The Saudi e-commerce market is projected to grow from USD 15 billion in 2024 to USD 29 billion by 2030, with a CAGR of 12% from 2025 to 2030. Notable growth in digital payment transactions and expanding consumer preferences towards online shopping drive this growth. Major players in the market include Amazon, Noon, and Ali Express. Competitive dynamics, market segmentation, and challenges are crucial factors shaping the market.
The e-commerce market in Saudi Arabia is projected to increase significantly, expanding from USD 15 billion in 2024 to USD 29 billion by 2030. This growth is anticipated at a compound annual growth rate (CAGR) of 12% from 2025 to 2030. A notable increase in digital payment transactions, which experienced a 24% year-over-year rise in 2023, further supports this expansion. The consumer electronics segment is forecasted to capture a substantial share, while food and grocery delivery services are expected to thrive due to changing consumer preferences and demands for convenience.
The competitive landscape in Saudi Arabia’s e-commerce market includes several key players such as Amazon, Noon, Ali Express, and Jahez. These companies are strategically positioning themselves to leverage technological advancements and robust marketing strategies, enhancing customer engagement and service delivery. Other noteworthy competitors include Hungerstation, Shein, Careem, Extra, Jazp, Trendyol, and Temu.
The report highlights that the growth of the Saudi e-commerce sector is driven by a youthful demographic, high internet penetration, and investments backed by the government. Although logistical challenges persist, they also present opportunities for innovation in delivery and fulfillment methods. Digital payment platforms and a growing inclination toward online shopping underscore the market’s potential.
A recent development includes Noon’s partnership with Beyoung in November 2024 to enhance its market presence in the Middle East, including Saudi Arabia. This alliance aims to improve product offerings amidst an increasingly competitive environment.
The e-commerce market can be segmented by product type, payment mode, business model, browsing method, transaction type, and region. App-based platforms dominate the market, expected to hold over 65% market share in 2024 due to extensive mobile device penetration. Additionally, card payments, accounting for more than 45% of transactions, remain the most preferred payment method due to their convenience and security.
Factors to consider include users’ top queries regarding the growth rate, leading companies, popular payment methods, competitive impacts on new entrants, and the challenges faced by e-commerce businesses in Saudi Arabia. Reports from MarkNtel Advisors provide insights into the evolving landscape of this dynamic market.
In conclusion, Saudi Arabia’s e-commerce market is poised for impressive growth over the coming years, backed by increasing consumer demand and a favorable demographic landscape. The primary drivers include the significant rise in digital payment transactions and a shift towards online shopping. Competitive players are actively enhancing their strategies to gain market share. The promising segments for growth, particularly in consumer electronics and food services, illustrate the market’s potential despite existing logistical challenges. Active partnerships and innovative solutions can further facilitate the sector’s development.
Original Source: www.openpr.com
