(MENAFN- Ameliorate Solutions) The Saudi Arabia Third-Party Logistics (3PL) Market report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides an in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies. We analyzed the impact of COVID-19 (Corona Virus) on the product industry chain based on the upstream and downstream markets, on various regions and major countries and on the future development of the industry are pointed out.

The Saudi Arabian 3PL market is expected to register a growth rate of over 6.5% during the forecast period of 2020-2025. The third-party logistics market is gaining immense popularity in Saudi Arabia catering to the management of the increasing cross-border flow of goods.

Factors, such as enabling cost reduction, availability of specialized service providers, the presence of industrial zones, and increasing industrialization, are driving the 3PL logistics market in the kingdom. The strong growth of e-commerce sector in the country is expected to generate significant demand for 3PL services such as warehousing, distribution logistics, and e-commerce fulfillment. The 3PL industry in Saudi Arabia is fairly fragmented in nature with significant number of local and international players where very few providers offer complete end-to-end logistics solutions. With the changing consumer preferences and growing demand for faster delivery times and efficeint suppy chain management, the 3PL companies in the country are moving towards integrating technology and automation into their suppy chain services.

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The report presents the market competitive landscape and a corresponding detailed analysis of the major vendor/key players in the market. Top Companies in the Global Saudi Arabia Third-Party Logistics (3PL) Market: DHL, Agility Logistics, Mosanada Logistics Services, Almajdouie Logistics, Hala Supply Chain Services, Himmah Logistics, and LSC Logistics amongst others.

In October 2019, a new logistics zone was launched in the Red Sea port in Jeddah, as part of a wider industrial initiative to diversify the economy away from oil. The al Khomra zone will support activities around shipping, freight distribution and transport of goods extend over 2.3 million sq. meters in Jeddah. The facility, functioning in Jeddah, aims to turn Saudi Arabia into a global logistics hub.

Among recent developments, Emirates SkyCargo launched bonded trucking corridors to Riyadh to meet the customer demand connecting Dammam and Medina with Riyadh, providing an additional capacity option for overseas businesses willing to send cargo to Riyadh. Operated by Eastern Allied Transport, the trucking services will allow Emirates SkyCargo, offer same-day delivery at Riyadh for cargo that is trucked from Dammam and Medina, increasing the connectivity and delivery time options for customers.

Key Market Trends

Increasing Foreign Investments to Spur the demand for 3PL services

Trade relations between Saudi Arabia and other countries are improving, which is attracting significant interest in export and import values. Strong FDI inflows are also set to increase opportunities for 3PL providers, as will expanding industrial activity that stimulates the need for supply chain management services.

In line with Vision 2030, the foreign direct investment in the country has been progressing. According to sources, the FDI in the country has reached USD 4.6 billion in 2019, increasing by around 9% from 2018. The number of companies that have been awarded with foreign investor licenses also have been increasing significantly which reached 1131 in 2019 when compared to 736 in 2018 and 377 in 2017.

Construction and Manufacturing are the two key sectors for FDI. In 2019, approximately 400 companies were awarded licenses for foreign investment in these sectors.

Strong downstream chemical industry driving chemical logistics sector

Saudi Arabia is among the top ten exporters of chemicals in the world. The chemical industry in Saudi is the region's powerhouse, with the largest volume output and chemical sales revenue. This makes the country one of the key global market for chemical logistics, with significant demand for domestic and international chemical transportation and storage services.

Given the increased demand of chemicals by the GCC producers, the production capacity of the GCC chemical industry has also been on rise which increased by 13.3 million tons in 2018 with an increase of 2.8% in terms of contribution to the regional GDP.

Given the complexity of the market forces in terms of production, transportation, accessibility and cost; companies need to be more strategic in these areas. As mentioned, logistics is one of the key areas for companies to reduce costs and partnering with 3PL companies provide an effective way of transporting chemicals for large number of small and medium companies engaged in downstream industry in Saudi. Due to the impact of Covid-19 the market is expected to witness significant fall in revenue from chemicals sector. The chemiclas industry in the country had witnessed significant impact in ouput which had affect on demand for 3PL services.

The companies engaged in the chemical logistics are expanding their opreations to remain competitive in the market. In 2019, the Saudi-based Arabian Chemical Terminals (ACT) distribution company, International Chemical Logistics (ICL) formerly known as Suttons Arabia has annoucned plans to start operations in Plaschem Park and the company has started a feasibility study, as of Sep 2019. LogiPoint, in May 2019, agreed with Aramco Chemicals Company (ACC) to provide export logistics services from its Bonded and Re-Export Zone (BRZ) adjacent Jeddah Islamic Port eliminating the need to use an intermediary overseas hub for the storage and shipping of their cargo. Shipping the cargo directly to the target market will reduce the export processing time from one week to one day, increasing the demand and appeal for Saudi products.

The research study evaluates the overall size of the market, by making use of a bottom-up approach, wherein data for different industry verticals, and end-user industries and its applications across various product types have been recorded and predicted during the forecast period. These segments and sub-segments have been documented from the industry specialists and professionals, as well as company representatives, and are outwardly validated by analyzing previous years' data of these segments and sub-segments for getting an accurate and complete market size.

Influence Of The Saudi Arabia Third-Party Logistics (3PL) Market Report:

-Comprehensive assessment of all opportunities and risk in the Saudi Arabia Third-Party Logistics (3PL) market.

- Saudi Arabia Third-Party Logistics (3PL) market recent innovations and major events.

-Detailed study of business strategies for growth of the Saudi Arabia Third-Party Logistics (3PL) market-leading players.

-Conclusive study about the growth plot of Saudi Arabia Third-Party Logistics (3PL) market for forthcoming years.

-In-depth understanding of Saudi Arabia Third-Party Logistics (3PL) market-particular drivers, constraints and major micro markets.

-Favourable impression inside vital technological and market latest trends striking the Saudi Arabia Third-Party Logistics (3PL) market.

The report has 150 tables and figures browse the report description and TOC:

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What Are The Market Factors That Are Explained In The Report?

Key Strategic Developments: The study also includes the key strategic developments of the market, comprising R & D, new product launch, M & A, agreements, collaborations, partnerships, joint ventures, and regional growth of the leading competitors operating in the market on a global and regional scale.

Analytical Tools: The Global Saudi Arabia Third-Party Logistics (3PL) Market Report includes the accurately studied and assessed data of the key industry players and their scope in the market by means of a number of analytical tools. The analytical tools such as Porter's five forces analysis, SWOT analysis, feasibility study, and investment return analysis have been used to analyze the growth of the key players operating in the market.

Key Market Features: The report evaluated key market features, including revenue, price, capacity, capacity utilization rate, gross, production, production rate, consumption, import/export, supply/demand, cost, market share, CAGR, and gross margin. In addition, the study offers a comprehensive study of the key market dynamics and their latest trends, along with pertinent market segments and sub-segments.

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