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Saudi Arabia’s third-party logistics (3PL) market is expected to grow at a compound annual growth rate of 6.7 percent between 2019 and 2027, and is expected to grow to $26.40 billion in size by 2027 from $14.86 billion in 2018, according to a report by ResearchAndMarkets.com.
The factors that are driving the growth of the third-party logistics market rise in demand for reducing overall operational cost and focus on managing timely delivery, and progressive growth of logistics industry in Saudi Arabia, the ResearchAndMarkets.com report maintained.
However, the report added, the lesser control of manufacturers on logistics service and delivery processes is anticipated to hinder the third-party logistics market for same in the coming years.
In addition, the increase in adoption of e-commerce in retail sector is expected to create a lucrative market opportunity for third-party logistics market.
“Some of the leading players in third-party logistics market are highly focusing on strategic market initiatives to enrich their product capabilities as well as to expand their geographical presence across the globe. This, in turn, is contributing to the growth of the third-party logistics market,” the ResearchAndMarkets.com report added.
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