Micro Logistics: A New Pillar of Urban Commerce (Riyadh Valley Company)

Summary

• More than 55% of the world's population lives in cities and urban areas, and the share is expected to reach 68% by 2050.p.4
• The global logistics market was $5.65 trillion in 2024 and is projected to reach $8.07 trillion in 2033, at a CAGR of 4.02%.p.5
• The global last-mile delivery market of $179.5 billion in 2024 is projected to reach $481.6 billion in 2034, at a CAGR of 10.5%.p.5
• The global micro-fulfilment centre market is projected to grow from $6.34 billion to $125.28 billion in 2034, a CAGR of 34.83%.p.5
• According to the US Department of Commerce, e-commerce sales rose by 15.5% in 2023.p.6
• The GCC e-commerce market is expected to reach about $50 billion by 2027.p.9
• The Saudi logistics services market was $52.7 billion in 2024 and is projected to reach $81.2 billion in 2033.p.10

Key insights

1. Mega-cities with populations above 10 million require faster delivery cycles because of traffic congestion.p.4
2. The global courier, express and parcel market is projected to grow from $456.6 billion to $632.1 billion in 2033, at a CAGR of 3.7%.p.5
3. Online retail and food delivery sales in the GCC are valued at more than $11 billion.p.9
4. The GCC quick commerce market was $2.1 billion in 2024 and is expected to grow at 30.2% over 2025–2033.p.9
5. The GCC freight and logistics market of $172.1 billion in 2024 is projected to reach $293.2 billion in 2033, at a CAGR of 5.7%.p.9
6. Saudi Arabia captured 5% of the global last-mile delivery market by revenue in 2023.p.11
7. Delivery Hero acquired the Saudi food delivery app for $327 million after its first round of $187 thousand.p.11
8. The leading Saudi food delivery app serves more than 102 cities and connects users with more than 55 thousand partners.p.11