Saudi Arabia Third Party logistics Market Set to Record Exponential Growth by 2027


Saudi Arabia is one of the largest economy amongst the GCC countries owing to its rich oil reserves and various economy diversification initiatives taken by the Government of the country. As of 2018, the GDP of the country was valued US$ 310 Bn and the population of the country was approximately 23.8 Mn. The country has emphasized on non-oil sectors to create more job opportunities for the youth population of the country. Cities such as Riyadh, Jubail, Yanbu, Ras Al-Khair and Jazan are considered to be the industrial heartlands of the country. The emerging industries and manufacturing hubs of Saudi Arabia include minerals and metal processing center, automotive manufacturing industry, and plastics and packaging industry. Third-party logistics market is gaining immense popularity in Saudi Arabia and is considered as an optimum solution by companies to manage the increasing cross-border flow of goods while expanding the logistics process concept. Companies operating in the country are considering supply chain engineered logistics as an essential means to improve their cash flows, boost their cost savings, and enhance servicing levels for offering their products to market.

The Saudi Arabia Third Party logistics market is growing along with the Automotive and Transportation industry, but the market is likely to slow down its growth due to the shortage of skilled professionals, suggests the Business Market Insights report.

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One of the disadvantage of opting for 3PL is that it leads the beneficiary companies to loss control over their shipping functions. The client businesses have no direct control over their operation when they use 3PL services. In such cases, businesses are highly dependent upon third party to consistently come through delivering the promised services. Client companies may have to bear certain losses and damage to their business if the 3PL services fail to deliver certain products to the customers on time. Moreover, third-party logistics market firms promote their services in most cost efficient way and the client company has to comply with pricing model specified in the business agreement. However, in certain cases, companies can figure out the cheaper and more efficient solution in their in-house logistics department. The aforementioned factors may hinder the growth of the third-party logistics market.

These factors are expected to offer broad growth opportunities in the Automotive and Transportation industry and this is expected to cause the demand for Saudi Arabia Third Party logistics in the market.

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Saudi Arabia Third Party logistics Market – MARKET SEGMENTATION

Saudi Arabia Third-party logistics Market – By Mode of Transport

  • Roadways
  • Railways
  • Waterways
  • Airways

Saudi Arabia Third-party logistics Market – By Services

  • International Transportation
  • Warehousing
  • Domestic Transportation
  • Inventory Management
  • Others

Saudi Arabia Third-party logistics Market – By End-User

  • Chemicals & Petrochemicals
  • Automotive
  • Healthcare
  • Retail
  • Consumer Goods
  • Others

Saudi Arabia Third-party logistics Market – Company Profiles

  • C.H. Robinson Worldwide, Inc.
  • CEVA Logistics AG
  • DB Schenker
  • Deutsche Post AG (DHL)
  • Kuehne + Nagel International AG
  • Sankyu Inc.
  • Saudi Logistics
  • United Warehouse Company Ltd.
  • United Parcel Service, Inc.
  • Warehousing Projects and Logistics Company (WPL)

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