KSA Freight Forwarding Market to generate $18.8 Bn Revenue out of which the Road Transportation Market to contribute 45.0% revenue share in 2025: Ken Research
Ken Research Pvt. Ltd
7 min read
Ken Research Pvt. Ltd
KSA Freight Forwarding Industry Research Report Covers Air Freight Saudi Arabia, Air Shipments Saudi Arabia, Airport Expansion Saudi Arabia, Autonomous Vehicles in Saudi Arabia, Big Data Analytics KSA Warehousing, Captive Companies in KSA Warehousing, Competition in Saudi Arabia Freight Forwarding, Container Freight Saudi Arabia, Container Load Dominance in Saudi Arabia, Container Yard Model in Dammam, Container Yard Model in Riyadh, COVID Impact KSA Dry Freight Forwarding Market, COVID Impact on Saudi Warehousing Market, Covid-19 Impact KSA Logistics and Warehousing Market, Dammam Warehousing Space, Development of KSA Logistics Infrastructure, Dhiba Port Saudi Arabia, Discharged Transhipment Containers Saudi Arabia, Drone Technology KSA Warehousing, Dry Freight Saudi Arabia, Dry Logistics Market Revenue Saudi Arabia, Dry Warehousing Revenue Saudi Arabia.
Gurugram, India, May 24, 2022 (GLOBE NEWSWIRE) -- KSA News
Key Findings
Expansion & Development of its logistics infrastructure such as intermodal connectivity, logistics parks, and ports are expected to create more business opportunities.
Strong demand is anticipated for full-fledged integrated distribution centers including logistics facilities, dry storage; cold storage and supporting retail facilities.
Rising adoption technological advancements & innovations such as warehouse management system & RFID among leading logistics players in the country to drive industry growth in future.
Infrastructure Development: The KSA Government is aiming to establish the kingdom as a logistics hub under its Vision 2030 by development of SEZ's, integrated transport infrastructure and reformation of sea ports. Economic growth, rising population and rapid urbanization are driving the KSA government to invest in the massive expansion of the country's transportation networks thus, driving freight revenue over long term. Addition of about 10,000 km rail line by 2024 along with multimodal hubs are expected to bridge the demand for sea-air and road-rail transportation. The new land bridge connecting the east and west coasts of KSA is expected to decrease transit times from 10 days through sea to 13 hours through rail and enable faster transportation.
Induction of New Technologies: Saudi Arabia Logistics Technological Advancements are expect to improve and enhance supply chain transparency and security leading to improved cost efficiency. Increasing adoption of warehouse automation technologies such as EDI, RFID, Human Centric Designs and Drones are expected to improve operational efficiency. Introduction & adoption of technologies such as telematics, V2V communications, and tracking to have a strong influence on delivery & service offerings.
KSA Government opened the retail and wholesale sectors to 100% foreign ownership and has launched a large privatization programme. Competition will intensify due to entrance of global players due to flexible rules and regulations thus, leading to surge in M&A's and further intensifying the competition in the freight forwarding market. The government is also developing Free Zones near KSA airports which are aimed to attract foreign businesses by relaxed licenses & taxation policies, thus increasing more foreign investments in the country.
The report titled "KSA Logistics and Warehousing Market Outlook to 2025"– Driven by Warehousing Automation and Investment within Transport Infrastructure to Drive Market Revenue" provides a comprehensive analysis on KSA Logistics Market. The report covers various aspects including the current market size and warehousing space, its segmentations viz, by Fleet Operators, FTL/LTL, End Users, Warehousing Business Model, End Users and Regional Analysis, major trends and development, issues and challenges, government regulations and competition benchmarking. The report concludes with market projections for future of the industry including forecasted industry size by revenue and warehousing space.
India has been ranked at 4th position in the world in railway freight traffic after China, the US, and Russia. Under the land freight corridors, 65% of domestic freight volume carried through the road; high compared to ~50% in developed countries. India Logistics Market has witnessed an average CAGR during FY14-FY19 due to favorable policy reforms from the government, continued investment in infrastructure by both the government and the private sector; the influx of foreign players in the market in recent years, increasing consolidation, and investing in innovative technologies has stimulated the growth in the market.
The cold chain market in UAE is at growth stage. It has consolidated its position as a global transhipment hub due to its central location in the GCC region. The high dependence of the country on imports to meet its food requirements has necessitated the development of cold chain facilities. In the review period 2014-2019, the UAE cold chain market has increased at a positive CAGR of 6.6% largely due to rising food and pharmaceutical imports, growth of the dairy industry, increasing number of modern grocery retail stores, government initiatives to reduce dependence on oil-exports and others.
Turkey logistics and warehousing market displayed a consistent growth during the period 2013 to 2018. The growth in the automotive exports coupled with rising e-commerce sector was witnessed to drive the Turkey logistics market. The country also has a robust manufacturing sector that contributes to almost 25% of the country's GDP and provides the boost to the logistics industry in Turkey. In addition to this, the implementation of Vision 2023 and Logistics Master Plan 2023 by the government also indicates a positive outlook for the industry. The market has increased owing to high domestic consumption and the efforts of government to boost infrastructure. The investments in infrastructure and technology have impacted Turkey logistics market positively.
The Chinese Logistics Market was observed to be in growth stage during the period of 2015-2020 owing to the expanding manufacturing & retail sector, increasing disposable income, growing number of investments and increasing value of exports and imports in the country. The China Logistics Industry has grown at a CAGR of 5.4% on the basis of revenue. The market is booming owing to increasing infrastructure investment, rising digital innovations and growing logistic demand in China. The freight forwarding sector is the leading segment towards the revenues of the logistics industry, followed by courier & parcel activities and warehousing. Value Added services also contribute a significant proportion to the overall logistics market in China.
