The Saudi e-commerce market is forecasted to grow from USD 15 billion in 2024 to USD 29 billion by 2030 with a CAGR of 12%. Digital payment transactions rose by 24% in 2023. Key segments include consumer electronics and food delivery. Major players like Amazon and Noon are enhancing their presence amid rising competition. App-based platforms dominate, and card payments are preferred for transactions.
The Saudi Arabian e-commerce market is on track for remarkable growth, projected to increase from USD 15 billion in 2024 to USD 29 billion by 2030. This accounts for a substantial compound annual growth rate (CAGR) of 12% between 2025 and 2030. In addition, there has been a significant rise in digital payment transactions, reflected by a 24% year-over-year increase in 2023. Notably, the consumer electronics segment is anticipated to dominate the market during this period, alongside a notable expansion in food and grocery delivery services driven by changing consumer preferences for convenience.
Key players in the Saudi Arabian e-commerce market are strategically positioning themselves to benefit from the anticipated growth. Major competitors include Amazon (Saudi Arabia), Noon, Ali Express, Jahez, Hungerstation, Shein (Saudi Arabia), Careem, Extra, Jazp, Trendyol, and Temu. These companies harness technological advancements and effective marketing strategies to boost customer engagement and improve service quality.
The e-commerce market in Saudi Arabia is expected to thrive due to its youthful demographic, high internet penetration, and significant government investments. The increasing popularity of digital payment solutions and the shift in consumer preferences towards online shopping highlight the potential for businesses aiming to engage with the digital economy within the MENA region. Although logistical challenges persist, they also present opportunities for innovative delivery and fulfillment solutions.
In November 2024, Noon established a partnership with Beyoung to strengthen its presence in the Middle Eastern market, particularly in Saudi Arabia. This collaboration aims to broaden product offerings and enhance market reach in a progressively competitive environment.
The Saudi Arabian e-commerce market is categorized by several segmentation criteria, including:
1. Product Type:
– Consumer Electronics
– Apparel and Fashion
– Home and Furniture
– Food and Groceries
– Others
2. Payment Mode:
– Cash Payment
– Card Payment
– Digital Wallet
3. Business Model:
– Horizontal E-commerce
– Vertical E-commerce
4. Browsing Method:
– App-based
– Website-based
5. Transaction Type:
– Business-to-Business (B2B)
– Business-to-Consumer (B2C)
6. Region:
– Central Saudi Arabia (e.g., Riyadh, Al-Qassim)
– Northern Saudi Arabia (e.g., Ha’il, Tabuk)
– Western Saudi Arabia (e.g., Madinah, Makkah)
– Southern Saudi Arabia (e.g., Asir, Jazan)
– Eastern Saudi Arabia (e.g., Eastern Province)
Furthermore, app-based platforms dominate the market, holding over 65% of the share in 2024. The preference for mobile applications is driven by the high penetration of smartphones, with 98% of internet usage occurring on mobile devices. This trend is expected to continue as e-commerce platforms enhance their app functionalities to suit tech-savvy consumers.
Card payments constitute the leading transaction method, with a market share of over 45%. This reflects consumers’ preference for convenience, as card transactions eliminate the need to carry cash. This trend is supported by rewards and benefits offered by financial institutions, while digital payment methods are increasingly emerging, signaling an evolving landscape in consumer behavior.
In conclusion, Saudi Arabia’s e-commerce market is poised for significant advancements, driven by a youthful populace, technological adoption, and an increase in digital payment transactions. Competing firms are leveraging strategic positioning to capitalize on this growth. Ultimately, while challenges remain in logistics, these can be seen as opportunities for innovation within the market.
Original Source: www.openpr.com
