KSA Freight Forwarding Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

KSA Freight Forwarding Market Size

• The KSA freight forwarding market size was valued at USD 1.87 billion in 2024 and is expected to reach USD 3.07 billion by 2032, at a CAGR of 6.4% during the forecast period
• The market growth is largely fueled by increasing globalization and the rapid expansion of international trade, which is driving demand for efficient and cost-effective logistics and transportation services across key industries including manufacturing, retail, and e-commerce
• Furthermore, the growing emphasis on supply chain optimization, real-time visibility, and seamless cross-border movement is encouraging businesses to partner with advanced freight forwarding service providers. These converging factors are accelerating the demand for integrated freight solutions, thereby significantly boosting the industry’s growth

KSA Freight Forwarding Market Analysis

• Freight forwarding involves the strategic coordination and shipment of goods across international borders on behalf of shippers using air, sea, road, or rail transport. It encompasses services such as cargo booking, customs clearance, warehousing, and documentation to ensure efficient, compliant delivery
• The rising demand for freight forwarding is primarily driven by the growing complexity of global supply chains, rapid growth in e-commerce, and the need for timely, reliable, and transparent logistics services across diverse sectors
• Services segment dominated the market with a market share of 68.9% in 2024, due to the critical need for seamless trade facilitation, including customs clearance, cargo insurance, freight consolidation, and route optimization. Businesses depend heavily on freight forwarders to handle complex international logistics requirements, documentation, and regulatory compliance across multiple regions. The increasing cross-border trade volumes and the growing number of small-to-medium enterprises (SMEs) entering global markets further support the demand for freight forwarding services

Report Scope and KSA Freight Forwarding Market Segmentation   

KSA Freight Forwarding Market Trends

Increasing Adoption of Digital Freight Platforms

• Freight forwarding is undergoing rapid transformation through widespread adoption of digital freight platforms that enable automation, enhanced visibility, and real-time collaboration among shippers, carriers, and freight forwarders
• For instance, platforms such as Flexport, Uber Freight, Maersk's TradeLens, and Freightos are reshaping the industry by offering instant booking, AI-powered dynamic pricing, continuous cargo tracking, and integrated marketplaces—eliminating paper-heavy processes and providing data analytics for better decision-making
• Companies leverage cloud-based tools, 5G, and IoT sensors to power live freight monitoring, reduce transit risks, and provide actionable insights on route optimization and container conditions, resulting in reduced costs and improved customer service
• End-to-end digitalization streamlines booking, documentation, customs clearance, and payment, empowering both large enterprises and SMEs with efficient cross-border logistics previously accessible only to major shippers
• Evolving digital freight platforms offer sustainability features—such as emissions tracking and carbon-neutral shipping options—meeting increasing environmental compliance demands
• The competitive marketplace is intensifying with logistics giants, technology-driven startups, and regional specialists all scaling up their digital offerings to enable platform integration and API connectivity throughout the supply chain

KSA Freight Forwarding Market Dynamics

Driver

Increasing Demand for Outsourcing Logistics Services

• Businesses facing complex international trade, customs, and rising transportation needs are increasingly outsourcing logistics operations to specialized freight forwarders to reduce costs, improve efficiency, and manage intricate supply chains
• For instance, as logistics operations grow in complexity, more companies are leveraging outsourcing for services such as automated shipment tracking, documentation, regulatory compliance, invoice auditing, customer service, and real-time analytics—often from nearshore or offshore support teams in Mexico, Colombia, or the Philippines
• AI-driven outsourcing improves response times, enhances shipment visibility, and supports predictive supply chain management for customers in e-commerce, manufacturing, healthcare, and energy sectors
• Partnering with freight forwarders allows businesses to focus on growth, customer acquisition, and core activities while the forwarders handle operational execution and regulatory complexities
• As labor costs increase, companies turn to logistics outsourcing for cost-effective, 24/7 support, real-time collaboration, and specialized services that add value beyond traditional booking and transport

Restraint/Challenge

Security and Risk Management Difficulty in Trade

• The freight forwarding sector faces significant challenges in managing operational, financial, and cyber risks within increasingly complex international trade environments
• For instance, threats such as cargo theft, damage, cyber-attacks, and limited cargo control post-possession remain persistent—especially in cross-border trade where goods move through multiple parties and jurisdictions, making risk mitigation and security compliance difficult
• Navigating geopolitical tensions, trade restrictions, and regulatory fragmentation introduces new vulnerabilities, and requires forwarders to maintain vigilance and develop robust risk management protocols
• Technological adoption introduces new types of risk, such as data breaches, system outages, and process errors tied to integration of digitized platforms. Insurance, contingency planning, and cyber risk management costs are rising, making it difficult for smaller operators to maintain competitive margins while safeguarding shipments
• Forwarders must continuously invest in advanced security measures, staff training, and compliance with varying local and international standards to address the multifaceted risks in today's global logistics landscape

KSA Freight Forwarding Market Scope

The market is segmented on the basis of offering, mode of transport, logistics model, customer type, freight forwarder type, and end-user.

• By Offering

On the basis of offering, the freight forwarding market is segmented into services and software. The services segment dominated the largest market revenue share of 68.9% in 2024, driven by the critical need for seamless global trade facilitation, including customs clearance, cargo insurance, freight consolidation, and route optimization. Businesses depend heavily on freight forwarders to handle complex international logistics requirements, documentation, and regulatory compliance across multiple regions. The increasing cross-border trade volumes and the growing number of small-to-medium enterprises (SMEs) entering global markets further support the demand for freight forwarding services.

The software segment is anticipated to witness the fastest growth from 2025 to 2032, owing to the rising digitalization of logistics operations and the demand for real-time freight visibility. Logistics platforms are being adopted to improve decision-making, reduce human errors, and optimize supply chain efficiency through automation. Features such as AI-driven analytics, cloud-based dashboards, and integration with IoT and GPS are making freight management software indispensable for freight forwarders, especially in managing high-volume shipments and complex routing networks.

• By Mode of Transport

On the basis of mode of transport, the market is segmented into road freight forwarding, air freight forwarding, sea freight forwarding, and rail freight forwarding. Road freight forwarding held the largest market share in 2024 due to its vital role in regional and domestic transportation and its flexibility in handling door-to-door and short-haul shipments. The mode supports a broad range of cargo types and offers scalability, making it essential for industries such as FMCG, retail, and manufacturing. Rising e-commerce penetration and ongoing development of highway networks and smart transport infrastructure are strengthening this segment’s dominance.

Air freight forwarding is expected to register the fastest growth rate from 2025 to 2032, fueled by increasing global demand for fast and reliable delivery of time-sensitive, high-value, and perishable goods. Air transport offers unmatched speed, which is crucial for sectors such as pharmaceuticals, electronics, and luxury goods. The integration of cargo tracking technologies, expansion of global airline freight capacity, and growth of just-in-time delivery models are enhancing the attractiveness of air freight forwarding for global trade.

• By Logistics Model

On the basis of logistics model, the market is segmented into third-party logistics (3PL), second-party logistics (2PL), and first-party logistics (1PL). The 3PL segment accounted for the largest revenue share in 2024 as companies increasingly outsourced logistics operations to specialized providers to gain access to global networks, lower operational costs, and improve efficiency. The growing complexity of supply chains, along with the need for scalable and agile freight solutions, has made 3PLs indispensable for industries with diverse logistics requirements.

The 1PL segment is expected to witness the fastest growth from 2025 to 2032, primarily due to large enterprises and manufacturers investing in their own transportation fleets and logistics systems to gain full control over freight movement. With advancements in digital logistics platforms and rising concerns over supply chain disruptions, businesses are looking to internalize logistics processes to improve responsiveness, transparency, and cost management.

• By Customer Type

On the basis of customer type, the freight forwarding market is segmented into B2B, B2C, and e-commerce & last mile delivery. The B2B segment held the largest market share in 2024, as it forms the backbone of industrial trade and bulk shipping across sectors such as oil & gas, automotive, and manufacturing. These customers require tailored freight solutions, predictable lead times, and compliance assurance across international borders. Long-term service contracts and integration with supply chain management platforms also drive consistent demand from B2B clients.

The e-commerce & last mile delivery segment is projected to grow at the fastest pace from 2025 to 2032, due to the exponential rise in online shopping and the need for highly responsive, consumer-centric delivery models. Logistics providers are increasingly leveraging automation, localized warehouses, and dynamic routing to support high-frequency, small-parcel deliveries. This segment also benefits from rising expectations for same-day and next-day delivery, encouraging freight forwarders to adapt and innovate rapidly.

• By Freight Forwarder Type

On the basis of freight forwarder type, the market is segmented into consolidators/NVOCC, multimodal transport operators, custom brokers, port agents, and others. The consolidators/NVOCC (Non-Vessel Operating Common Carriers) segment accounted for the largest market share in 2024, as they provide cost-effective freight solutions by aggregating smaller shipments into full-container loads. Their ability to negotiate favorable rates with carriers and ensure reliable space availability makes them essential for SMEs and freight forwarders handling high-volume trade lanes.

The multimodal transport operators segment is projected to witness the highest growth from 2025 to 2032, driven by rising demand for integrated logistics solutions that span across multiple modes—sea, air, rail, and road. Businesses increasingly seek streamlined end-to-end transportation options that minimize handovers and ensure faster, safer, and more traceable delivery. The shift toward sustainable logistics and cross-border trade facilitation further amplifies the relevance of multimodal operators in a globalized freight environment.

• By End-User

On the basis of end-user, the market is segmented into oil & gas industry, industrial & manufacturing, food & beverages, energy & utility, FMCG, healthcare, automotive, IT & telecom, retail, military, and others. The industrial & manufacturing segment held the largest revenue share in 2024 due to its large-scale dependence on freight forwarding for raw material sourcing, component delivery, and finished goods exports. These industries often require complex, high-volume, and time-sensitive logistics solutions that span multiple geographies and regulatory frameworks.

The healthcare segment is expected to grow at the fastest rate from 2025 to 2032, as it increasingly relies on temperature-controlled logistics and just-in-time delivery for sensitive products such as biologics, vaccines, and medical devices. Strict regulatory requirements, the growing pharmaceutical trade, and the rising adoption of telemedicine and e-pharmacies are intensifying the need for reliable and specialized freight services. Freight forwarders are investing in GDP-compliant infrastructure and advanced tracking systems to meet the critical demands of this high-stakes sector.

KSA Freight Forwarding Market Share

The freight forwarding industry is primarily led by well-established companies, including:

• DSV (Denmark)
• Kuehne+Nagel (Switzerland)
• GAC (U.A.E.)
• Almajdouie (Saudi Arabia)
• CEVA Logistics (France)
• Expeditors International of Washington, Inc. (U.S.)
• SINOTRANS (China)
• DB SCHENKER (Germany)
• SEKO Logistics (U.S.)
• JAS (Italy)
• Abdul Latif Jameel IPR Company Limited (Saudi Arabia)
• United Parcel Service of America, Inc. (U.S.)
• NAQEL Company (Saudi Arabia)
• DHL (Germany)
• Crane Worldwide Logistics (U.S.)
• fourwinds (Saudi Arabia)
• ARABCO Logistics (Saudi Arabia)
• FedEx (U.S.)
• BOLLORÉ LOGISTICS (France)
• Freights Solutions Co. (Saudi Arabia)
• PAREKH GROUP (India)
• Swift Cargo (India)
• WeFreight (U.A.E.)

Latest Developments in KSA Freight Forwarding Market

• In November 2023, GAC secured the prestigious Ship Agency of the Year award at The Maritime Standard Awards, marking its fifth win. Acknowledging GAC's commitment to excellence, innovation, and customer-centric services in the Middle East and Indian Subcontinent, the award reflects the company's adaptability to industry demands while upholding the highest standards of service quality. The Ship Agency of the Year award at The Maritime Standard Awards 2023 reaffirms GAC's industry leadership, boosting its reputation for excellence and customer-focused services. This accolade underscored GAC's commitment to setting new standards and enhanced its competitive edge in the dynamic Middle East and Indian Subcontinent maritime industry
• In October 2023, DSV teamed up with NEOM, a flagship development project in Saudi Arabia, to establish a significant USD 10.00 billion joint venture. This collaboration aims to bolster the logistical infrastructure essential for the ongoing ambitious projects in NEOM. The partnership seeks to provide comprehensive logistics services that will play a crucial role in facilitating the development of DSV in Saudi Arabia. This joint venture reflects a strategic move to enhance operational capabilities and contribute to the successful execution of major initiatives in the region
• In October 2023, Kuehne+Nagel and Tamer Logistics forged an exclusive partnership in Saudi Arabia, addressing the rising demand for logistics solutions. This partnership enhances Kuehne+Nagel's contract logistics and freight forwarding with Tamer Logistics' local expertise, expanding their service portfolio. The strategic alliance aims to drive sustainable industry growth, aligning with Saudi Arabia's Vision 2030 and bolstering the country's position as a regional logistical hub
• In August 2023, Kuehne+Nagel has secured a contract from Envision Energy to transport 190 wind turbine generators and 67 tower sets, totaling 1.4 million tons, for Saudi Arabia’s NEOM project. This aligns with Kuehne+Nagel’s Roadmap 2026, emphasizing renewable energy solutions. The NEOM wind farm, set for completion in 2025, will produce 1.67 GW to power NEOM Green Hydrogen Company, the world’s largest hydrogen facility. Kuehne+Nagel's dedicated team, spanning logistics professionals, drivers, and engineers, underscores its commitment to advancing the global energy transition
• In May 2023, CEVA Logistics received the Most Inspiring Automotive Logistics Solution Award for its commitment to customer satisfaction, value, and safety, highlighted by the recent launch of its DCBrain SaaS solution, showcasing a strong emphasis on digitalization, integration, and standardization for efficient global supply chain management in the automotive sector

SKU-70458