Report Overview

Saudi Arabia Courier, Express, and Parcel (CEP) Market - Industry Trends & Forecast Report, 2031

Saudi Arabia Courier, Express, and Parcel (CEP) Market size was estimated to be worth USD 1.82 billion in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Courier, Express, and Parcel (CEP) Market size is projected to grow at a CAGR of 10.23%, reaching a value of USD 3.6 billion by 2031. Major growth factors for Saudi Arabia Courier, Express, and Parcel (CEP) Market include emerging online e-commerce platforms, such as Amazon.com and Noon.com, and the growing popularity of online shopping among consumers. Over the forecast period, continuous advancements and innovations, such as the launch of flying parcel delivery vehicle licenses, are projected to present lucrative growth opportunities to companies in Saudi Arabia Courier, Express, and Parcel (CEP) Market.

Courier, Express, and Parcel (CEP) Market – Overview

Courier, express, and parcel (CEP) is a vital segment of the logistics sector, focusing on the swift delivery of parcels and documents. CEP includes courier services for rapid, door-to-door delivery within local or regional areas, express services that guarantee time-sensitive deliveries like next-day or same-day arrivals, and parcel services for larger packages that require reliable and trackable delivery. Serving both B2B (business to business) and B2C (business to consumer) markets, CEP services are crucial for the efficient operation of e-commerce and global trade, ensuring timely and secure transportation of goods across various distances and timeframes.

Saudi Arabia Courier, Express, and Parcel (CEP) Market

Growth Drivers

Surging Demand for CEP Services from Booming E-commerce Sector

The thriving e-commerce sector with its rising popularity among Saudis is a major factor propelling the growth of Saudi Arabia Courier, Express, and Parcel (CEP) Market. Parcel shipments have increased as more people choose to purchase online, because of their convenience and selection. Retailers of all sizes collaborate with CEP firms to accelerate order fulfillment and support the expansion of the market. Further driving CEP providers to innovate and improve their delivery networks are the high standards for speedy deliveries set by e-commerce giants like Amazon. The COVID-19 pandemic further accelerated the growth of the e-commerce sector owing to the growth in online purchasing due to lockdown and social distancing measures.

Challenges

Shortage of Skilled Workforce and Robust Infrastructure

The CEP services require quality infrastructure to efficiently carry out their operations. However, the lack of sufficient infrastructure may pose a serious hindrance to its growth in Saudi Arabia. CEP services need robust storage infrastructure, transport, and skilled labor to efficiently function. In addition to these limitations, slower adoption of advanced technologies and complex tax infrastructures could significantly affect the growth of Saudi Arabia Courier, Express, and Parcel (CEP) Market. The labor shortage is yet another limiting factor for the market growth due to the high concentration of labor in urban areas only, which acts as a major restraining factor for the growth of Saudi Arabia Courier, Express, and Parcel (CEP) Market.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Courier, Express, and Parcel (CEP) Market

Intensifying and further spreading of geopolitical tensions among the Middle East countries could adversely affect the growth of Saudi Arabia Courier, Express, and Parcel (CEP) Market. Geopolitical conflicts directly lead to disruptions in supply chain, which affect the operation of courier and logistics services and results in higher cost of shipping due to increased insurance premiums, higher fuel prices, and additional security measures. Furthermore, countries also have to deal with route adjustments and re-route their shipments to avoid conflict zones, which increases the shipping time and cost. The change in consumer purchasing behavior may cause volatility in the demand for CEP services, restricting the growth of Saudi Arabia Courier, Express, and Parcel (CEP) Market.

Saudi Arabia Courier, Express, and Parcel (CEP) Market

Segmental Coverage

Saudi Arabia Courier, Express, and Parcel (CEP) Market – By Business

Saudi Arabia Courier, Express, and Parcel (CEP) Market by business is segmented into B2B (business to business), B2C (business to consumer), and C2C (consumer to consumer). The B2B segment holds the largest share of Saudi Arabia Courier, Express, and Parcel (CEP) Market by business, owing to the growing international trade that has enhanced the need for effective in-time inventory management. Over the forecast period, the B2C segment is expected to grow at the fastest CAGR due to the further deepening of e-commerce sector across the Kingdom.

Saudi Arabia Courier, Express, and Parcel (CEP) Market – By Destination

On the basis of destination, Saudi Arabia Courier, Express, and Parcel (CEP) Market is bifurcated into domestic and international segments. The domestic segment holds a largest market share in Saudi Arabia Courier, Express, and Parcel (CEP) Market. The segment’s market dominance is primarily due to a surging demand for last-mile deliveries. The international segment also holds a significant market share Saudi Arabia Courier, Express, and Parcel (CEP) Market. Over the forecast period, the international segment is expected to grow at a faster CAGR due to the growing global trade.

Saudi Arabia Courier, Express, and Parcel (CEP) Market – By Mode of Transportation

By mode of transportation, Saudi Arabia Courier, Express, and Parcel (CEP) Market is segmented into railways, airways, roadways, and waterways. The roadways segment holds the largest share of Saudi Arabia Courier, Express, and Parcel (CEP) Market. Roadways is the most preferred mode of transportation, especially for domestic deliveries, owing to their higher efficiency, flexibility, and lower cost. The convenience of doorstep delivery offered by e-commerce platforms and the increasing focus on sustainability is also playing a crucial role in driving the growth of roadway transportation methods. The waterways segment is registering a high growth rate owing to the growing international trade.

Saudi Arabia Courier, Express, and Parcel (CEP) Market – By End User

On the basis of end user, Saudi Arabia Courier, Express, and Parcel (CEP) Market is divided into Services, Wholesale & Retail, Manufacturing, Construction & Utilities, and Primary Industries segments.

Competitive Landscape

Major companies in Saudi Arabia Courier, Express, and Parcel (CEP) Market include Aramex, Careem, DHL Group, FedEx, Saudi Post-SPL (including Naqel Express), SMSA Express, Alma Express, and Zajil Express. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In October 2024 – Aramex formed a new joint venture with ZK Holding, an Abu Dhabi-based investment company to provide domestic and international courier, freight forwarding, and contract logistics, in Iraq.

Scope of the Report

By Business

• Business to Business (B2B)

• Business to Consumer (B2C)

• Consumer to Consumer (C2C)

By Destination

• Domestic

• International

By Mode of Transportation

• Railways

• Airways

• Roadways

• Waterways

By End User

• Services

• Wholesale & Retail

• Manufacturing

• Construction & Utilities

• Primary Industries

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Courier, Express, and Parcel (CEP) Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Surging Demand for CEP Services from Thriving E-commerce Sector
         2. Rapid Urbanization
      2. Restraints
         1. Infrastructure Challenges
      3. Opportunities
         1. Growing demand for Value-Added Services (VAS)
         2. Innovations in Last-Mile Delivery
         3. Continuous Digital Transformation
      4. Challenges
         1. Stringent Regulations
         2. Shortage of Skilled Workforce
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Courier, Express, and Parcel (CEP) Market: Marketing Strategies
5. Saudi Arabia Courier, Express, and Parcel (CEP) Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Business
         1. Business to Business (B2B)
         2. Business to Consumer (B2C)
         3. Consumer to Consumer (C2C)
      2. By Destination
         1. Domestic
         2. International
      3. By Mode of Transportation
         1. Railways
         2. Airways
         3. Roadways
         4. Waterways
      4. By End User
         1. Services
         2. Wholesale & Retail
         3. Manufacturing
         4. Construction & Utilities
         5. Primary Industries

6. Saudi Arabia Courier, Express, and Parcel (CEP) Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Business
      2. By Destination
      3. By Mode of Transportation
      4. By End User
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Saudi Arabia Courier, Express, and Parcel (CEP) Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Saudi Arabia Courier, Express, and Parcel (CEP) Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Aramex
   2. Careem
   3. DHL Group
   4. FedEx
   5. Saudi Post-SPL (including Naqel Express)
   6. SMSA Express
   7. Alma Express
   8. Zajil Express
   9. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Saudi Arabia Courier, Express, and Parcel (CEP) Segmentation

Figure 2       Saudi Arabia Courier, Express, and Parcel (CEP) Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2023

Figure 4       Saudi Arabia Courier, Express, and Parcel (CEP) Market Size, By Value (USD Billion), 2019–2031

Figure 5       Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By Business, By Value, 2019–2031

Figure 6       Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By Destination, By Value, 2019–2031

Figure 7       Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By Mode of Transportation, By Value, 2019–2031

Figure 8       Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By End User, By Value, 2019–2031

List of Tables

Table 1        Saudi Arabia Courier, Express, and Parcel (CEP) Market Size, By Value (USD Billion), 2019–2031

Table 2        Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By Business, By Value, 2019–2031

Table 3        Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By Destination, By Value, 2019–2031

Table 4        Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By Mode of Transportation, By Value, 2019–2031

Table 5        Saudi Arabia Courier, Express, and Parcel (CEP) Market Share, By End User, By Value, 2019–2031

Table 6        Aramex Company Overview

Table 7        Aramex Financial Overview

Table 8        Careem Company Overview

Table 9        Careem Financial Overview

Table 10      DHL Group Company Overview

Table 11      DHL Group Financial Overview

Table 12      FedEx Company Overview

Table 13      FedEx Financial Overview

Table 14      Saudi Post-SPL (including Naqel Express) Company Overview

Table 15      Saudi Post-SPL (including Naqel Express) Financial Overview

Table 16      SMSA Express Company Overview

Table 17      SMSA Express Financial Overview

Table 18      Alma Express Company Overview

Table 19      Alma Express Financial Overview

Table 55      Zajil Express Company Overview

Table 56      Zajil Express Financial Overview