The Market Report Covers the Top Third-Party Logistics Companies in Saudi Arabia and is Segmented by Service (Domestic Transportation Management, International Transportation Management, Value-Added Warehousing, and Distribution) and End User (Automotive and Manufacturing, Oil and Gas, Chemicals, Distributive Trade [Wholesale and Retail Trade, Including E-Commerce], Pharmaceutical and Healthcare, Construction, and Other End Users). The Report Offers Market Size and Forecasts for the Saudi Arabian Third-Party Logistics Market in Value (USD) for all the Above Segments.

Saudi Arabia's Third-Party Logistics (3PL) market is anticipated to exhibit a robust CAGR of 6.38%, reaching a substantial market size of 17.40 million by 2033. The market's growth is primarily driven by the burgeoning e-commerce sector, rising industrial output, and increasing demand for efficient supply chain management solutions. This market is expected to witness significant growth opportunities in the coming years as businesses seek to outsource their logistics operations to optimize efficiency and reduce costs. Key market trends include the increasing adoption of advanced technologies such as artificial intelligence (AI), blockchain, and IoT for enhanced supply chain visibility and optimization. Additionally, the growing focus on sustainability is driving the adoption of eco-friendly logistics solutions. The market is highly competitive, with established players like BAFCO International, Camels Party Logistics, and Motion Supply Chain, along with numerous other local and regional providers. These companies are focusing on expanding their service offerings, investing in technology, and forming strategic partnerships to cater to the evolving needs of the industry. Recent developments include: December 2023: Omniful, a company that offers an order management system to third-party logistics, raised USD 5.85 million in seed funding led by VentureSouq. It will use the funds to improve its platform, which is called plug-and-play. Omniful's cloud platform, known for its flexibility and configurable features, can be configured to suit your needs. Its API-first strategy facilitates smooth integration with various global and local e-commerce platforms, marketplaces, ERP systems, POS systems, and shipping tech stacks., March 2023: One of the leading players, DHL, signed an end-to-end procurement and logistics hub joint venture with Saudi giant Saudi Aramco. This joint undertaking aims to enter operations in 2025 and provide a wide range of integrated supply chain and procurement services for companies from all sectors, including industry, energy, chemicals, and petrochemicals. The joint venture will focus on Saudi Arabia to grow across the Middle East and North Africa., May 2023: Aramex, one of the leading 3PL players in the region, signed a strategic partnership with AD Ports Group, the leading facilitator of global trade and logistics, to operate and develop a new non-vessel operating common carrier (NVOCC) enterprise. In the joint venture, Aramex has a stake of 49% and will further enhance and develop shipping connectivity across the GCC, Indian, and East and West African markets with a target of 10,000 containers in the short term and intends to increase the number of containers in the medium- to long-term.. Key drivers for this market are: Increasing Cross-Border Trade, Development of Transportation Infrastructure in the Country; Establishment of Special Economic Zones. Potential restraints include: High Cost of 3PL Services, Skilled Labor Shortages. Notable trends are: Growth in E-commerce Boosting the Demand for 3PL Services.

Saudi Arabia Third-Party Logistics Market size was valued at USD 25.6 Billion in 2024 and is projected to reach USD 44 Billion by 2032, growing at a CAGR of 8.2% during the forecast period 2025 to 2032.

Saudi Arabia Third-Party Logistics Market: Definition/ Overview

Third-party logistics (3PL) refers to the outsourcing of logistics and supply chain management functions to specialized service providers, including transportation, warehousing, inventory management, and order fulfillment. It is widely used across industries such as e-commerce, manufacturing, retail, and healthcare to streamline operations, reduce costs, and enhance scalability.

With advancements in technology like artificial intelligence, automation, and blockchain, the future scope of 3PL is poised to expand, offering enhanced efficiency, real-time visibility, and sustainability in supply chain operations, particularly as businesses prioritize agility and customer-centric logistics solutions.

The Saudi Arabia Third-Party Logistics (3PL) market is predicted to grow with more than 6% CAGR from 2023 to 2028, due to rising cross border trade.

This statistic illustrates the market size of third-party logistics (3PL) in the Middle East between 2013 and 2017. In 2017, the Middle Eastern third-party logistics market generated revenue to the value of 42.2 billion US dollars.

Global overview of logistics and automation

In recent years, logistics and warehousing processes all over the world have been experiencing fundamental changes. Innovative solutions and smart technologies are being implemented to improve supply chain integration. The warehouse automation market reached about 15 billion U.S. dollars in 2019 with expectations to double in size to above 30 billion U.S. dollars by 2026. The increasing demand by e-commerce and e-retail by shoppers after the COVID-19 pandemic in 2020 serves as a great opportunity to invest in developing the logistics market. The importance of warehousing operations during those times encouraged a focus on automation of logistics. Automation of warehouses increases efficiency and profitability while solving barriers such as labor costs and shortages. The number of logistics robots is expected to increase from 75 thousand in 2019 to almost 260 thousand by 2023. Warehouse cloud computing and storage technology had the highest global adoption rate, while inventory and network optimization tools were expected to have the highest adoption rate by supply chain firms during the next two years.

MENA logistics and automation

The current transformations in the logistics sector in the Middle East and North Africa (MENA) region aim to increase productivity and cost-efficiency. The food producer Almarai in Saudi Arabia reached an agreement to automate its distribution logistics. While in the United Arab Emirates (UAE), Dubai Customs launched an awareness campaign about the importance of smart warehouse management systems (WMS) to more than 21 thousand companies. The warehouse automation market in the region was expected to reach a value of 1.6 billion U.S. dollars by 2025. The growth in e-commerce is the main driver for warehouse automation. More than 40 percent of respondents in a survey in Saudi Arabia and UAE stated that fast delivery is one of the main factors influencing their choice of online shopping platforms. Warehouse automation helps speed up tasks such as order fulfillment, packaging, and shipping processes. However, until post the COVID-19 pandemic in 2020, warehouse automation levels remained relatively low. In Saudi Arabia, warehouses were automated only up to 25 percent. This leaves a huge future potential investment opportunity for the region.

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Oil and Gas Logistics Market Size 2024-2028

The oil and gas logistics market size is estimated to grow by USD 4.56 billion at a CAGR of 5.17% between 2023 and 2028. The market is experiencing significant expansion driven by key factors. These include the transition of freight from traditional over-the-road methods to more efficient intermodal transportation. Additionally, the surge in offshore oil and gas exploration and production activities necessitates advanced logistics solutions for the transportation of equipment and supplies. Furthermore, the increasing demand for contract logistics services from oil and gas companies to manage their supply chains and optimize operations contributes to market growth. These factors collectively shape the dynamic landscape of the market.

What will be the Size of the Market during the Forecast Period?

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Market Dynamics

The market plays a vital role in the efficient functioning of the industry, managing contract logistic services for exploration and production sites, processing plants, and distribution centers. Given the challenges of remote locations and large equipment, logistics providers ensure timely delivery of modular refinery materials and drilling equipment to oil and gas fields. With a focus on safety, they address spill and leakage issues during oil and gas transportation from extraction sites to refineries and gas stations. Furthermore, advancements like blockchain technology enhance transparency in oilfield discoveries and gas shale gas production, ensuring efficient management of petrochemical products and refined products from production to end-users, including homes and transportation vehicles. In the oil and gas industry, contract logistic services are crucial, especially in remote locations such as offshore segments, ensuring efficient operations from extraction sites to Distribution centres, even in the face of global monopolies dominating midstream and downstream sectors.

Key Market Driver

The demand for contract logistics services is the key factor driving market growth. Traditionally, businesses preferred to handle logistics functions in-house to exercise control and minimize risk. However, the business landscape is becoming more complex and competitive, and customers are now focusing on their core businesses. As a result, companies are investing all their resources and capital in improving the efficiency of their core businesses, leading to a shift towards third-party logistics providers. This shift is motivated by the fact that logistics can consume a significant amount of time and resources, which management wants to avoid.

Furthermore, information management has become easier, providing a clear picture of costs and transport status. Consequently, companies are focusing on their core business, leading to an increased demand for outsourcing and contributing significantly to the revenue of the market during the forecast period.

Significant Market Trends

Advances in technology to provide high-end logistics and supply chain solutions is the primary trend shaping market growth. Currently, there are only a few players in the market that offer one-stop solutions. Shippers are increasingly favoring contract logistics providers that provide a comprehensive solution and eliminate the hassle of outsourcing different tasks to multiple players. Companies outsource logistics services to contract logistics providers because they are more specialized in delivering these services. Moreover, outsourcing allows users of contract logistics to serve their customers more efficiently.

Furthermore, the use of advanced technologies in project logistics services is expected to grow. Logistics service providers offer a range of IT-enabled services, such as global positioning system (GPS)-enabled transportation trucks for tracking, radio-frequency identification (RFID) for inventory tracking, bar coding, and information management system-related services. These services are more efficient in scheduling transportation, delivery, and inventory management for complex projects. Thus, such factors, coupled with the increasing demand for streamlined and technologically advanced project logistics solutions, are expected to drive the growth of the project logistics market during the forecast period. As industries worldwide adopt these technologies to enhance operational efficiency and reduce costs, project logistics providers are poised to play a crucial role in facilitating large-scale infrastructure and industrial projects across various sectors.

Major Market Challenge

Varying transportation costs in various geographies is a challenge that affects market growth. Varied transportation costs pose a challenge to the APAC logistics market, as contract logistics providers face different costs of fuel, taxes, duties, fees, and government policies a