Decoding KSA's Warehousing Automation: Demand and Supply Insights: Ken Research

Saudi Arabia (KSA) drives warehousing automation as a regional logistics epicenter, fueled by a consolidated market and booming e-commerce demand.

Storyline

Saudi Arabia's infrastructure initiatives drive demand for automated warehouses.

Growing demand for cold storage services presents growth opportunities.

Focus on e-commerce and retail fuels demand for automation.

As per Ken Research estimates, Warehousing and logistics industry poised to undergo a transformative automation phase.

Existence of a consolidated market scenario amongst the growing warehousing automation industry globally, KSA’s government has made the push to turn the nation into a Regional Logistics Epicenter necessitating automation as the key parameter for a Regional Logistics Chain, enabling faster growth of KSA’s warehouse automation industry. On the other hand, an unprecedented surge in E-commerce market has balanced the demand side of the market. In this piece, we uncover the industry landscape, demand & supply side of KSA’s Warehousing automation industry.

1.Supply side boost: Government Plans and E-commerce Fuel Automated Warehouses in KSA.

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Saudi Arabia's ambitious government infrastructure plans, including initiatives like NEOM, The Red Sea, ROSHN, and the National Industrial Development & Logistics Program (NIDLP), have created a solid foundation for the logistics network in the country. These developments, supported by a $35 Bn allocation for logistics infrastructure, have led to an increased demand for automated warehouses. (~$ 100 Bn in its transportation & logistics infrastructure) The focus on efficiency, speed, and accuracy in the supply chain has made the implementation of automated warehouse solutions essential. This growing demand is driven by the booming e-commerce industry's evolving requirements, the need to streamline operations, and ensure timely deliveries.

2.Demand Surge: Saudi Arabia's Rise as a Transshipment Hub Spurs Demand for Affordable Modern Warehouse Solutions.

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The rising demand for cold storage services in Saudi Arabia, primarily driven by the food and beverage (F&B) and pharmaceutical sectors, is leading to significant growth opportunities. To cater to this demand, companies are adopting asset-light models and relying on third-party logistics (3PL) providers who offer specialized cold storage solutions, given that only 5% of the warehouses are currently automated. These providers leverage innovative technologies to ensure efficient operations and maintain the quality and integrity of stored products. As a result, companies are strategically expanding their warehouses and investing in cutting-edge solutions. This transformative phase is focused on meeting the evolving needs of the F&B and pharmaceutical sectors while gaining a larger market share.

3.“A balance to be the solution:” The demand and market share of e-commerce and retail is expected to increase in the future due to increasing focus towards reducing the overall sales cycle duration.

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Experience the transformative power of automation as it reshapes the warehousing and logistics landscape, propelling the retail and e-commerce industry into a new era. In this fast-paced world, e-commerce automation software becomes the key driver, enabling businesses to focus on their core strengths and strategic goals. The adoption of automated warehouse management systems empowers 3PL companies to achieve unprecedented efficiency, accuracy, and real-time inventory visibility, while reducing costs and enhancing customer service. As per our estimates at Ken Research, the market will grow at a steady pace undergoing transformative warehouse automation process.

Swisslog appoints David Dronfield as the new GM In response to the growing interest in robotic automation throughout the region, David will be responsible to secure new business, manage technology and service support for Swisslog’s customer base Leading automation expert, Swisslog announced the appointment of David Dronfield as the new General Manager for its Middle Eastern operations. David brings more than 35 years of professional experience in the warehouse automation sector with expertise across sales, marketing, business development, project management and in managing senior leadership roles. With the increased interest in warehouse automation, David will be responsible for growing Swisslog’s regional customer base and creating awareness about the need for professionally integrated warehouse automation systems. As the new General Manager, David will support businesses with the provision of custom solutions that gives them a competitive advantage. Having worked in the industry for more than three decades, David brings with him a wealth of experience and industry expertise. Prior to joining Swisslog Middle East, David has served as Founder & Managing Director of Intralogistic Solution, a company providing intralogistic design, supply chain consulting & turnkey equipment solutions. Additionally, he has worked as the Regional General Manager for Al Futtaim Auto & Machinery Company LLC, implementing initiatives for a strategic expansion of UAE based Industrial Storage & Handling Solutions business operations across the GCC region, namely Oman, Qatar, Bahrain and KSA #automation #supplychain #logistics (at Emirate of Dubai) https://www.instagram.com/p/CSJVh_ABiWD/?utm_medium=tumblr