Saudi Arabia storage rack market size is projected to grow at a CAGR of 4.1% during 2020-26

Selective racking is expected to hold the largest market share in revenue terms during the forecast period – 6W research.

The implementation of the Vision 2030 Plan is already underway by the Saudi Government under which the aim is to diversify the country’s oil-dependent economy. Additionally, the government is encouraging investment in nearly all economic sectors, with priority being given to transportation, education, health, information and communications technology, life sciences and energy sectors. This would generate a huge demand for storage facilities in the coming years and in turn would give a huge boost to the storage racking market in Saudi Arabia during the forecast period.

According to 6Wresearch, Saudi Arabia storage rack market size is projected to grow at a CAGR of 4.1% during 2020-26. In Saudi Arabia, selective racking accounted for majority of the revenue share in 2019 and would continue to maintain its dominance during the forecast period on account of its low storage cost per square meter along with lower pallet or forklift handling costs. Also, there is no need of specialized equipment for loading and unloading of pallets which is the reason selective racking is being preferred in the market.

According to Prithu Chawla, Senior Research Analyst, 6Wresearch, “Warehouse & logistics segment is the major contributor in the rack storage market revenues in Saudi Arabia as rack storage is a prerequisite for the efficient working of a warehouse. The racks occupy a lesser area, increase the storage capacity vertically and ease the retrieval process to accommodate the entire inventory as effectively as possible. The warehouse & logistics segment would continue to maintain its dominance in the rack storage market revenues during the forecast period due to increasing number of warehouses across the country, driven by the rising international trade in the country.

 “The latest technology, which is currently being used in the country is the semi-automated or radio shuttle rack storage system. In this system, a battery-powered and radio-controlled shuttle that runs on specially designed rails is used for storing and retrieving pallets. The pallets are stored one behind another giving very dense storage without the forklifts entering the aisles. This type of storage is most preferred in the food & beverage sector and in cold storage due to its bulk storage and reasonable stock rotation.” Prithu further added.

According to Siddharth Saxena, Research Associate, 6Wresearch, “The country is becoming a logistics hub in the Middle East region with the capability of efficiently linking trade across regions such as Asia, Europe, and Africa, due to its strategic geographic location in the Middle East. Moreover, the well-established infrastructure of the country coupled with its large maritime network, one of the largest road networks and its state of art industrial city hubs would further fuel the logistics market, increasing the potential for rack storage in the country.”

“Saudi rack storage market (2020-2026)" provides an in-depth analysis with 21 figures and 4 tables covered in 68 pages. The report estimates and forecasts the overall Saudi Arabia rack storage market by types, by the application. 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 devise and align their market strategies according to the current and future market dynamics.