KSA Trucking (Road Freight) Market, By Service Type (Transportation, Warehousing and Distribution, Freight Forwarding, and Others), Type of Carrier (Less than Truckload (LTL), Full Truckload (FTL), Partial Truckload (PTL), and Specialized Freight), Vehicle Type (Heavy Duty Commercial Trucks, Medium Duty Commercial Trucks, and Light Duty Commercial Trucks), Truck Type (Tanker Truck, Box Truck, Refrigerated Truck, Semi-Trailer Truck, Flatbeds Truck, Liftgate Trucks, and Others), Type of Goods (Road Transport of Foodstuffs, ADR Road Transport of Dangerous Goods, General Goods, and Others), Type of Road Freight (Dry Goods Road Transport, Road Transport of Bulk Cargo, Heavy Goods Transport, and Others), Operation (Domestic and International), Customer Type (B2B, B2C, and E-Commerce & Last Mile Delivery), Business Model (Asset-Based Carriers and Non-Asset-Based Carriers) Distance (More than 500 Miles, 201 Miles-500 Miles, 101 Miles – 200 Miles, 50 Mile – 100 Miles, and Less Than 50 Miles), Industry (Oil & Gas, Manufacturing, Food & Beverages, Mining, Energy & Utility, Fast Moving Consumer Goods (FMCG), Healthcare, E-Commerce, Chemical, Automotive, IT & Telecom, Retail, Transportation, Defense, Electronics, Apparels & Footwear, and Others) - Industry Trends and Forecast to 2031.
KSA Trucking (Road Freight) Market Analysis and Insights
The growth in e-commerce sector boosting the road freight/trucking services, rapid infrastructure development in KSA, rising investment in smart freight management and increasing cross-border trades in KSA are some of the factors driving the market growth. The major restraints which are impacting the market includes stringent government regulations and fluctuations in fuel prices.
Data Bridge Market Research analyzes that the KSA trucking (road freight) market is expected to reach USD 13,036.30 million by 2031 from USD 8,196.00 million in 2023 growing with the substantial CAGR of 6.1% in the forecast period of 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 (Customised 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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Service Type (Transportation, Warehousing and Distribution, Freight Forwarding, and Others), Type of Carrier (Less than Truckload (LTL), Full Truckload (FTL), Partial Truckload (PTL), and Specialized Freight), Vehicle Type (Heavy Duty Commercial Trucks, Medium Duty Commercial Trucks, and Light Duty Commercial Trucks), Truck Type (Tanker Truck, Box Truck, Refrigerated Truck, Semi-Trailer Truck, Flatbeds Truck, Liftgate Trucks, and Others), Type of Goods (Road Transport of Foodstuffs, ADR Road Transport of Dangerous Goods, General Goods, and Others), Type of Road Freight (Dry Goods Road Transport, Road Transport of Bulk Cargo, Heavy Goods Transport, and Others), Operation (Domestic and International), Customer Type (B2B, B2C, and E-Commerce & Last Mile Delivery), Business Model (Asset-Based Carriers and Non-Asset-Based Carriers) Distance (More than 500 Miles, 201 Miles-500 Miles, 101 Miles – 200 Miles, 50 Mile – 100 Miles, and Less Than 50 Miles), Industry (Oil & Gas, Manufacturing, Food & Beverages, Mining, Energy & Utility, Fast Moving Consumer Goods (FMCG), Healthcare, E-Commerce, Chemical, Automotive, IT & Telecom, Retail, Transportation, Defense, Electronics, Apparels & Footwear, and Others)
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Country Covered
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KSA
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Market Players Covered
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Kuehne+Nagel, CEVA Logistics, DHL, DSV, Abdul Latif Jameel, Sinotrans Co., Ltd, GAC, FedEx, SEKO Logistics, United Parcel Service of America, Inc., Hellmann, JAS, DB SCHENKER, BOLLORÉ LOGISTI, fourwinds, Ardian Global Express LLC., NTF GROUP, Defaf Logistics, and WeFreight, and Freights Solutions Co., among others
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Market Definition
Trucking road freight is the movement of goods by trucks on roadways. It's a vital aspect of logistics, involving loading cargo at origin points, transportation over highways, and unloading at destinations. This mode offers flexibility, accessing diverse locations from urban to remote areas. Various truck types, like semi-trucks and reefers, cater to different cargo needs. Planning routes, scheduling, cargo handling, and compliance with regulations are essential. Factors such as fuel costs, road conditions, and traffic impact efficiency and cost-effectiveness. Trucking road freight plays a crucial role in the timely delivery of goods, supporting economies and supply chains worldwide.
KSA Trucking (Road Freight) Market Dynamics
This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:
Drivers
- Growth in E-Commerce Sector Boosting the Road Freight/Trucking Services
A surge in the demand for efficient transportation and logistics solutions has been observes to ensure timely delivery of goods with the increase in the online shopping by the consumers. This surge in demand has opened up new opportunities for the KSA trucking (road freight) market, creating a positive environment for growth and development.
One of the key factors contributing to the synergy between e-commerce and the road freight sector is the need for last-mile delivery services. E-commerce companies require reliable and flexible transportation options to deliver products directly to consumers' doorsteps. This has led to an increased in the demand for local trucking services, creating a niche market for companies specializing in road freight in the KSA. The adaptability of trucking services to cater the diverse delivery requirements positions them as a vital link in the e-commerce supply chain.
- Rapid Infrastructure Development in KSA
The KSA government invests heavily in various infrastructure projects such as new highways, ports, and logistics hubs, surging the demand for efficient and reliable transportation services. The expansion of infrastructure creates an increased need for the transportation of raw materials, equipment, and finished goods, driving the growth of the road freight industry.
Moreover, the development of mega-projects, such as NEOM and the Red Sea Project, requires extensive logistics support. These projects entail the movement of large quantities of materials and goods over long distances, and the trucking industry is well-positioned to play a crucial role in facilitating this transportation demand. The trucking sector is likely to benefit from the expansion of logistics and distribution networks, as companies seek reliable and cost-effective solutions to transport goods across the country.
Opportunity
- Government Initiatives to Support Transportation and Logistics Sector
The trucking (road freight) market is a vital component of KSA’s expanding logistics and transportation sector, integral to supporting economic growth. It plays an important role in facilitating the movement of goods across the expansive landscape. A commitment to fostering growth in this sector is underscored by government initiatives.
The National Transformation Program (NTP) and Vision 2030 prioritize infrastructure development and efficiency enhancements, reflecting the government's broader economic diversification goals. The creation of logistics hubs strategically positioned for optimized freight distribution further highlights these efforts. Concurrently, ongoing regulatory reforms seek to attract private investment and promote a competitive market environment.
This landscape presents diverse opportunities for stakeholders. Infrastructure development offers prospects for construction and maintenance companies. The drive for efficiency creates a demand for modern and sustainable truck fleets, benefiting manufacturers and leasing businesses. Technology integration, especially in areas such as GPS tracking and route optimization, opens avenues for tech companies. In addition, the surge in e-commerce drives opportunities for last-mile delivery solutions. Collaboration among government bodies, private enterprises, and international market players is emphasized to foster innovation in this dynamic market.
Restraint/Challenge
- Stringent Government Regulations
The Saudi government imposes strict rules and standards on trucking operations to ensure safety, environmental compliance, and overall efficiency. Compliance with these regulations requires significant investments in technology, training, and infrastructure, placing a burden on trucking companies. Moreover, the licensing and permit requirements for trucking operations in KSA can be time-consuming and cumbersome. The regulatory process often involves multiple levels of approval and documentation, leading to delays in initiating or expanding trucking services. This bureaucratic red tape hampers the agility of trucking companies and their ability to respond promptly to market demands.
Recent Developments
- In October 2023, Kuehne+Nagel and Tamer Logistics forge an exclusive partnership in Saudi Arabia, addressing the rising demand for logistics solutions. This partnership enhances Kuehne+Nagel's contract logistics and freight forwarding with Tamer Logistics' local expertise, expanding their service portfolio. The strategic alliance aims to drive sustainable industry growth, aligning with Saudi Arabia's Vision 2030 and bolstering the country's position as a regional logistical hub
- In October 2023, DSV collaborated 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 honoured 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
KSA Trucking (Road Freight) Market Scope
KSA trucking (road freight) market is segmented into eleven notable segments based on service type, type of carrier, vehicle type, truck type, type of goods, type of road freight, operation, customer type, business model, distance, and industry. The growth amongst these segments will help you analyse major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Service Type
- Transportation
- Warehousing and Distribution
- Freight Forwarding
- Others
On the basis of service type, the KSA trucking (road freight) market is segmented into transportation, warehousing and distribution, freight forwarding, and others.
Type of Carrier
- Less than Truckload (LTL)
- Full Truckload (FTL)
- Partial Truckload (PTL)
- Specialized Freight
On the basis of type of carrier, the KSA trucking (road freight) market is segmented into Less than Truckload (LTL), Full Truckload (FTL), Partial Truckload (PTL), and specialized freight.
Vehicle Type
- Heavy Duty Commercial Trucks
- Medium Duty Commercial Trucks
- Light Duty Commercial Trucks
On the basis of vehicle type, the KSA trucking (road freight) market is segmented into heavy duty commercial trucks, medium duty commercial trucks, and light duty commercial trucks.
Truck Type
- Tanker Truck
- Box Truck
- Refrigerated Truck
- Semi-Trailer Truck
- Flatbeds Truck
- Liftgate Trucks
- Others
On the basis of truck type, the KSA trucking (road freight) market is segmented into tanker truck, box truck, refrigerated truck, semi-trailer truck, flatbeds truck, liftgate trucks, and others.
Type of Goods
- Road Transport of Foodstuffs
- ADR Road Transport of Dangerous Goods
- General Goods
- Others
On the basis of type of goods, the KSA trucking (road freight) market is segmented into road transport of foodstuffs, ADR road transport of dangerous goods, general goods, and others.
Type of Road Freight
- Dry Goods Road Transport
- Road Transport of Bulk Cargo
- Heavy Goods Transport
- Others
On the basis of type of road freight, the KSA trucking (road freight) market is segmented into dry goods road transport, road transport of bulk cargo, heavy goods transport, and others.
Operation
- Domestic
- International
On the basis of operation, the KSA trucking (road freight) market is segmented into domestic and international.
Customer Type
- B2B
- B2C
- E-Commerce & Last Mile Delivery
On the basis of customer type, the KSA trucking (road freight) market is segmented into B2B, B2C, and e-commerce & last mile delivery.
Business Model
- Asset-Based Carriers
- Non-Asset-Based Carriers
On the basis of business model, the KSA trucking (road freight) market is segmented into asset-based carriers and non-asset-based carriers.
Distance
- More than 500 Miles
- 201 Miles-500 Miles
- 101 Miles–200 Miles
- 50 Mile–100 Miles
- Less than 50 Miles
On the basis of distance, the KSA trucking (road freight) market is segmented into more than 500 miles, 201 miles-500 miles, 101 miles–200 miles, 50 mile–100 miles and less than 50 miles.
Industry
- Oil & Gas
- Manufacturing
- Food & Beverages
- Mining
- Energy & Utility
- Fast Moving Consumer Goods (FMCG)
- Healthcare
- E-Commerce
- Chemical
- Automotive
- IT & telecom
- Retail
- Transportation
- Defense
- Electronics
- Apparels & Footwear
- Others
On the basis of industry, the KSA trucking (road freight) market is segmented into oil & gas, manufacturing, food & beverages, mining, energy & utility, Fast Moving Consumer Goods (FMCG), healthcare, e-commerce, chemical, automotive, IT & telecom, retail, transportation, defense, electronics, apparels & footwear, and others.
Competitive Landscape and KSA Trucking (Road Freight) Market Share Analysis
The KSA trucking (road freight) 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, country presence, production sites and facilities, production capacities, company strengths and weaknesses, solution launch, product width and breadth, application dominance. The above data points are only related to the companies' focus on the market.
Some of the major players operating in the KSA trucking (road freight) market are Kuehne+Nagel, CEVA Logistics, DHL, DSV, Abdul Latif Jameel, Sinotrans Co., Ltd, GAC, FedEx, SEKO Logistics, United Parcel Service of America, Inc., Hellmann, JAS, DB SCHENKER, BOLLORÉ LOGISTI, fourwinds, Ardian Global Express LLC., NTF GROUP, Defaf Logistics, and WeFreight, and Freights Solutions Co., among others.
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