Saudi Arabia Warehousing Industry Booms: $13.2 Billion Growth by 2030 Fueled by E-commerce & Diversification: Ken Research

GURUGRAM, India, Feb. 14, 2024 /PRNewswire/ — The Saudi Arabian warehousing industry is poised for a surge, fueled by e-commerce growth, government initiatives, and a rapidly diversifying economy. Ken Research’s “Saudi Arabia Warehousing Market Outlook to 2030″ report predicts a robust 4.5% CAGR, translating to a significant $13.2 billion market size by 2030. This press release unlocks the key drivers, challenges, and exciting prospects shaping this dynamic sector. 

Market Overview: Storing Growth, Enabling Prosperity 

Beyond simply storing goods, Saudi Arabia’s warehousing industry plays a crucial role in supporting economic diversification, facilitating regional trade, and powering e-commerce expansion. In 2022, the market reached a size of $9.3 billion, and it’s on track for remarkable growth, driven by: 

  • E-commerce Boom: With internet penetration and online shopping soaring, efficient warehousing and last-mile delivery solutions are becoming essential. 
  • Government Vision 2030: This ambitious plan prioritizes logistics and infrastructure development, creating a supportive ecosystem for the warehousing sector. 
  • Economic Diversification: As the Kingdom moves away from oil dependence, new industries are emerging, requiring diverse warehousing solutions. 
  • Strategic Location: Saudi Arabia’s position at the crossroads of Asia, Europe, and Africa makes it a prime hub for regional trade and warehousing operations. 

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Market Segmentation: Diverse Needs, Tailored Solutions 

The report delves into the various segments of the Saudi Arabian warehousing market, offering a comprehensive view: 

  • Warehouse Type: Public warehouses dominate (60%), followed by dedicated storage facilities (25%) and private warehouses (15%). 
  • Location: Major cities like Jeddah, Riyadh, and Dammam hold the largest share (70%), with growing demand in emerging industrial zones. 
  • Industry Served: Retail & e-commerce leads the demand (40%), followed by manufacturing (25%) and food & beverage (15%). Healthcare and pharmaceuticals are emerging segments. 

Competitive Landscape: Local & Global Players Collaborate 

The market features a mix of established local players, international giants, and innovative startups: 

  • Local Leaders: Mosanada Logistics, Panda Retail Company, and Tamer Logistics hold significant market share with extensive networks and expertise. 
  • Global Giants: DP World, DHL, and FedEx are increasingly present, offering global reach and advanced technologies. 
  • Emerging Challengers: Local startups are leveraging technology to disrupt traditional models, offering specialized services like temperature-controlled storage and e-commerce fulfillment. 

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Challenges: Building on a Strong Foundation 

Despite the promising outlook, some challenges need to be addressed: 

  • Limited Skilled Workforce: Finding and retaining qualified personnel in warehousing operations and management remains a challenge. 
  • Infrastructure Gaps: While significant investments are underway, some regions lack efficient transportation links and modern warehousing facilities. 
  • Regulatory Hurdles: Complex regulations and bureaucratic processes can hinder the development and expansion of warehousing operations. 
  • Technological Adoption: While some players embrace automation and digital solutions, wider adoption is needed for enhanced efficiency and transparency. 

Future Outlook: A Brighter Horizon Fueled by Innovation & Sustainability 

The Saudi Arabian warehousing market is poised for continued growth, driven by several exciting factors: 

  • Technological Advancements: Adoption of AI, automation, and blockchain will enhance operational efficiency, optimize space utilization, and improve inventory management. 
  • Focus on Sustainability: Green warehousing initiatives like energy-efficient buildings and sustainable packaging will gain traction, attracting environmentally conscious clients. 
  • Public-Private Partnerships: Collaborations between government and private sector players will accelerate infrastructure development and promote innovation. 
  • Focus on Human Capital Development: Investments in training and education programs will address the skilled workforce shortage and enhance industry competitiveness. 

Key Takeaways for Stakeholders: 

This report offers valuable insights for various stakeholders in the Saudi Arabian warehousing industry, including: 

  • Warehousing Companies: Identifying high-growth segments, adopting innovative technologies, offering value-added services, and prioritizing sustainability practices. 
  • Investors: Understanding market trends, assessing investment opportunities in promising segments like e-commerce fulfillment and temperature-controlled storage. 
  • Policymakers: Formulating policies that address infrastructure gaps, promote skilled workforce development, and create a regulatory environment that fosters innovation and competition. 
  • Businesses & Consumers: Gaining insights into the diverse range of warehousing solutions available, choosing the right providers based on their needs, and benefiting from improved efficiency and availability of goods. 

Conclusion: 

The Saudi Arabian warehousing industry is on an upward trajectory, playing a vital role in the Kingdom’s economic diversification and regional trade ambitions.

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Taxonomy


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

For More Insights On Market Intelligence, Refer To The Link Below: –

KSA Warehousing Market

Related Reports by Ken Research: –

KSA Warehousing Automation Market Outlook to 2027 Driven by Bolstering Ecommerce Industry & Ambitious Government Plans for Digitalization to Pave Strong Grounds for Automation

The market is expected to grow at high pace in the coming 5 years owing to rapid digitalization and surge in investment. The demand and market share of e-commerce and retail is expected to increase in the future due to increasing focus towards reducing the overall sales cycle duration. Government initiatives, such as Saudi Vision 2030, National Industrial Development and Logistics Program (NIDLP), etc., establishment of new logistic zones, among others is expected to bring massive Greenfield investments. In turn, it would catalyze the requirement for multi-client warehouses in the country.

Saudi Arabia Warehousing Market Outlook to 2027 Driven by Government Support, demand for E-Commerce and Infrastructure Investment in the country

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.

Global Logistics and Warehousing Market Outlook to 2027 Segmented by Type of End Users by revenue, By Type of Mode (Sea/Road/Air), By Type of Warehouse (Industrial / Retail Warehouses/Container Freight Stations (CFS)/Inland Container Depots (ICD)/Cold Storage/ Agriculture & Other Warehouses) Type of Domestic/ International Shipments

According to Ken Research estimates, the Global Logistics and Warehousing Market – is largely driven by the flourishing e-commerce industry, increasing demand for express delivery, good data quality and extensive automation and the initiatives taken by the government.

Kuwait Warehousing Market Outlook to 2026F Driven by Rise in Demand for Technologically Advanced Warehouses by Different End Users

The growth of local companies within the logistics sector points to widening industry potential in the country with total warehousing space growing at a double digit CAGR (2021-2026F). Strong leasing momentum is likely to continue throughout the year; 3PL and e-commerce players are expected to drive demand for logistics space.

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