Saudi Arabia OTR Vehicle Market to Grow with a CAGR of 5.8% through 2030

Megaproject construction, accelerated mining development, logistics upgrades, Vision 2030 diversification, foreign investment inflows, rising digitalization, and sustainability mandates collectively propel Saudi Arabia’s OTR vehicle demand across construction, mining, agriculture, and warehousing.

According to TechSci Research report, “Saudi Arabia OTR Vehicle Market – By Region, Competition, Forecast & Opportunities, 2030F”, Saudi Arabia OTR vehicle market was valued at USD 6.55 Billion in 2024 and is expected to reach USD 9.20 Billion by 2030 with a CAGR of 5.8% during the forecast period. The Saudi Arabia Off-the-Road (OTR) Vehicle Market is experiencing steady growth, driven by a combination of strategic national goals, industrial expansion, and operational modernization across key sectors. A fundamental drive is the increasing investment in logistics and supply chain optimization, which is creating demand for efficient and rugged material handling equipment, particularly forklifts and compact utility vehicles. Additionally, the expansion of Saudi Arabia’s industrial zones and special economic cities is boosting the use of OTR vehicles for material transport, site preparation, and facility construction. The government’s focus on improving transportation and connectivity between cities and industrial hubs further supports the need for durable off-road machinery.

However, the market also faces certain challenges that temper its growth trajectory. One notable issue is the high dependency on foreign-manufactured equipment and spare parts, which exposes the market to global supply chain disruptions and currency fluctuations. Maintenance of high-end imported equipment also demands technical expertise and localized service networks, which remain underdeveloped in some remote areas. Moreover, limited access to financing options for smaller contractors and agricultural operators can restrict the adoption of newer or advanced OTR models, particularly electric or hybrid variants. Environmental regulations are becoming more stringent, especially in urban projects, posing challenges for operators using older diesel-powered machinery. Additionally, extreme operating conditions such as high temperatures, sandstorms, and rough terrain demand enhanced equipment durability and regular servicing, increasing the total cost of ownership. Despite these hurdles, rising digitalization, workforce upskilling initiatives, and growing interest in automated and smart construction equipment are beginning to reshape the competitive landscape. As the Kingdom continues to diversify its economy and invest in non-oil sectors, the OTR vehicle market is poised to evolve, supported by a gradual shift toward more sustainable, connected, and locally supported machinery solutions.

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The Saudi Arabia OTR Vehicle market is segmented into vehicle type, propulsion, application and region.

Based on propulsion, the electric propulsion segment is the fastest growing in the Saudi OTR vehicle market, despite its current small base. Several factors are converging to drive this rapid growth. First, the Saudi government has pledged to reach net-zero emissions by 2060, and sectors like construction and logistics are under growing pressure to reduce their carbon footprint. This is fostering demand for electric alternatives, especially in applications with consistent usage patterns and predictable loads. Second, large urban development projects now place a greater emphasis on green construction practices, including the use of noise-free, emission-free machinery. Electric forklifts and compact loaders are already making inroads in warehouse and indoor environments, where ventilation and noise control are important. Third, significant improvements in battery life, charging infrastructure, and energy management systems are making electric OTR vehicles more viable. OEMs such as Volvo CE, Caterpillar, and Komatsu have introduced electric variants suitable for lighter operations, and local companies are starting to partner with global players to test these vehicles in Saudi conditions. Moreover, public-private partnerships are promoting pilot deployments of electric equipment in smart city and industrial park projects. Over the coming decade, as costs decline and infrastructure improves, electric propulsion is expected to move into heavier segments like mid-size loaders and mini-excavators, making it the most dynamic growth area within the market.

Based on region, the Western Region, which includes Jeddah, Makkah, Madinah, and the Red Sea coast, is emerging as the fastest-growing regional market for OTR vehicles. This growth is primarily fueled by the scale and ambition of mega-projects like NEOM, The Red Sea Project, AMAALA, and Qiddiya, all of which are in the western corridor. These giga-projects span tourism, renewable energy, smart cities, and entertainment—requiring extensive earthmoving, grading, and construction operations. Moreover, Jeddah is a key commercial port city, with increasing demand for material handling equipment such as forklifts and cranes in logistics zones. The presence of hilly terrain and coastal challenges in some areas has also led to rising use of specialized and technologically advanced OTR machinery. With increased public and foreign investment in infrastructure, sustainable tourism, and smart industrial zones, the Western Region is rapidly transforming, making it the fastest-growing area in the Saudi OTR vehicle market.

Major companies operating in Saudi Arabia OTR Vehicle market are:

• Caterpillar Inc.
• Epiroc Middle East FZE
• Sany Heavy Industry Co., Ltd.
• Abdul Latif Jameel IPR Company Limited
• Hyundai Construction Equipment Co.
• Hitachi Ltd.
• Komatsu Ltd.
• Volvo Construction Equipment Corporation
• Manitowoc Company Inc.
• Liebherr

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“In recent years, the increasing integration of automation and semi-autonomous technologies in OTR vehicles is an emerging trend that reflects a broader shift toward intelligent operations in Saudi Arabia's industrial sectors. With the country's ongoing digital transformation and labor productivity challenges, industries are turning to smart equipment to improve operational efficiency and safety. Semi-autonomous features—such as automated grading, GPS-guided excavation, collision avoidance systems, and operator-assist technologies—are being integrated into modern construction and mining equipment. These systems reduce reliance on highly skilled operators, minimize human error, and ensure consistent performance, especially in high-risk or remote environments. For example, autonomous dump trucks and dozers can operate on fixed routes within mining zones, significantly reducing turnaround times and enhancing worker safety. The use of drones and LiDAR-equipped vehicles for surveying and site monitoring is also gaining traction”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Saudi Arabia OTR Vehicle Market, By Vehicle Type (Tractor, Excavator, Loader, Dozer, Dump Trucks, Forklift, Others), By Application (Mining, Construction, Agriculture, Others), By Propulsion (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Saudi Arabia OTR 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 OTR Vehicle market.

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