Saudi Arabia Last Mile Delivery Market Research Report: Size, Share, Trends & Forecast (2026-2032)

Saudi Arabia Last Mile Delivery Market Key Takeaways

• The Saudi Arabia last mile delivery market was valued at USD 0.877 billion in 2025 and is projected to grow from USD 0.950 billion in 2026 to USD 1.537 billion by 2032.
• The industry is projected to witness steady growth at a CAGR of 8.35% during 2026–2032.
• Standard Delivery remains the dominant service type, accounting for an estimated 46% share in 2026.
• By end user, E-commerce retail leads the market with an estimated 37.80% share in 2026.
• The industry is moderately consolidated, with the top five players collectively accounting for 55% share in 2026.

Saudi Arabia Last Mile Delivery Market Size and Outlook

The last mile delivery market in Saudi Arabia rises from USD 0.877 billion in 2025 to USD 0.950 billion in 2026 and is projected to reach USD 1.537 billion by 2032, registering an 8.35% CAGR during 2026–2032.

The market growth is supported by high internet and smartphone penetration, rapid urbanization, a mobile-first consumer lifestyle, a young and technology-oriented population, expanding digital payments, and the increasing adoption of e-commerce and on-demand delivery services. These factors increase online order frequency and create sustained demand for standard, express, and same-day last-mile fulfillment.

Saudi Arabia's digital commerce ecosystem is further strengthening the delivery demand base. Mada e-commerce sales exceeded USD 18.43 billion in Q1 2025, up 56% year on year, while the Transport General Authority recorded 79.6 million delivery orders in the same quarter, demonstrating the direct link between digital commerce activity and delivery volumes.

The market is also benefiting from logistics-network expansion and delivery technology adoption, including fulfillment infrastructure, real-time tracking, route optimization, automated sorting, parcel lockers, and digitally integrated delivery platforms. In parallel, the enforcement of National Address requirements from January 2026 increases the need for accurate address validation and digital route planning, creating additional opportunities for technology-enabled last-mile solutions.

Saudi Arabia Last Mile Delivery Market Key Indicators

• As per the Transport General Authority(TGA), Saudi Arabia records 79.6 million delivery orders in Q1 2025, representing 22% year-on-year growth, with Riyadh accounting for 44.7% of total orders. This concentration makes Riyadh the primary demand hub for last-mile delivery capacity and fulfillment infrastructure.
• According to the Saudi Central Bank data reported by SPA, e-commerce sales through Mada cards exceeded USD 18.4 billion in Q1 2025, increasing 56% year-on-year. The rapid expansion of digital transactions increases demand for parcel fulfillment, delivery capacity, and returns management.
• According to the General Authority for Statistics(GASTAT), Saudi Arabia has 23 activated logistics centers covering 34.6 million m², strengthening warehousing, sorting, and regional distribution capacity for last-mile delivery networks.
• As reported by GASTAT, more than 290 million orders are fulfilled in 2024, while average delivery time improves from 45 minutes to 35 minutes. This indicates rising delivery efficiency and supports the adoption of route optimization, digital dispatch, and real-time delivery management.

Saudi Arabia Last Mile Delivery Market Scope

Saudi Arabia Last Mile Delivery Market Growth Driver

E-Commerce Expansion Drives Higher Delivery Volumes and Network Density

Saudi Arabia’s expanding e-commerce ecosystem is increasing the addressable customer base for last-mile delivery providers. According to the Ministry of Commerce, commercial registrations for e-commerce activities reached 43,854 in 2025, up 9% year on year. The expanding online merchant base generates additional requirements for fulfillment, parcel distribution, returns management, and doorstep delivery. This strengthens demand for scalable delivery networks, efficient fleet utilization, and integrated last-mile logistics platforms across the Kingdom.

As per the TGA, Saudi Arabia recorded more than 101 million delivery orders in Q2 2025, with Riyadh contributing 45.68 million, Makkah 21.47 million, and the Eastern Region 16.10 million. The geographic distribution demonstrates strong delivery activity across multiple major markets. This supports investment in regional fulfillment nodes, sorting infrastructure, delivery fleets, and route-management systems, while creating opportunities to expand last-mile capacity beyond Riyadh into other high-demand urban centers.

Recent Trend

Real-Time Tracking and Digital Delivery Management Reshape Customer Experience

According to GASTAT, average delivery time in Saudi Arabia has improved from 45 minutes to 35 minutes, indicating measurable gains in delivery efficiency. The improvement reflects growing pressure on operators to shorten fulfillment cycles while maintaining service reliability. As consumers increasingly expect precise delivery windows and faster order completion, logistics providers are strengthening dispatch coordination, route planning, and urban delivery operations to improve turnaround times and support increasingly time-sensitive e-commerce fulfillment.

As per AJEX Logistics Services, its 2025 mobile application introduces real-time shipment tracking, live courier tracking, push notifications, and delivery-detail modification. These capabilities indicate a shift from basic parcel delivery toward digitally managed customer experiences. Real-time visibility enables customers to monitor shipments and adjust delivery information, while operators gain better communication with recipients. This trend is increasing the importance of tracking platforms, digital proof of delivery, and customer-facing logistics technologies.

Saudi Arabia Last Mile Delivery Market Opportunities and Challenges

Saudization Requirements Accelerate Automated Last-Mile Delivery Opportunities

The Transport General Authority (TGA) is enforcing 100% Saudization for light-vehicle and motorcycle delivery drivers operating through registered delivery platforms, increasing labor requirements across high-frequency last-mile operations. This places greater cost pressure on courier companies, particularly where individual parcels require separate doorstep trips. As delivery volumes expand, operators face a stronger need to increase deliveries per vehicle, improve route density, reduce failed delivery attempts, and limit manual intervention in urban distribution.

This regulatory pressure is creating a commercial opening for smart parcel lockers, automated pickup infrastructure, and route-optimization solutions. In 2025, RedBox Logistics reports a 38.5% increase in investment in smart parcel-locker infrastructure, supporting wider deployment of automated collection and drop-off terminals. Consolidating multiple parcels at centralized lockers can reduce individual doorstep trips, improve vehicle productivity, and increase daily shipment throughput, supporting broader adoption of automated last-mile delivery infrastructure.

Segmentation Insights

Standard Delivery Anchors Saudi Arabia’s High-Volume Parcel Economy

Standard Delivery leads Saudi Arabia last mile delivery market consumption, estimated to account for approximately 46% of Saudi Arabia's last-mile delivery industry revenue in 2026, supported by its fit with high-volume, non-urgent e-commerce shipments. According to GASTAT, clothing, footwear, and sports goods account for 88.8% of online shopping categories, creating a substantial parcel base that generally supports scheduled rather than premium delivery. Standard Delivery therefore benefits from broader merchant adoption, lower fulfillment costs, and high shipment frequency across routine consumer purchases.

Standard Delivery generates the highest revenue because it combines large shipment volumes with comparatively lower delivery costs, making it suitable for merchants seeking scalable fulfillment without premium same-day charges. Its demand is further supported by the TGA's National Address enforcement from January 2026, which improves address accuracy and can reduce unsuccessful delivery attempts and re-delivery requirements. This creates opportunities for carriers to improve route density, vehicle utilization, and cost per successful delivery while keeping standard-service pricing competitive. Based on service type, the industry is segmented into:

• Standard Delivery
• Express Delivery
• Same-Day Delivery

E-Commerce Retail Drives High-Volume Consignment Generation

E-Commerce Retail is estimated to account for 37.80% of the Saudi Arabia last-mile delivery industry in 2026, making it the largest end-user segment. According to the Ministry of Commerce, active commercial e-commerce registrations increase by 17.6%, indicating continued migration of Saudi merchants toward digital and omnichannel selling models. The expanding merchant base generates recurring parcel requirements across apparel, electronics, household products, and other consumer categories, supporting consistent demand for third-party delivery networks.

E-Commerce Retail generates the highest revenue because marketplace and merchant platforms create continuous, high-volume parcel flows and increasingly integrate fulfillment with contracted logistics providers. Seasonal promotional campaigns further increase shipment intensity and require flexible delivery capacity, while marketplace-linked fulfillment creates recurring volumes for logistics operators. This supports opportunities in fulfillment centers, scalable fleet capacity, automated sorting, returns management, and real-time shipment visibility, particularly around Saudi Arabia's major e-commerce consumption hubs. Based on end-user, the industry is segmented into:

• E-Commerce Retail
• Fashion & Lifestyle
• Beauty & Personal Care
• Home & Furniture
• Consumer Electronics & Appliances
• Healthcare & Medical Supplies
• Food & Beverage
• Grocery
• Others

Saudi Arabia Last Mile Delivery Market Competitive Analysis

The Saudi Arabia last-mile delivery industry is moderately consolidated, with the top five companies estimated to collectively account for approximately 55% of market revenue in 2026. Aramex, J&T Express, SMSA Express, Saudi Post (SPL), and Naqel Express lead the competitive landscape.

Top Companies in the Saudi Arabia Last Mile Delivery Industry:

• Aramex
• J&T Express
• SMSA Express
• Saudi Post (SPL)
• iMile Delivery
• Naqel Express
• DHL Express
• AJEX Logistics
• RedBox
• GFS (Global Freight Systems)

Saudi Arabia Last Mile Delivery Industry News and Recent Developments

November 2025: DHL Supply Chain Signs Land Lease for USD 151.4 million Riyadh Logistics Hub

DHL Supply Chain signed a 26-year land lease agreement with the Special Integrated Logistics Zone (SILZ) Company to build a 78,000 sqm regional distribution hub, including 53,000 sqm of multi-user warehouse space, located eight kilometers from King Khalid International Airport. Construction is scheduled to begin in Q1 2026 with completion targeted for Q2 2027, forming part of DHL Group's broader EUR 500 million Middle East investment commitment through 2030.

Impact Analysis: As DHL's designated anchor logistics tenant within SILZ, the facility strengthens Riyadh's positioning as a bonded-corridor fulfillment gateway, shortening upstream lead times that feed directly into last-mile dispatch for technology, retail, automotive, and e-commerce shippers operating in the capital region

August 2025: DHL eCommerce Completes Minority Stake Acquisition in AJEX Logistics

Services DHL eCommerce finalized a minority equity investment in AJEX Logistics Services, a GCC supply chain and transportation company owned by Ajlan & Bros Holding Group. The agreement, first signed in February 2025, gives DHL eCommerce a seat on AJEX's management board and an option to move to majority ownership. AJEX operates more than 60 facilities and a fleet exceeding 900 vehicles across Saudi Arabia and the wider Middle East, and will be rebranded "AJEX, a partner of DHL eCommerce."

Impact Analysis: The deal gives DHL immediate last-mile scale in Saudi Arabia without greenfield network construction, intensifying competitive pressure on independently operated regional couriers and accelerating consolidation around TGA-licensed, technology-enabled fleet operators serving the Kingdom's e-commerce demand base.