Saudi Arabia Smart Warehousing Market Assessment, By Component [Hardware, Solutions, Services] By Deployment [Cloud, On-premises], By Warehouse Size [Small, Medium, Large], By Technology [Internet of Things, Robotics and Automation, Artificial Intelligence and Analytics, Networking and Communication, Augmented Reality and Virtual Reality, Others], By Application [Inventory Management, Order Fulfillment, Asset Tracking, Predictive Analytics, Others], By Vertical [Transportation and Logistics, Retail and E-commerce, Manufacturing, Healthcare and Life Sciences, Energy and Utilities, Automotive, Food and Beverages, Others], By Region, Opportunities and Forecast, 2018-2032F

Saudi Arabia smart warehousing market is projected to  grow at the USD 805.30 million in 2032F with a CAGR of 8.12%. 

Saudi Arabia Smart Warehousing Market, Size, Future, Growth

Saudi Arabia smart warehousing market&nbsp;is projected to witness a&nbsp;CAGR of 8.12%&nbsp;during the forecast period 2025-2032, growing from&nbsp;USD 431.23 million&nbsp;in 2024 to&nbsp;USD 805.30 million&nbsp;in 2032F, owing to the expansion of key sectors, the growth of E-commerce, large-scale projects, and a strategic geographic location.&nbsp;Smart warehousing in Saudi Arabia is not just a trend, it is a strategic necessity in the country&rsquo;s shift toward digitally enabled logistics. As part of Vision 2030, Saudi Arabia is modernizing its infrastructure, diversifying its economy, and building a global logistics hub. Smart warehousing, with its integration of IoT, robotics, AI, and cloud-based inventory systems, is central to this transformation.
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Report Attributes
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Details
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Base Year
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2024
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Forecast Period
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2025-2032F
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Historical Period
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2018-2023
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Projected Growth Rate
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CAGR of 8.12% between 2025 and 2032
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Revenue Forecast in 2032
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USD 805.30 million
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The market is moving from basic automation to fully connected ecosystems. Businesses are no longer looking for isolated WMS platforms or conveyor-based handling. Instead, they want predictive demand planning, real-time inventory visibility, and robotic coordination, all wrapped into modular, scalable solutions.
Government initiatives such as the National Industrial Development and Logistics Program (NIDLP) and the Zakat, Tax and Customs Authority&rsquo;s bonded zone expansions are incentivizing tech adoption across 3PLs, retailers, and manufacturers. Meanwhile, logistics-heavy sectors including food, pharma, and retail are pushing for faster throughput and reduced error rates, making smart warehousing not just viable but vital.
For instance, in January 2025,&nbsp;Honeywell Turki Arabia Ltd launched the Himaya Center in Jubail, offering industrial cybersecurity services that support smart warehouse systems, IoT deployments, and OT compliance. This underscores the growing integration of secure automation in Saudi warehousing, aligning with Vision 2030&rsquo;s localization goals.
Government Push for Digitized Logistics Ecosystems Surges Market Demand
The Saudi government is fueling warehousing innovation through aggressive infrastructure spending and digital incentives. Under the National Transport and Logistics Strategy (NTLS) and Vision 2030, more than USD 133.3 billion (SAR 500 billion) is earmarked for turning Saudi Arabia into a global logistics hub. These developments not only create new warehousing capacity but also set the bar for digital warehousing standards nationwide.
In March 2024, the Saudi Authority for Industrial Cities and Technology Zones (MODON) launched a smart logistics park in Jeddah Industrial City, incorporating AI-driven warehouse management, RFID-based inventory systems, and smart surveillance solutions, all integrated via IoT dashboards. Meanwhile, in June 2024, MODON has expanded its total logistics space in industrial cities throughout the Kingdom of Saudi Arabia to more than 4.8 million square meters. This growth is driven by rising demand for its services and a commitment to offering a comprehensive suite of logistics solutions. Additionally, MODON is participating in Transport Logistics, Asia&rsquo;s premier trade fair for logistics, transportation, information technology, and supply chain management.
<h2>Growing Adoption of Robotics and Automation in FMCG Warehouses Fuels Market Growth</h2>
Saudi&rsquo;s FMCG and retail logistics firms are now actively implementing robotics and automated guided vehicles (AGVs) in warehouse operations. The need to manage high product turnover with precision and speed, especially during Ramadan and Hajj, has led to increased investment in AI-powered storage and retrieval systems.
&nbsp;For example, Savoye SAS, a leading global warehouse automation integrator and software publisher, showcased its comprehensive suite of advanced solutions at the first edition of the Saudi Warehousing &amp; Logistics Expo, held in Riyadh from September 2 to 4, 2024. The event brought together prominent industry leaders and innovators, driving discussions on the future of the Kingdom of Saudi Arabia&rsquo;s supply chain and logistics sector and accelerating the adoption of advanced technologies.
At the expo, Savoye presented its innovative solutions aimed at addressing fulfillment challenges in sectors such as retail, e-commerce, pharmaceuticals, grocery, and small parts distribution. The company highlighted its advanced warehouse automation technologies&mdash;including goods-to-person robotics systems, automated storage and retrieval systems (ASRS), packing machines, and conveyors&mdash;as well as its software solutions, such as ODATiO OMS, WMS, and TMS, all designed to boost the efficiency and productivity of warehousing operations.Such use of automation highlights the shift from manpower-centric to machine-optimized warehousing in high-volume segments.
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Dominance of the Retail and E-commerce Vertical Surge Smart Warehouse Demand
Among all end-user verticals, retail and e-commerce drive the highest demand for smart warehousing in Saudi Arabia. The country&rsquo;s young population, growing digital payments landscape, and rapid same-day delivery expectations are forcing retailers to modernize fulfillment infrastructure. Retail-led warehousing now leads innovation in robotics, cloud integration, and workflow optimization, and is setting the blueprint for other industries to follow.
In March 2025, JAS Worldwide, Inc. and Naqel signed a Memorandum of Understanding (MoU) to establish a strategic partnership that combines Naqel&rsquo;s strong regional network with JAS&rsquo;s global logistics expertise. Naqel, a subsidiary of Saudi Post Logistics, offers extensive coverage across the GCC, while JAS is one of the largest and fastest-growing privately-owned logistics firms. This collaboration aims to support Saudi Arabia&rsquo;s ambitious plans and enhance its position as a global logistics hub.
Report Scope
&ldquo;Saudi Arabia Smart Warehousing Market Assessment, Opportunities and Forecast, 2018-2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Saudi Arabia smart warehousing 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.
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Report Attribute
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Details
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Segments Covered
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Component, Deployment, Warehouse Size, Technology, Application, Vertical
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Regions Covered
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Riyadh, Makkah, Eastern Region, Madinah and Rest of Saudi Arabia
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Key Companies Profiled
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Honeywell Turki Arabia Ltd, Siemens AG, Swisslog Middle East, Savoye Middle East, Al Mutlaq United, ABB Ltd, Refro Tech, SAP SE
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report, the&nbsp;Saudi Arabia smart warehousing market&nbsp;has been segmented into the following categories:&nbsp;
<ul>
<li>By Component
<ul>
<li>Hardware</li>
<li>Solutions</li>
<li>Services</li>
</ul>
</li>
<li>By Deployment
<ul>
<li>Cloud</li>
<li>On-premises</li>
</ul>
</li>
<li>By Warehouse Size
<ul>
<li>Small</li>
<li>Medium</li>
<li>Large</li>
</ul>
</li>
<li>By Technology
<ul>
<li>Internet of Things</li>
<li>Robotics and Automation</li>
<li>Artificial Intelligence and Analytics</li>
<li>Networking and Communication</li>
<li>Augmented Reality and Virtual Reality</li>
<li>Others</li>
</ul>
</li>
<li>By Application
<ul>
<li>Mass/Economy</li>
<li>Premium</li>
</ul>
</li>
<li>By Vertical
<ul>
<li>Transportation and Logistics</li>
<li>Retail and E-commerce</li>
<li>Manufacturing</li>
<li>Healthcare and Life Sciences</li>
<li>Energy and Utilities</li>
<li>Automotive</li>
<li>Food and Beverages</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>Riyadh</li>
<li>Makkah</li>
<li>Eastern Region</li>
<li>Madinah</li>
<li>Rest of Saudi Arabia</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Saudi Arabia&rsquo;s smart warehousing landscape is shaped by a blend of global innovators and local tech enablers. International companies deliver automation and control systems tailored to industrial warehouse clients. Local players are pioneering full-stack warehouse robotics, working with local 3PLs and FMCG firms. SAP SE supports major retailers with cloud-native WMS platforms and predictive inventory analytics, while Al Mutlaq United is becoming a key local partner for deploying turnkey smart warehouse infrastructure. Startups and integrators, including Refro Tech, are gaining traction by offering IoT bundles, warehouse cameras, and modular dashboards suited for small to mid-sized warehouses. Together, these players are bringing Vision 2030&rsquo;s logistics goals to life &mdash; one connected warehouse at a time.
For instance, at the Saudi Warehousing &amp; Logistics Expo (May 27&ndash;29, 2025, Riyadh), Swisslog Middle East showcased its AutoStore multi-temperature warehouse automation system&mdash;designed to handle frozen, chilled, and ambient goods simultaneously via a single grid solution, reflecting adaptability to KSA&rsquo;s cold-chain and e-commerce demands. Swisslog spotlighted its AutoStore multi-temperature solution, a compact and scalable automated storage and retrieval system that combined high-density storage with the flexibility to meet complex operational needs.
Key Players Operating in the Saudi Arabia Smart Warehousing Market are:
<ul>
<li>Honeywell Turki Arabia Ltd</li>
<li>Siemens AG</li>
<li>Swisslog Middle East</li>
<li>Savoye Middle East</li>
<li>Al Mutlaq United</li>
<li>ABB Ltd</li>
<li>Refro Tech</li>
<li>SAP SE</li>
</ul>
If you can't find what you're searching for or have any custom requirements for the&nbsp;Saudi Arabia smart warehousing market, you may approach our team at&nbsp;<a href="mailto:info@marketsandata.com">info@marketsandata.com</a>.

Saudi Arabia Smart Warehousing Market Assessment, Opportunities and Forecast, 2018-2032F

The Saudi Arabia smart warehousing market is expanding due to the expansion of key sectors, growth of E-commerce, government push, and growing adoption of robotics and automation in FMCG warehouses. 

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