The Saudi Arabian e-commerce market is expected to double from USD 15 billion in 2024 to USD 29 billion by 2030, driven by a CAGR of 12% from 2025 to 2030. Digital payment transactions have surged significantly, and key segments driving growth include consumer electronics and food delivery services. Major competitors like Amazon and Noon are strategically enhancing their market reach, while app-based platforms dominate the browsing methods.
The Saudi Arabian e-commerce market is projected to grow significantly from USD 15 billion in 2024 to USD 29 billion by 2030, reflecting a compound annual growth rate (CAGR) of 12% between 2025 and 2030. The increase in digital payment transactions, which saw a remarkable 24% year-over-year rise in 2023, underscores the sector’s expansion. Consumer electronics are anticipated to represent a substantial portion of the market, while the food and grocery delivery segment is expected to grow rapidly due to shifts in consumer preferences for convenience.
A competitive landscape has emerged in the Saudi Arabian e-commerce market, featuring several key players poised to take advantage of the growing demand for online shopping. Dominant companies include Amazon (Saudi Arabia), Noon, Ali Express, Jahez, Hungerstation, Shein, Careem, Extra, Jazp, Trendyol, and Temu. These companies utilize advanced technologies and effective marketing strategies to enhance customer engagement and service delivery.
Important insights from the market report highlight that significant growth in the Saudi Arabian e-commerce sector is supported by factors such as a young population, high internet penetration, and substantial government investments. The rise of digital payment solutions, coupled with a growing consumer inclination for online shopping, positions this market as strategic for businesses aiming to enter the MENA region’s digital economy, despite ongoing logistical challenges.
Recent developments include Noon embarking on a partnership with Beyoung to strengthen its market presence in the Middle East, including Saudi Arabia. This collaboration aims to diversify the product offerings and bolster market reach amid increasing competition.
The Saudi e-commerce market can be effectively segmented along various dimensions: by product type (consumer electronics, apparel, food, etc.), payment mode (cash, card, digital wallet), business model (horizontal, vertical), browsing method (app-based, website-based), and transaction type (B2B, B2C). App-based platforms command over 65% of market share, primarily due to the widespread use of smartphones and consumer preference for mobile shopping.
Card payments hold a dominant position in the payment landscape, accounting for over 45% of transactions, driven by customer convenience and security. Although digital wallets are gaining popularity, the usage of card payments continues to lead as consumers favor their ease of use. The evolving payment landscape will impact consumer behavior moving forward.
Frequently asked questions include inquiries about the projected growth rate, leading companies, popular payment methods, competition impact on new entrants, and prevailing challenges faced by e-commerce businesses in Saudi Arabia. Furthermore, the reports are available in PDF, Excel, and PowerPoint formats, ensuring accessibility and convenience for stakeholders.
The e-commerce market in Saudi Arabia is on the cusp of remarkable growth, with projections indicating a rise from USD 15 billion in 2024 to USD 29 billion by 2030. Key drivers of this growth include a young demographic, high internet usage, and advancements in digital payment systems. The landscape remains competitive, with major players taking strategic initiatives to enhance their market positioning. While challenges persist, opportunities for innovation in service delivery and payment methods continue to emerge, making this a pivotal market for investment and expansion.
Original Source: www.openpr.com
