Gurugram, India, Sept. 27, 2023 (GLOBE NEWSWIRE) -- Story Outline
- Saudi Arabia's infrastructure initiatives drive demand for automated warehouses.
- Growing demand for cold storage services presents growth opportunities.
- Focus on e-commerce and retail fuels demand for automation.
- As per Ken Research estimates, Warehousing and logistics industry poised to undergo a transformative automation phase.
Existence of a consolidated market scenario amongst the growing warehousing automation industry globally, KSA’s government has made the push turning the nation into a Regional Logistics Epicenter necessitating automation as the key parameter for a Regional Logistics Chain. On the other hand, an unprecedented surge in E-commerce market has balanced the demand side of the market. In this piece, we uncover the industry landscape, demand & supply side of KSA’s Warehousing automation industry.
1. Supply side boost: Government policies to fuel Automated Warehouses in KSA.
Saudi Arabia's ambitious government infrastructure plans, including initiatives like NEOM, The Red Sea, ROSHN, and the National Industrial Development & Logistics Program (NIDLP), have created a solid foundation for the logistics network in the country ($35 Bn allocation for logistics infrastructure) resulting in an increased demand for automated warehouses. (~$ 100 Bn in its transportation & logistics infrastructure) which is majorly driven by the booming e-commerce industry's evolving requirements, the need to streamline operations, and ensure timely deliveries.
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2. Demand Surge: Saudi Arabia's Rise as a Transshipment Hub Spurs Demand for Affordable Modern Warehouse Solutions.
The rising demand for cold storage services in Saudi Arabia, primarily driven by the food and beverage (F&B) and pharmaceutical sectors, is leading to significant growth opportunities. To cater to this demand, companies are adopting asset-light models and relying on third-party logistics (3PL) providers who offer specialized cold storage solutions. These providers leverage innovative technologies ensuring efficient operations and maintaining the quality of stored products. As a result, companies are strategically expanding their warehouses and investing in cutting-edge solutions.
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3. Demand and market share of e-commerce & retail expected to surge in the near future
Experience the transformative power of automation as it reshapes the warehousing and logistics landscape, propelling the retail and e-commerce industry into a new era. In this fast-paced world, e-commerce automation software becomes the key driver, enabling businesses to focus on their core strengths and strategic goals. The adoption of automated warehouse management systems empowers 3PL companies to achieve unprecedented efficiency and real-time inventory visibility, while reducing costs.
4. The demand and market share of e-commerce and retail is expected to surge in the future due to increasing focus towards reducing the overall sales cycle duration
The demand and market share of e-commerce and retail is anticipated to witness a surge in the near future as a result of increasing focus towards reduction of the overall sales cycle duration. Warehouses that use robots and computers are a big part of making this happen. They help things move faster. E-commerce software, like special computer programs, can do a lot of work for online stores. This means the people who run these stores can focus on important stuff.
When warehouses use computers and robots, it makes things like tracking inventory easier. This helps them save money and make customers happier.
One big reason for this growth is that companies want to use fewer human workers. They're also using new technologies like special shelves that move things around, smart computer systems to manage warehouses, and even robots that can pick up items.
So, in the future, you can expect to see more online shopping and stores that use high-tech solutions to get things done in a more efficient & feasible manner.
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Conclusion
As per Ken Research, Saudi Arabia’s warehousing automation industry is experiencing significant growth and transformation. The government’s substantial investment in logistics infrastructure has created a strong foundation, leading to rising demand for automated warehouse.
Overall, the warehousing automation landscape in Saudi Arabia is evolving rapidly, driven by government initiatives, industry demands, and the pursuit of greater efficiency. This transformation is expected to position Saudi Arabia as a major point in the regional logistics chain and ensuring the nation's planning for future logistics challenges.
Market Taxonomy
KSA Warehousing Automation Market Segmentation
By Product Mix
Conveyer System
Warehouse Management System
Automated Storage & Retrieval System
AMR/AGV
Automatic Identification & Data Capture
Others
By Captive vs 3PL
Captive
3PL
By Installation
New Installation
Maintenance Service
By End-User
E-Commerce
3PL
Retail
Grocery & Food Beverage
Logistics
Pharma
Others
For More Insights On Market Intelligence, Refer To The Link Below: –
KSA Warehousing Automation Market
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According to Ken Research estimates, the UAE Warehouse Automation Market expanded at a CAGR of 19.4% in between 2016 and 2021 on the basis of revenue generated. The market faced rapid growth owing to surge in manufacturing activities, burgeoning international trade, rising domestic consumption and ease in government regulation. UAE Warehouse Automation Market is estimated to grow at a positive CAGR of 13.4% in between 2021E and 2026F.
According to Ken Research estimates, the Market Size of South Korea Warehousing has shown increasing trend from 2019 to 2022. South Korea's strategic location as a gateway between Europe, Asia, and Africa makes it an attractive hub for trade. The country has been actively promoting foreign trade and industrialization, attracting international companies to set up manufacturing facilities and distribution centers. This leads to an increased demand for warehousing services to support import, export, and local supply chains.
According to Ken Research estimates, the Market Size of KSA Warehousing has shown an increasing trend from 2017 to 2022. KSA's strategic location as a gateway between Europe, Asia, and Africa makes it an attractive hub for trade. The country has been actively promoting foreign trade and industrialization, attracting international companies to set up manufacturing facilities and distribution centers. This leads to an increased demand for warehousing services to support import, export, and local supply chains.
According to Ken Research estimates, the Market Size of UAE Logistics has shown increasing trend from 2017 to 2021. However, drop was observed in 2020. This is owing to the prevalence of the global pandemic that affected logistics services worldwide. Market Size of UAE Logistics is expected to show a decent growth trajectory from 2021 to 2026 at CAGR of 7.4%. This is mainly due to rapid infrastructural development which has led to services being able to reach previously inaccessible regions.
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