How the Saudi Arabia Automotive & Spare Parts Logistics Market is Positioned?
Saudi Arabia automotive & spare parts logistics market showcased a volatile growth trajectory. Automotive logistics revenue stood at USD ~ Million in 2019 and further declined at a CAGR of ~% during 2014-2019 due to oil price shock further leading to an economic slowdown during 2016-2017 period. The automotive industry in Saudi Arabia is highly depended on the imports from different countries. In April 2016, Saudi Arabia announced its Vision 2030 which includes transforming the Kingdom into a preferred logistics hub. Surging automotive manufacturing plants of various brands to contribute to the growth of automotive logistics industry in Saudi Arabia. Additionally, the government is restructuring the regulations and structures for logistics sector and opening the way for market liberalization and private sector participation.
Import value of automotives was observed to grow from USD ~ Million in 2017 to USD ~ Million in 2019, whereas, the export value for automotives was observed to decline from USD ~ Million in 2017 to USD ~ Million in the year 2018 respectively. The entry of the women drivers in the automotive market in Saudi Arabia is contributing to the huge opportunity for the automotive logistics market. Large investments in road infrastructure under Saudi Vision 2030, a 680 Km Saudi-Oman highway and the UAE-Saudi Mafraq-Ghuwaifat International Highway underway. The government of Saudi Arabia is working on new multi-mode logistic stations and two new railway lines to link GCC countries in the east & Yanbu-Jeddah in the west.
Saudi Arabia Automotive & Spare Parts Logistics Market Segmentation
By Service Mix (Freight Forwarding, Warehousing and Value Added Services)
The logistics industry is fragmented with few players majorly focusing on the automotive end users. Few automotive companies are having their own warehouses and fleet for transportation and avoid outsourcing the logistics services. The freight-forwarding segment of the automotive & spare parts logistics market is the biggest contributor to growth in this sector and was observed to dominate with a market share of ~% in 2019. The market size for freight forwarding segment of automotive & spare parts logistics market was recorded at USD ~ million in 2019. The cities of Jeddah and Riyadh have been the most populous cities in the kingdom. These cities also account for most of the industrial areas and indicate a high demand for built-to-suit and automated warehouses therefore, driving revenue from automotive storage. Lastly, value added services include packaging, labeling, handling, cross docking, custom clearance, and other services.
Trade Scenario Within Saudi Arabia Automotive & Spare Parts Logistics Market
Majority import for automotives was observed from Japan, followed by USA, South Korea, Germany and others. The majority import for spare parts was observed from Japan followed by South Korea, Germany and others. The UAE dominated the market with majority market share in terms of automotive export value followed by China, Sudan, Iraq and others.
How Automotive & Spare Parts Freight Forwarding Market Is Positioned In Saudi Arabia?
Freight forwarders offer all or a limited range of services depending on their size, number of personnel, and number of branches. Major Flow corridors include the GCC countries in terms of freight revenue during 2019. Increasing auto exports to other Gulf countries & East African countries including Sudan, Libya, Djibouti and others is stimulating the demand. Saudi Arabia launched new logistics zone in 2019 which is open to private investors in the Red Sea port city of Jeddah therefore, diversifying the economy away from oil and creating more jobs for local Saudis. Development in infrastructure facilities coupled with government initiatives have collectively improved the capacity of the ports during 2016-2018. Also, the 10th Development Plan for the review period 2015-2019 observed an investment of SAR ~ Bn in economic projects.
KSA Automotive & Spare Parts Freight Forwarding Market Segmentation
By Type of Freight: Road was observed as the most prominent freight mode in Saudi Arabia for automotive and spare parts logistics, followed by sea and air in the year 2019. Roads in Saudi Arabia are well laid out and have connectivity with other GCC regions especially the UAE.
By Type of Transport: Domestic freight had dominant share due to large movement of vehicles & spare parts from the ports to the cities within in KSA. Majority domestic transportation of spare parts and vehicles is done in Riyadh, Jeddah, Makkah, Medinah, KAEC and Dammam.
By Last Mile and First Mile: Last mile delivery of automotives and spare parts dominated the market in terms of revenue in 2019. Decline in spent on first mile services over the review period owing to fall in total vehicle & spare parts imports into the country.
By Air Flow Corridor: Auto spare parts & accessories of motor vehicles including cars, motorcycles, trucks, trailers & more are being exported/re exported to other countries via air transport.
Key Segments Covered in KSA Automotive & Spare Parts Logistics Market:-
By Service Mix
Freight Forwarding
Warehousing
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
Last Mile
First Mile
By Automotive Segment
Vehicles
Spare Parts
By Sea Flow Corridors
Sudan
GCC
Egypt
Others
By Air Flow Corridors
Sudan
Egypt
Kuwait
Libya
Oman
UAE
Others
By Road Flow Corridors
Bahrain
Jordan
Lebanon
UAE
Kuwait
Oman
Others
KSA Automotive & Spare Parts Warehousing Market:-
By Business Model
Industrial / Retail
Container Freight / Inland Container Depots
By Cities
Jeddah
Riyadh
Dammam
Others
By Type of Warehouse
Closed Warehouse
Open Warehouse
Key Target Audience:-
International Domestic Freight Forwarders
Warehousing Companies
Logistics Companies
Logistics Consultants
Automotive OEMs
Automotive Dealers/Distributors
Spare Parts Manufacturers
Spare Parts Dealers/Distributor
Time Period Captured in the Report:-
Historical Period: 2014-2019
Forecast Period: 2019–2025
Companies Covered:-
Oriental Commercial & Shipping Co.
Hala Shipping Services
Gulf System
Uniworld Logistics
Abdui Global
NTF Logistics
Four Winds
KWE Transport
Glaube Logistics
Al Rashed Transport
Arabian Transport Co.
SITCO Logistics
Takhzeen Logistics
Kanoo Terminal
Agility Logistics
Al Khodari Sons & LV Shipping & Logistics Co.
BAFCO International
Wolf Transport
Almajdouie Logistics
GAC Logistics
JAS Logistics
Platinum Logistics
Kerry Logistics
Namma Cargo
Al Jabri Transport
Automotive & Spare Parts Companies Covered:-
Audi
Mercedes
Isuzu motors
Nissan
Kia Motors
Toyota
Hyundai
Mazda
General Motors
Mitsubishi
Ford
Changan
Key Topics Covered in the Report:-
Saudi Arabia Overview and Major Economic & Logistics Zones
Automotive Import Procedure (Import Procedure for Automobiles and Impact of VAT & Custom Duty Increase)
Trade Scenario
Regulatory Landscape
End-User Analysis (Automotive)
End-User Analysis (Spare Parts)
Saudi Arabia Automotive & Spare Parts Logistics Market
Saudi Arabia Automotive & Spare Parts Freight Forwarding Market
Saudi Arabia Automotive & Spare Parts Warehousing Market
Industry Analysis (SWOT Analysis, PESTLE Analysis, Government initiatives)
Covid-19 Impact on the Automotive Transportation Industry
Snapshot on Control Tower Market
Snapshot on Pre-Delivery Inspection Market
Covid-19 Impact on Automotive Warehousing Industry
Comparative Landscape – KSA Automotive & Spare Parts Logistics Market
Comparative Landscape in Saudi Arabia Automotive Market
Recommendations / Success Factors
Research Methodology
Appendix
For More Information on the research report, refer to below link:-
Saudi Arabia Automotive & Spare Parts Logistics Market
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