Friday, September 13, 2019

Saudi Arabia Logistics and Warehousing Market Segmentation: Ken Research

How Saudi Arabia logistic and warehousing market evolved?
Logistics and warehousing market in Saudi Arabia comprises of various activities such as freight forwarding, warehousing, e-commerce logistics, 3PL services, express delivery and more. The market also consist of value added logistics services such as assembly, consolidation, co-packing, cross docking, direct store delivery, fulfillment, import/export, inspection, inventory management, module/floorstand displays, packaging, pallet exchange, pick and pack, pool distribution, record retention, reverse logistics, sorting, transloading, transportation management, and more. Market size for logistics and warehousing has enhanced from USD ~ Billion in 2012 to USD ~ Billion in 2018. Traditionally, international freight movement was majorly dependent on roads, however owing increasing demand of quick delivery the market has been dominated by air freight movement on the contrary, domestic freight movement is dominated by ground transportation systems.
Saudi Arabia’s economic growth has been supported by government investments and totally financed by its oil exports. In spite of recent economic slowdown, kingdom’s outlook seems positive with the expected improvement in the economy as the government is focusing on diversify its economy.
The country borders with Oman to the East and UAE to the North. Saudi Arabia also shares sea borders with Qatar and Iran, which makes it most suitable for logistics industry. The rising trade activities between Saudi and other countries has triggered the demand for both domestic and international logistics services, as logistics services are required of transportation of goods from port to the final destination.

Saudi Arabia Freight Forwarding Market And Segmentation
By Mode of Freight: In Saudi Arabia Freight Forwarding Market, road freight segment dominated with a revenue share of ~% in 2018. The sea freight was the second largest mode that contributed to the overall freight forwarding market in the kingdom, accounting for ~%. The air freight segment captured a relatively low revenue share of ~% in Saudi Arabia Freight Forwarding Market in 2018.
By Type of Delivery: In Saudi Arabia Freight Forwarding, normal delivery segment dominates the market with a large revenue share of ~%, on the contrary the remaining revenue share of ~% was catered by the express delivery segment in the year 2018. Normal delivery services are preferred where no urgency in orders delivery.

By Level of Freight: International freight forwarding accounted for larger revenues share in overall Saudi Arabia Freight Forwarding Market, accounting for share of ~% in the year 2018.

By Owned and 3PL: Saudi Arabia Freight Forwarding Market is segmented in to companies that have complete product and service portfolio and do not outsource (complete or part) of their services to other companies. The companies that own all the services in their portfolio accounted for ~% of the Saudi Arabia whereas 3PL companies accounted for ~% in terms of revenue.

By Flow Corridors: Saudi Arabia Freight Forwarding Market has been segmented on the basis of major international flow corridors in which Asian countries accounted largest share of ~% which is USD ~ Billion, followed by European countries with ~% share, and others. China, Singapore, India, Malaysia, and Japan are some of the top major export destinations and import sources for Saudi Arabia from APAC Region are China, Japan, India, South Korea, and Thailand.

Competitive Landscape In Saudi Arabia Freight Forwarding Market
The freight forwarding industry in Saudi Arabia was observed as highly fragmented with the presence of both domestic as well international freight forwarders in the country. There are around ~ large scale international freight forwarders that provide all types of services including LCL, FCL and others; Whereas around ~ large scale operators exist which provide fewer services thus totaling ~ large scale international freight forwarders in the country.

Competitive Landscape In Saudi Arabia Freight Forwarding Market
The freight forwarding industry in Saudi Arabia was observed as highly fragmented with the presence of both domestic as well international freight forwarders in the country. There are around ~ large scale international freight forwarders that provide all types of services including LCL, FCL and others; Whereas around ~ large scale operators exist which provide fewer services thus totaling ~ large scale international freight forwarders in the country. Some of the prominent freight forwarding companies in Saudi Arabia are Basem International, Kuehne+Nagel, Panalpina, DB Schenker, DHL, Agility and more.

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