Saudi Arabia Third Party Logistics (3PL) Market Research Report, 2028

Saudi Arabia's third-party logistics (3PL) market is a quickly growing and dynamic sector, fueled by many key elements that underline the country's strategic position in the Middle East and dedication to diversifying its economy. The Saudi government is actively pursuing economic diversification in order to wean itself off its dependency on oil earnings. As a result, the country has encouraged the establishment of non-oil sectors such as logistics and transportation, which has fueled the growth of the 3PL market. Saudi Arabia is strategically located at the intersection of three continents: Asia, Europe, and Africa. Because of its geographic location, it is an important transhipment point for commodities transiting between these regions, reinforcing its significance in the global logistics and supply chain network. Saudi Arabia has made considerable investments in its infrastructure, including the construction of world-class ports, airports, road networks, and logistical hubs. This modern infrastructure promotes the efficient transportation of commodities and is critical to the expansion of the 3PL sector. Saudi Arabia is rapidly urbanizing, with major cities housing a sizable share of the population. This development needs effective urban logistics and last-mile delivery solutions, which 3PL companies may help with. The Saudi Vision 2030 program, a strategic roadmap for the country's future, emphasizes logistics and transportation as critical accelerators of economic growth. As a result, the 3PL industry has attracted a lot of interest and investment. The oil and gas sector is a cornerstone of the Saudi Arabian economy, and it relies on efficient logistics and supply chain management. 3PL providers play a crucial role in ensuring the timely and secure transportation of oil and gas products within the country and for export. According to the research report "Saudi Arabia Third-Party Logistics (3PL) Market Overview, 2028," published by Actual Research, the Saudi Arabia Third-Party Logistics (3PL) market is predicted to grow with more than 6% CAGR from 2023 to 2028. Warehouse automation, transportation management systems, and real-time tracking solutions have been adopted by 3PL providers in Saudi Arabia. This technology integration improves the visibility, accuracy, and efficiency of the supply chain. Numerous manufacturing and petrochemical facilities may be found throughout the country's industrial clusters, particularly in locations like Jubail and Yanbu. Logistics services such as transportation, warehousing, and distribution are in high demand in these industrial zones. Saudi Arabia's food and beverage industry relies on effective cold chain logistics. In order to ensure the quality and safety of perishable commodities, 3PL providers provide temperature-controlled warehousing and transportation options. Saudi Arabia has made significant expenditures in logistical infrastructure, such as ports, airports, roadways, and logistics hubs. These modern facilities are critical for the effective movement of goods and have opened up the potential for 3PL providers to provide a variety of services. Saudi Arabia has seen a huge increase in e-commerce. The rise of online retail has produced a large demand for third-party logistics services, particularly in last-mile delivery, warehousing, and order fulfillment. Globally, environmental sustainability is becoming more important, and 3PL providers in Saudi Arabia are actively implementing sustainable transportation methods such as route optimization, the use of eco-friendly trucks, and energy-efficient warehouse operations.

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Based on mode of transportation market is segmented into roadways, railways, waterways and airways. Roadways is major mode of transportation used by third-party logistics service provider in Saudi Arabia. Saudi Arabia has a large road network that includes modern roads and expressways. This network provides efficient transit routes connecting large cities and industrial hubs, allowing for the smooth movement of commodities. Saudi Arabia has experienced significant urbanization, resulting in the expansion of large cities and metropolitan areas. Road transportation is critical for meeting the logistical needs of large urban centers and ensuring that commodities are transported to consumers and companies in an efficient manner. Road transportation is frequently used by 3PL providers as part of an intermodal approach that combines road, sea, air, and rail transport to develop comprehensive logistics solutions. Road transportation is an important link in this multi-modal supply chain. In terms of service market is divided into domestic transportation management (DTM), international transportation management (ITM), dedicated contract carriage (DCC), warehousing & distribution (W&D), and value-added logistics by services (VAS). Among them warehousing & distribution (W&D) services is expected to grow at fastest rate in Saudi Arabia third-party logistics market. The e-commerce boom has increased demand for rapid and dependable last-mile delivery options dramatically. Warehousing facilities strategically positioned near urban centers are critical for ensuring timely deliveries to consumers in both urban and rural areas. Saudi Arabia's retail sector is expanding with the construction of shopping complexes and a growing consumer base. To resupply their storefronts, manage inventory, and fulfill consumer demand, retail enterprises require efficient warehouse and distribution services. Saudi Arabia has a thriving food and beverage industry that necessitates sophisticated temperature-controlled warehousing facilities. These facilities are critical for storing and distributing perishable goods. Based on end user industry market is bifurcated into manufacturing, healthcare, retailing, e-commerce, automotive, food & groceries, technological, and others. Among them manufacturing industry segment is expected to lead the market of Saudi Arabia. Through initiatives such as Vision 2030, Saudi Arabia has actively promoted industrial growth and diversification. The growth of manufacturing industries such as petrochemicals, automobiles, and electronics has produced a significant demand for 3PL services to properly manage supply chains. Inventory management efficiency is crucial in the manufacturing industry. 3PL company’s help businesses manage stock levels, optimize warehouse space, and ensure raw materials and finished goods are readily available for manufacturing and order fulfillment. The implementation of cutting-edge technology, such as warehouse management systems (WMS), transportation management systems (TMS), and real-time tracking solutions, has increased the efficiency and visibility of manufacturing supply chains. Temperature-sensitive cargo requires particular storage and transportation options in certain industries, such as medicine and food processing. To ensure the integrity of these products, 3PL suppliers provide temperature-controlled warehousing and transportation. In the industrial industry, quality control and assurance are critical. Quality tests and inspections are provided by 3PL suppliers to ensure product quality and compliance with industry and regulatory standards. Considered in this report: • Geography: Saudi Arabia • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

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Kripa Shah

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Aspects covered in this report: • Saudi Arabia Third-Party Logistics (3PL) market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Mode of Transport: • Roadways • Railways • Waterways • Airways By Services: • Domestic Transportation Management (DTM) • International transportation management (ITM) • Dedicated contract carriage (DCC) • Warehousing & Distribution (W&D) • Value-Added Logistics By Services (VAS)

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By End User: • Manufacturing • Healthcare • Retailing • Food & Groceries • Automotive • E-commerce • Technological • Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Third-Party Logistics (3PL) industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.