Third-Party Logistics (3PL) in Saudi Arabia: Access the Latest 2026 Market Data & Forecasts

According to IMARC Group's latest research publication, Saudi Arabia third-party logistics (3PL) market size reached USD 14.5 Billion in 2025. The market is projected to reach USD 24.9 Billion by 2034, exhibiting a growth rate of 6.20% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Third-Party Logistics (3PL) Market

• Route Optimization and Fuel Efficiency: AI systems analyze real-time traffic patterns and delivery schedules, cutting fuel consumption by 15-20% across Saudi Arabia's expanding urban centers while reducing delivery times significantly.
• Predictive Demand Forecasting: Machine learning algorithms predict inventory requirements and demand fluctuations, enabling 3PL providers to optimize warehouse space utilization and reduce storage costs by up to 10%.
• Automated Warehouse Operations: Robotics and automation in warehouses handle over 1,000 robots deployed across facilities, achieving efficiency gains of up to 250% while processing 15,000 orders daily.
• Real-Time Shipment Tracking: IoT-enabled devices provide real-time monitoring of shipments, improving delivery accuracy by 15% and enhancing temperature-controlled logistics for pharmaceuticals worth over USD 65 billion in healthcare infrastructure spending.
• Smart Customs Clearance: Blockchain platforms streamline customs processes and reduce fraud, accelerating shipment visibility and simplifying over 390 logistics procedures through platforms like Logisti 2.

How Vision 2030 is Revolutionizing Saudi Arabia Third-Party Logistics (3PL) Industry

Vision 2030 is fundamentally transforming Saudi Arabia's 3PL sector into a global logistics powerhouse. The National Transport and Logistics Strategy has unlocked a USD 266 billion investment pipeline focused on infrastructure modernization across ports, airports, and highways. The government launched 59 new logistics centers by 2030 to boost e-commerce capabilities, while special economic zones offer 50-year tax holidays to attract international 3PL operators. The National Industrial Development and Logistics Program positions the Kingdom at the crossroads of Asia, Europe, and Africa, leveraging its strategic location to raise exports beyond USD 266 billion. Mega-projects like NEOM, with its first automated remote-controlled cranes installed in 2025, are creating unprecedented demand for integrated supply chain solutions. Foreign ownership liberalization and the unified logistics license system have simplified market entry, attracting over USD 500 million in fresh capital from global providers through 2030 while creating opportunities for specialized cold-chain logistics, last-mile delivery, and industrial project logistics.

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Saudi Arabia Third-Party Logistics (3PL) Market Trends & Drivers:

The Saudi 3PL market is surging thanks to a massive e-commerce boom. Online retail has exploded with 80% of active internet users now shopping online, and over 90% internet penetration rates driving the sector forward. E-commerce revenue hit USD 14.57 billion and is projected to grow at 13.5% annually through 2027, creating intense demand for last-mile delivery and warehousing. Companies like Noon and Amazon KSA are partnering with 3PL providers to offer same-day and two-hour deliveries in major cities, with providers handling 30% more packages in Riyadh alone. The warehousing space demand jumped 25% in a single year, and the Kingdom needs an additional 10 million square meters by 2030. This growth forced 3PL companies to invest heavily in automation, smart warehouses, and AI-powered tracking systems that cut delivery times by 25%, making them essential partners for retailers racing to meet customer expectations in a market valued at USD 2.02 billion for e-commerce logistics alone.

Infrastructure transformation is reshaping the 3PL landscape across Saudi Arabia. The government poured over USD 100 billion into developing transport networks, including the USD 22.5 billion Riyadh Metro, 73,000 kilometers of highways, and world-class port facilities. King Abdullah Port emerged as one of the fastest-growing globally, handling over 3 million TEUs annually, while the Saudi Railways Organization reported a 30% increase in freight volumes with the North-South Railway playing a critical role in mineral exports. In July 2024, Hassan Allam Roads & Bridges secured contracts for road and paving works at the Port of NEOM, demonstrating ongoing infrastructure expansion. These upgrades slashed transit times and enhanced connectivity between industrial hubs, airports, and seaports, making logistics operations faster and more cost-effective. The Transport General Authority established multiple logistics zones with around 40,000 trucks operating across the Kingdom, creating fierce competition that translates to lower costs for businesses while enabling 3PL providers to expand integrated services and handle higher cargo volumes efficiently.

Cross-border trade is propelling 3PL growth as Saudi Arabia positions itself as a regional distribution hub. The Kingdom's location at the intersection of major global trade routes gives it access to half the world's population within five hours by air. The government added 5 new shipping lines connecting Saudi ports to MENA markets, North Europe, and the Indian subcontinent, while the Belt and Road Initiative strengthened trade ties with China. 3PL providers are capitalizing on this by offering specialized services across automotive, oil and gas, chemicals, and pharmaceuticals sectors. DHL partnered with Aramco to create ASMO, a procurement and logistics hub serving the energy and industrial sectors across the MENA region. The freight and logistics market reached USD 27.14 billion in 2025, with the combined industrial and logistics sectors contributing USD 263 billion to non-oil GDP, accounting for 39% of the total. This expansion opened niche revenue streams in pharmaceutical cold-chain solutions and reverse logistics for e-commerce, with specialized healthcare logistics supported by government spending exceeding USD 65 billion.

Saudi Arabia Third-Party Logistics (3PL) Market Industry Segmentation:

The report has segmented the market into the following categories:

Service Insights:

• Domestic Transportation Management
• International Transportation Management
• Value-added Warehousing and Distribution

End User Insights:

• Automotive and Manufacturing
• Oil and Gas
• Chemical
• Distributive Trade (Wholesale and Retail Trade, including E-commerce)
• Pharmaceutical and Healthcare
• Construction
• Others

Regional Insights:

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

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Third-Party Logistics (3PL) Market

• February 2025: Saudi Arabia's National Unified Procurement Co. secured three major financing deals worth USD 666.6 million at the PIF Private Sector Forum to enhance supply chain financing for healthcare providers, entering into an MoU with MODON to improve logistics services and bolster pharmaceutical supply chains in the Kingdom.
• June 2025: DHL Group announced infrastructure investments exceeding USD 574.5 million for Middle East operations, prioritizing Saudi Arabia's express delivery, forwarding, and e-commerce capacity expansion.

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