Saudi Arabia Automotive & Spare Parts Logistics Market is expected to reach
GURUGRAM, India, June 10, 2021 /PRNewswire/ —
- During Covid pandemic, cargo was backlogged at KSA’s major container ports; travel restrictions led to a shortage of truck drivers to pick up containers and ocean carriers canceled sailings.
- The warehousing market is anticipated to grow with a CAGR of 5.2% and the freight forwarding market with a CAGR of 4.0% during the forecast period 2019-2025F.
- Surging local manufacturing of automotives and spare parts is leading to an increased demand for the logistics services in Saudi Arabia.
Saudi Government’s Vision 2030: Under the Vision 2030, the KSA government aims for OEMs to produce 300,000+ vehicles in the country between 2020 & 2030. Saudi Vision 2030 aims to reduce dependence on oil exports highlight the potential for growth of logistics industry in future. Large investments in road infrastructure under Saudi Vision 2030, a 680 Km Saudi-Oman highway and the UAE-Saudi Mafraq-Ghuwaifat International Highway underway contribute to the growth of the logistics industry.
Technological Advancements and Innovations to Drive the Growth of Logistics Industry: Rising adoption of technologies such as RFID, Warehouse Management System, Transportation Management System and others by the logistics companies in Saudi Arabia is leading to improved cost efficiency within logistics framework. Companies have started adopting these technologies to have an edge over other players in the logistics market in the country. The latest technologies that the logistics companies are adopting in Saudi Arabia includes RFID Tagging & IOT analytics, big data analytics, drone technology, 3D printing, augmented reality and others.
Lifting of Ban on Female Drivers: An estimated more than 3 Million female drivers are expected to be added in the country by the end of 2020, which will drive the demand for New Automobile sales. Removal of ban on women driving along with recovery in Oil prices is expected to drive the automotive aftermarket in Saudi Arabia. Influx of female drivers stimulating demand for new & used vehicles within Saudi Arabia. The surging demands for vehicles among the women drivers to contribute to the growth of the automotive and spare parts logistics industry in Saudi Arabia.
The report titled “Saudi Arabia Automotive & Spare Parts Logistics Market Outlook to 2025: Lifting of Ban on Female Drivers and Improving Vehicle Sales to Influence Market Growth“ by Ken Research suggested that the automotive & spare parts logistics market is further expected to grow in the near future as automotive companies are willing to set up their manufacturing plants within the country. The government initiatives such as localization of vehicle imports and incentives for OEM’s using local auto parts, to contribute to the growth of the automotive & spare parts logistics market in the next few years. The market is expected to register a positive CAGR of 4.3% in terms of revenue during the forecast period of 2019-2025F.
Key Segments Covered in KSA Automotive & Spare Parts Logistics Market:-
- By Service Mix
- Freight Forwarding
- Value Added Services
- KSA Automotive & Spare Parts Freight Forwarding Market
- By Mode of Freight
- Road Freight
- Air Freight
- Sea Freight
- By Type of Transport
- Domestic Freight
- International Freight
- By 3PL & Integrated Logistics
- 3PL Logistics
- Integrated Logistics
- By Cost Split
- By Automotive Segment
- By Sea Flow Corridors
- By Air Flow Corridors
- By Road Flow Corridors
- KSA Automotive & Spare Parts Warehousing Market
- By Business Model
- Industrial / Retail
- Container Freight / Inland Container Depots
- By Cities
- By Type of Warehouse
- Closed Warehouse
- Open Warehouse
- Key Target Audience:-
- International Domestic Freight Forwarders
- Warehousing Companies
- Logistics Companies
- Logistics Consultants