Saudi Arabia Autonomous Vehicle Market Grow with a CAGR of 17.47% through 2030

Saudi Arabia’s autonomous vehicle market is growing due to Vision 2030 initiatives, smart mobility adoption, supportive regulations, investments in AI technologies, and partnerships with global tech and automotive companies

According to TechSci Research report, “Saudi Arabia Autonomous Vehicle Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Autonomous Vehicle market stood at USD 1.03 billion in 2024 and is anticipated to grow USD 2.70 billion by 2030 with a CAGR of 17.47% during forecast period. The autonomous vehicle (AV) market in Saudi Arabia is undergoing a transformative phase, driven by the government’s ambitious Vision 2030, which seeks to diversify the economy and modernize key sectors, including transportation. At the heart of this transformation is the push for smart mobility solutions, which are expected to play a pivotal role in reshaping the Kingdom’s urban landscape and economic structure. The integration of autonomous technologies is being championed across various national initiatives, most notably within mega projects like NEOM and The Line. These developments are designed from the ground up to accommodate and prioritize autonomous vehicles, emphasizing sustainability, technological innovation, and urban efficiency. Saudi Arabia envisions a future where mobility is seamless, intelligent, and autonomous, with AVs forming the backbone of public and private transportation networks.

Government support is one of the primary accelerators of this market. The authorities are actively encouraging the adoption of self-driving technology through pilot programs, international collaborations, and targeted investments in artificial intelligence (AI), 5G networks, and Internet of Things (IoT) infrastructure. The Saudi Data and Artificial Intelligence Authority (SDAIA) and the Transport General Authority (TGA) are playing central roles in developing the necessary policy framework and technology ecosystem to support autonomous mobility. Moreover, regulatory sandboxes and test zones are being implemented to enable safe experimentation of AVs in real-world conditions, paving the way for full-scale deployment in the future. These initiatives reflect a forward-thinking regulatory environment that recognizes the complexity of autonomous mobility while striving to remain globally competitive.

Another significant trend in Saudi Arabia’s AV market is the emergence of global partnerships and commercial agreements with technology and automotive companies. Major international players such as WeRide and Uber are actively collaborating with Saudi stakeholders to test and launch autonomous services. For example, WeRide has recently initiated operations in Riyadh and AlUla, deploying Robotaxis and Robobuses, with commercial services expected to roll out by late 2025. These collaborations not only bring advanced technologies into the country but also help local entities gain access to global expertise and best practices in autonomous mobility.

Additionally, the rise of Mobility-as-a-Service (MaaS) platforms and autonomous logistics solutions is shaping the market dynamics. The growing demand for contactless, safe, and efficient transport solutions especially in densely populated and high-traffic urban centers—is accelerating the integration of AVs in public transport and delivery services. Companies are exploring self-driving shuttle services, autonomous last-mile delivery robots, and driverless public transit vehicles as part of a broader mobility ecosystem. The logistics sector, in particular, is ripe for automation as it seeks to improve efficiency and reduce costs in the wake of booming e-commerce activity.

Despite the positive momentum, the market is not without its challenges. Regulatory uncertainty remains a critical issue, particularly around liability, insurance, data security, and cybersecurity. AVs depend heavily on the real-time collection and processing of vast amounts of data, raising concerns over user privacy and data governance. There is also a need for robust standards that govern AV behavior, interoperability, and emergency decision-making. Addressing these issues will require comprehensive policy frameworks, international alignment, and public-private cooperation.

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The Saudi Arabia Autonomous Vehicle market is segmented into vehicle type level of autonomy, vehicle autonomy, propulsion, and company.

Based on the propulsion, the electric segment is the fastest growing in Saudi Arabia’s autonomous vehicle market, driven by the Kingdom’s sustainability goals and Vision 2030 initiatives to reduce carbon emissions and reliance on fossil fuels. Growing investments in EV infrastructure, such as charging stations and smart grids, support this transition. Electric autonomous vehicles offer enhanced energy efficiency and lower operational costs, making them increasingly attractive for public transport and logistics. Additionally, collaborations with global EV manufacturers and incentives for green mobility are accelerating the development and adoption of electric AVs, positioning the segment for rapid expansion in both urban and commercial applications.

Based on the region, the Western region is the fastest growing in Saudi Arabia’s autonomous vehicle market, driven by major urban centers like Jeddah and the development of futuristic projects such as NEOM and The Line. These smart city initiatives are designed to integrate autonomous mobility from the outset, making the region a hotspot for AV testing and deployment. The presence of advanced infrastructure, international partnerships, and strong government investment has accelerated AV development. Additionally, the Western region’s appeal as a tourism and innovation hub supports increased demand for intelligent transport solutions, positioning it as a leading area for autonomous vehicle growth in the Kingdom.

Major companies operating in Saudi Arabia Autonomous Vehicle market are:

• Local Motors
• General Motor Company
• Ford Motor Company
• Renault SA
• Bayerische Motoren Werke AG
• Mercedes-Benz Group AG
• Hyundai Motor Co
• Tesla Inc.
• Nissan Motor Co., Ltd.
• Kia Corporation

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“Technological advancement is another core driver of the autonomous vehicle market in Saudi Arabia. The increasing maturity of AI algorithms, machine learning, LiDAR, radar, and advanced sensors has made AVs more viable and reliable. The deployment of 5G infrastructure across major cities is also enhancing the connectivity required for vehicle-to-everything (V2X) communication, which is critical for safe and efficient autonomous navigation. These advancements allow vehicles to interact with road infrastructure, pedestrians, and other vehicles in real time. The Kingdom’s strategic investment in digital infrastructure is expected to lower the technological barriers to AV deployment while fostering innovation in the mobility sector,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Saudi Arabia Autonomous Vehicle Market, By Vehicle Type (Passenger Car, Commercial Vehicle), By Level of Autonomy (L1, L2, L3, L4, L5), By Vehicle Autonomy (Semi-Autonomous, Fully Autonomous), By Propulsion (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of SAUDI ARABIA Autonomous Vehicle market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Saudi Arabia Autonomous Vehicle market.

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