The Kingdom of Saudi Arabia (KSA) is experiencing a significant transformation in its economic landscape, with the FMCG (Fast-Moving Consumer Goods), retail, food industry, and E-commerce sectors playing pivotal roles. The increasing desire for everyday products such as groceries, household items, and online shopping is causing a surge in demand for Fast-Moving Consumer Goods (FMCG), retail, food, and E-commerce in Saudi Arabia. Businesses need to bring in goods from other places, leading to a rise in imports as people want more variety and convenience. This growing flow of goods across borders is driving the market because companies providing freight services play a crucial role in ensuring these products move smoothly from where they are made to where they are needed. So, as consumers in Saudi Arabia demand imported products, the need for efficient and reliable freight services is growing, making the freight forwarding market more important in keeping up with the demand.
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Data Bridge Market Research analyzes that the KSA Freight Forwarding Market is expected to reach USD 2,880.73 million by 2031 from USD 1,766.07 million in 2023, growing with a CAGR of 6.4% in the forecast period of 2024 to 2031. The KSA freight forwarding market report also comprehensively covers regulatory standards, patent analysis, and technological advancements.
Key Findings of the Study
- Increasing Demand for Outsourcing Logistics Services
The freight forwarding market in Saudi Arabia has experienced a significant boost in recent years, driven by the escalating demand for outsourcing logistics services. This surge is particularly evident in the outsourcing of warehouse services and the growing reliance on third-party logistics (3PL) providers. Over the past five years, the third-party logistics market has observed a marginal yet noteworthy increase, reflecting the evolving landscape of logistics management in the Kingdom.
One of the primary contributors to the escalating demand for outsourcing logistics services is the increasing trend of outsourcing warehouse operations. Corporations entering the Saudi Arabian market are faced with the challenge of managing intricate supply chains, often requiring specialized expertise and resources. In response to these complexities, companies are opting to outsource their warehouse services to leverage the capabilities of specialized logistics providers.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable from 2016-2021)
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Quantitative Units
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Revenue in USD Million
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Segments Covered
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Offering (Services and Software), Mode of Transport (Road Freight Forwarding, Air Freight Forwarding, Sea Freight Forwarding, and Rail Freight Forwarding), Logistics Model (Third Party Logistics, Second Party Logistics, and First Party Logistics), Customer Type (B2B, B2C, and E-Commerce & Last Mile Delivery), Freight Forwarder Type (Consolidators/NVOCC, Multimodal Transport Operators, Custom Brokers, Port Agent, and Others), End-User (Oil & Gas Industry, Industrial & Manufacturing, Food & Beverages, Energy & Utility, FMCG, Healthcare, Automotive, IT & Telecom, Retail, Military, and Others)
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Country Covered
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KSA
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Market Players Covered
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DSV (Denmark), Kuehne+Nagel (Switzerland), GAC (U.A.E.), Almajdouie (Saudi Arabia), CEVA Logistics (Switzerland), Expeditors International of Washington, Inc (U.S.), SINOTRANS (China), DB SCHENKER (Germany), SEKO Logistics (U.S.), JAS (Italy), Abdul Latif Jameel IPR Company Limited (Saudi Arabia), United Parcel Service of America, Inc. (U.S.), NAQEL Company (Saudi Arabia), DHL (Germany), Crane Worldwide Logistics (U.S.), fourwinds (Saudi Arabia), ARABCO Logistics (Saudi Arabia), FedEx (U.S.), BOLLORÉ LOGISTICS (France), Freights Solutions Co. (Saudi Arabia), PAREKH GROUP (India), Swift Cargo (U.A.E.), and WeFreight (U.S.) among others
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Data Points Covered in the Report
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand
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Segment Analysis
The KSA freight forwarding market is segmented into six notable segments based on offering, mode of transport, logistics model, customer type, freight forwarder type, and end-user.
- On the basis of offering, the market is segmented into services and software.
In 2024, services segment is expected to dominate the KSA freight forwarding market
In 2024, services segment is expected to dominate the market with 53.19% market share due to increased demand for streamlined logistics solutions and efficiency.
- On the basis of mode of transport, the market is segmented into road freight forwarding, air freight forwarding, sea freight forwarding, and rail freight forwarding.
In 2024, road freight forwarding segment is expected to dominate the KSA freight forwarding market
In 2024, road freight forwarding segment is expected to dominate the market with 43.72% market share due to improved infrastructure, cost-effectiveness, and increasing domestic trade demands.
- On the basis of logistics model, the market is segmented into third party logistics, second party logistics, and first party logistics. In 2024, third party logistics segment is expected to dominate the market with the market share of 48.78%
- On the basis of customer type, the market is segmented into B2B, B2C, and e-commerce & last mile delivery. In 2024, B2B segment is expected to dominate the market with the market share of 60.71%
- On the basis of freight forwarder type, the market is segmented into consolidators/NVOCC, multimodal transport operators, custom brokers, port agent, and others. In 2024, consolidators/NVOCC segment is expected to dominate the market with a market share of 37.00%
- On the basis of end-user, the market is segmented into oil & gas industry, industrial & manufacturing, food & beverages, energy & utility, FMCG, healthcare, automotive, it & telecom, retail, military, and others. In 2024, oil & gas industry segment is expected to dominate the market with the market share of 18.74%
Major Players
Data Bridge Market Research analyzes DSV (Denmark), Kuehne+Nagel (Switzerland), GAC (U.A.E.), Almajdouie (Saudi Arabia) CEVA Logistics (France) as major market players in KSA freight forwarding market.
Market Developments
- In October 2023, DSV teamed up with NEOM, a flagship development project in Saudi Arabia, to establish a significant USD 10.00 billion joint venture. This collaboration aims to bolster the logistical infrastructure essential for the ongoing ambitious projects in NEOM. The partnership seeks to provide comprehensive logistics services that will play a crucial role in facilitating the development of DSV in Saudi Arabia. This joint venture reflects a strategic move to enhance operational capabilities and contribute to the successful execution of major initiatives in the region
- In October 2023, DB Schenker was honored as the Supplier of the Year by General Motors in the category of Inbound Material. This prestigious award recognized DB Schenker's outstanding performance and contribution to General Motors' supply chain, enhancing the company's reputation and position as a reliable logistics partner
- In August 2023, FedEx introduced cost-effective shipping solutions, Regional Economy and Regional Economy Freight, to meet growing cross-border trade demand in the Middle East. Leveraging the Middle East Road network, these services provide businesses, including SMEs (Small and medium-sized enterprises), with affordable shipping options for less urgent shipments, ensuring secure transportation and express clearance with competitive transit times of 3-5 days for regional economy and 4-6 days for regional economy freight between key Middle East markets
- In May 2023, CEVA Logistics received the Most Inspiring Automotive Logistics Solution Award for its commitment to customer satisfaction, value, and safety, highlighted by the recent launch of its DCBrain SaaS solution, showcasing a strong emphasis on digitalization, integration, and standardization for efficient global supply chain management in the automotive sector
As per Data Bridge Market Research analysis:
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