KSA Warehousing Market Outlook to 2027
Driven by increasing government efforts in line with Saudi Vision 2030 and rising demand for automated and mechanized warehouses
Region:Middle East
Author(s):Anchal Gupta and Apoorva Narula
Product Code:KR1324
June 2023
42
About the Report
The report provides a comprehensive analysis of the potential of Warehousing Industry in KSA. The report covers an overview and genesis of the industry, market size in terms of revenue generated.
The report has market segmentation which include segments by Market Segmentation by Ownership, by City, End Users by Revenues and more; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.
Market Overview:
According to Ken Research estimates, the Market Size of KSA Warehousing has shown increasing trend from 2019 to 2022. KSA's strategic location as a gateway between Europe, Asia, and Africa makes it an attractive hub for trade. The country has been actively promoting foreign trade and industrialization, attracting international companies to set up manufacturing facilities and distribution centers. This leads to an increased demand for warehousing services to support import, export, and local supply chains.
- KSA's strategic location as a gateway between Europe, Asia, and Africa makes it an attractive hub for trade. The country has been actively promoting foreign trade and industrialization, attracting international companies to set up manufacturing facilities and distribution centers. This leads to an increased demand for warehousing services to support import, export, and local supply chains.
- Modon, Saudi Authority for Industrial Cities and Technology Zones is in deal to develop 14 digital warehouses in Jeddah in the next few years.
Key Trends by Market Segment:
By Ownership: Owned Companies dominated in Warehouse Market in Saudi Arabia, 2021
By City: Jeddah has remained most popular location for logistic service providers in Saudi Arabia mainly due to supportive infrastructure, availability of manpower, location near the tourist cities of Mecca and Medina and city itself being a port city.
Competitive Landscape:
Saudi Arabia warehousing market is highly fragmented with many organized and unorganized small players concentrated in major cities like Riyadh, Jeddah and Dammam. Some of the top players are LSC Logistics, Agility Logistics, Almajdouie Logistics.
Future Outlook:
Market Size of KSA Warehousing is expected to show increasing trend from 2022 to 2027. The rapid shift of distribution of food products from traditional markets toward supermarkets and convenience stores is increasing the need for reefer trucks as major distributors hire 3PL for shipping via insulated trucks.
Scope of the Report
|
KSA Warehousing Market Segmentation |
|
|
By Ownership |
Owned 3PL |
|
By City |
Riyadh Jeddah Others including Damam and more |
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By End Users |
Consumer Retail Food and Beverages Healthcare Automotive Others |
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By Business Model |
Industrial/Retail Warehouses CFS/ICD Warehouses Cold Storage Agriculture and Other Warehouses |
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report:
- E-commerce Companies
- Third-Party Logistic Providers
- Potential Market Entrants
- Freight Forwarding Companies
- Warehousing Companies
- Cold Storage Companies
- Industry Associations
- Consulting Agencies
- Government Bodies & Regulating Authorities
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Year: 2022
- Forecast Period: 2022-2027
Companies
Major Players Mentioned in the Report:
- LSC Logistics
- Agility Logistics+DSV
- Almajdouie Logistics
- Mosanada Logistics
- Tamer Logistics
- BAFCO International Logistics and Shipping Co.
- Hala Supply Chain
- United Warehousing Co.
- Wared Logistics
- Kanoo Terminal
- Logipoint
- DHL Global Forwarding
- GAC
Table of Contents
1. Warehousing Supply –Demand Analysis in Riyadh and Jeddah
1.1 Warehousing Space Analysis of Riyadh by Supply Side, 2019-2027
1.2 Space Segmentation By Type of Warehouses in Riyadh: Supply Side, 2019-2027
1.3 Warehousing Space Analysis of Riyadh by Demand Side, 2019-2027
1.4 Space Segmentation By Type of Warehouses in Riyadh: Demand Side, 2019-2027
1.5 Riyadh Warehousing Supply-Demand Gap Analysis,2019-2027
1.6 Warehousing Space Analysis of Jeddah by Supply Side, 2019-2027
1.7 Space Segmentation By Type of Warehouses in Jeddah: Supply Side, 2019-2027
1.8 Warehousing Space Analysis of Jeddah by Demand Side, 2019-2027
1.9 Space Segmentation By Type of Warehouses in Jeddah: Demand Side, 2019-2027
1.10 Jeddah Warehousing Supply-Demand Gap Analysis,2019-2027
2. Operational parameter of Warehousing market in Riyadh and Jeddah
2.1 Warehousing Occupancy Rate in Riyadh by types of warehouses and by district, 2019-2027
2.2 Warehousing Occupancy Rate in Jeddah by types of warehouses and by district, 2019-2027
2.3 Current Warehousing Leasing Rates in Riyadh and Jeddah, 2019-2022
2.4 Warehousing Leasing Duration and Development Timeline in Riyadh and Jeddah
2.5 Capital and Development Cost in Riyadh and Jeddah, 2022
2.6 Return on Investments by type of Warehouses
2.7 Public Vs Private Investments in KSA Warehousing Industry, 2019-2022
2.8 Rates Charged by Warehousing Players with service charges
3. Cost Component Analysis- Operational Expenses for warehouses in KSA
3.1 Operational Model of Grade A Warehouse in Jeddah- Assumptions
3.2 Operational Model of Grade A Warehouse in Jeddah- Cost Component Analysis
3.3 Operational Model of Grade B Warehouse in Jeddah- Assumptions
3.4 Operational Model of Grade B Warehouse in Jeddah- Cost Component Analysis
3.5 Operational Model of Container Yard Warehouse in Jeddah- Assumptions
3.6 Operational Model of Container Yard Warehouse in Jeddah- Cost Component Analysis
3.7 Operational Model of Cold Storage Warehouse in Jeddah- Assumptions
3.8 Operational Model of Cold Storage Warehouse in Jeddah- Cost Component Analysis
4. Research Methodology
4.1 Market Definitions
4.2 Sample Size Inclusion
4.3 Separate Methodology used for Operational Variables/parameter- Supply and Demand Analysis
4.4 Methodology - Warehousing Leasing Duration and Development Timeline in Riyadh and Jeddah
4.5 Methodology - Capital and Development Cost in Riyadh and Jeddah, 2022
4.6 Methodology - Return on Investments by type of Warehouses
Disclaimer
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Research Methodology
Step 1: Identifying Key Variables:
Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step 2: Market Building:
Collating statistics on Warehousing over the years, penetration of marketplaces and service providers ratio to compute revenue generated for Warehousing services. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.
Step 3: Validating and Finalizing:
Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step 4: Research output:
Our team will approach multiple Warehousing and warehousing services providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from Warehousing and warehousing providers.
Frequently Asked Questions
01 What is the market size of KSA Warehousing Market?
KSA Warehousing Market has shown an upward trend between 2019 & 2022 as the market grew at a CAGR of ~2% between 2017-2021
02 What is the future of KSA Warehousing Market?
KSA Warehousing will continue to show an upward trend between 2022 to 2027 as the market will grow at a CAGR of ~3% in forecast year
03 Who are key players in KSA Warehousing Market?
LSC Logistics, DHL, United Warehousing Co. are the key players in KSA Warehousing Market
04 Why is KSA Warehousing Market growing?
Rising cold chain & retail industry, government initiatives to diversify the economy beyond oil industry have increased demand for warehousing facilities.
05 What are the challenges in KSA Warehousing Market?
Aging warehouses & supply disruptions are major challenges faced by KSA Warehousing Market
06 How many warehouses are there in KSA?
Saudi has large number of organised warehouses with 15.4 Mn sqm space in Riyadh and 12.3 Mn sqm in Jeddah
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