Saudi Arabia Last Mile Delivery Market Report and Forecast 2032

Saudi Arabia Last Mile Delivery Market Insights & Analysis (2025-2032)

The Saudi Arabia Last Mile Delivery Market reached a value of nearly USD 7.17 Billion in 2025. The market is assessed to grow at a CAGR of around 6.44%, during the forecast period of 2025-2032 to attain a value of around USD 11.1 Billion in 2032. With the swift growth of e-commerce platforms, mounting customer preference for quick deliveries, and the government's Vision 2030 initiative aiming at digital transformation, the industry is envisioned to upscale tremendously.

The Saudi Arabia Last Mile Delivery Market has seen considerable evolution with the launch of innovative delivery solutions like autonomous vehicles, drones, and AI-powered route optimization systems. Also, the pandemic augmented digital adoption among Saudi customers, permanently changing shopping behaviors toward online channels & therefore heightening demand for effective last-mile delivery services.

Saudi Arabia Last Mile Delivery Market FY32

• Study Period: 2020- 2032


• Base Year: 2024


• CAGR(2025-2032): 6.44%


• Market Value 2032: USD 11.1 Billion


• Major Players: KUEHNE+NAGEL, BAHRI, DIGGIPACKS, SMSA EXPRESS TRANSPORTATION COMPANY LTD., AYMAKAN, CAREEM, CMA CGM GROUP, ARAMEX, KINTETSU WORLD EXPRESS, INC., SAFE ARRIVAL, MASAR, SAEE, AGILITY, AJEX (AJLAN & BROS HOLDING GROUP), and Others 

Moreover, major aspects propelling the Saudi Arabia Last Mile Delivery Industry development include significant investments in logistics infrastructure, increasing smartphone penetration allowing real-time tracking capabilities, and the entry of international logistics players through strategic partnerships with local entities. Also, the incorporation of advanced technologies, including blockchain for enhanced transparency & IoT for real-time monitoring has further transformed the delivery ecosystem.

Furthermore, Saudi Arabia's young, tech-savvy populace with high disposable income continues to demand faster & more dependable delivery services, insisting market companies modernize continuously. Besides, the government's emphasis on emerging smart cities & enhancing transportation networks is creating a favorable environment for last-mile logistics operations. In addition, the rising trend of same-day & instant deliveries is reshaping customer expectations & compelling enterprises to recalibrate their logistics strategies.

Furthermore, the Saudi Arabia Last Mile Delivery Market is destined for considerable transformation with autonomous delivery solutions, micro-fulfillment centers, and sustainable delivery practices becoming mainstream. Also, the mounting focus on environmentally friendly delivery choices & the potential implementation of the hyperloop & other futuristic transportation systems would likely redefine delivery capabilities & efficacy in the kingdom by 2032, further elevating the Last Mile Delivery Market share.

Last Mile Delivery Market Recent Developments

2024:

• Kuehne+Nagel expanded its last-mile delivery network by opening three new distribution centers in Riyadh, Jeddah, and Dammam, strengthening its presence across major Saudi cities.
• Aramex launched "Aramex SMART," an AI-powered delivery prediction system that reduced delivery times by 30% through optimized routing and resource allocation.
• As part of its sustainability initiative, SMSA Express introduced electric delivery vehicles for its operations in Riyadh and plans to convert 25% of its fleet to electric by 2026.
• Naqel Express, expanded its micro-fulfillment center network to 15 locations across the Kingdom to support same-day deliveries.

Recent Developments (2025)

• Bahri, attained a foremost local technology startup specializing in last-mile route optimization, improving its delivery efficacy by an estimated 35%.
• CMA CGM Group launched a committed e-commerce fulfillment division aiming exclusively at last-mile operations in Saudi Arabia.
• Following regulatory approval, AJEX introduced drone delivery services for small packages in selected gated communities in Riyadh and Jeddah.
• Kintetsu World Express established a strategic partnership with a leading Saudi retailer to handle high-class last-mile operations for their online orders.

Saudi Arabia Last Mile Delivery Market Dynamics

• E-commerce Boom & Digital Transformation to Instigate the Industry Expansion

The volatile expansion of e-commerce platforms in Saudi Arabia has generated unparalleled demand for effective last-mile delivery services. With the e-commerce sector increasing at over 25% annually, online retailers are competing on delivery speed & consistency as major differentiators. Moreover, the government's Digital Saudi 2030 initiative has augmented digital acceptance, with smartphone penetration exceeding nearly 95% & mobile commerce becoming the favored shopping channel. Also, this digital change has fundamentally reformed customer expectations, with same-day & next-day deliveries becoming standard offerings rather than premium services.

• Last Mile Infrastructure Limitations to Create Challenge

Even with key progressions, the Saudi Arabia Last Mile Delivery Market still faces challenges, specifically in rural areas & currently constructed areas where addressing systems are still unpredictable. The harsh weather conditions, make it perplexing to maintain vehicles & ensure the integrity of products while they are being transported. Moreover, delivery schedules & operating expenses are largely impacted by the traffic congestion in big cities during peak hours, which pushes companies to generate other delivery windows & routes.

• Sustainable & Green Delivery Solutions to Elevate the Market Growth

Environmental awareness is developing as a noteworthy trend in the Saudi Arabia Last Mile Delivery Market, associated with the kingdom's sustainability goals. Companies are progressively accepting electric vehicles, optimizing routes to decrease carbon footprints, and implementing packaging innovations to minimize waste. Also, this shift toward eco-friendly delivery options is not only compelled by corporate social responsibility but also by the increasing customer preference for environmentally responsible brands & services, mainly among the younger demographic that constitutes a majority of online shoppers.

Saudi Arabia Last Mile Delivery Market Segment-wise Analysis

By Service Type:

• B2B
• B2C

The B2B accounts for the potential share of the Saudi Arabia Last Mile Delivery Market. The B2B sector aids from the nation's ongoing economic diversification initiatives under Vision 2030, which have encouraged substantial expansion in manufacturing, retail, and service sectors needing effective supply chain solutions. Key contributors to B2B last-mile delivery include the swiftly expanding retail sector, with key mall developments & retail chains establishing omnichannel distribution networks necessitating reliable merchandise transportation.

Also, the healthcare sector indicates another substantial B2B consumer base, with hospitals, clinics, and pharmacies demanding time-sensitive deliveries of medical supplies & pharmaceuticals. Further, the HORECA (Hotel, Restaurant, and Catering) segment generates substantial demand for frequent, scheduled deliveries to maintain inventory levels while minimizing storage requirements at establishment locations.

By End User:

• E-Commerce
• Retail & FMCG
• Healthcare
• Mails & Packages
• Others

The E-Commerce segment captures the largest share of the Saudi Arabia Last Mile Delivery Market. This ascendancy replicates the kingdom's tremendous digital transformation & shifting customer behaviors. Saudi Arabia has emerged as the biggest & fastest-increasing e-commerce industry in the Middle East, with annual online investment, creating massive demand for residential deliveries.

Moreover, online grocery delivery has seen exponential expansion, with key supermarket chains & specialized grocery delivery platforms increasing their reach across urban centers. Also, the fashion & electronics segment continues to fuel significant delivery volumes while emerging segments, such as online pharmacy & quick commerce (delivering within 15-30 minutes) are generating new delivery paradigms requiring hyperlocal fulfillment networks.

What Does Our Saudi Arabia Last Mile Delivery Market Research Study Entail?

• The Saudi Arabia Last Mile Delivery Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• The Saudi Arabia Last Mile Delivery Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.