Report Overview
Thriving e-commerce sector, the Saudi government?s increasing focus on economic diversification and growing investments in the development of infrastructure, necessitating modern, advanced storage facilities, are expected to boost the growth of the Saudi Arabia Warehousing and Storage Market during the forecast period between 2024 and 2030.

Saudi Arabia Warehousing and Storage Market - Industry Trends & Forecast Report, 2030

Saudi Arabia Warehousing and Storage Market size by value was estimated at USD 11.27 billion in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia Warehousing and Storage Market size is expected to expand at a CAGR of 7.52% reaching a value of USD 14.49 billion by 2030. Green warehousing solutions are gaining popularity in Saudi Arabia, reducing environmental impact. Initiatives like skylights, automatic handling equipment, and compact storage facilities are being implemented. Smart warehousing uses IoT sensors, autonomous vehicles, and robots to optimize goods' conditions. Government initiatives like Modon's partnership to establish 14 fully automated warehouses in Jeddah city are also driving the market growth.

Warehousing and Storage - Overview

Warehousing is the storage and handling of goods in a warehouse, providing secure storage and tracking of shipments. Warehouses are commercial buildings used by manufacturers, importers, exporters, wholesalers, transport businesses, and customs. They typically have loading docks, cranes, and forklifts for loading and unloading goods from trucks, railways, airports, or seaports. Stored goods can include raw materials, packing materials, spare parts, components, or finished goods.

Saudi Arabia Warehousing and Storage Market

Growth Drivers

Rising Online Shopping and Changing Consumer Preferences

The Saudi Arabian e-commerce sector is experiencing significant growth, driven by the increasing demand for efficient storage and distribution facilities. Warehouses are crucial for timely order fulfillment, inventory management, and product delivery, enhancing the overall customer experience and supporting market expansion due to the rapid increase in online shopping and changing consumer preferences.

Challenges

High Setup Costs for Land and Warehouse

High land and warehouse setup costs may significantly hinder the growth of Saudi Arabia Warehousing and Storage Market, as they include land prices, construction materials, labor, and local regulations. These expenses can be a significant barrier for businesses looking to establish or expand their presence in the Kingdom.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Warehousing and Storage Market

Escalating geopolitical tensions in the Middle East and across the world, like the Ukraine conflict, can significantly impact the growth of the Saudi Arabia Warehousing and Storage Market. Economic stability is tied to global political dynamics, and fluctuations in oil prices can affect fiscal policies and infrastructure investments. Investor caution and disruptions in international trade routes strain the logistics industry. Maintaining robust policies is crucial for growth and resilience in the warehousing sector.

Saudi Arabia Warehousing and Storage Market

Segmental Coverage

Saudi Arabia Warehousing and Storage Market - By Type of Warehouses

By type of warehouses, Saudi Arabia Warehousing and Storage Market is divided into General Warehousing & Storage, Refrigerated Warehousing & Storage, and Farm Product Warehousing & Storage segments. The general warehousing and storage is the largest segment in the Saudi Arabia Warehousing and Storage Market by type of warehouses, driven by growth in e-commerce and government initiatives under Vision 2030. The segment caters to various industries, offering versatile solutions for efficient inventory management. Advancements in technology, such as automation and inventory management systems, further enhance operational efficiency and reduce costs, further attracting businesses to utilize this sector.

Saudi Arabia Warehousing and Storage Market - By Ownership

Based on ownership, Saudi Arabia Warehousing and Storage Market is divided into Private Warehouses, Public Warehouses, and Bonded Warehouses segments. The private warehouses segment dominates the Saudi Arabia Warehousing and Storage Market, due to various factors such as control, customization, e-commerce growth, industrial diversification, and investments in advanced technologies. Private warehouses offer control over inventory management, operations, and security, while the Kingdom's Vision 2030 initiative encourages growth in the manufacturing, retail, and logistics sectors. Investment in these technologies enhances efficiency and scalability, making private warehouses the largest segment in the market.

Saudi Arabia Warehousing and Storage Market - By End Use

Based on end user, Saudi Arabia Warehousing and Storage Market is divided into Manufacturing, Consumer Goods, Retail, Food & Beverages, IT Hardware, Healthcare, and Chemicals segments. The Food & Beverages sector in the Saudi Arabia Warehousing and Storage Market is the largest end user due to its focus on food security, growing population, urbanization, and modern warehousing infrastructure. Advancements in cold storage technology and government initiatives to boost local food production and reduce import reliance further stimulate investments in this sector, making it the cornerstone of the market.

Competitive Landscape

Major players in the Saudi Arabia Warehousing and Storage Market include Katoen Natie Khonaini Co Ltd, Logexa, MyWHSpace LTD, DHL Saudi Arabia, Wared Logistics, ATC-logistics, A.P. Moller-Maersk, Arabian Logistics Solutions, BSL Logistics, Diggipacks, Almajdouie Logistics, Advanced Storage Co., and Aiduk. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

In May 2023 - Tamer Logistics achieved a significant milestone by winning the Most Inspiring Logistics Company of the Year Award at the TLME Inspiration Awards 2023.

By Type of Warehouses
General Warehousing & Storage
Refrigerated Warehousing & Storage
Farm Product Warehousing & Storage

By Ownership
Private Warehouses
Public Warehouses
Bonded Warehouses

By End Use
Manufacturing
Consumer Goods
Retail
Food & Beverages
IT Hardware
Healthcare
Chemicals