Market Trends of Saudi Arabia Automotive Sensors Industry
This section covers the major market trends shaping the Saudi Arabia Automotive Sensors Market according to our research experts:
Infotainment and ADAS systems Are Expected to Drive the Market
From reconfigurable instrument clusters to center, the number of displays in a vehicle is expanding. Simultaneously, display quality is improving as a result of larger displays with higher resolutions and higher brightness levels. E-mirrors for back and side views, as well as wireless charging modules and extra media hubs, are becoming more widespread. Car buyers want aesthetically pleasing surface designs, which necessitates the use of extra integrated circuits (ICs) such as inductance-to-digital converter (LDC) sensors, which enable a force touch function on non-screen surfaces and can measure the amount of force exerted.
- For instance, In December 2021, Texas Instruments (TI) launched LDC sensors LDC3114-Q1, which allows a smooth user interface (UI) experience with touch-on-metal, plastic, or glass surfaces for UI surrounding the central console.
Advanced driver assistance systems include advanced safety features. Initially known for cruise control, ADAS has evolved into much more, putting sensors on cars to a whole new level to enable features such as in-cabin monitoring, blind-spot recognition, lane departure warning, parking assistance, and even the most advanced autonomous driving technology.
- For instance, In July 2022, The Saudi Arabian government intends to invest USD 80 billion in Neom City in order to boost demand for autonomous vehicles for daily commuting in Neom City. Neom City is planned to support the most sophisticated infrastructure, and the government is expected to assist vehicle-to-vehicle and vehicle-to-city communications as part of its ongoing efforts to expand the advanced telecommunications industry. Automotive sensor market participants should spend in R&D to enhance sensor technology and make it appropriate for autonomous cars.
Saudi Arabia's Transition to Electric Mobility Pushing the Market
Saudi Arabia is a growing economy, owing to high individual income levels and the country's robust banking and financial sector. As a result, sales of luxury items such as automobiles, and other luxury goods have increased. The country is also undergoing tremendous population expansion, and younger buyers are now the most powerful drivers of the luxury market.
Additionally, the Saudi government has announced a plan to build four economic towns to boost internal commerce, attract foreign direct investment (FDI), and diversify into non-oil industries, which is bolstering the country's market growth for luxury goods.
Saudi Arabia claims to have at least 30% cars plying on the road of Riyadh to be electric by 2030. The goal to boost EVs in Riyadh comes as more countries attempt to reduce or phase-out internal combustion engines run on gasoline and petrol. Strengthening the claim are the initiatives as The Saudi Arabian government is signing deals with several global players to provide the country with the latest electric vehicles.
The National Industrial Development Center (NIDC) aspires to recruit 3-4 Original Equipment Manufacturers across the ICE and EV value chain, with the objective of producing 300,000 cars yearly with a 40 percent local content by 2030, in compliance with the Kingdom's Vision 2030 targets. Through loans, tax breaks, and tariff exemptions, the NIDC promotes industrialization. Vehicle body panels, wheel components, and other vehicle components are in high demand, providing potential for U.S. firms seeking joint venture agreements in the Kingdom.
International companies are entering Saudi Arabia which will increase the demand need for advances and innovative technologies for electronic sensors in the auto sector and positively impact the market growth during the forecast period.
- In May 2022, Lucid Group, a manufacturer of electric vehicles based in the United States, announced the establishment of its first overseas facility in Saudi Arabia. The factory will initially service the local market and will be capable of producing 155,000 cars per year.
- In May 2022, Saudi Arabia's Ministry of Industry and Mineral Resources has announced that the kingdom is targeting to manufacture more than 300,000 cars annually by the year 2030.
In the light of all these situations, the market growth for automotive sensors is expected to grow with significant growth during the forecast period.
