Saudi Arabia Freight and Logistics Market Size, Share, Trends and Forecast | 2034

Saudi Arabia Freight and Logistics Market Outlook

According to the report by Expert Market Research (EMR), the Saudi Arabia freight and logistics market size attained a significant value of USD 31.82 billion in 2024. Aided by the increasing trade activities, infrastructure development, and government initiatives to boost logistics efficiency, the market is projected to further grow at a robust CAGR of 5.5% between 2025 and 2034, to attain a value of around USD 51.60 billion by 2034.

Saudi Arabia's strategic geographic location at the crossroads of major international trade routes has positioned the country as a key logistics hub in the Middle East. The freight and logistics market encompasses a wide range of services, including transportation, warehousing, inventory management, and supply chain solutions. The sector is integral to the country's economic diversification plans under Vision 2030, which aims to reduce dependence on oil revenues and develop a world-class logistics infrastructure.

Key Drivers of Market Growth

One of the primary drivers of the Saudi Arabia freight and logistics market growth is the expansion of international trade. With the country being a leading exporter of crude oil and petrochemical products, efficient logistics services are essential for seamless transportation and distribution. The rise in non-oil trade, including manufacturing, e-commerce, and pharmaceuticals, further fuels the demand for advanced logistics solutions.

The ongoing development of transport infrastructure is another crucial factor boosting the market. Saudi Arabia is heavily investing in mega infrastructure projects such as the Saudi Landbridge Project, the expansion of King Abdulaziz Port, and the development of smart logistics hubs. These initiatives aim to enhance connectivity, reduce transit times, and improve the overall efficiency of the logistics network.

Additionally, government policies and reforms are playing a pivotal role in propelling the Saudi Arabia freight and logistics market. The National Industrial Development and Logistics Program (NIDLP) focuses on transforming the country into a global logistics powerhouse by improving regulatory frameworks, enhancing multimodal transport networks, and promoting private sector participation. The liberalization of transport regulations has also encouraged foreign investments in the logistics sector, further driving market expansion.

Get a Free Sample Report with Table of Contents@ https://www.expertmarketresearch.com/reports/saudi-arabia-freight-and-logistics-market/requestsample

Saudi Arabia Freight and Logistics Market Segmentation

The market can be divided based on function and end use.

Market Breakup by Function

• Courier, Express and Parcel
  • Domestic
  • International
• Freight Forwarding
  • Railways
  • Airways
  • Roadways
  • Waterways
• Freight Transport
  • Railways
  • Airways
  • Roadways
  • Waterways
• Warehousing and Storage
  • Temperature Controlled
  • Non-Temperature Controlled
• Others

Market Breakup by End Use

• Manufacturing
• Consumer Goods and Retail
• Food and Beverages
• IT Hardware and Telecom
• Healthcare
• Chemicals
• Construction
• Automotive
• Oil and Gas
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the Saudi Arabia freight and logistics market. Some of the major players explored in the report by Expert Market Research are as follows:

• Kuehne + Nagel Management AG
• Deutsche Post AG
• UPS Express Private Limited
• The Aramex Group
• FedEx Corporation
• Agility Public Warehousing Company K.S.C.P.
• Mosanada Logistics Services
• Zajil Express
• Alma Express
• SMSA Express Transportation Company Ltd.
• Wared Logistics
• Saudi Logistics Services Company (SAL)
• Saudi Post Corporation
• United Warehouse Co. Ltd.
• Others

Challenges and Opportunities

Despite the positive outlook, the Saudi Arabia freight and logistics market faces certain challenges. High operational costs, regulatory complexities, and the need for skilled workforce remain key obstacles. Additionally, disruptions in global supply chains due to geopolitical tensions and economic fluctuations can impact logistics operations.

However, the market presents significant opportunities for growth. The rising adoption of digital technologies, such as artificial intelligence (AI), blockchain, and Internet of Things (IoT), is revolutionizing logistics processes, enhancing transparency, and improving efficiency. The push towards sustainable logistics, including green supply chain practices and the use of electric vehicles, aligns with the country's commitment to environmental sustainability.