Saudi Arabia Third Party logistics Market to 2027 - Regional Analysis and Forecasts by Mode of Transport (Roadways, Railways, Waterways, and Airways); Services (International Transportation, Warehousing, Domestic Transportation, Inventory Management, and Others); and End-user (Chemicals & Petrochemicals, Automotive, Healthcare, Retail, Consumer Goods, and Others)
Publication Month: Jul 2019
Report Code: TIPRE00006273 No. of Pages: 141 Category: Automotive and Transportation Status: Published
The Saudi Arabia third-party logistics market accounted to US$ 14.86 Bn in 2018 and is expected to grow at a CAGR of 6.7% during the forecast period 2019 – 2027, to account to US$ 26.40 Bn by 2027.
Saudi Arabia is one of the largest economy amongst the GCC countries owing to its rich oil reserves and various economy diversification initiatives taken by the Government of the country. As of 2018, the GDP of the country was valued US$ 310 Bn and the population of the country was approximately 23.8 Mn. The country has emphasized on non-oil sectors to create more job opportunities for the youth population of the country. Cities such as Riyadh, Jubail, Yanbu, Ras Al-Khair and Jazan are considered to be the industrial heartlands of the country. The emerging industries and manufacturing hubs of Saudi Arabia include minerals and metal processing center, automotive manufacturing industry, and plastics and packaging industry. Third-party logistics market is gaining immense popularity in Saudi Arabia and is considered as an optimum solution by companies to manage the increasing cross-border flow of goods while expanding the logistics process concept. Companies operating in the country are considering supply chain engineered logistics as an essential means to improve their cash flows, boost their cost savings, and enhance servicing levels for offering their products to market.
Third-Party Logistics Market Insights
Logistics Industry Witnessing Progressive Growth in Saudi Arabia
Logistics is the core area of the third party logistics (3PL) firms and their proficiency in this areas is always superior to that of the core companies. Since the past few years, Saudi Arabia has made progress for improving its logistics services, and the relevant infrastructure & traceability in order to meet the world-class standards. The processes for import and export processes are more reorganized and governance regulations and structures are being reformed. KSA is also pursuing the public-private partnerships for both, to finance the infrastructure and for acquiring the capabilities from the other leading logistics markets. Furthermore, the country is moving forward towards modernizing airports and expanding air cargo facilities for eliminating the infrastructure bottlenecks. Additionally, for the waterways, the focus on growing port specialization, reforming the governance, and updating the concession frameworks is expected to proliferate the third-party logistics market growth.
Lesser Control of Manufacturers on Logistics Service and Delivery Processes
One of the disadvantage of opting for 3PL is that it leads the beneficiary companies to loss control over their shipping functions. The client businesses have no direct control over their operation when they use 3PL services. In such cases, businesses are highly dependent upon third party to consistently come through delivering the promised services. Client companies may have to bear certain losses and damage to their business if the 3PL services fail to deliver certain products to the customers on time. Moreover, third-party logistics market firms promote their services in most cost efficient way and the client company has to comply with pricing model specified in the business agreement. However, in certain cases, companies can figure out the cheaper and more efficient solution in their in-house logistics department. The aforementioned factors may hinder the growth of the third-party logistics market.
Mode of Transport Insights
Transportation is one of the most important service comprised in the 3PL operations and involves physically moving assets and goods in relatively safe manner on right time, in right condition, and in a cost effective manner. The role of transport is ensuring the movement of goods from the point of manufacturer or storage to the point of use or the distribution points to end use. On the basis of mode of transport, the Saudi Arabia third-party logistics market is segmented into roadways, railways, waterways, and airways. The most prominent mode of transport in third-party logistics market accounted for the roadways segment, which is further expected to dominate in the forecast period.
Services Insights
The third-party logistics market is categorized on the basis of various services such as international transportation, warehousing, domestic transportation, inventory management, and others. Domestic transportation service dominated the service segment and is expected to continue its dominance year on year till 2027. Domestic 3PL provides their clients with the similar quality of services that internationally located 3PL companies’ offers to their clients. The technological advancement in 3PL system allow to deliver superior services to the clients irrespective of international or domestic.
End-User Insights
The end use segment of third-party logistics market is bifurcated into automotive, healthcare, retail, consumer goods, chemicals & petrochemicals, and others. The third-party logistics market by end-use was led by chemicals & petrochemicals segment which held maximum market share and is anticipated to dominate the market in the forecast period. The need for diversification of the economy of Saudi Arabia from crude oil business to a more sophistical chemicals and petrochemicals industry is a step to secure the economy of the country. Initiatives taken to ensure growth in the petrochemicals sector drive the logistics business for the sector.
Strategic Insights
Market Initiatives was observed as the most adopted strategy in third-party logistics market. Few of the recent market initiatives are listed below;
2019: DHL International unveiled its plan of expansion in Saudi Arabia by opening of a US$30.5 Mn logistics facility in the Saudi eastern province of Dhahran. The new facility will comprise storage center and logistics fulfilment, while its total area will amount to 21,272 square meters.
2019: UPS has made expansions in its global express services in the high-growth markets. UPS Worldwide Express would serve 14 countries of the Americas, Indian subcontinent, Middle East, Africa (ISMEA), and Europe. Also, UPS Worldwide Express also provides later pick-up times and delivery in Southeast Asia, India, Middle East, and Africa (ISMEA) countries.
2017: Kuehne + Nagel acquired Trillvane Ltd, largest perishables specialists established in Kenya, and Commodity Forwarders Inc., (CFI), an airfreight forwarder of perishables products in the USA. The company expanded its global perishables network through adding over 150,000 tons of perishables in its list and also strengthen its position in offering end-to-end domestic and international fresh chain solutions.
Saudi Arabia Third-Party Logistics Market Segmentation
Saudi Arabia Third-party logistics Market - By Mode of Transport
- Roadways
- Railways
- Waterways
- Airways
Saudi Arabia Third-party logistics Market - By Services
- International Transportation
- Warehousing
- Domestic Transportation
- Inventory Management
- Others
Saudi Arabia Third-party logistics Market - By End-User
- Chemicals & Petrochemicals
- Automotive
- Healthcare
- Retail
- Consumer Goods
- Others
Saudi Arabia Third-party logistics Market - Company Profiles
- C.H. Robinson Worldwide, Inc.
- CEVA Logistics AG
- DB Schenker
- Deutsche Post AG (DHL)
- Kuehne + Nagel International AG
- Sankyu Inc.
- Saudi Logistics
- United Warehouse Company Ltd.
- United Parcel Service, Inc.
- Warehousing Projects and Logistics Company (WPL)
1. Introduction
1.1 Scope of the Study
2. Key Takeaways
3. Third-Party Logistics Market Landscape
3.1 Market Overview
3.2 Market Segmentation
3.2.1 Third-Party Logistics Market – By Mode of Transport
3.2.2 Third-Party Logistics Market – By Services
3.2.3 Third-Party Logistics Market – By End-user
3.3 PEST Analysis
3.3.1 Third-Party Logistics Market – Saudi Arabia PEST Analysis
4. Third-Party Logistics Market – Key Industry Dynamics
4.1 Key Market Drivers
4.1.1 Logistics Industry Witnessing Progressive Growth in Saudi Arabia
4.1.2 Rise in Demand for Reducing Overall Operational Cost And Focus on Managing Timely Delivery
4.2 Key market restraints
4.2.1 Lesser Control of Manufacturers on Logistics Service and Delivery Processes
4.3 Key Market Opportunities
4.3.1 Increase in Adoption of E-commerce in Retail Sector
4.4 Future trends
4.4.1 Implementation of varied software solutions
4.5 Impact Analysis of Drivers and Restraints
5. Third-Party Logistics– Saudi Arabia Market Analysis
5.1 Saudi Arabia Third-Party Logistics Market Overview
5.2 Saudi Arabia Third-Party Logistics Market Forecast and Analysis
6. Third-Party Logistics Market Analysis – By Mode of Transport
6.1 Overview
6.2 Mode of Transport Market Forecasts and Analysis, by Mode of Transport, 2018 & 2027
6.3 Roadways
6.3.1 Overview
6.3.2 Roadways Third-Party Logistics Market Forecasts and Analysis
6.4 Railways
6.4.1 Overview
6.4.2 Railways Third-Party Logistics Market Forecasts and Analysis
6.5 Waterways
6.5.1 Overview
6.5.2 Waterways Third-Party Logistics Market Forecasts and Analysis
6.6 Airways
6.6.1 Overview
6.6.2 Airways Third-Party Logistics Market Forecasts and Analysis
7. Third-Party Logistics Market Revenue and Forecasts to 2027 – by Service
7.1 Overview
7.2 Third-Party Logistics Market Breakdown By Service, 2018 & 2027
7.3 International Transportation
7.3.1 Overview
7.3.2 International Transportation Market Forecasts and Analysis
7.4 Warehousing
7.4.1 Overview
7.4.2 Warehousing Market Forecasts and Analysis
7.5 Domestic Transportation
7.5.1 Overview
7.5.2 Domestic Transportation Market Forecasts and Analysis
7.6 Inventory Management
7.6.1 Overview
7.6.2 Inventory Management Market Forecasts and Analysis
7.7 Others
7.7.1 Overview
7.7.2 Others Market Forecasts and Analysis
8. Third-Party Logistics Market Revenue and Forecasts to 2025 – by End-User
8.1 Overview
8.2 End-User Market Forecasts and Analysis
8.3 Chemicals & Petrochemicals
8.3.1 Overview
8.3.2 Chemicals & Petrochemicals Market Forecasts and Analysis
8.4 Automotive
8.4.1 Overview
8.4.2 Automotive Market Forecasts and Analysis
8.5 Healthcare
8.5.1 Overview
8.5.2 Healthcare market forecasts and analysis
8.6 Retail
8.6.1 Overview
8.6.2 Retail market forecasts and analysis
8.7 Consumer Goods
8.7.1 Overview
8.7.2 Consumer Goods Market Forecasts and Analysis
8.8 Others
8.8.1 Overview
8.8.2 Others Market Forecasts and Analysis
9. Industry Landscape
9.1 Overview
9.2 Market Initiative
9.3 Merger and Acquisition
9.4 New Development
10. Competitive Landscape
10.1 Competitive Industry Mapping
10.2 Market Positioning – Top 5 Players Ranking
11. Third-Party Logistics Market, Key Company Profiles
11.1 CEVA Logistics AG
11.1.1 Key Facts
11.1.2 Business Description
11.1.3 Product and Services
11.1.4 Financial Overview
11.1.5 SWOT Analysis
11.1.6 Key Developments
11.2 C.H. Robinson Worldwide, Inc.
11.2.1 Key Facts
11.2.2 Business Description
11.2.3 Products and Services
11.2.4 Financial Overview
11.2.5 SWOT Analysis
11.2.6 Key Developments
11.3 DB Schenker (Deutsche Bahn AG)
11.3.1 Key Facts
11.3.2 Business Description
11.3.3 Products and Services
11.3.4 Financial Overview
11.3.5 SWOT Analysis
11.3.6 Key Developments
11.4 Deutsche Post AG (DHL)
11.4.1 Key Facts
11.4.2 Business Description
11.4.3 Product and Services
11.4.4 Financial Overview
11.4.5 SWOT Analysis
11.4.6 Key Developments
11.5 KUEHNE + NAGEL International AG
11.5.1 Key Facts
11.5.2 Business Description
11.5.3 Products and Services
11.5.4 Financial Overview
11.5.5 SWOT Analysis
11.5.6 Key Developments
11.6 Sankyu Inc.
11.6.1 Key Facts
11.6.2 Business Description
11.6.3 Products and Services
11.6.4 Financial Overview
11.6.5 SWOT Analysis
11.6.6 Key Developments
11.7 Saudi Logistics
11.7.1 Key Facts
11.7.2 Business Description
11.7.3 Products and Services
11.7.4 Financial Overview
11.7.5 SWOT Analysis
11.7.6 Key Developments
11.8 United Warehouse Company Ltd.
11.8.1 Key Facts
11.8.2 Business Description
11.8.3 Products and Services
11.8.4 Financial Overview
11.8.5 SWOT Analysis
11.8.6 Key Developments
11.9 United Parcel Service, Inc.
11.9.1 Key Facts
11.9.2 Business Description
11.9.3 Products and Services
11.9.4 Financial Overview
11.9.5 SWOT Analysis
11.9.6 Key Developments
11.10 Warehousing Projects and Logistics Company
11.10.1 Key Facts
11.10.2 Business Description
11.10.3 Products and Services
11.10.4 Financial Overview
11.10.5 SWOT Analysis
11.10.6 Key Developments
12. Appendix
12.1 Glossary of Terms
12.2 Methodology
12.2.1 Mode of Transport
12.2.2 Secondary Research
12.2.3 Primary Research
LIST OF TABLES
Table 1. Saudi Arabia Third-Party Logistics Market Revenue and Forecasts to 2027 (US$ Bn)
Table 2. Glossary of Terms, Third-Party Logistics Market
LIST OF FIGURES
Figure 1. Third-Party Logistics Market, by End-user, Revenue (%), 2018 & 2027
Figure 2. Third-Party Logistics Market, by Mode of Transport, Revenue (US$ Bn), 2018 & 2027
Figure 3. Third-Party logistics Market, by Service, Revenue (%), 2018 & 2027
Figure 4. Third-Party Logistics Market Segmentation
Figure 5. Third-Party Logistics Market – Saudi Arabia PEST Analysis
Figure 6. Third-Party Logistics Market Impact Analysis of Driver and Restraints
Figure 7. Saudi Arabia Third-Party logistics Market Forecast and Analysis, (US$ Bn)
Figure 8. Saudi Arabia Third-Party Logistics Market Breakdown by Mode of Transport, 2018 & 2027 (%)
Figure 9. Saudi Arabia Roadways Third-Party Logistics Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 10. Saudi Arabia Railway Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 11. Saudi Arabia Waterways Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 12. Saudi Arabia Airways Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 13. Saudi Arabia Third-Party Logistics Market Breakdown, by Service, 2018 & 2027 (%)
Figure 14. Saudi Arabia International Transportation Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 15. Saudi Arabia Warehousing Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 16. Saudi Arabia Domestic Transportation Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 17. Saudi Arabia Inventory Management Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 18. Saudi Arabia Others Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 19. Saudi Arabia Third-Party Logistics Market Breakdown by End User, By Revenue, 2018 & 2027 (%)
Figure 20. Saudi Arabia Chemicals & Petrochemicals Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 21. Saudi Arabia Automotive Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 22. Saudi Arabia Healthcare Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 23. Saudi Arabia Retail Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 24. Saudi Arabia Consumer Goods Market Revenue and Forecasts to 2027 (US$ Bn)
Figure 25. Saudi Arabia Others Market Revenue and Forecasts to 2027 (US$ Bn)
The List of Companies
- C.H. Robinson Worldwide, Inc.
- CEVA Logistics AG
- DB Schenker
- Deutsche Post AG (DHL)
- Kuehne + Nagel International AG
- Sankyu Inc.
- Saudi Logistics
- United Warehouse Company Ltd.
- United Parcel Service, Inc.
- Warehousing Projects and Logistics Company (WPL)
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the Saudi Arabia third-party logistics market.
- Highlights key business priorities in order to assist companies to realign their business strategies.
- The key findings and recommendations highlight crucial progressive industry trends in the Saudi Arabia third-party logistics market, thereby allowing players across the value chain to develop effective long-term strategies.
- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
- Scrutinize in-depth Saudi Arabia market trends and outlook coupled with the factors driving the market, as well as those hindering it.
- Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to client products, segmentation, pricing and distribution.