Saudi Arabia Cargo Handling Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Cargo Handling Market Size

Saudi Arabia Cargo Handling Market Trends & Growth Drivers

Adoption of Advanced Technologies Is Key Trend for the Market

• The Saudi cargo-handling industry is increasingly adopting advanced technologies to enhance operational visibility, efficiencies, and competitiveness. The key technology areas being leveraged include automation and robotics, the internet of things (IoT), artificial intelligence (AI) and analytics, cloud computing, and blockchain.
• The modern warehouses in the country are now adopting automated storage and material handling facilities like pick-to-light and voice systems, robotic piece-picking, and shuttle systems, which propels the market.

Expansion and Modernization of Infrastructure Are Drivers in the Market

• Saudi Arabia has launched significant projects to upgrade and expand its infrastructure for handling cargo, particularly its seaports and airports. This helps improve its logistical capabilities and positions it as a regional hub for cargo movements.
• Currently, the Red Sea Gateway Terminal has an annual container throughput capacity of 5.2 million TEUs. As an engine of growth for the local economy, this integrated logistics solution links the 40 busiest container ports worldwide.
• New economic cities in Saudi Arabia, such as King Abdullah Economic City, are continually expanding and integrating intermodal transfer facilities, logistics parks, and cargo villages.
• The primary goal of these initiatives is to boost efficiency by using automation, advanced cargo handling equipment, and first-rate infrastructure, all of which contribute to the smooth movement of cargo for imports and exports around the world.

Security Consideration Poses Challenge for the Market

• Keeping cargo operations safe and secure is a major concern, as it reduces the risks associated with potential threats like theft, terrorism, and smuggling.
• Other factors include personnel screening, cybersecurity, supply chain security, physical security measures, and emergency preparedness.
• Safe cargo handling is essential for reducing risks and building trust in Saudi Arabia's logistical capabilities.

Saudi Arabia Cargo Handling Market Analysis

Equipment Type Insights

• Forklift trucks will dominate the market by contributing 35% revenue in 2024. This is because forklifts are versatile workhorses that are used extensively across ports, airports, warehouses, distribution centers, and manufacturing facilities for lifting and moving cargo and containers.
• With Saudi Arabia’s growing logistics sector, which includes maritime ports, air cargo terminals, economic zones, and industrial parks, the demand for forklifts is increasing.
• Forklifts are a preferred option since they are less expensive and more flexible to operate than other large pieces of equipment.
• The automated guided vehicles category is expected to witness a CAGR of 4.3%, the highest in this segment, in 2024−2030. This expansion is due to a significant push toward automation and digitization in Saudi Arabia's logistics sector, in line with Vision 2030.
• Automated guided vehicles are powered by technologies such as AI, sensors, and automation software, which makes operations more efficient, productive, safer, and cost-effective.

The equipment types covered in the report include:

• Aviation Dollies
• Stackers
• Pallet Jacks
• Loaders
• Conveyor Systems
• Automated Guided Vehicles (Fastest-Growing Category)
• Forklift Trucks (Largest Category)
• Cranes
• Rubber-Tired Gantry Cranes
• Straddle Carriers 
• Reach Stackers
• Others

Application Insights

• Marine cargo will dominate the market by contributing around 50% revenue in 2024. The presence of significant ports, the trade of oil and gas via tanker ships, and the massive volume of products imported into this country are some of the factors contributing to its dominance.
• Additionally, Saudi Arabia holds approximately 17% of the world’s petroleum reserves.
• The air cargo category is expected to witness a highest CAGR in 2024−2030 due to booms in e-commerce, which fuels the demand for air logistics. To take advantage of the transit cargo flows across continents, airport expansions aid in improving air cargo handling capacity, transit flows, and logistics integrators.

The following applications are included in the report:

• Air (Fastest-Growing Category)
• Marine (Largest Category)
• Land
• Rail

Propulsion Insights

• The diesel category will dominate the market in 2024. This increase is due to the usage of conventional cargo handling machinery at Saudi ports, airports, warehouses, and logistics centers, such as reach stackers, cranes, and forklifts, which run mostly on diesel engines.
• The electric category is expected to witness a highest CAGR in 2024–2030, due to environmental initiatives such as the installation of new infrastructure like the Red Sea Gateway Terminal.

The following propulsions are included in the report:

• Diesel (Largest Category)
• Electric (Fastest-Growing Category)
• Others

Regional Analysis

• The Eastern Region will hold the largest market share, of 40%, in 2024. This dominance is due to this province being home to major cities such as Dammam, Dhahran, Al-Khobar, and Jubail.
• Additionally, the province is home to King Abdul Aziz Port, one of the biggest ports in the Gulf, as well as a number of significant petrochemical plants, industrial centers, and an oil and gas hub.
• Makkah province will become the fastest-growing market, in 2024−2030. This growth is due to the continuous investment in infrastructure around Makkah and other holy sites.
• Moreover, the Makkah province is a primary gateway for imports and re-exports to the West. The province's increasing strategic importance and impetus for infrastructure upgrades make it more competitive in this market.

The provinces analyzed for this report include:

• Al-Riyadh
• Makkah (Fastest-Growing Province)
• Al-Madinah
• Al-Qaseem
• Eastern Region (Largest Province)
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Cargo Handling Market Share

This market is fragmented because of the existence of various key players, such as Saudi Airlines Cargo Company (SACC), Almajdouie Logistics, FedEx Express, DHL Express, and Binzagr Company. These companies have the advantage of a vast geography, diversified industries, strategic locations, expansions of non-oil sectors, port developments, and specialized cargo handling requirements.

Saudi Arabia Cargo Handling Market News

• In March 2024, Saudi Airlines Cargo Company announced plans to go live with RTS Velocity, AcceleRate, and Foresight solutions as part of the phased approach.
• In March 2024, Aramex Group established its presence in Saudi Arabia by inaugurating a new regional office in Riyadh, which will improve its capability to serve new and existing businesses across the region.
• In November 2023, Swissport International AG and Saudi ASYAD signed a binding transaction agreement to offer comprehensive airport ground handling services in the Kingdom of Saudi Arabia.