Saudi Arabia's E-Commerce Market is expected to reach US$ 20.01 Billion in 2027. The digital economy has grown dramatically over time, with internet connectivity becoming widely available worldwide. Therefore, as more e-commerce enterprises enter Saudi Arabia, the e-commerce industry grows tremendously. Moreover, to fulfil the increased demand for online retailing, several e-commerce industry vendors have extended their operations in Saudi Arabia. Furthermore, based on recent market trends, the Saudi e-commerce business feels that there is a growing need for online shopping among buyers.Saudi Arabia E-Commerce Market is projected to reach US$ 22.01 Billion by 2027. Industry Trends, Growth, Insights, Outlooks, Impact of Inflation, Company Analysis, Forecast 2023-2027
Saudi Arabia's E-Commerce Market Size is expanding at a CAGR of 20.87% from 2022 to 2027:
Saudi Arabia's e-commerce sector is expanding due to increased smartphone usage, social media usage, and internet penetration. Furthermore, this has prompted international e-commerce market suppliers to invest in the country. According to Invest Saudi, the government will have 575 new foreign investment projects in 2021. The rise in these international ventures is due to the country's booming e-commerce and retail markets.Impact of COVID-19 on Saudi Arabia's E-Commerce Industry:
The global retail sector, particularly the brick-and-mortar model, has been severely impacted by the COVID-19 outbreak and lockdown. Nonetheless, e-commerce is one of the few industries that has seen a growth in consumer transactions in various areas. Saudi Arabia is following the same pattern. Multiple companies in the region were compelled to react to changing customer priorities due to the commercial slowdown and nationwide lockdown. As a result, Saudi Arabia's e-commerce business segments had substantial growth as internet shopping and retailing became the new approach under these circumstances. According to the publisher's analysis, Saudi Arabia's E-Commerce Market was US$ 8.53 Billion in 2022.By Category, Fashion is expected to hold a Major Share:
During the Covid-19 pandemic, the fashion sector grew because client tastes switched towards online buying with easy access to various websites, eliminating the need to visit physical stores. The surge in users of social media and smartphones, for example, has fuelled demand for online purchasing and commerce. Moreover, several fashion firms plan to extend their presence in the Saudi Arabian market. In March 2022, for example, noon.com announced the opening of its new 45,000m2 Customer Fulfilment Centre in Riyadh, Saudi Arabia. This will allow them to transport their items quickly around the country.Trends of Payment Methods Existing in Saudi Arabia E-Commerce Market:
Although, in the e-commerce industry in Saudi Arabia, cards as a payment mechanism have the most dominant market share in the online purchase cycle. Meanwhile, bank transfers, cash on delivery, direct debits, and e-wallet choices will continue to grab their market position in the Saudi payment landscape in the coming years. Investments in research and development, innovation, and entrepreneurship in fintech digital payment start-ups in mobile payments, cross-border peer-to-peer payments, and digital commerce transactions are also expected to assist Saudi Arabia's e-commerce business to grow.Competitive Landscape:
Companies in Saudi Arabia's e-commerce market are becoming more competitive. Amazon, eBay, Emmar Properties Namshi, Noon, Alibaba, and Jarir Marketing (Bookstore) are among the most prominent participants in the sector. These significant businesses currently dominate the Saudi Arabian e-commerce market in market share. However, as e-commerce evolves, many companies and startups expand their market presence by gaining new contracts and entering new areas.The publisher's latest report “Saudi Arabia E-Commerce Market, Global Forecast, By Category Analysis(Beauty, Health, Personal& Household Care, Beverages, Electronics, Fashion, Food, Furniture, Media and Toy, Hobby & DIY), Payment Method (Card, Cash, E-wallet, Bank Transfer and Others), Companies (Amazon, eBay, Emmar Properties Namshi, Noon, Alibaba and Jarir Marketing (Bookstore))” provides a detailed analysis of Saudi Arabia E-Commerce Industry.
Category Analysis - the Market has been covered from 8 viewpoints:
1. Beauty, Health, Personal& Household Care2. Beverages
3. Electronics
4. Fashion
5. Food
6. Furniture
7. Media
8. Toy, Hobby & DIY
Payment Method - the Market has been covered from 5 viewpoints:
1. Bank Transfer2. Cards
3. Cash on Delivery
4. Direct Debits
5. E-Wallet
6. Others
Company Insights:
- Overview
- Recent Development
- Revenue
Companies Covered:
1. Amazon2. ebay
3. Emmar Properties Namshi
4. Noon
5. Alibaba
6. Jarir Marketing (Bookstore)
Table of Contents
Companies Mentioned
- Amazon
- ebay
- Emmar Properties Namshi
- Noon
- Alibaba
- Jarir Marketing (Bookstore)
Methodology
In this report, for analyzing the future trends for the studied market during the forecast period, the publisher has incorporated rigorous statistical and econometric methods, further scrutinized by secondary, primary sources and by in-house experts, supported through their extensive data intelligence repository. The market is studied holistically from both demand and supply-side perspectives. This is carried out to analyze both end-user and producer behavior patterns, in the review period, which affects price, demand and consumption trends. As the study demands to analyze the long-term nature of the market, the identification of factors influencing the market is based on the fundamentality of the study market.
Through secondary and primary researches, which largely include interviews with industry participants, reliable statistics, and regional intelligence, are identified and are transformed to quantitative data through data extraction, and further applied for inferential purposes. The publisher's in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. These analytical tools and models sanitize the data & statistics and enhance the accuracy of their recommendations and advice.
Primary Research
The primary purpose of this phase is to extract qualitative information regarding the market from the key industry leaders. The primary research efforts include reaching out to participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions. The publisher also established professional corporate relations with various companies that allow us greater flexibility for reaching out to industry participants and commentators for interviews and discussions, fulfilling the following functions:
- Validates and improves the data quality and strengthens research proceeds
- Further develop the analyst team’s market understanding and expertise
- Supplies authentic information about market size, share, growth, and forecast
The researcher's primary research interview and discussion panels are typically composed of the most experienced industry members. These participants include, however, are not limited to:
- Chief executives and VPs of leading corporations specific to the industry
- Product and sales managers or country heads; channel partners and top level distributors; banking, investment, and valuation experts
- Key opinion leaders (KOLs)
Secondary Research
The publisher refers to a broad array of industry sources for their secondary research, which typically includes, however, is not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Patent and regulatory databases for understanding of technical & legal developments
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic new articles, webcasts, and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecasts
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 115 |
| Published | October 2022 |
| Forecast Period | 2022 - 2027 |
| Estimated Market Value ( USD | $ 8.53 Billion |
| Forecasted Market Value ( USD | $ 22.01 Billion |
| Compound Annual Growth Rate | 20.8% |
| Regions Covered | Saudi Arabia |
| No. of Companies Mentioned | 6 |
