Logistics industry in the Kingdom of Saudi Arabia - Technological Advancements in the Logistics Space, Involvement of Online Aggregators in Mobile car Services & Rising Imports of Spare parts is expected to drive Saudi Arabian Market in the Near Future: Ken Research
GURUGRAM, India, April 26, 2021 /PRNewswire/ -- Rising Competition in Logistics Sector in KSA:
The Government in KSA has heavily invested SAR 327.9 Billion on Economic Projects under its 10th Development Plan (2015-2019) and is trying to uplift its Non Oil manufacturing sectors by launch of National Industrial Development and Logistics Program expected to increase the volume of non-oil exports to over SAR 1.0 Tn and generate 1.6 million new jobs by 2030.
Launch of Digital Platforms by Saudi Custom Authority has streamlined 80% of the freight to be cleared within an average time of 24 hours and reduced the Clearance time by 60% resulting in Logistics Companies to focus on their Automation Process and Core competencies such as Freight handled, Network, Fleets, Employee Strength, Warehousing capacity, Certifications and more.
The logistics space is quite fragmented with more than 1600 players with Top players contributing only 12-15% of the logistics market Revenues in KSA. Online Freight Aggregators such as Trukker and Trukkin are providing an online marketplace for carriers to search & book loads with a single click solving the Issue of Empty Returns in KSA. Logistics Companies such as Al Karsf, Hellman logistics are working with WMS, RFID tags, GPS Enabled Trucks, Real Time tracking and Own EDI Platform to record the transactions as mandated by Custom Authorities.
Import Driven Automotive Spare Parts Market in KSA:
Saudi Arabia is heavily dependent upon Imports for spare parts from UAE, Japan, South Korea, Germany, China & US, growing at a CAGR of 4.7% during 2014-19 and accounted for ~76.3% of the total spare imports into the Kingdom in 2019. Wiper blades, water & oil pumps, brake disc, brake shoe, compressors, evaporators, radiators etc. are the major spare parts imported into the country.
Riyadh and Jeddah provides highest proportion of sales in spare parts market with Presence of ~5500 Retailers in both the Hubs and ~1 Mn Vehicles sold in 2019 in the North & East Region.
Introduction of Online platforms such as SABER, SALEEM under SASO has improved product regulation with aim of meeting international standards and removing the issue of Counterfeit Products in KSA.
Out of ~7000 Offline Multi-brand parts Suppliers in KSA, Only Few Companies such as Babatin Auto Parts, Rezayat Automotive & more are manufacturing spare parts and can obtain Numerous Incentives such as Low corporate income tax of 20% on profits, Low Cost Land in Economic Cities, SIDF loan with for up to 20 years and up to 75% of the capital, Lower Utility Cost and more
Online Start Ups such as Atlobha, Oddigo and Speero are working as an aggregator working with Dealers to provide complete range of spare parts from brake pads to suspensions of many well-known Brands such as Peugot, Nissan, Ram, Subaru, Toyota, BMW, Cadillac and more.
KSA Auto Repairs and Maintenance Market in KSA:
The Market is dominated by 30+ Multi Brand Service Providers, 40+ Agency workshops with spare parts Dealership, ~5 Car Wash Aggregators along with Multiple Unorganized Workshops in almost all cities of Saudi Arabia.
Multi Brand Dealers such as Petromin Autocare, SAC Motors, and SKBMW has already established strong Recognition in the Market and provide Strong Network Coverage with At least 3 Branches in all prime cities of KSA. Use of Advanced Technology such as Computerized Estimation System to prepare comprehensive damage estimates for a vehicle is being extensively used by the company to maintain Good Client retention along with Stable Revenues.
The Concept of Mobile Workshops is being extensively used to provide services such as Changing Oil, Changing Battery, Checking computer and more providing utmost ease and support to the Customer at their Location along with lesser Initial Capital investment to the Company.
Online Service providers such as Ezhalha and Morni are providing aggregator digital platform to provide Emergency Services including Battery, Towing, Car Wash & more and are expected to grow in the coming years with many New Funding Series in Pipeline.
The report titled "Potential Companies for Strategic Partnership in Saudi Arabia Across Automotive Value Chain Segments- Logistics, Auto Car Repairs/Maintenance and Auto Spare Parts" by Ken Research suggested that All above Segments are further expected to grow in the near future with Rising competition, Online Aggregators in the space, Updated Technology with the support of the Government. Many New companies are expected to come in near Future providing Ease and Accessibility to the Customer. The Auto Repair Segment is expected to rise with Facility of Mobile Services in the Country.
Key Target Audience:
- 3PL Logistics Companies
- Integrated Logistics Companies
- Automotive Companies
- Auto Spare Parts Provider
- Auto care companies
- Automotive Dealers
Companies Mentioned:
- Freight Forwarding Companies
- Bahri logistics
- Saudi Post
- NAQEL Express
- Kuehne Nagel
- Almajdouie logistics
- DHL Express
- Fedex Express
- Al Ayed Transport
- SMSA Express
- Tamer logistics
- BAFCO shipping and Logistics
- DB Schenker
- Agility
- JAS Worldwide
- Kanoo Terminal Services
- LSC warehousing and logistics
- Hala Supply Chain
- Namma Cargo
- Wared logistics
- Al Rashed transport
- UPS
- Kerry logistics
- Mubarrad transport
- Hellman logistics
- OCSCL Shipping and Logistics
- Al karsf
- SMT logistics
- Saudi Lana logistics
- Fourwinds logistics
- Takhzeen
- NTF cargo
- Alpha Cargo
- GAC
- Platinum Shipping and Logistics
- Al Seham logistics
- Gulf System
- Defaf Logistics
- Wolf logistics
- Abdui Global
- Globus
- Durar logistics
- Glaube logistics
- Multi Brand Auto Spare Parts Providers
- Saudi Parts Center Company Ltd (Al Khorayef Group )
- Babatin Auto Parts
- M S Almeshri & Bros Co.
- Barik International
- Rezayat Automotive
- Al-Oliah Auto Spare Parts
- Samir Odeh
- Arabian Parts Company (ARSAMCO)
- Badil Spare Parts
- Atlobha
- Speero
- Odiggo
- Multi Brand Auto Cars Repairs and Maintenance Market
- SAC Motor
- Sheikh Centre (SKBMW)
- Petromin Auto Care
- Abu Jihad Car Maintenance Centre
- Ziebart
- Best Engine Centre
- Auto Fix
- Ezhalha
- Morni
Key Topics Covered in the Report
- Competition Analysis of Major Logistics Players in KSA ( including Volume, Average warehousing Space, Fleets, Average Occupancy rate, Network, Client Retention, Industries catered, Services offered, Technology, Certifications, Strength)
- Competition Analysis of Major Multi Brand Auto Spare parts Providers in KSA ( including Number of Orders, Branches Network, Clients, Services offered, Digitalization, Strength)
- Competition Analysis of Multi brand Auto Repairs and Car maintenance Players in KSA ( including Number of cars handled annually, Average Ticket Size, Branches Network, Clients, Services offered, Digitalization, Strength)
- Saudi Arabia Logistics Market
- Saudi Arabia Freight Transportation Market
- COVID Impact on Saudi Logistics Market
- Automotive Dealers KSA
- KSA Agency workshops
- KSA Auto care
- KSA Auto Detailing
- KSA Car Washing Companies
- Saudi Arabia Multi brand Repair Shops
- Saudi Arabia Automotive Market
- Saudi Arabia Spare parts
- Saudi Arabia Refurbished Spares
- Saudi Arabia White label Spares
- Saudi Arabia OEM
- Saudi Arabia OES
- Saudi Arabia After market spares
- Saudi Arabia Branded Spares
- Saudi Arabia Sea Freight Volume
- Saudi Arabia Road freight Companies
- Saudi Arabia Freight forwarders
- Saudi Arabia Carriers
- Saudi Arabia Sea Freight Companies
- Saudi Arabia Road Freight Companies
- Saudi Arabia Air freight Companies
For more information on the research report, refer to below link:
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The report focuses on overall market size in terms of revenue generated by automotive & spare part logistics companies; Saudi Arabia automotive & spare parts logistics market segmentation by service mix (freight forwarding, warehousing and value added services); automotive & spare parts freight forwarding market segmentation by freight mode (road freight, sea freight and air freight); by type of transport (domestic freight and international freight); by 3PL Logistics and Integrated logistics; by Cost split (last mile and first mile); by automotive segment (vehicles and spare parts); by sea flow corridors (Sudan, GCC, Egypt and others); by air flow corridors (Sudan, Egypt, Kuwait, Libya, Oman.
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