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 Intelligenc

Saudi Arabia smart warehousing market is projected to witness a CAGR of 8.12% during the forecast period 2025-2032, growing from USD 431.23 million in 2024 to USD 805.30 million in 2032F, owing to the expansion of key sectors, the growth of E-commerce, large-scale projects, and a strategic geographic location. Smart warehousing in Saudi Arabia is not just a trend, it is a strategic necessity in the country’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.

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’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, 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’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’s premier trade fair for logistics, transportation, information technology, and supply chain management.

Growing Adoption of Robotics and Automation in FMCG Warehouses Fuels Market Growth

Saudi’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.

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 & 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’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—including goods-to-person robotics systems, automated storage and retrieval systems (ASRS), packing machines, and conveyors—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.

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’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’s strong regional network with JAS’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’s ambitious plans and enhance its position as a global logistics hub.

Key Players Landscape and Outlook

Saudi Arabia’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’s logistics goals to life — one connected warehouse at a time.

For instance, at the Saudi Warehousing & Logistics Expo (May 27–29, 2025, Riyadh), Swisslog Middle East showcased its AutoStore multi-temperature warehouse automation system—designed to handle frozen, chilled, and ambient goods simultaneously via a single grid solution, reflecting adaptability to KSA’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.