Significant Growth Anticipated in Saudi Arabia’s E-Commerce Market
The Saudi Arabia e-commerce market is forecasted to grow from USD 15 billion in 2024 to USD 29 billion by 2030, with a CAGR of 12%. The rise of digital payments and consumer electronics are major contributors. Competitors like Amazon and Noon lead the market. App-based transactions dominate, while card payments remain the preferred method.
The Saudi e-commerce market is projected to increase from USD 15 billion in 2024 to USD 29 billion by 2030, indicating a compound annual growth rate (CAGR) of 12% between 2025 and 2030. This growth reflects a significant rise in digital payment transactions, which saw a 24% increase year-over-year in 2023, underscoring a shift in consumer shopping habits towards online platforms. The consumer electronics segment is expected to play a crucial role in market share during this period.
Food and grocery delivery services are anticipated to continue their rapid upward trajectory, driven by evolving consumer preferences that favor convenience. Additionally, substantial growth in online shopping is facilitated by a youthful population, robust internet penetration, and government investments in e-commerce infrastructure. While logistical challenges persist, they also present opportunities for innovative delivery and fulfillment solutions within the sector.
The competitive landscape of this market features several dominant players such as Amazon (Saudi Arabia), Noon, and Ali Express, among others. These companies are leveraging technological advancements and comprehensive marketing strategies to improve customer experiences and engagement. The significant involvement of these players illustrates the growing demand for e-commerce solutions in the Kingdom.
The market can be segmented into various categories: product type, payment mode, business model, browsing method, transaction type, and region. Notably, app-based platforms are projected to dominate the market, accounting for 65% of shares in 2024 due to widespread smartphone usage. In terms of payment preferences, card payments lead with over 45% market share, reflecting users’ desires for convenience and security.
In November 2024, Noon formed a partnership with Beyoung, which aims to broaden its product offerings in the Middle Eastern market, especially in Saudi Arabia, enhancing its competitive edge. As the market continues to evolve, addressing consumer needs and preferences will be vital for all stakeholders involved in the e-commerce sector.
In summary, the Saudi Arabia e-commerce market is poised for remarkable growth, doubling in value by 2030 due to multiple favorable factors including technological advancements, demographic trends, and evolving consumer preferences. Key players are adopting strategies to maintain competitiveness while addressing various challenges, thus creating opportunities for innovation in logistics and payment methods. The future of the e-commerce landscape appears promising for both established and new entrants.
Original Source: www.openpr.com
