Automotive, Transportation and Warehousing Logistics And Shipping

KSA E-Commerce Logistics and Warehousing Market are expected to generate ~ $2 Bn in revenue terms by 2026F owing to Entrance of Major Retailers in KSA: Ken Research

January 17, 2023

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Expansion in internet services (~98% internet penetration in 2021) coupled with increasing demand for online logistics services have collectively given a boost to development of E-commerce logistics industry in KSA.
Number of e-commerce shipments in KSA increased from 2021 to 2026, owing to KSA’s internet infrastructure, youthful, tech-savvy population and rising mobile/broadband penetration rates.
Majority of the Large-scale E-commerce platforms such as Noon and Souq operate both on basis of Fulfilment Model and Market Place Model.

Same Day Delivery: Logistics companies are increasing focusing on delivering shipments on the same day. Switching to same-day delivery is a significant boost to online business performance and gives significant competitive advantage over competitors and improves customer experience.

Emerging Technology: Several technological disruptions are expected to drive the in the e-commerce shipments industry in KSA. Logistics platforms are deploying technologies such as AI, IoT, and Big Data to garner insights into consumer preferences and customize their experience to cater to this growing demand. Companies are also using Radio-frequency Identity (RFID) chips which provide real-time tracking information. When effectively integrated, RFID systems can provide precise location and quantity data in real-time helping companies to provide better services in terms of tracking parcels.

Covid-19 causing surge in sales: With increased customer use of various online channels, vertical and horizontal e-commerce platforms across certain categories – pharmacies, groceries, essentials, and many more – have witnessed a significant surge in sales post the outbreak of pandemic. The e-commerce sales gross market value increased at a CAGR of 12.8% during 2019-2020. This increase can be partially attributed to the increase in number of orders due to the COVID-19 lockdown.

KSA E-Commerce Logistics and Warehouse Market

The report titled “KSA E-Commerce Logistics and Warehousing Market Outlook to 2026F– Driven by Growth in Online Shoppers along with Introduction of New Age Technologies by Logistics Players” provides a comprehensive analysis of the potential of e-commerce and e-commerce logistics market in KSA. The report covers various aspects including the growth of E-Commerce industry, revenue generated from E-Commerce logistics players, its segmentations viz by source, By Delivery Period (Same Day delivery, Next day Delivery, more than 2 days), By Payment (Cash, E-wallet, Debit Card, Credit Card, QR Pay, Bank Transfer), By Intercity and Intracity and By domestic an international, major trends and development, issues and challenges, technological advancements and competition analysis. The reports also cover the e-commerce warehousing industry in KSA. The report concludes with market projections for future of the industry including forecasted industry size by revenue along with analyst recommendations and key market opportunities.

Key Segments Covered: –

By Delivery