Saudi Arabia Connected Car Market Grow with a CAGR of 13.26% through 2030

The Saudi Arabia connected car market is growing rapidly, driven by advancements in 5G, smart infrastructure, consumer demand for safety, infotainment, and government initiatives supporting digital transformation in mobility.

According to TechSci Research report, “Saudi Arabia Connected Car Market – By Region, Competition, Forecast & Opportunities, 2030F”, the Saudi Arabia Connected Car market stood at USD 253.22 million in 2024 and is anticipated to grow USD 533.02 million by 2030 with a CAGR of 13.26% during forecast period. The connected car market in Saudi Arabia is experiencing rapid growth, fueled by advancements in digital infrastructure, rising consumer expectations for smart mobility, and strong government initiatives aligned with Vision 2030. As the Kingdom continues to diversify its economy and promote sustainable urban development, connected vehicle technologies have emerged as a key focus area within the broader transportation and digital transformation strategies. These vehicles equipped with integrated telematics, internet connectivity, and advanced software enable seamless communication between drivers, vehicles, infrastructure, and cloud-based platforms. Their capabilities range from real-time navigation and diagnostics to safety enhancements, over-the-air (OTA) updates, and infotainment services, making them increasingly attractive to both consumers and fleet operators.

One of the most transformative enablers of this market is the nationwide expansion of 5G infrastructure. This high-speed, low-latency connectivity is critical to enabling the core functions of connected cars, including vehicle-to-everything (V2X) communication, predictive maintenance, and real-time safety alerts. Moreover, Saudi Arabia’s investment in smart city projects like NEOM and The Line further reinforces the deployment of intelligent transportation systems, where connected and autonomous vehicles are expected to play a vital role. These developments are laying a solid foundation for long-term adoption of connected mobility solutions in the Kingdom.

Safety has emerged as another core aspect of connected car adoption in Saudi Arabia. Advanced Driver Assistance Systems (ADAS) are gaining traction across the market, with features like adaptive cruise control, lane departure warnings, blind-spot detection, and emergency braking being incorporated into newer vehicle models. These technologies not only improve road safety but also serve as critical building blocks toward semi-autonomous and fully autonomous driving. The high rate of road traffic accidents in the country estimated by the World Health Organization to be around 28 deaths per 100,000 people has intensified the push from both public and private sectors to adopt technology that reduces human error and enhances driving standards. The government's increasing emphasis on enforcing vehicle safety regulations further supports the proliferation of connected and intelligent safety features.

Government support plays a central role in shaping this market. Vision 2030 has laid out ambitious goals for digital transformation, emissions reduction, and smart city development, all of which align closely with the adoption of connected vehicles. Authorities are facilitating regulatory frameworks, encouraging private-sector partnerships, and making targeted investments in emerging mobility technologies. The Public Investment Fund (PIF), for instance, has made significant investments in electric and autonomous vehicle companies, such as Lucid Motors and Human Horizons, with the goal of establishing local manufacturing and connected car ecosystems. Meanwhile, joint ventures like EVIQ—a collaboration between the PIF and the Saudi Electricity Company—are deploying thousands of EV charging stations nationwide, enabling the growth of telematics and remote-connected services in electric vehicles.

In addition, industry players are increasingly entering the Saudi market with localized connected services. General Motors launched OnStar in the Kingdom in 2024, offering real-time emergency response, vehicle diagnostics, and in-car connectivity through its Chevrolet, GMC, and Cadillac brands. Similarly, Nissan introduced its next-generation NissanConnect 2.0 platform, featuring built-in Google services like Assistant, Maps, and Play Store to enhance the in-car experience. These moves signal a clear commitment from global OEMs to invest in connected vehicle platforms tailored to Saudi consumers.

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The Saudi Arabia Connected Car market is segmented into vehicle type, connectivity type, communication, service, and company.

Based on the connectivity type, tethered connectivity is emerging as the fastest-growing segment in Saudi Arabia’s connected car market, driven by its affordability and ease of integration. This model allows vehicles to connect through the driver’s smartphone, enabling access to real-time navigation, streaming, diagnostics, and other connected services without requiring embedded hardware. It offers flexibility to consumers who want connected features without the higher cost of factory-installed systems. Automakers are increasingly incorporating tethered options, especially in entry- and mid-level models, to cater to cost-sensitive, tech-savvy users. As smartphone penetration and mobile internet usage rise, tethered solutions are becoming increasingly attractive across a wide consumer base.

Based on the region, the Western region of Saudi Arabia is emerging as the fastest-growing area in the connected car market, supported by rapid urbanization, tourism development, and major infrastructure projects. Cities like Jeddah, Makkah, and Madinah are witnessing increased demand for advanced mobility solutions due to rising population density and ongoing smart city initiatives. Enhanced road networks, expanding digital connectivity, and a growing tech-savvy population are accelerating the adoption of connected vehicle technologies. Additionally, regional investments in transportation modernization and environmental sustainability are fostering the integration of intelligent transport systems, positioning the Western region as a key hub for next-generation automotive innovations.

Major companies operating in Saudi Arabia Connected Car market are:

• Apple Inc.
• AT&T Inc.
• Ford Motor Company
• General Motors Company
• BMW Group
• Google Inc
• Audi AG
• Delphi Automotive PLC
• NXP Semiconductors N.V
• Car Force

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“Data-driven services and business models are transforming the automotive landscape in the Kingdom. With the rise of embedded connectivity, vehicles are generating massive volumes of real-time data on usage patterns, diagnostics, driver behavior, and system performance. This data opens up new opportunities for insurers to develop usage-based insurance (UBI) models, where premiums are adjusted based on driving habits and safety scores. Fleet management operators are leveraging telematics solutions to monitor vehicle health, reduce fuel consumption, and optimize route planning. Moreover, automotive OEMs are increasingly offering subscription-based services for premium features, creating recurring revenue streams while allowing customers to personalize their driving experience. According to the Saudi Data and Artificial Intelligence Authority (SDAIA), over 100 terabytes of data are processed through the National Data Bank (NDB), powering use cases in transport, logistics, and mobility,” said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Saudi Arabia Connected Car Market, By Vehicle Type (Passenger Car, Commercial Vehicle), By Connectivity Type (Embedded, Tethered, Integrated), By Communication (Vehicle To Vehicle, Vehicle to Infrastructure, Vehicle to cloud, Vehicle to Pedestrian, Vehicle to Everything), By Service (Driving Assistance, Connected Safety, Well Being, Vehicle Management, Intersection Assistance, Emergency Braking, Others), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of SAUDI ARABIA Connected Car 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 Connected Car market.

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