • Food and Beverages
  • IT Hardware 
  • Healthcare
  • Chemicals
  • Construction
  • Automotive
  • Telecom
  • Oil and Gas
  • Others
     

The manufacturing sector in logistics relates to the flow of raw materials, components, and finished goods either in the course of production or from suppliers to factories. The sector is key for industries dependent on a smooth flow of materials and parts to assemble products, for example, the automotive, electronics, or machinery manufacturing industries. The logistics service providers in this market ensure timely delivery of products to avoid production delay and manage the inventory in a way that supports smooth operations. Transportation modes in this market may include road, rail, and sea-based for large-scale shipments depending on the destination. Manufacturing companies opt for reliability, cost, and prompt delivery of material to ensure upholding of schedules and minimizing downtime.

This consumer goods segment pertains to logistics that directly move the products to the end consumers or retail stores. The products could be anything, from daily household items to luxurious goods. High volumes, rapid delivery times, and transparency of the supply chain are the issues that logistics service providers have to deal with while catering to consumers. The nature of this market often requires support for quick replenishment cycles, precise inventory management, and fast last-mile delivery solutions. Logistics solutions in the consumer goods segment rely heavily on advanced technology such as tracking systems, automated warehousing, and flexible delivery options in this segment due to the increase of e-commerce. Supply chain management efficiency and customer satisfaction are two major determinants of success for this segment.

The retail logistics segment focuses on moving goods from suppliers to retail outlets or directly to consumers via online platforms. This segment is heavily impacted by trends in consumer behavior, seasonal demand fluctuations, and the shift toward omnichannel retailing. Retail logistics providers must adapt quickly to changes in demand, offering fast, efficient distribution networks for both physical stores and e-commerce platforms. They manage everything from warehousing and inventory control to the last-mile delivery of goods. The amplifying popularity of online shopping has further fueled demand for logistics services that prioritize speed, accuracy, and customer convenience. Retail logistics solutions are increasingly relying on technology to enhance order processing, inventory tracking, and delivery management.

The transportation and storage of both perishable and non-perishable food items, beverages, and related products define the food and beverage logistics segment. This sector is highly time-sensitive and requires careful temperature-controlled transportation (refrigerated or frozen) to maintain product quality and safety. Logistics providers must comply with strict regulations concerning hygiene, labeling, and food safety standards, making this segment one of the most complex. Additionally, supply chains in food and beverages must be responsive to fluctuating demand, seasonal variations, and product shelf-life constraints. Distribution channels in this market are often highly specialized, requiring providers to manage both bulk shipments and smaller deliveries to meet the needs of grocery stores, restaurants, and direct consumers.

The food and beverage logistics sector involves the transportation and storage of food items, beverages, and related products, including both perishable and non-perishable goods. This sector is highly time-sensitive and requires careful temperature-controlled transportation (refrigerated or frozen) to maintain product quality and safety. Logistics providers must comply with strict regulations concerning hygiene, labeling, and food safety standards, making this segment one of the most complex. Additionally, supply chains in food and beverages must be responsive to fluctuating demand, seasonal variations, and product shelf-life constraints. Distribution channels in this market are often highly specialized, requiring providers to manage both bulk shipments and smaller deliveries to meet the needs of grocery stores, restaurants, and direct consumers.

Regional Analysis:

Saudi Arabia Logistics Market by Region

  • Northern and Central Region
  • Western Region
  • Eastern Region
  • Southern Region
     

The Northern and Central Region typically includes areas located at the heart of a country or continent, often characterized by a mix of industrial, agricultural, and urban activities. In terms of logistics, this region benefits from a strategic location that connects key economic zones, making it an important hub for transportation and distribution networks. The logistics market in this region tends to focus on serving industries such as manufacturing, automotive, and construction, which require robust transportation infrastructure for both raw material supplies and distribution of finished products.

The Western Region often represents areas with a strong economic presence, driven by trade, commerce, and port activities. This region usually has well-developed infrastructure, including major seaports, airports, and roadways, making it a key area for international trade. The logistics market in this region is dominated by sectors such as retail, consumer goods, food and beverages, and high-tech industries that rely on fast, reliable transportation. Given the presence of large ports and airports, seaways and airways are particularly important for long-distance and international shipments.

The Eastern Region is often a hub for emerging economies, with a combination of rapidly growing manufacturing, industrial, and technology sectors. This region is increasingly important in global trade, especially for sectors such as electronics, textiles, and heavy manufacturing. Logistics providers in the Eastern Region focus on both domestic and international trade, utilizing a combination of seaways, railways, and roadways for the movement of goods. Ports in this region play a significant role in facilitating trade, particularly for exports to global markets.

The Southern Region is often associated with diverse economic activities, ranging from agriculture and mining to technology and service industries. Logistics in this region tends to be influenced by the agricultural sector, particularly in the transport of perishable goods such as fruits, vegetables, and livestock. Furthermore, the Southern Region may also be a key area for energy production, including oil and gas, necessitating specialized logistics services for these sectors. The region's geographical proximity to coastal areas makes seaways an important mode of transportation, while roadways and railways are also extensively used to connect rural areas with urban centers.

Competitive Landscape:

One of the primary ways logistics companies in Saudi Arabia are improving their operations is through the integration of cutting-edge technologies. Digital transformation is a core focus, with firms investing heavily in software solutions, automation, and data analytics to improve operational functionality and lower costs. For instance, many logistics providers in Saudi Arabia are leveraging advanced tracking systems, global positioning system (GPS) technology, and cloud-based platforms to optimize route planning, improve delivery times, and offer real-time visibility to customers. To remain competitive in the rapidly evolving logistics market, Saudi Arabian logistics companies are diversifying their service offerings to meet the changing demands of customers. E-commerce has been a significant driver of growth in the logistics sector, and to capitalize on this trend, logistics companies are increasingly offering specialized e-commerce solutions, such as last-mile delivery, same-day delivery, and reverse logistics. In 2024, CEVA Logistics and Almajdouie Logistics signed the ultimate agreement to make a joint venture in the Saudi Arabia. The new venture, CEVA Almajdouie Logistics aimed to leverage the strengths of both the firms to fulfil the heightened requirement for integrated logistics solutions in Saudi Arabia to support the kingdom’s logistics sector.

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia logistics market with detailed profiles of all major companies.

Latest News and Developments:

  • July 2024: Premium Shipping and Mile Solutions announced their partnership to transform logistics in Saudi Arabia. This collaboration aims to enhance efficiency and service quality across the Kingdom by integrating advanced logistics software with extensive delivery and warehousing expertise. The alliance aligns with Saudi Vision 2030 and seeks to provide tailored, comprehensive logistics solutions for the Saudi market.
  • December 2024: Saudi Arabia's Ministry of Transport and Logistics launched a Digitalization and Technical Processing Center and a Unified Documents and Records Platform, aiming to enhance the transport sector's GDP contribution to 10% by 2030. This initiative aligns with the National Transport and Logistics Strategy and Vision 2030, focusing on infrastructure expansion, including an 8,080 km railway network. Additionally, the ministry aims to improve service quality, safety, and historical preservation in transport through exhibitions and specialized laboratories.

Saudi Arabia Logistics Market Report Scope:

Report Features Details
Base Year of the Analysis 2024
 Historical Period 2019-2024
Forecast Period 2025-2033
Units Billion USD
Scope of the Report

Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: 

  • Model Type
  • Transportation Mode
  • End Use
  • Region
Model Types Covered 2 PL, 3 PL, 4 PL
Transportation Modes Covered Roadways, Seaways, Railways, Airways
End Uses Covered Manufacturing, Consumer Goods, Retail, Food and Beverages, IT Hardware, Healthcare, Chemicals, Construction, Automotive, Telecom, Oil and Gas, Others
Regions Covered Northern and Central Region, Western Region, Eastern Region, Southern Region
Customization Scope 10% Free Customization
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)


Key Benefits for Stakeholders:

  • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Saudi Arabia logistics market from 2019-2033.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the Saudi Arabia logistics market.
  • Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Saudi Arabia logistics industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Key Questions Answered in This Report

Logistics refers to the process of managing the flow of information, goods, and services from the initial point to the final consumer. It includes warehousing, inventory management, transportation, and distribution. Applications include supply chain management, e-commerce fulfillment, and the movement of raw materials or finished products across industries.

The Saudi Arabia logistics market was valued at USD 52.7 Billion in 2024.

IMARC estimates the Saudi Arabia logistics market to exhibit a CAGR of 4.9% during 2025-2033.

Key factors driving the Saudi Arabia logistics market include economic diversification, strategic geographic location, growth in e-commerce, maritime expansion, government initiatives, technological advancements, renewable energy projects, and the increasing demand for healthcare and pharmaceutical logistics.

On a regional level, the market has been classified into Northern and Central Region, Western Region, Eastern Region, Southern Region.

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Saudi Arabia Logistics Market Size, Share, Trends and Forecast by Model Type, Transportation Mode, End Use, and Region, 2025-2033
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