KSA Warehousing sector is expected to embrace structural revisions as a response to rapidly changing demand drivers & technological advances and is expected to generate $4.0 Bn by 2026. Will it serve the logistics market for good? Ken Research

Increased adoption of Technological tools alongside other factors including rising cold storage demand are poised to take the KSA warehousing market towards a steady growth, says a report by Ken Research

1. Increasing Automation, Rising Cold Storage Demand, Increasing Multi-story Warehouses are some of the trends prevalent in the industry.

Recent trends in KSA Logistics Market

The Saudi Vision 2030 encompasses a nine-point strategy to maximize its strategic advantage to evolve into the “go-to logistics hub.” The Saudi Logistics initiative involves development of ~60 logistics platforms in more than 50 different locations including Integrated Logistics Bonded Zone (ILBZ) and Al Khomra and many more. Consumption upgrade is driving the demand for fresh foods and FMCG Sector, thereby supporting demand for cold storage warehouses in KSA. Hence, investments in cold warehouses or the transformation from general warehouses to cold warehouses is speeding up. Furthermore, Connectivity driven by internet has led to more efficient flow of goods and faster problem solving.

2. “Technology providing a strong backbone:” Increased Automation due to rising Investment in Newer Technologies is driving the demand for Modern Warehouses in KSA

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Next generation supply chains in KSA are utilizing robotics and automation to perform task such as picking, sorting, inspecting, handling to improve overall efficiency and speed to market. Some warehouses are turning to autonomous vehicles to bring merchandise to sortation while Drones & RFID will be used for Inventory Management. The opportunities seem endless which will result in greater efficiency and productivity.