Saudi Arabia Road Freight Transport Market Overview

Market Size in 2024 : USD 6.4 Billion

Market Size in 2033: USD 10.7 Billion

Market Growth Rate 2025-2033: 5.30%

According to IMARC Group's latest research publication,"Saudi Arabia Road Freight Transport Market Report by Temperature Control (Controlled, Non-Controlled), Product Type (Liquid Goods, Solid Goods), Distance (Long Haul, Short Haul), Containerization (Containerized, Non-Containerized), Destination (Domestic, International), End User (Agriculture, Fishing and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, and Others), and Region 2025-2033", Saudi Arabia road freight transport market size reached USD 6.4 Billion in 2024. Looking forward, the market is expected to reach USD 10.7 Billion by 2033, exhibiting a growth rate (CAGR) of 5.30% during 2025-2033.

Growth Factors in the Saudi Arabia Road Freight Transport Market

Economic Diversification and Infrastructure Investment

Saudi Arabia’s Vision 2030 initiative drives economic diversification; saudi arabia road freight transport market trends indicate a shift toward reduced oil dependency and a boost in non-oil sectors like manufacturing and retail. This fuels demand for road freight to transport goods across the Kingdom. Massive infrastructure investments, such as new highways and logistics zones, enhance connectivity and efficiency. For instance, in 2024, the government launched 20 road projects spanning 385 kilometers, including a direct Jeddah-Makkah route, improving freight movement. These developments create a robust logistics ecosystem, enabling faster delivery and supporting industries like construction, which rely heavily on road transport for materials and equipment.

Surge in E-Commerce and Last-Mile Delivery

The rapid growth of e-commerce in Saudi Arabia, driven by high internet penetration and smartphone usage, significantly boosts the road freight market. Consumers increasingly demand quick, reliable deliveries, spurring companies to expand last-mile logistics. For example, major e-commerce platforms like Noon and Amazon have partnered with local logistics firms to ensure timely deliveries, increasing truck fleets. This trend necessitates flexible freight solutions, such as less-than-truckload (LTL) services, to handle smaller, frequent shipments. The rise in online shopping, especially in urban centers like Riyadh and Jeddah, continues to propel demand for road transport services.

Strategic Location as a Regional Trade Hub

Saudi Arabia’s geographic position as a gateway between Asia, Europe, and Africa strengthens its role as a regional logistics hub, driving road freight demand. The Kingdom’s trade agreements and investments in cross-border connectivity, such as with GCC countries, facilitate the movement of goods. For instance, the King Abdullah Port, a major trade hub, relies on road freight to distribute imported goods domestically. This strategic advantage attracts international logistics firms like DHL, which leverage Saudi Arabia’s road networks to serve regional markets, boosting both domestic and international freight transport activities.

Key Trends in the Saudi Arabia Road Freight Transport Market

Adoption of Advanced Technologies

Technology is transforming Saudi Arabia’s road freight market, enhancing efficiency and transparency. Telematics, GPS tracking, and fleet management systems enable real-time monitoring and route optimization. For example, Almajdouie Logistics has integrated tracking software to improve delivery timelines and reduce fuel costs. Artificial intelligence (AI) is also gaining traction for predictive maintenance and demand forecasting, minimizing downtime. These innovations help companies meet customer expectations for faster deliveries while reducing operational costs, making technology adoption a competitive necessity in the fragmented market where efficiency sets firms apart.

Focus on Sustainability and Green Logistics

Environmental concerns are pushing the road freight industry toward sustainable practices. Companies are investing in electric and hydrogen-powered trucks to reduce emissions, aligning with Saudi Arabia’s sustainability goals. For instance, NEOM’s logistics joint venture with DSV emphasizes eco-friendly transport solutions, including electric vehicles for urban deliveries. Additionally, firms are adopting energy-efficient fleet management to lower fuel consumption. These efforts not only address regulatory pressures but also attract environmentally conscious clients, fostering long-term growth and international partnerships in the Kingdom’s logistics sector.

Rise of Third-Party Logistics (3PL) Providers

The increasing complexity of supply chains has led to a surge in demand for third-party logistics (3PL) providers in Saudi Arabia. Businesses, particularly in retail and manufacturing, outsource logistics to 3PL firms for cost efficiency and expertise. For example, Kuehne+Nagel’s partnership with Tamer Logistics enhances end-to-end supply chain solutions, leveraging Tamer’s local warehousing network. This trend allows companies to focus on core operations while 3PL providers handle freight transport, warehousing, and last-mile delivery, driving market growth through specialized, scalable logistics services.

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Saudi Arabia Road Freight Transport Industry Segmentation:

The report has segmented the market into the following categories:

Temperature Control Insights:

Controlled
Non-Controlled

Product Type Insights:

Liquid Goods
Solid Goods

Distance Insights:

Long Haul
Short Haul

Containerization Insights:

Containerized
Non-Containerized

Destination Insights:

Domestic
International

End User Insights:

Agriculture, Fishing and Forestry
Construction
Manufacturing
Oil and Gas, Mining and Quarrying
Wholesale and Retail Trade
Others

Regional Insights:

Northern and Central Region
Western Region
Eastern Region
Southern Region

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the key players include:

Almajdouie Group
AlRajhi Transport (AlRajhi Group)
Al-Rashed Transport
AMC Freight Logistics
Arabco Logistics
Momentum Logistics
Munawla Cargo Co. Ltd.
SMSA Express Transportation Company Ltd.
Wared Logistic
Zajil Express

Future Outlook

The Saudi Arabia road freight transport market is poised for sustained growth, driven by ongoing infrastructure development, e-commerce expansion, and technological advancements. Vision 2030’s focus on transforming the Kingdom into a global logistics hub will continue to attract investments in road networks and logistics zones, facilitating efficient freight movement. The rise of mega-projects like NEOM and the Red Sea Project will further increase demand for specialized transport services. Additionally, sustainability initiatives and the adoption of AI-driven logistics solutions will enhance operational efficiency and competitiveness. With strategic partnerships, such as NEOM’s collaboration with DSV, and a growing emphasis on green logistics, the market is set to evolve, offering opportunities for both local and international players to innovate and expand.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

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