KSA Cold Chain Logistics Market, By Type (Warehousing/Storage, Logistics (Road), Logistics (Sea), Logistics (Railway), Logistics (Air), Fulfilment & Last Mile Delivery), By Type of Goods/Critical Attribute (Foodstuffs, General Goods (Including Medical Supplies), Dangerous Goods (Including Hazardous Chemicals)), Technology (Blast Freezing, Evaporative Cooling, Vapor Compression, Cryogenic Systems, Programmable Logic Controller), By Temperature Type, (Ambient, Chilled, Frozen), By Payload Size (Large, Medium, Small, X-Small, Petite), By Operation (Domestic, International/Cross Border Logistics), By Customer Type (B2B,B2C, E-commerce & Last Miles Delivery), By Business Model (Asset-Based Carriers, Brokerage & Third-Party Logistics (3PL), Fourth Party Logistics (4PL)), Distance (More than 500 Miles, 201 Miles to 500 Miles, 101 Miles–200 Miles, 50 Miles–100 Miles, Less than 50 Miles), Country (KSA) - Industry Trends and Forecast to 2031.
KSA Cold Chain Logistics Market Analysis and Size
Increased consumption of foods, pharmaceuticals, and other temperature-sensitive products, government initiatives and investments in logistics infrastructure, the expansion of e-commerce drives the growth of cold chain logistics, and transporting perishable goods requires stringent health and safety measures, are the factors which are driving the growth of KSA cold chain logistics market. However, High operational costs, and navigating regulatory standards in logistics are expected to restrain the growth of KSA cold chain logistics market. Additionally, adopting technologies such as automated storage and retrieval systems, Saudi Arabia’s strategic location create trade hub between Asia, Africa, and Europe, and implementation of IoT, AI, for improving tracking and efficiency is expected as an opportunity for the growth of KSA cold chain logistics market. However, managing temperature variability during extreme weather conditions is expected as a challenge for the growth of KSA cold chain logistics market.
Data Bridge Market Research analyses that the KSA cold chain logistics market is expected to reach a value of USD 11,947.06 million by 2031 from 3,848.92 million in 2023, growing at a CAGR of 15.6% during the forecast period 2024 to 2031.
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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 to 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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Type (Warehousing/Storage, Logistics (Road), Logistics (Sea), Logistics (Railway), Logistics (Air), Fulfillment & Last Mile Delivery), Type of Goods/Critical Attribute (Foodstuffs, General Goods (Including Medical Supplies), Dangerous Goods (Including Hazardous Chemicals)), Technology (Blast Freezing, Evaporative Cooling, Vapor Compression, Cryogenic Systems, Programmable Logic Controller), Temperature Type, (Ambient, Chilled, Frozen), Payload Size (Large, Medium, Small, X-Small, Petite), Operation (Domestic, International/Cross Border Logistics), Customer Type (B2B, B2C, E-Commerce & Last Miles Delivery), Business Model (Asset-Based Carriers, Brokerage & Third-Party Logistics (3PL), Fourth Party Logistics (4PL)), Distance (More than 500 Miles, 201 Miles to 500 Miles, 101 Miles–200 Miles, 50 Miles–100 Miles, Less than 50 Miles)
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Countries Covered
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KSA
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Market Players Covered
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A.P. Moller–Maersk, CGS, Mosanada Logistics Services (Part Of Naghi & Sons.), Wared Logistics., NAQEL Company, Agility, IFFCO, Almajdouie Logistics, Advanced Storage Co, United Group, Four Winds, Jones International Transportation, SMSA Express Transportation Company Ltd., Transcorp, Tamer Logistics, Flow, Starlinks, Binzagr, Mubarrad, Etmam Logistics (Subsidiary Of Almarai), Aman Logistics, and Logexa, among Others
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Market Definition
KSA cold chain logistics market encompasses the comprehensive management and transportation of temperature sensitive products, including perishable food, beverages, pharmaceuticals, and chemicals, through a series of refrigerated production, storage, and distribution activities. This market involves specialized infrastructure such as refrigerated warehouses, temperature-controlled vehicles, and advanced monitoring systems to ensure the integrity, safety, and quality of products throughout the supply chain. The primary objective is to maintain the required temperature range from the point of origin to the final destination, adhering to stringent regulatory standards and leveraging innovative technologies to meet the growing demand for fresh and safe products in both domestic and international markets.
KSA Cold Chain Logistics Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Increased Consumption of Foods, Pharmaceuticals, and Other Temperature-Sensitive Products
The increased consumption of foods, pharmaceuticals, and other temperature-sensitive products has heightened the demand for efficient cold-chain logistics. This sector ensures that these perishable goods remain within required temperature ranges throughout the supply chain, from production to delivery, thereby maintaining their quality and safety. As the need for such products grows, the role of cold chain logistics in preventing spoilage and ensuring compliance with health and safety standards becomes even more crucial.
- Rising Government Initiatives and Investment in Logistics Infrastructure
Government initiatives and investments in logistics infrastructure are crucial for advancing the cold chain logistics sector. By prioritizing the development of modern storage facilities, enhancing transportation networks, and implementing advanced tracking systems, these efforts aim to improve efficiency and reliability in handling temperature-sensitive products. Such investments not only support the growth of industries reliant on cold chain logistics but also foster economic development and competitiveness by ensuring the seamless flow of goods and reducing operational costs.
Opportunities
- Increase in Adoption of Automated Storage and Retrieval
Adopting technologies such as automated storage and retrieval systems presents a significant opportunity for the cold chain logistics market. These systems enhance efficiency by automating the storage, retrieval, and handling of temperature-sensitive goods, reducing manual labor and minimizing human error. This leads to more accurate inventory management and faster processing times, improving overall operational effectiveness. Additionally, automation technologies help in optimizing space utilization within cold storage facilities, which can lead to cost savings and increased capacity. By integrating advanced technologies, businesses can improve their service levels and scalability, positioning themselves to meet the growing demand for temperature-controlled logistics solutions.
- Upsurge in the Trading Activities with Other Regions
The upsurge in trading activities with other regions, such as Asia, Africa, and Europe, presents a significant opportunity for the KSA cold chain logistics market. As Saudi Arabia expands its global trade connections, there is an increased demand for reliable and efficient temperature-controlled logistics solutions. This heightened trading activity necessitates cold chain technologies to manage the growing volume of temperature-sensitive goods. The expansion in trade drives the need for improved infrastructure and innovative solutions to ensure the safe and efficient delivery of perishable and sensitive products. As a result, the cold chain logistics sector in KSA will likely see substantial growth, prompting investments in modern technologies and enhancing overall supply chain performance.
Restraints/Challenges
- High Investment Costs
High investment costs are a significant restraint in the cold chain logistics sector. Maintaining the required temperature for perishable goods involves substantial investments in refrigerated transport, specialized storage facilities, and advanced monitoring systems. Additionally, the need for continuous energy supply and rigorous maintenance further escalates costs. These high operational expenses can strain budgets, particularly for smaller players in the market, and necessitate efficient management strategies to ensure cost-effectiveness while maintaining the integrity and quality of temperature-sensitive products.
Recent Developments
- In July 2024, United Group continued its commitment to ethical excellence and innovation by integrating advanced AI technologies into its operations. This strategic move automated repetitive tasks and enhanced efficiency across various departments, from data entry to supply chain management. The implementation of AI not only streamlines processes but also empowered employees to focus on more creative and fulfilling tasks. This advancement aligned with the company's dedication to staying ahead in the industry and delivering superior services, including in the cold chain sector, where precise and efficient management of temperature-sensitive goods is crucial
- In January 2024, United Group made significant advancement in its cold chain logistics by implementing state-of-the-art temperature control systems across its warehousing and transportation operations. This upgrade ensured that temperature-sensitive products, such as pharmaceuticals and perishable goods, are maintained at optimal conditions throughout their journey. The enhanced cold chain infrastructure improved the company's ability to manage inventory more efficiently, reduced spoilage rates, and bolstered customer satisfaction by ensuring the delivery of high quality products. This development underscored United Group’s commitment to operational excellence and its dedication to meeting the stringent demands of the cold chain sector
- In March 2024, StarLink expanded its partnership with F5, a company in multicloud application services and security. The collaboration extended its reach to include the Kingdom of Saudi Arabia (KSA) and Bahrain. This expansion allowed StarLink to offer F5's solution portfolio across a broader spectrum, encompassing Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, Jordan, and Lebanon. This strategic move empowered businesses in the Middle East by providing enhanced application services and security solutions. The partnership aimed at addressing the evolving needs of customers in the region, contributing to the growth and effectiveness of both companies in the dynamic field of cloud services and security
- In March 2023, SMSA entered into a strategic partnership with China Mobile International Middle East during the LEAP conference, aimed at fostering intelligent digital transformation solutions and enhancing Saudi technologies in the logistics industry. This collaboration not only expanded SMSA's capabilities but also positioned it to offer advanced courier services while benefiting from the expertise and international reach of China Mobile International, ultimately contributing to SMSA's growth and competitive edge in the evolving logistics landscape
- In November 2023, NAQEL Company reached a new milestone as Saudi Post (SPL) fully acquired it. This acquisition positioned NAQEL as a national operator, reinforcing Saudi Arabia's role as a logistical gateway to Europe, Asia, and Africa. It also aligned with Vision 2030 goals, aiming to make the Kingdom a regional logistics leader. The acquisition enhanced NAQEL's operational capabilities as well as expand its market reach
KSA Cold Chain Logistics Market Scope
KSA Cold Chain Logistics market is segmented into nine notable segments which are based on the type, type of goods/critical attribute, technology, temperature type, payload size, operation, customer type, business model and distance.
Type
- Warehousing/Storage
- Logistics (Road)
- Logistics (Sea)
- Logistics (Railway)
- Logistics (Air)
- Fulfilment and Last Mile Delivery
On the basis of type, the KSA cold chain logistics market is segmented into warehousing/storage, logistics (road), logistics (sea), logistics (railway), logistics (air), and fulfillment and last mile delivery.
Type of Goods/Critical Attribute
- Foodstuffs
- General Goods (Including Medical Supplies)
- Dangerous Goods (Including Hazardous Chemicals)
- Others
On the basis of type of goods/critical attribute, the KSA cold chain logistics market is segmented into foodstuffs, general goods (including medical supplies), dangerous goods (including hazardous chemicals), and others.
Technology
- Blast Freezing
- Evaporative Cooling
- Vapor Compression
- Cryogenic Systems
- Programmable Logic Controller
- Others
On the basis of technology, the KSA cold chain logistics market is segmented into blast freezing, evaporative cooling, vapor compression, cryogenic systems, programmable logic controller, and others.
Temperature Type
- Ambient
- Chilled
- Frozen
- Others
On the basis of temperature type, the KSA cold chain logistics market is segmented into ambient, chilled, frozen, and others.
Payload Size
- Large
- Medium
- Small
- X-Small
- Petite
On the basis of payload size, the KSA cold chain logistics market is segmented into large, medium, small, x-small, and petite.
Operation
- Domestic
- International/Cross Border Logistics
On the basis of operation, the KSA cold chain logistics market is segmented into domestic and international /cross border logistics.
Customer Type
- B2B
- B2C
- E-commerce
- Last Miles Delivery
On the basis of customer type, the KSA cold chain logistics market is segmented into B2B, B2C, and E-commerce & last miles delivery.
Business Model
- Asset-Based Carriers
- Brokerage & Third-Party Logistics (3PL)
- Fourth Party Logistics (4PL)
- Others
On the basis of business model, the KSA cold chain logistics market is segmented into asset-based carriers, brokerage & third-party logistics (3PL), fourth party logistics (4PL), and others.
Distance
- More than 500 Miles
- 201 Miles to 500 Miles
- 101 Miles-200 Miles
- 50 Miles-100 Miles
- Less than 50 Miles
On the basis of distance, the KSA cold chain logistics market is segmented into more than 500 miles, 201 miles to 500 miles, 101 miles–200 miles, 50 miles–100 miles and less than 50 miles.
KSA Cold Chain Logistics Market Regional Analysis/Insights
Cold chain logistics market is analysed and market size insights and trends are provided by the type, type of goods/critical attribute, technology, temperature type, payload size, operation, customer type, business model, and distance as referenced above.
The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and KSA Cold Chain Logistics Market Share Analysis
KSA Cold Chain Logistics Market competitive landscape provides details of the competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to global industrial automation market.
Some of the major players operating in the KSA Cold Chain Logistics Market are A.P. Moller–Maersk, CGS, Mosanada Logistics Services (Part Of Naghi & Sons.), Wared Logistics., NAQEL Company, Agility, IFFCO, Almajdouie Logistics, Advanced Storage Co, United Group, Four Winds, Jones International Transportation, SMSA Express Transportation Company Ltd., Transcorp, Tamer Logistics, Flow, Starlinks, Binzagr, Mubarrad, Etmam Logistics (Subsidiary of Almarai), Aman Logistics and Logexa among Others.
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