Saudi Arabia Logistic Automation Market Overview, 2029

The logistics automation industry in Saudi Arabia has witnessed tremendous upheaval, owing to technical advancements, legislative developments, and worldwide events such as COVID-19. By 2010, the country had placed a greater emphasis on logistics infrastructure as part of its Vision 2030 project, which sought to diversify the economy and lessen dependency on petroleum. The advent of automation technology during this time established the groundwork for more advanced solutions. By 2015, Saudi Arabia had begun to adopt more complex automation technologies. The use of Automated Storage and Retrieval Systems (AS/RS) and Warehouse Management Systems (WMS) grew more common, driven by the desire to streamline operations and increase supply chain efficiency. In 2018, the Saudi government established the National Industrial Development and Logistics Program (NIDLP). Saudi Arabia's logistics automation business follows a number of important norms and standards. The Saudi Standards, Metrology, and Quality Organisation (SASO) regulates quality and safety standards. Furthermore, the Saudi Monetary Authority (SAMA) enforces financial regulations governing logistics operations. The epidemic highlighted the critical role of automation in guaranteeing supply chain continuity and resilience. Demand for automation systems to manage disruptions and respond to changing demand patterns increased significantly in 2020. Contactless solutions, such as automated sanitisation systems and remote monitoring tools, have become increasingly popular. Companies expedited their digital transformation initiatives to address the problems provided by the pandemic, resulting in increased expenditures in logistics automation technologies.

According to the research report "Saudi Arabia Logistics Automation Market Overview, 2029," published by Bonafide Research, the logistics automation industry in Saudi Arabia is anticipated to grow at more than 13.61% CAGR from 2024 to 2029. The rise of robotics and artificial intelligence in logistics marked a significant advance in 2020. Companies such as Zajil Express and Saudi Post began to include robotics for sorting and packing, considerably increasing operational efficiency and eliminating manual labour. Zajil Express, a renowned logistics service, has integrated modern automation technology into its operations to improve productivity. Saudi Post has also been in the forefront of adopting automation technology, with a focus on improving mail and parcel processing via robotics and advanced sorting systems. Furthermore, Al Habtoor Group and Saudi Logistics Company (SLC) are well-known providers of comprehensive logistics and automation solutions. SSI Schäfer and Dematic are leading providers of automated storage and retrieval systems, as well as warehouse management solutions.Elettric80 offers modern material handling and storage systems that are specifically customised to the Saudi market. Saudi Arabia buys a substantial amount of logistics automation technology from nations such as Germany, the United States, and China. Imported items include modern robotics, automated systems, and software solutions. Saudi Arabia, on the other hand, sells logistical solutions and expertise to neighbouring Gulf Cooperation Council (GCC) countries, taking advantage of its expanding capacities and technical breakthroughs. The Saudi Logistics Conference, conducted yearly, provides a venue for firms to showcase their latest automation technology and solutions. Firms often engage in exhibitions and trade shows organised by industry bodies like the Saudi Logistics Association to showcase their products and services.

In Saudi Arabia's logistics automation market, the many categories of logistics, Production Logistics, Sales Logistics, Recovery Logistics, and Procurement Logistics, each have their own roles and levels of emphasis, reflecting the country's changing logistics landscape. Sales Logistics is currently the dominant sector in Saudi Arabia's logistics automation business. The advent of e-commerce, as well as the growing need for fast, precise delivery, has increased the need for advanced automation solutions in this field. The incorporation of robotics, advanced sorting systems, and TMS technology in Sales Logistics facilitates the efficient operation of complicated distribution networks and is consistent with the larger trends of digitalisation and automation in Saudi Arabia's logistics sector. Domestic players such as Zajil Express and Saudi Post are at the forefront of implementing these technologies, hoping to improve delivery speed. Production logistics entails controlling the flow of raw materials and components to manufacturing facilities, as well as the movement of produced goods to storage. This sort of logistics is becoming increasingly automated because to technology like Automated Storage and Retrieval Systems (AS/RS) and advanced Warehouse Management Systems (WMS). Companies such as Saudi Logistics Company (SLC) and Al Habtoor Group use these technology to optimise production processes and increase productivity. Recovery Logistics manages returns, recycling, and garbage disposal. This sector has traditionally been less automated, but it is gradually adopting new technology to boost productivity. Automated sorting systems and reverse logistics platforms are being used to handle returns and waste more efficiently. Procurement Logistics is responsible for acquiring raw materials and components required for production. Inventory management systems and supplier coordination tools fall under this category of automation.

In Saudi Arabia's logistics automation market, the organisational scale of organisations, Large Enterprises and Small and Medium-Sized Enterprises (SMEs), influences their approach to automation and their impact on the industry. Large corporations dominate Saudi Arabia's logistics automation market due to their vast resources and large operations. These organisations, which include industry giants like Saudi Logistics Company (SLC) and Zajil Express, have the financial resources to invest in innovative automation technologies. They deploy sophisticated technology such as Automated Storage and Retrieval Systems (AS/RS), advanced Warehouse Management Systems (WMS), and robotics to streamline operations throughout their vast logistics networks. Their large-scale operations benefit from economies of scale, allowing them to employ cutting-edge technology that improve efficiency, lower operational costs, and improve supply chain management. Small and medium-sized enterprises (SMEs), albeit less dominant, are rapidly using automation to remain competitive. SMEs in Saudi Arabia want scalable and cost-effective automation solutions that meet their specific requirements. They frequently use modular technologies like entry-level WMS, automated picking systems, and simple conveyor solutions. Domestic companies such as Elettric80 and Sistemas de Almacenaje meet these needs by offering flexible automation alternatives that enable SMEs to increase operational efficiency without requiring a significant capital investment. Automation helps SMEs increase productivity, eliminate human labour, and better manage inventories, allowing them to compete in a continually changing market.

In Saudi Arabia's logistics automation market, Inventory and Storage Management and Transportation Logistics are two critical services that benefit from automation technology but play different roles in the supply chain. Transportation Logistics is currently the most dominant function in Saudi Arabia's logistics automation sector. Automation in this field includes Transportation Management Systems (TMS), route optimisation software, and real-time tracking systems. Domestic players like Zajil Express and Saudi Post use innovative technologies to improve their transportation operations. TMS solutions aid in route optimisation, fleet management, and transportation cost reduction, while real-time tracking enhances visibility and delivery accuracy. Transportation logistics is a major target for automation due to the increasing complexity of logistics networks and the growing demand for dependable, timely deliveries. Inventories and Storage Management entails supervising the storage, handling, and optimisation of inventories in warehouses. Automation in this function includes technology like Automated Storage and Retrieval Systems (AS/RS), robotics, and sophisticated Warehouse Management Systems (WMS). Companies in Saudi Arabia, like Saudi Logistics Company (SLC) and Al Habtoor Group, have made significant investments in these technologies to expedite warehouse operations, cut labour costs, and increase inventory management accuracy. The combination of AS/RS and robotics enables efficient storage and retrieval of items, whereas WMS solutions provide real-time visibility into stock levels and optimise inventory control.



In Saudi Arabia's logistics automation market, numerous components are critical to improving efficiency and operational effectiveness. These components include hardware, software, transportation management systems (TMS), value-added services (VAS), maintenance, consulting, deployment and integration, and support and maintenance. Software is currently the dominant component in Saudi Arabia's logistics automation sector. The growing complexity of logistics operations, as well as the requirement for real-time data and analytics, has made software solutions increasingly important. Leading providers, such as Dematic and Sistemas de Almacenaje, provide powerful software solutions that combine with hardware to allow complete visibility and management of logistical processes. Transportation Management Systems (TMS) are specialised software platforms used to manage and optimise the transportation of products. TMS solutions provide route planning, load optimisation, and real-time tracking. Domestic players like Zajil Express and Saudi Post use TMS to improve their transportation networks, resulting in more efficient and cost-effective delivery operations. Hardware includes physical automation technologies including Automated Storage and Retrieval Systems (AS/RS), robotics, and conveyor systems. In Saudi Arabia, companies like as SSI Schäfer and Elettric80 offer cutting-edge hardware solutions to expedite warehouse operations and improve material handling. Logistics automation services include Value-Added Services (VAS), Maintenance, Consulting, Deployment and Integration, and Support and Maintenance. VAS refers to added services that enhance the logistics process, such as packaging and labelling.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Logistic Automation market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Activity
• On-farm Sales
• By Logistics Type
• Production Logistics
• Sales Logistics
• Recovery Logistics
• Procurement Logistics

By End User
• Retail and E-Commerce
• Manufacturing
• Healthcare and Pharmaceuticals
• Food and Beverage
• Automotive
• Logistics and Transportation
• Others (chemicals, aerospace)

By Organization Size
• Large Enterprises
• Small and Medium-Sized Enterprises (SMEs)

By Function
• Inventory and Storage Management
• Transportation Logistics

By Component
• Hardware (AMRs, AGVs, AS/RS, Automated Sorting and Conveyor Systems, De-Palletizing/Palletizing Systems, AIDC, Order Picking Systems)
• Software(Warehouse Management System (WMS), Transportation Management System (TMS))
• Services (VAS, Maintenance, Consulting, Deployment and Integration, Support and Maintenance)

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Logistic Automation industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.