Saudi Arabia’s Electric Bus Market Set to Reach $130.4 Million by 2030, Driven by Vision 2030 and Mega Projects
Saudi Arabia’s commitment to sustainable mobility and reduced reliance on fossil fuels is reshaping its public transportation landscape. According to the newly released report, “Saudi Arabia Electric Bus Market by Region, Competition, Forecast & Opportunities, 2020–2030F” from ResearchAndMarkets.com, the electric bus market in Saudi Arabia was valued at USD 85.25 million in 2024 and is projected to reach USD 130.43 million by 2030, expanding at a compound annual growth rate (CAGR) of 7.39%.
This growth is fueled by a combination of government sustainability goals, large-scale urban projects, and the modernization of the Kingdom’s public transport network. As part of the nation’s Vision 2030, Saudi Arabia is prioritizing environmental protection, economic diversification, and energy efficiency—all of which align with the rapid adoption of electric mobility solutions.
Electric Mobility Gains Momentum Under Vision 2030
The cornerstone of Saudi Arabia’s electric bus market expansion is the government’s Vision 2030, an ambitious roadmap designed to transform the nation’s economy by reducing its dependence on oil and developing sustainable industries. A major pillar of this vision is green transportation, which emphasizes cutting greenhouse gas emissions, enhancing urban air quality, and fostering innovation in energy-efficient mobility.
Under this framework, the government has rolled out multiple policy-level initiatives and investment programs to promote the use of electric vehicles (EVs), including buses, across the Kingdom.
The Ministry of Industry and Mineral Resources has announced plans to produce more than 300,000 vehicles annually by 2030, including a significant share of electric models. This aligns with the national goal of localizing EV production and building an integrated ecosystem that supports manufacturing, charging, and maintenance infrastructure.
Public transportation authorities, such as the Royal Commission for Riyadh City (RCRC) and the Saudi Public Transport Company (SAPTCO), have already begun deploying electric buses in major cities like Riyadh, Jeddah, and Dammam. Pilot programs are being conducted to evaluate vehicle performance under local conditions, paving the way for broader rollouts in the coming years.
The adoption of electric buses directly supports the government’s commitment to reducing carbon emissions and improving public health. Cleaner and quieter public transport also contributes to Saudi Arabia’s vision of building livable, sustainable, and smart cities.
Mega Projects Driving Electric Bus Demand
Beyond government mandates, large-scale infrastructure and tourism projects are accelerating the transition to electric mobility. Mega developments such as NEOM, the Red Sea Project, and Qiddiya are being designed as smart, carbon-neutral cities, incorporating electric transportation networks as part of their core infrastructure.
In NEOM, for example, electric buses will play a vital role in supporting sustainable urban mobility. These futuristic projects serve as testing grounds for advanced mobility systems, integrating clean energy, AI-driven traffic management, and renewable-powered charging facilities.
The rising demand for eco-friendly transport solutions is further supported by a strong post-pandemic economic recovery. According to the General Authority for Statistics, Saudi Arabia registered approximately 625,000 new vehicles in 2023, up from 540,000 in 2022. This rebound, driven by increased government spending and private investment under Vision 2030, reflects growing confidence in the automotive and mobility sectors—creating fertile ground for the expansion of electric bus infrastructure.
Market Challenges: Cost and Infrastructure Constraints
Despite strong policy backing, the electric bus market in Saudi Arabia faces notable financial and operational challenges. The high initial investment required for electric buses—covering vehicle costs, charging infrastructure, depot upgrades, and workforce training—remains a significant hurdle.
While electric buses offer lower total cost of ownership (TCO) over time due to reduced fuel and maintenance expenses, the upfront capital costs are considerably higher than those of conventional diesel buses. This cost gap can discourage smaller private operators or municipalities from adopting electric fleets, especially in the absence of robust financial incentives, subsidies, or flexible leasing models.
Currently, Saudi Arabia’s incentive programs for electric vehicles are still evolving. Broader implementation of public-private partnerships (PPPs) and government-backed financing frameworks could play a crucial role in overcoming these early-stage barriers and accelerating adoption.
Integration of Smart Technologies and Telematics
A defining trend shaping the Saudi electric bus market is the integration of smart technologies and telematics to enhance efficiency, safety, and operational transparency. Modern electric buses in the Kingdom are being equipped with advanced telematics systems that deliver real-time insights on energy consumption, battery health, driver performance, and maintenance needs.
These innovations are particularly aligned with Saudi Arabia’s smart city vision, as seen in Riyadh and NEOM, where Intelligent Transportation Systems (ITS) are being developed to connect buses with traffic signals, control centers, and charging infrastructure. This networked approach improves fleet coordination, reduces congestion, and enhances passenger experience.
As the market matures, AI-driven predictive maintenance, data analytics, and autonomous driving capabilities are expected to become integral to Saudi Arabia’s electric bus ecosystem. Such advancements will not only improve fleet reliability and reduce downtime but also contribute to achieving net-zero emission goals through optimized resource utilization.
Outlook: Toward a Greener, Smarter Transport Future
With Vision 2030 serving as a guiding framework, Saudi Arabia is on track for sustained expansion and technological evolution. The government’s proactive policies, combined with mega urban projects and rising environmental awareness, are creating strong momentum for the shift toward zero-emission public transport.
Although high capital costs and infrastructure limitations remain challenges, ongoing investments in local manufacturing, renewable energy integration, and digital mobility systems are expected to mitigate these barriers over time.
By 2030, Saudi Arabia aims not only to have a thriving electric bus network but also to serve as a regional benchmark for sustainable transportation—one where innovation, efficiency, and environmental responsibility converge to shape a cleaner, smarter future for the Kingdom’s cities and citizens.