The Saudi Arabia third-party logistics market accounted for US$ 14.86 Bn in 2018 and is expected to grow at a CAGR of 6.7% over the forecast period 2019-2027, to account for US$ 26.40 Bn in 2027. The factors that are driving the growth of the third-party logistics market rise in demand for reducing overall operational cost & focus on managing timely delivery, and progressive growth of logistics industry in Saudi Arabia. However, the lesser control of manufacturers on logistics service and delivery processes is anticipated to hinder the third-party logistics market for same in the coming years. In addition, the increase in adoption of e-commerce in retail sector is expected to create a lucrative market opportunity for third-party logistics market. Some of the leading players in third-party logistics market are highly focusing on strategic market initiatives to enrich their product capabilities as well as to expand their geographical presence across the globe. This, in turn, is contributing to the growth of the third-party logistics market.

The third-party logistics market is segmented on the basis of mode of transport, services, and end-user. The mode of transport segment is bifurcated into roadways, railways, waterways, and airways. The services segment of third-party logistics market includes, international transportation, warehousing, domestic transportation, inventory management, and others. The end-user segment consists of chemicals & petrochemicals, automotive, healthcare, retail, consumer goods, and others.

Some of the global leaders in third party logistics operate in the Saudi Arabia market. Services provided by these companies include full container logistics, half-filled container logistics, and cold storage logistics etc. The number of companies provisioning break bulk movement in the country has increased manifolds, and also the number of companies provisioning freight forwarding and clearance services has increased. Majority of the logistics services provider in the country provision full distribution solutions to the customers through different modes of transport. Post the decline of oil prices in Saudi Arabia, the Government has strived hard to redefine the economy of the country and reduce its dependency on the oil business. Industrialization in Saudi Arabia has witnessed steady development in the last few years as the focus has been laid on diversification of the economy. Saudi Arabia accounts for close to 25% of the world’s oil reserves. Even with declining oil prices, a large part of the economy of Saudi Arabia depends upon the performance of the crude oil industry. Saudi Arabia is a trade partner with many countries of the globe owing to the large oil reserves present in the country. The accessibility to emerging markets hands significant trade advantage to the country and highlights the need to strengthen the transportation and logistics infrastructure of country. Factors such as economic growth, rapid urbanization, and population maturation have driven the Government to invest heavily towards the expansion and enhancement of the transport infrastructure.

The overall third-party logistics market size has been derived using both primary and secondary source. The research process begins with exhaustive secondary research using internal and external sources to obtain qualitative and quantitative information related to the third-party logistics market. It also provides the overview and forecast for the third-party logistics market based on all the segmentation provided with respect to Saudi Arabia. Also, primary interviews were conducted with industry participants and commentators in order to validate data and analysis. The participants who typically take part in such a process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, and external consultant such as valuation experts, research analysts and key opinion leaders specializing in the third-party logistics market. Some of the players present in third-party logistics market are 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., and Warehousing Projects and Logistics Company (WPL) among others.