Saudi Arabia Green Logistics Market Assessment, By Service Type [Transportation, Warehousing, Value-Added Services], By Operational Area [Domestic, International], By Delivery Type [Standard Delivery, Same-Day Delivery], By Category [Apparel and Lifestyle, Automotive, Engineering, FMCG and Consumer Electronics, Healthcare, Other], By End-user [Business-to-Business, Business-to-Consumer], By Region, Opportunities and Forecast, 2018-2032F

Saudi Arabia green logistics market is projected to witness a CAGR of 6.34% during the forecast period 2025-2032, growing from USD 14.68 billion in 2024 to USD 24.01 billion in 2032F, owing to Vision 2030, massive infrastructure investments, sustainability initiatives and technological advancements. As Vision 2030 accelerates economic diversification and sustainability goals, the Kingdom’s logistics infrastructure is under pressure to decarbonize, digitize, and deliver. Green logistics, once an imported concept, is now a policy-backed movement.

Report Attributes	Details
Base Year	2024
Forecast Period	2025-2032F
Historical Period	2018-2023
Projected Growth Rate	CAGR of 6.34% between 2025 and 2032
Revenue Forecast in 2032	USD 24.01 billion

Public-private collaboration is on the rise. Investments in clean energy, electric mobility, and low-carbon warehousing are gaining traction. Additionally, with regulatory frameworks aligning with global standards, logistics providers in Saudi Arabia are increasingly focusing on efficiency, traceability, and low-emission compliance, which drives market growth in the forecast period.

For instance, in February 2024, The National Shipping Company of Saudi Arabia (Bahri) officially laid the cornerstone for the new Bahri Logistics Center at Jeddah Islamic Port. Spanning 95,436 square meters, this advanced facility managed by Bahri and set to offer a range of storage solutions, including temperature-controlled zones, along with handling and value-added services, positioning it as a future green terminal with potential for solar and cold-chain efficiency.

National Push for Low-Emission Road Transport Integration Leads to Market Growth

Saudi Arabia's green logistics market is expanding rapidly, propelled by the government's strategic focus on low-emission road transport as part of Vision 2030 sustainability goals. The Kingdom is investing heavily in electric vehicle (EV) infrastructure, including charging stations along major freight corridors, and offering incentives for logistics firms to transition to eco-friendly fleets. Initiatives like the Saudi Green Initiative and National Transport Strategy are mandating emission reductions in last-mile deliveries, with major players like Saudi Post and Naqel Express piloting EV fleets. The integration of hydrogen fuel cell trucks for long-haul routes and AI-powered route optimization software further enhances efficiency. With regulations of logistics vehicles to be electric by 2030, coupled with rising e-commerce demand, Saudi Arabia's logistics sector is undergoing a transformative shift toward sustainable, technology-driven supply chain solutions.

For instance, in May 2023, Naqel Express, in collaboration with SPL Group and the Ministry of Transport, initiated a green fleet pilot with hybrid delivery vans in Riyadh. This included EV-compatible depots and optimized delivery windows to reduce emissions and fuel use. The initiative is aligned with Saudi Arabia’s Sustainable Transport Strategy.

Growth in Sustainable Warehousing and Cold Chain Facilities Drives Market Growth

Saudi Arabia green logistics market is witnessing significant growth, driven by rising investments in sustainable warehousing and energy-efficient cold chain infrastructure. As part of Vision 2030, the Kingdom is prioritizing eco-friendly logistics hubs featuring solar-powered storage facilities, automated temperature-controlled systems, and IoT-enabled energy management. The expansion of pharmaceutical and perishable goods trade has spurred demand for carbon-neutral cold storage, with companies like Wared Logistics and Almajdouie adopting green technologies. Government initiatives, including the Saudi Green Initiative and LEED-certified warehouse mandates, further bolster this transition. Innovations such as thermal energy storage and hydrogen-powered refrigeration are setting new industry benchmarks.

In November 2022, Agility Public Warehousing Company, a supply chain services, infrastructure, and innovation company, announced that a warehouse at its Agility Logistics Park complex in Riyadh is the first building in Saudi Arabia, as well as the first warehouse in the GCC, to receive EDGE Advanced certification as a green building. It has reduced energy and water usage by 40%, with bright lighting, skylights, low-emission paint, and solar-ready rooftop design.

Manufacturing Sector Leads Green Logistics Adoption in Saudi Arabia

Saudi Arabia's manufacturing sector has emerged as the primary driver of green logistics adoption, propelled by Vision 2030's sustainability objectives and increasing global ESG requirements. Leading industrial giants in petrochemicals, construction materials, and automotive manufacturing are implementing comprehensive eco-friendly logistics solutions, including hydrogen-powered freight vehicles, solar-enabled smart warehouses, and closed-loop supply chain systems. These initiatives have already reduced sectoral logistics emissions since 2020. Major corporations are investing heavily in green transportation corridors, while government incentives such as carbon credit programs and clean technology subsidies further accelerate adoption. With the sector, Saudi's logistics carbon footprint reduction targets, sustainable logistics practices are becoming a strategic differentiator, transforming supply chains from cost centers into value-added, environmentally responsible operations that enhance global competitiveness.

For instance, in October 2024, Bahri Chemicals, a joint venture between Saudi Basic Industries Corp. and Bahri, the national shipping carrier of Saudi Arabia reported a 56.9% increase in chemical cargo transport, almost 9.1 million tonnes, driven by new vessel investments and sustainable supply chains. Heavy volumes. High precision. Just the backbone of green manufacturing logistics.

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Report Scope

“Saudi Arabia Green Logistics Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Saudi Arabia green logistics market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Report Attribute	Details
Segments Covered	Mode of Operation, Business Type, End-use
Regions Covered	Riyadh, Makkah, Eastern Region, Madinah and Rest of Saudi Arabia
Key Companies Profiled	Naqel Express Company (a subsidiary of Saudi Post/SPL Group), The National Shipping Company of Saudi Arabia (Bahri), Binzagr Company, Takhzeen Logistics Company, Arabco Logistics Company, Al-Jabri Transport & Logistics Company, Swisslog AG, Dematic GmbH, Kardex Remstar LLC, SSI Schäfer Systems International DWC LLC
Customization Scope	15% free report customization with purchase
Pricing and Purchase Options	Avail the customized purchase options to fulfill your precise research needs
Delivery Format	PDF and Excel through email (subject to the license purchased)

In the report, the Saudi Arabia green logistics market has been segmented into the following categories: 

• By Mode of Operation
  • Storage
  • Roadways Distribution
  • Seaways Distribution
  • Others
• By Business Type
  • Warehousing
  • Distribution
  • Value-added Services
• By End-use
  • Healthcare
  • Manufacturing
  • Automotive
  • Banking and Financial Services
  • Retail and E-Commerce
  • Others
• By Region
  • Riyadh
  • Makkah
  • Eastern Region
  • Madinah
  • Rest of Saudi Arabia

Key Players Landscape and Outlook

Saudi Arabia’s green logistics market is gaining definition with national champions and global tech providers collaborating across the value chain. Naqel Express, under the SPL Group, is piloting low-emission fleet operations and EV-enabled delivery hubs. Bahri, the Kingdom’s maritime logistics leader, is investing in LNG propulsion and port decarbonization initiatives. Binzagr and Takhzeen Logistics are leading warehousing innovations with solar energy, cold chain insulation, and waste minimization programs. Meanwhile, automation specialists like Swisslog, Dematic, and SSI Schäfer are supporting innovative warehousing development in Riyadh and Dammam, integrating AI-based inventory management with energy-saving robotics. As the Kingdom intensifies efforts to cut emissions and digitize its freight ecosystem, the race is on, not just to deliver faster, but cleaner and brighter.

For instance, in November 2023, Naqel Express Company rolled out its first electric delivery trucks in Riyadh as part of its green fleet initiative, backed by SPL Group and the Ministry of Transport, to fully electrify by 2040. This initiative aligns with the company's commitment to environmental responsibility and the goals of Saudi Vision 2030.

Key Players Operating in the Saudi Arabia Green Logistics Market are:

• Naqel Express Company (a subsidiary of Saudi Post/SPL Group)
• The National Shipping Company of Saudi Arabia (Bahri)
• Binzagr Company
• Takhzeen Logistics Company
• Arabco Logistics Company
• Al-Jabri Transport & Logistics Company
• Swisslog AG
• Dematic GmbH
• Kardex Remstar LLC
• SSI Schäfer Systems International DWC LLC

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