The "Saudi Arabia Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales...
Autore: Business Wire
DUBLIN: The "Saudi Arabia Ecommerce Market Opportunities Databook - 100+ KPIs on Ecommerce Verticals (Shopping, Travel, Food Service, Media & Entertainment, Technology), Market Share by Key Players, Sales Channel Analysis, Payment Instrument, Consumer Demographics - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.
E-commerce market in Saudi Arabia is expected to grow by 10.21% on annual basis to reach US$20.7 billion in 2024. Medium to long term growth story of E-commerce industry in Saudi Arabia promises to be attractive. The E-commerce is expected to grow steadily over the forecast period, recording a CAGR of 8.53% during 2024-2028. The E-commerce Gross Merchandise Value in the country will increase from US$18.8 billion in 2023 to reach US$28.7 billion by 2028.
The e-commerce market is poised to record strong growth over the medium term in Saudi Arabia. Over the years, the domestic market has largely depended on global marketplaces to fulfill customer needs. However, as the Kingdom pushes for economic diversification, homegrown players are expected to take center stage over the next three to four years in Saudi Arabia.
The registration of e-commerce firms has grown at a rapid rate in 2023 and the publisher expects the trend to further continue in 2024. This will aid the competitive landscape and sector growth over the medium term. Global brands are forging strategic alliances with e-commerce platforms to tap into the growing B2C market across the Kingdom. Overall, the publisher maintains a positive growth outlook for the market over the next three to four years.
E-commerce firm registrations are growing at a significant rate in the Kingdom of Saudi Arabia
An increasing number of businesses are seeking to tap into the growth potential offered by the e-commerce sector. This has resulted in a significant surge in new e-commerce registrations across the Kingdom.
According to the latest data shared by the Ministry of Commerce, the number of e-commerce businesses increased by 24% during Q4 2023, compared to the same period in 2022. The number of registered firms increased to reach 37,481 during the last quarter of 2023. In Riyadh, 15,074 registrations were issued, making it the city with the highest number. Makkah followed with 9,529 registrations, and the Eastern Province came in third with 6,011 registrations. In contrast, Madinah had 1,839 registrations, and Qassim had 1259, placing them lower on the list.
This comes at a time when online shopping is becoming more and more important for the economy of the Kingdom. The country is focusing on boosting its digital industry as part of the National Transformation Program. The ongoing fintech boom is also aiding the growth of the e-commerce market in Saudi Arabia. The publisher expects the trend to further continue in 2024, driving registration numbers up across the Kingdom over the medium term.
Global brands are expected to foray into the Saudi Arabian market through e-commerce marketplaces
Consumer consumption is poised to record strong growth through e-commerce channels over the medium term. Consequently, to tap into the rising online consumption story of Saudi Arabia, global brands are projected to enter the Kingdom in collaboration with e-commerce marketplaces.
Mensa Brands, the Indian consumer-focused brand, announced that the firm is planning to foray into the Saudi Arabian market through e-commerce marketplace partnerships. The firm, in 2023, partnered with Amazon UAE and noon to launch brands like Villian and Pebble. Going forward, the firm is planning to launch the same brands for consumers in Saudi Arabia.
The expansion of global brands, through domestic e-commerce marketplaces, will further support the growth of the industry over the next three to four years. The publisher also expects an increasing number of brands to expand their presence over the next few quarters in the Kingdom.
Saudi Arabia-based startups are raising capital funds Middle East and North Africa expansion
With the regional market expected to report steady growth over the next three to four years, startups are raising capital to fund their expansion plans across the Middle East and North Africa markets.
Soum, a used-electronics platform, announced that the firm had raised US$18 million as part of its Series A round in December 2023. The capital round was led by Jahez International company, a domestic food delivery platform. Outliers Venture Capital and Khwarizmi Ventures among other existing investors also participated in the Series A round.
The firm is planning to use the fresh capital to fund its expansion in the Middle East and North Africa region. The platform, notably, connects customers with small businesses and individuals. There are more than 14,000 listings on the platform, as of December 2023. Soum, in 2022, raised US$4 million as part of its Seed funding round. Operating in more than 150 cities in the MENA region, the firm has over 4 million registered users currently.
Going forward, the publisher expects more such e-commerce startups to raise venture capital and private equity funding in Saudi Arabia. This will drive the competitive landscape, while also supporting the broader industry growth over the next three to four years.
Scope
Saudi Arabia Ecommerce Market Share by Key Players
Saudi Arabia Ecommerce Market Size and Future Growth Dynamics
Saudi Arabia User Statistics and Ratios of Key Performance Indicators
Saudi Arabia Ecommerce Market Size and Forecast by Ecommerce Segments (Gross Merchandise Value Trend Analysis
Saudi Arabia Ecommerce Market Size and Forecast by Retail Shopping Sales Channel
Saudi Arabia Ecommerce Market Share by Travel and Hospitality Sales Channel
Saudi Arabia Ecommerce Market Size and Forecast by Online Food Service Sales Channel
Saudi Arabia Ecommerce Market Size and Forecast by Engagement Model (Gross Merchandise Value Trend Analysis, 2019-2028)
Saudi Arabia Ecommerce Market Size and Forecast by Location (Gross Merchandise Value Trend Analysis)
Saudi Arabia Ecommerce Market Size and Forecast by Device (Gross Merchandise Value Trend Analysis)
Saudi Arabia Ecommerce Market Size and Forecast by Operating System
Saudi Arabia Ecommerce Market Size and Forecast by City
Saudi Arabia Ecommerce Market Size and Forecast by Payment Instrument (Gross Merchandise Value Trend Analysis, 2019-2028)
Saudi Arabia Ecommerce Consumer Demographics
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Fonte: Business Wire