Saudi Arabia Water Transport Market Size, Shares, and Growth Analysis, 2030

 Market Overview

The Saudi Arabia water transport market is forecast to reach USD 12.4 billion in 2024, growing at a 5.4% CAGR to approximately USD 17.0 billion by 2030. This reflects rising trade across sea lanes, tourism expansion, offshore energy operations, and infrastructure developments in the maritime sector.

 

                                                         Download free Report Sample Now

 Key Market Drivers

1. Trade & Offshore Operations
Saudi Arabia’s extensive coastline along the Red Sea and the Persian Gulf supports booming marine logistics. The offshore transport segment is the dominant application, contributing nearly 70% of market revenue in 2024, driven primarily by oil & gas infrastructure, offshore shipments, and cruise tourism support.

2. Cruise Tourism Expansion
Government-backed tourism initiatives—including marine ports and coastal cruise infrastructure—are driving domestic and international cruise activities. With Cruise Saudi Company receiving its first maritime tourism license in 2024, the passenger segment is the fastest-growing category in the market.

3. Regional Goods Transport & GCC Integration
Saudi Arabia's position as the GCC’s largest economy and trade facilitator boosts goods transport activity (65% of 2024 revenue). Port expansions and enhanced sea linkages within the Gulf are intensifying inter-country shipping and logistics flows.

 

 Market Segmentation Insights

By Transport Type

• Deep‑sea shipping holds the largest share (≈35% in 2024) and enjoys a robust 5.8% CAGR, supported by major container terminals such as the Red Sea Gateway Terminal, which handles millions of TEUs annually.

By Application

• Offshore transport dominates with 70% revenue share, thanks to the nation’s oil and gas exploration, offshore construction, and maritime tourism developments.
• Passenger transport is growing at the fastest rate, fueled by cruise tourism and increasing leisure marine activities along coastal and island destinations.

By Usage Category

• Goods transport remains the largest segment (≈65% share) due to strong export of oil & petrochemical products and rising imports.
• Passenger segment is expanding faster, correlating with growing cruise tourism and religious visitation by sea.

 

 Regional Landscape

• The Eastern Region leads the market with around 40% share in 2024, driven by substantial port activity in Dammam, Jubail, and Ras Tanura—all critical hubs for oil and cargo export.
• Makkah Province is the fastest-growing region, expected to expand at a 5.9% CAGR. Key cities like Jeddah and Yanbu anchor its maritime growth, thanks to pilgrimage and tourism-related sea travel infrastructure.

 

 Emerging Trends & Opportunities

Sustainable Propulsion
A growing shift toward cleaner technologies is driving adoption of electric and LNG-powered vessels, aligning with global emission reduction commitments and regional sustainability agendas.

Port Modernization & Route Expansion
Upgrades to major ports and development of new navigable routes are enhancing handling capacity and improving logistics efficiency—catalysts for long-term growth across goods and passenger segments.

 

 Challenges & Market Dynamics

Climate Vulnerability
Rising sea levels, coastal erosion, and increased storm intensity threaten port infrastructure and operational reliability—a key constraint in maritime planning and investment.

Market Consolidation
The industry is relatively consolidated with major players like Bahri, Cruise Saudi Company, Aramex, EFS, MAQTA Gateway, Hellmann Logistics, and others controlling large segments of the market across freight and passenger segments.

 

 Strategic Outlook (2024–2030)

With projected growth to USD 17.0 billion by 2030, at a consistent 5.4% CAGR, the Saudi water transport market is poised for sustained expansion across multiple fronts—trade, tourism, offshore logistics and sustainable infrastructure.

Growth opportunities lie in:

• Scaling offshore logistics related to oil, gas, and supply chain infrastructure
• Expanding cruise and passenger transport services via new marine terminals and regulatory facilitation
• Deploying green propulsion vessels to retrofit legacy fleets and meet environmental benchmarks
• Modernizing port and coastal terminals to support rising goods throughput and navigational capacity

 

 Final Takeaways

• The Saudi Arabia waterfront economy is expanding, with the water transport market expected to reach USD 17.0 billion by 2030 at 5.4% CAGR.
• Offshore transport will dominate, supported by energy sector logistics, while the passenger cruise segment is the fastest-growing.
• The Eastern Region leads market share, and Makkah Province is emerging fastest due to tourism and coastal development.
• Sustainability, port modernization, green propulsion, and integrated supply chain logistics represent key growth drivers.