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Saudi Arabia Route Optimization Software Market - Forecasts from 2022 to 2027

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    Report

  • 82 Pages
  • September 2022
  • Region: Saudi Arabia
  • Knowledge Sourcing Intelligence LLP
  • ID: 5682050
The Saudi Arabia route optimization software market was valued at US$8.188 million in the year 2020, growing at a CAGR of 10.35% reaching the market size of US$16.313 million by the year 2027.

The route optimization software is a type of software used to find the quickest and most cost-friendly route among several available routes. The optimized route is concluded based upon metrics like the number of stop locations and time taken for each delivery spot between the start and end of the route. The Saudi Arabia market for route optimization software is projected to witness exponential growth majorly owing to the large pilgrimage growth, for the holy place of Mecca, situated in the kingdom of Saudi Arabia. Pilgrims from all over the world visiting Saudi Arabia reach the holy place via different modes of transportation, including shuttle bus service, which is projected to propel the growth of the route optimization software market in Saudi Arabia. Also, the National Transport and Logistics Strategy launched by Saudi Crown Prince Mohammad bin Salman in 2021 is anticipated to support the growth of the route optimization software market in Saudi Arabia. Moreover, the recent March 2022 announcement of the public bus transportation project by the Transport General Authority (TGA) is further projected to push the growth of the route optimization market in the region. Further, the rapid digital transformation of Saudi Arabia's public as well as the private sector and governmental policies on digitalization are prominent factors for the market growth of the route optimization market during the forecast period.

The COVID-19 impact on the Saudi Arabia route optimization software market was on a negative scale because of global travel restrictions, which led to a high decline in the number of pilgrims travelling to Mecca. According to the World Health Organization (WHO), the coronavirus pandemic caused the Kingdom of Saudi Arabia to cancel Umrah in March 2020. The declining pilgrim numbers led to less transportation in Saudi Arabia, leading to a decline in the route optimization software market. Also, COVID-19 led to lockdowns in the kingdom, which led to fewer travel and logistic operations, thereby causing a hindrance in the route optimization market in Saudi Arabia.

Nationwide pilgrimage travel and logistics network development According to the November 2021 study by the Multidisciplinary Digital Publishing Institute (MDPI), about 2.5 million pilgrims from all over the world travel to Saudi Arabia for Hajj. Also, the same study revealed that the holy sites in Mecca are segmented into seven establishments, with each establishment having its own camps, routes, and parking spaces for managing pilgrims. The shuttle bus service is the most widely used transportation system in Hajj. The large pilgrim gathering annually and the usage of shuttle bus services between different routes in Saudi Arabia are projected to drive the market growth of the route optimization software in the nation. Also, as per the June 2021 release by the Saudi Press Agency (SPA), the Saudi crown prince, Mohammad bin Salman, launched the National Transport and Logistics Strategy as a key pillar of Vision 2030. The strategy targets to make the Kingdom the world's 5th largest air transit passenger route by increasing the international destinations to 250. Also, the SPA stated the aim to double the nation's air cargo capacity to surpass 4.5 million tonnes. Moreover, the crown prince announced the strategic expansion of the current 5,330 km rail network to about 8,080 km, with a 3 million passenger capacity. The major growth goals under the National Transport and Logistics strategy are anticipated for the rapid increase in the route optimization software market for Saudi Arabia. Additionally, as per the March 2022 release by the Ministry of Transport and Logistics Services, SR 200 billion is designated from the general budget for public transport projects. Also, as per the February 2022 article by Argaam, the Transport General Authority (TGA) announced a tender for the new bus transportation project with 76 routes linking 200 cities across the Kingdom. Large pilgrimage travel, as well as national transport and logistics expansion in the nation, are anticipated to propel the growth of the route optimization software market in Saudi Arabia during the forecast period.

Digital Transformation and Policies

The route optimization software market in Saudi Arabia is projected to grow substantially owing to the massive pilgrimage travel and national projects on logistics as well as transport expansion and development. The increasing pace of digital transformation in Saudi Arabia is further projected to propel the growth of the route optimization software market because of the shift from traditional methods to new and advanced digital ways. According to the January 2022 publication of Saudi Arabia's government website, the kingdom provided network coverage to over 3.5 million homes by partnering with the private sector. Also, there was an increase in internet speed from 9 Mbps in 2017 to 109 Mbps in the year 2020. The same source mentioned that the Kingdom of Saudi Arabia (KSA) was named the “Top Digital Riser” among the G20 nations because of government support for digitally transforming the kingdom. Also, in September 2021, the Digital Government Authority (DGA) of Saudi Arabia announced the first digital government policy having four main pillars namely participation, transformation, capabilities, and governance. The digital transformation of the Kingdom along with government-supported policies are anticipated to drive the substantial growth of Saudi Arabia's route optimization software market during the forecast period.

Segmentation

By Product

  • Software
  • Services

By Application

  • Food Delivery
  • Ride-Hailing Services
  • E-commerce
Frequently Asked Questions about the Saudi Arabian Route Optimization Software Market

What is the estimated value of the Saudi Arabian Route Optimization Software Market?

The Saudi Arabian Route Optimization Software Market was estimated to be valued at $8.18 Million in 2020.

What is the growth rate of the Saudi Arabian Route Optimization Software Market?

The growth rate of the Saudi Arabian Route Optimization Software Market is 10.4%, with an estimated value of $16.31 Million by 2027.

What is the forecasted size of the Saudi Arabian Route Optimization Software Market?

The Saudi Arabian Route Optimization Software Market is estimated to be worth $16.31 Million by 2027.

Who are the key companies in the Saudi Arabian Route Optimization Software Market?

Key companies in the Saudi Arabian Route Optimization Software Market include Trimble Inc., Omnitracs and Route4Me.

Table of Contents

1. Introduction
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. Saudi Arabia Route Optimization Software Market Analysis, by Product
5.1. Introduction
5.2. Software
5.3. Services
6. Saudi Arabia Route Optimization Software Market Analysis, by Application
6.1. Introduction
6.2. Food Delivery
6.3. Ride-Hailing Services
6.4. E-commerce
6.5. Others
7. Competitive Environment and Analysis
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix
8. Company Profiles
8.1. Trimble Inc
8.2. Omnitracs
8.3. Microlise Telematics Pvt LTD
8.4. Route4Me

Companies Mentioned

  • Trimble Inc.
  • Omnitracs
  • Microlise Telematics Pvt Ltd
  • Route4Me