Posted On: 2018-07-02
Saudi Arabia cold storage market recorded decrease in demand owing to lower spending due to declining oil prices and deteriorating economic conditions during 2014-16. However, post 2017, the market is expected to regain growth, attributed to recovery of oil prices, expected increase in individual spending, expansion of retail and logistic sector and growing demand for packaged/imported food items.
According to 6Wresearch, Saudi Arabia cold storage market is projected to reach $2,572 million by 2024. Government initiatives along with rapid urbanization, and rising need for food security and preservation are likely to emerge as the key driving factors for the growth of Saudi Arabia cold storage market over the coming years. In Saudi Arabia cold storage market, international players acquired dominant market revenue share, primarily due to increasing competition in quality and price of cold storage systems. The trend is expected to continue during the forecast period as well.
According to Rishi Malhotra, Sr. Research Analyst, Research and Consulting, 6Wresearch, "Reducing packaged food wastage and increasing population in Saudi Arabia is expected to leverage growth of the cold storage market during 2018-24. Amongst all the verticals, the retail & logistics segment recorded highest revenue share of the market. Over the next six years, the hospitality & healthcare and government & transportation verticals are expected to grow at a higher CAGR during 2017-24."
"Moreover, government & transportation vertical segment is also expected to record healthy growth in the near-future. With projects such as Saudi Landbridge project, expansion of King Abdullah Port, expansion of Jeddah and Dammam airport proposed by the government, the demand for cold storage for government & transportation vertical is expected to surge during the forecast period, "Rishi further added.
According to Siddhant Sharma, Research Analyst, Research and Consulting, 6Wresearch, "Central region held major market revenue share of cold storage systems attributed to increasing infrastructure development activities, especially in industrial & manufacturing verticals."
"Additionally, the Western region's growth is mainly attributed to ongoing/upcoming infrastructure projects, including increase in the number of hotels and development in logistics sector. The region also includes, Makkah and Madinah; center for Islamic pilgrimage, which is acting as a key driving factor for higher demand for cold storage solutions," Siddhant concluded.
Some of the major players in Saudi Arabia cold storage market includes- Makkah Cold Storage, Wared Logistics, Cold Storage Group of Saudi Arabia, Storkom, Himmah Logistics, T.S.S.C., Able logistics Group, R.S.A. Global, Vacker and Gulf Drug LLC.
"Saudi Arabia Cold Storage Market (2018-2024)" provides an in-depth analysis with 77 figures and 9 tables covered in more than 120 pages. The report estimates and forecast the overall Saudi Arabia cold storage market by technology, applications, verticals, end-user and regions. The report provides an unbiased and detailed analysis of the on-going trends, opportunities/high growth areas and market drivers which would help the stakeholders to device and align their market strategies according to the current and future market dynamics.