Saudi Arabia Last Mile Delivery Market Poised for Substantial Growth Through 2032
The Saudi Arabia last mile delivery market has established itself as a critical component of the Kingdom's rapidly evolving logistics and e-commerce landscape. Valued at USD 7.17 billion in 2025, the sector is projected to reach approximately USD 11.1 billion by 2032, growing at a compound annual growth rate (CAGR) of 6.44% during the forecast period, according to a comprehensive analysis published by The Report Cube.
Market Analysis
- The explosive growth of e-commerce platforms in Saudi Arabia, accelerated by the COVID-19 pandemic, has created unprecedented demand for efficient last mile delivery solutions
- Vision 2030 initiatives focusing on digital transformation and economic diversification have provided significant regulatory support for logistics infrastructure development
- Rising consumer expectations for faster delivery times, real-time tracking, and flexible delivery options are reshaping service provider strategies
- Technological advancements including AI-powered route optimization, autonomous delivery vehicles, and drone deliveries are being tested and implemented across the Kingdom
- The Saudi government's recent investments in smart city projects and logistics hubs, particularly in Riyadh and Jeddah, have streamlined urban delivery operations
- Growing environmental concerns have prompted the adoption of sustainable delivery practices, including electric delivery vehicles and eco-friendly packaging solutions
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Key Takeaways from the Market Research Report
- The integration of advanced technologies like AI, machine learning, and IoT is revolutionizing last mile delivery efficiency and customer experience
- Same-day and express delivery segments are experiencing the highest growth rates, reflecting changing consumer preferences
- Partnerships between traditional logistics providers and tech startups are creating innovative hybrid delivery models
- The food and grocery delivery segment has emerged as a major driver, with substantial investments from both local and international players
- Urban areas continue to dominate market share, though rural delivery solutions are gaining traction through innovative approaches
- Sustainability initiatives are becoming a competitive differentiator as consumers increasingly favor environmentally responsible delivery options
- Cross-border e-commerce expansion is creating new challenges and opportunities for last mile delivery providers
The Saudi Arabia last mile delivery market is at an inflection point, with technology adoption and changing consumer behaviors driving transformation across the entire value chain.
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Leading Players Driving Innovation and Growth
- Saudi Logistics Services (SAL)
- NAQEL Express
- Fetchr
- SMSA Express
- DHL Express Saudi Arabia
- Aramex
- FedEx Saudi Arabia
- Jahez
- Careem NOW
- Mrsool
The Rise of On-Demand Delivery
The dramatic shift in consumer expectations has catalyzed the growth of on-demand delivery services across Saudi Arabia. Today's consumers expect near-instantaneous fulfillment, complete visibility, and delivery flexibility that traditional logistics models cannot provide. This fundamental change in expectations has prompted substantial investments in technologies like predictive analytics and machine learning to optimize delivery routes, forecast demand patterns, and ensure efficient resource allocation. The growth of mobile penetration in the Kingdom, now exceeding 97%, has further accelerated this trend, enabling seamless real-time communication between consumers, merchants, and delivery providers.
E-Commerce Segment Leading Market Growth
The e-commerce segment dominates the Saudi Arabia last mile delivery market, accounting for approximately 38% of the total market share in 2025. This dominance stems from the Kingdom's rapidly expanding online retail sector, which has grown at double-digit rates over the past five years. Major international and local e-commerce platforms have invested heavily in dedicated delivery networks or strategic partnerships with specialized last mile providers. The segment's growth is further supported by the increasing smartphone penetration, improved digital payment infrastructure, and shifting consumer preferences toward online shopping across diverse product categories.
Regional Market Insights
Riyadh and Jeddah collectively account for over 65% of the last mile delivery market in Saudi Arabia, driven by their dense urban populations, high digital adoption rates, and concentrated commercial activities. However, emerging cities like Dammam, Mecca, and Medina are witnessing accelerated growth as delivery networks expand beyond major metropolitan areas. The western region, particularly Jeddah, serves as a critical gateway for international shipments entering the Kingdom, benefiting from its strategic position and well-developed port infrastructure. Government investments in the King Abdullah Economic City logistics hub have further enhanced the region's importance in the national delivery ecosystem.
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