(MENAFN- IMARC Group) Saudi Arabia logistics automation market size reached USD 595.7 Million in ​2024​. Looking forward, IMARC Group expects the market to reach USD 1,104.5 Million by ​2033, exhibiting a growth rate (CAGR) of 6.75 % during 2025-2033.The Saudi Arabia logistics automation market is driven by rapid e-commerce growth, Vision 2030 economic diversification initiatives, investments in smart infrastructure, and the Kingdom's strategic positioning as a regional logistics hub connecting Asia, Europe, and Africa.

Key Highlights

• Market size (2024): USD 595.7 Million
• Forecast (2033): USD 1,104.5 Million
• CAGR (2025–2033): 6.75%
• Growing demand for warehouse automation systems, automated storage solutions, robotics, and AI-powered logistics management platforms
• NEOM and other gigaprojects driving adoption of cutting-edge automation technologies in logistics operations
• Key companies include international automation providers, local system integrators, and emerging Saudi technology companies

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How Is AI Transforming the Logistics Automation Market in Saudi Arabia?

• AI-powered demand forecasting systems in Saudi logistics companies now predict inventory needs with 90% accuracy, reducing stockouts and optimizing warehouse space utilization
• Autonomous mobile robots (AMRs) equipped with AI navigation are revolutionizing warehouse operations, increasing picking efficiency by up to 50% in major distribution centers
• Machine learning algorithms optimize delivery routes across Saudi Arabia's vast geography, reducing transportation costs by 25% and improving delivery times
• AI-driven predictive maintenance systems monitor logistics equipment and vehicles, preventing breakdowns and reducing maintenance costs by 35%
• Smart supply chain platforms use AI to provide end-to-end visibility and automate decision-making, enabling logistics providers to respond rapidly to market changes and customer demands

Saudi Arabia Logistics Automation Market Trends and Drivers

• Vision 2030 economic diversification goals positioning Saudi Arabia as a global logistics hub and trade gateway
• Massive infrastructure projects including NEOM, Red Sea Project, and King Salman International Airport driving automation adoption
• Rapid growth of e-commerce sector requiring sophisticated automated fulfillment and last-mile delivery solutions
• Government initiatives promoting digital transformation and Industry 4.0 technologies across logistics operations
• Strategic geographic location connecting three continents creating demand for advanced logistics automation systems
• Rising labor costs and skilled workforce requirements accelerating adoption of automated solutions

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Saudi Arabia Logistics Automation Market Industry Segmentation:

The report has segmented the market into the following categories:

Component Insights:

• Hardware
  • Mobile Robots (AGV, AMR)
  • Automated Storage and Retrieval Systems (AS/RS)
  • Automated Sorting Systems
  • De-palletizing/Palletizing Systems
  • Conveyor Systems
  • Automatic Identification and Data Collection (AIDC)
  • Order Picking
• Software
  • Warehouse Management Systems (WMS)
  • Warehouse Execution Systems (WES)
• Services
  • Value Added Services
  • Maintenance

Function Insights:

• Warehouse and Storage Management
• Transportation Management

Enterprise Size Insights:

• Small and Medium-sized Enterprises
• Large Enterprises

Industry Vertical Insights:

• Manufacturing
• Healthcare and Pharmaceuticals
• Fast-Moving Consumer Goods (FMCG)
• Retail and E-Commerce
• 3PL
• Aerospace and Defense
• Oil, Gas and Energy
• Chemicals
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Recent News and Developments in Saudi Arabia Logistics Automation Market

• August 2025: Saudi Post announced the launch of its fully automated sorting facility in Riyadh, featuring advanced robotic systems and AI-powered package routing technology. The 50,000 square meter facility can process over 1 million packages daily, significantly enhancing the Kingdom's e-commerce delivery capabilities and supporting the growing online retail sector.
• July 2025: NEOM announced partnerships with leading global logistics automation companies to develop the world's most advanced automated supply chain ecosystem. The project will feature autonomous vehicles, drone delivery systems, and AI-powered logistics management platforms, setting new standards for smart city logistics operations.
• June 2025: Saudi Arabian Logistics (SAL) inaugurated its new automated cargo handling facility at King Khalid International Airport, equipped with state-of-the-art robotics and IoT sensors. The facility increases cargo processing capacity by 200% while reducing handling time by 60%, strengthening Saudi Arabia's position as a regional air cargo hub.

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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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