Market Size of Saudi Arabia Electric Vehicle Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.56 Billion |
| Market Size (2029) | USD 2.20 Billion |
| CAGR (2024 - 2029) | 24.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Saudi Arabia Electric Vehicle Market Analysis
The Saudi Arabia Electric Vehicle Market size is estimated at USD 0.56 billion in 2024, and is expected to reach USD 2.20 billion by 2029, growing at a CAGR of 24.5% during the forecast period (2024-2029).
The industry is currently in its early stages, poised for substantial expansion in the coming years. This growth is driven by the increasing governmental emphasis on renewable energy production to combat rising pollution and emissions resulting from the escalating use of fossil fuels. Concurrently, efforts are underway to diversify the economy away from the oil and gas sector by investing in alternative industries. Saudi Arabia, aligning with global environmental goals, has set a target to achieve net-zero emissions by 2060, establishing its commitment through the first Nationally Determined Contribution (NDC) under the Paris Agreement.
The Saudi Arabian government is actively launching programs and initiatives to promote green mobility, recognizing the pivotal role of transportation in reducing carbon footprints. Massive investments are directed toward electrically-powered public transportation systems, coupled with incentives for consumers to transition to electric vehicles (EVs) or vehicles powered by natural gas and hydrogen. As fuel prices rise and environmental concerns escalate, consumer interest in EVs is growing, setting the stage for significant expansion in the Saudi Arabian electric vehicle market through 2029.
To meet the increasing demand for EVs, various companies are forming partnerships to develop suitable EV charging infrastructure. Substantial research and development investments are also being made to drive innovations in both vehicle and battery technologies. This strategic approach aligns with Saudi Vision 2030, which seeks to decrease reliance on the oil and gas sector while fostering green mobility. Consequently, the concerted efforts are expected to accelerate the adoption of EVs and hybrid electric vehicles (HEVs), presenting new opportunities for substantial growth in the Saudi Arabian electric vehicle market in the years to come.
Saudi Arabia Electric Vehicle Industry Segmentation
An electric vehicle (EV) is a type of transportation that uses electricity stored in batteries to power electric motors. Hybrid electric vehicles (HEVs) combine an internal combustion engine with electric propulsion, while plug-in hybrid electric vehicles (PHEVs) can be recharged from an external power source and have both electric and combustion engine capabilities.
The report covers the Saudi Arabian electric vehicle industry, and it is segmented by vehicle type (passenger and commercial vehicles) and fuel type ( battery electric vehicle (BEV), fuel cell electric vehicle (FCEV), hybrid electric vehicle (HEV), and plug-in hybrid electric vehicle (PHEV)).
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| Fuel Type | |
| Battery Electric Vehicle (BEV) | |
| Fuel Cell Electric Vehicle (FCEV) | |
| Hybrid Electric Vehicle (HEV) | |
| Plug-In Hybrid Electric Vehicle (PHEV) |
Saudi Arabia Electric Vehicle Market Size Summary
The Saudi Arabian electric vehicle market is in a nascent stage but is poised for significant growth over the coming years. This expansion is driven by the government's strong focus on renewable energy and reducing emissions, aligning with global environmental goals and the country's vision to achieve net-zero emissions by 2060. The government's initiatives to diversify the economy away from oil dependency include substantial investments in green mobility, such as electrically-powered public transportation systems and incentives for consumers to adopt electric vehicles. These efforts are supported by strategic partnerships and investments in EV charging infrastructure, vehicle, and battery technologies, all of which are integral to Saudi Vision 2030. The market is witnessing a shift towards battery electric vehicles (BEVs), supported by government incentives and the development of a robust charging network, particularly in urban areas and along major highways.
The competitive landscape of the Saudi Arabian electric vehicle market is rapidly evolving, with both local and international players actively participating. Significant investments and partnerships are shaping the market, including the establishment of manufacturing facilities by companies like Lucid Motors and Hyundai, and collaborations with global giants such as Tesla and ABB. These developments are complemented by government-backed initiatives to enhance EV infrastructure and promote electric mobility. While passenger vehicles dominate the market due to consumer preferences and government incentives, there are ongoing efforts to address challenges in the commercial sector, such as range limitations and costs associated with electric commercial vehicles. The market's growth trajectory is further bolstered by strategic financial commitments and the introduction of new BEV models, indicating a promising future for electric vehicles in Saudi Arabia.
Saudi Arabia Electric Vehicle Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Degree of Competition
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2. MARKET SEGMENTATION
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2.1 Vehicle Type
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2.1.1 Passenger Cars
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2.1.2 Commercial Vehicles
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2.2 Fuel Type
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2.2.1 Battery Electric Vehicle (BEV)
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2.2.2 Fuel Cell Electric Vehicle (FCEV)
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2.2.3 Hybrid Electric Vehicle (HEV)
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2.2.4 Plug-In Hybrid Electric Vehicle (PHEV)
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Saudi Arabia Electric Vehicle Market Size FAQs
How big is the Saudi Arabia Electric Vehicle Market?
The Saudi Arabia Electric Vehicle Market size is expected to reach USD 0.56 billion in 2024 and grow at a CAGR of 24.5% to reach USD 2.20 billion by 2029.
What is the current Saudi Arabia Electric Vehicle Market size?
In 2024, the Saudi Arabia Electric Vehicle Market size is expected to reach USD 0.56 billion.
