Saudi Arabia’s e-commerce market is expected to grow from $15 billion in 2024 to $29 billion by 2030, with a CAGR of 12%. Key growth drivers include a young population, increasing digital transactions, and the dominance of mobile app usage. Major players in the market include Amazon and Noon, with card payments being the most popular transaction method.
The Saudi Arabia e-commerce market is projected to grow significantly from $15 billion in 2024 to $29 billion by 2030, reflecting a compound annual growth rate (CAGR) of 12% from 2025 to 2030. This growth is indicative of a rapidly evolving digital landscape, with digital payment transactions up by 24% year-over-year in 2023. Consumer electronics and food delivery services are expected to dominate the market, benefiting from shifting consumer preferences for convenience.
Key players shaping the competitive landscape include Amazon, Noon, and Shein among others. These companies are leveraging technology and marketing strategies to enhance customer engagement. The market dynamics suggest robust competition, with an emphasis on service delivery and customer satisfaction to retain clientele in a growing online shopping environment.
The anticipated growth in Saudi Arabia’s e-commerce sector is influenced by a young demographic, extensive internet penetration, and governmental support for digital initiatives. While challenges such as logistics remain, they present opportunities for innovative solutions in delivery mechanisms, which are essential to meet increasing consumer expectations for efficiency and speed in order fulfillment.
The e-commerce landscape is segmented based on product type, payment mode, business model, browsing method, transaction type, and geographical region. Mobile browsing dominates the market with apps capturing over 65% share, attributed to the high smartphone penetration. Card transactions are the primary payment mode, accounting for over 45% market share, followed by the gradual emergence of other digital payment methods which are reshaping consumer preferences.
In summary, Saudi Arabia’s e-commerce sector is on a steady trajectory of growth, transitioning to an estimated $29 billion by 2030. Driven by technological advancements, competitive dynamics, and changing consumer habits, the market is well positioned for significant expansion. The adoption of digital payments and mobile platforms underlines the necessity for businesses to adapt and innovate to thrive in this burgeoning sector.
Original Source: www.openpr.com
