Saudi Arabia Third Party Logistics Market Expected to Reach US$ 26.40 Bn by 2027 - C.H. Robinson Worldwide, CEVA Logistics AG, DB Schenker, Deutsche Post AG (DHL)

The Saudi Arabia third-party logistics market accounted to US$ 14.86 Bn in 2018 and is expected to grow at a CAGR of 6.7% during the forecast period 2019 – 2027, to account to US$ 26.40 Bn by 2027.

Saudi Arabia is one of the largest economy amongst the GCC countries owing to its rich oil reserves and various economy diversification initiatives taken by the Government of the country. As of 2018, the GDP of the country was valued US$ 310 Bn and the population of the country was approximately 23.8 Mn. The country has emphasized on non-oil sectors to create more job opportunities for the youth population of the country. Cities such as Riyadh, Jubail, Yanbu, Ras Al-Khair and Jazan are considered to be the industrial heartlands of the country. The emerging industries and manufacturing hubs of Saudi Arabia include minerals and metal processing center, automotive manufacturing industry, and plastics and packaging industry. Third-party logistics market is gaining immense popularity in Saudi Arabia and is considered as an optimum solution by companies to manage the increasing cross-border flow of goods while expanding the logistics process concept. Companies operating in the country are considering supply chain engineered logistics as an essential means to improve their cash flows, boost their cost savings, and enhance servicing levels for offering their products to market.

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Saudi Arabia Third-party Logistics Market – Company Profiles

C.H. Robinson Worldwide, Inc.
CEVA Logistics AG
DB Schenker
Deutsche Post AG (DHL)
Kuehne + Nagel International AG
Sankyu Inc.
Saudi Logistics
United Warehouse Company Ltd.
United Parcel Service, Inc.
Warehousing Projects and Logistics Company (WPL)

Third-Party Logistics Market Insights

Logistics Industry Witnessing Progressive Growth in Saudi Arabia

Logistics is the core area of the third party logistics (3PL) firms and their proficiency in this areas is always superior to that of the core companies. Since the past few years, Saudi Arabia has made progress for improving its logistics services, and the relevant infrastructure & traceability in order to meet the world-class standards. The processes for import and export processes are more reorganized and governance regulations and structures are being reformed. KSA is also pursuing the public-private partnerships for both, to finance the infrastructure and for acquiring the capabilities from the other leading logistics markets. Furthermore, the country is moving forward towards modernizing airports and expanding air cargo facilities for eliminating the infrastructure bottlenecks. Additionally, for the waterways, the focus on growing port specialization, reforming the governance, and updating the concession frameworks is expected to proliferate the third-party logistics market growth.

Lesser Control of Manufacturers on Logistics Service and Delivery Processes

One of the disadvantage of opting for 3PL is that it leads the beneficiary companies to loss control over their shipping functions. The client businesses have no direct control over their operation when they use 3PL services. In such cases, businesses are highly dependent upon third party to consistently come through delivering the promised services. Client companies may have to bear certain losses and damage to their business if the 3PL services fail to deliver certain products to the customers on time. Moreover, third-party logistics market firms promote their services in most cost efficient way and the client company has to comply with pricing model specified in the business agreement. However, in certain cases, companies can figure out the cheaper and more efficient solution in their in-house logistics department. The aforementioned factors may hinder the growth of the third-party logistics market.

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TABLE OF CONTENTS

Introduction
1.1 Scope of the Study
2. Key Takeaways
3. Third-Party Logistics Market Landscape
3.1 Market Overview
3.2 Market Segmentation
3.2.1 Third-Party Logistics Market – By Mode of Transport
3.2.2 Third-Party Logistics Market – By Services
3.2.3 Third-Party Logistics Market – By End-user
3.3 PEST Analysis
3.3.1 Third-Party Logistics Market – Saudi Arabia PEST Analysis
4. Third-Party Logistics Market – Key Industry Dynamics
4.1 Key Market Drivers
4.1.1 Logistics Industry Witnessing Progressive Growth in Saudi Arabia
4.1.2 Rise in Demand for Reducing Overall Operational Cost And Focus on Managing Timely Delivery
4.2 Key market restraints
4.2.1 Lesser Control of Manufacturers on Logistics Service and Delivery Processes
4.3 Key Market Opportunities
4.3.1 Increase in Adoption of E-commerce in Retail Sector
4.4 Future trends
4.4.1 Implementation of varied software solutions
4.5 Impact Analysis of Drivers and Restraints
5. Third-Party Logistics- Saudi Arabia Market Analysis
5.1 Saudi Arabia Third-Party Logistics Market Overview
5.2 Saudi Arabia Third-Party Logistics Market Forecast and Analysis