Saudi Arabia Ecommerce Market Analysis
The Saudi Arabia E-Commerce Market will reach US$ 41.59 Billion by 2032, up from US$ 11.79 Billion in 2023, with a CAGR of 15.04% between 2024 and 2032.Saudi Arabia Ecommerce outlooks
Electronic commerce, or e-commerce, is a contemporary business method that entails online purchasing and selling goods and services. Customers may now buy online from the convenience of their homes or while utilizing digital gadgets on the go, doing away with the need for actual brick-and-mortar establishments. E-commerce includes a range of business models, such as digital marketplaces like Etsy and Airbnb, business-to-business (B2B) platforms that facilitate transactions between businesses, and online retail stores like Amazon and eBay. Three primary benefits of online shopping are ease of use, affordability, and an extensive product assortment. Businesses can also use data-driven marketing and customized customer experiences with its help.Driving forces for Saudi Arabia's E-commerce
Rising Internet penetration - With nearly 100% of the population using the Internet, Saudi Arabia is a developed country with a high level of Internet penetration. This is according to data from the World Bank. This suggests that many people are aware of internet purchasing, which fuels market expansion. The increasing popularity of internet-based services can be attributed to the developments in broadband, smartphones, and mobile internet technologies. Additionally, as more people use the internet, e-commerce platforms can reach customers in remote locations where traditional retail infrastructure might not be as robust. Increased market growth and rivalry among e-commerce companies due to this broader access are pushing innovations in services, logistics, and customer experience.Government Initiatives- According to the analysis, the nation's increasing governmental support for using digital technologies by the Vision 2030 plan will accelerate market expansion throughout the projection period. For instance, the Ministry of Commerce in Saudi Arabia initiated ten projects in September 2022 to build e-stores. According to the ministry, ten initiatives were chosen to advance this sector based on recommendations from the general public.
Rise in disposable income- The e-commerce market in Saudi Arabia is experiencing notable growth due to increased disposable income. The IMF reports that the nation has recorded a high per capita GDP, which is expected to continue growing, and a high individual net income. The nation's purchasing power may rise due to the per capita GDP growth, predicted to fuel demand for the clothing and fashion sectors. Higher disposable incomes also drive consumers to look for ease and variety when making purchases, which makes e-commerce platforms a desirable choice because of their affordability, wide selection of products, and competitive pricing.
Homegrown e-commerce platforms boost the market- Homegrown e-commerce platforms are essential to the expansion of the e-commerce industry in Saudi Arabia since they are tailored to the country's tastes, demands, and legal restrictions. In addition to providing a large selection of products, websites like Noon, Souq (now Amazon. sa), and Jarir.com are aware of the particular cultural quirks and shopping habits of Saudi Arabia. In addition to supporting Arabic-language user interfaces and offering localized customer care, they also include payment choices like cash-on-delivery, which are popular with Saudi customers. These platforms also aid in economic diversification by generating jobs, assisting regional suppliers and logistics companies, and fostering innovation in digital technologies specifically suited for the Saudi market.
Riyadh E-commerce Market
Several contemporary trends fuel the substantial expansion of the Riyadh e-commerce business. There has been a noticeable movement in favor of mobile commerce, or m-commerce, with many customers shopping via smartphones. This has made mobile-friendly platforms and apps necessary. Furthermore, e-commerce companies must improve their logistics capabilities and provide same-day or next-day delivery choices due to the growing demand for rapid and dependable delivery services. Additionally, There's a noticeable shift toward customized shopping experiences and marketing strategies that make use of data analytics as well as artificial intelligence to understand consumer preferences better. Anticipating the future, augmented reality (A.R.) and virtual reality (V.R.) technologies are expected to be more integrated into the shopping process, improving customer interaction and product visualization.Saudi Arabia Ecommerce Company Analysis
The top e-commerce companies in Saudi Arabia are Amazon.com Inc., eBay Inc., Emaar Properties Namshi, Noon, Alibaba, Jarir Marketing (Bookstore), and Carrefour.Saudi Arabia Ecommerce Company News
In May 2023, in response to the expanding e-commerce business in Saudi Arabia, Amazon opened its newest fulfillment center in Riyadh. The building is roughly the size of five football fields, with 390,000 square feet spread over five stories. Additionally, the center is anticipated to house more than 9 million products, enabling Amazon to provide clients with an excellent range of electronics, appliances, food, fashion, books, and more goods.In April 2023, Noon A.D. Holdings Ltd (Noon E-Commerce) unveiled Noon One, a simple way for customers to save money on purchases. Designed to be an improved loyalty program, it entices members to shop more frequently by providing limitless free delivery on all app products.
In October 2022, To expand into the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the parent company of omnichannel retailer Nykaa, FSN International, forged a strategic relationship with the Middle Eastern Apparel Group.
FAQs
Question: What is the current size of the Saudi Arabia Ecommerce Market?
Answer: The Saudi Arabia Ecommerce Market size was estimated at USD 11.79 billion in 2023.Question: What is the projected market size by 2032?
Answer: The market is expected to reach USD 41.59 billion by 2032, growing at a CAGR of 15.04%.Question: What are the key drivers for the growth of the Saudi Arabia Ecommerce Market?
Answer: Growth is driven by increasing internet penetration, smartphone usage, government promotion of e-commerce, and rise in disposable income.Question: What are the challenges faced by the Saudi Arabia Ecommerce Market?
Answer: Challenges include increasing incidents of cybercrime and fraudulent transactions on e-commerce platforms.Question: Who are the key players in the Saudi Arabia Ecommerce Market?
Answer: Major players in the market include Amazon.com Inc., eBay Inc., Emaar Properties Namshi, Noon, Alibaba, Jarir Marketing (Bookstore) and Carrefour.Type - Market breakup in 2 viewpoints:
- B2C Ecommerce
- B2B Ecommerce
All the key players have been covered from 3 Viewpoints:
- Business Overview
- Recent Development & Strategies
- Revenue Analysis
Key Players Analysis:
- Amazon.com Inc.
- eBay Inc.
- Emaar Properties Namshi
- Noon
- Alibaba
- Jarir Marketing (Bookstore)
- Carrefour
Table of Contents
Companies Mentioned
- Amazon.com Inc.
- eBay Inc.
- Emaar Properties Namshi
- Noon
- Alibaba
- Jarir Marketing (Bookstore)
- Carrefour
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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