Saudi Arabia Commercial Vehicle Market to Grow with a CAGR of 4.12% through 2030

Rising infrastructure development, growing logistics and e-commerce activities, and expanding construction projects are accelerating demand for commercial vehicles in Saudi Arabia. These factors are driving the market in the forecast period 2026–2030.

According to TechSci Research report, “Saudi Arabia Commercial Vehicle Market – By Region, Competition, Forecast and Opportunities, 2020-2030F”, The Saudi Arabia Commercial Vehicle Market was valued at USD 7.81 Billion in 2024 and is expected to reach USD 9.95 Billion by 2030 with a CAGR of 4.12% during the forecast period.The Saudi Arabia commercial vehicle market is undergoing a strategic transformation, driven by evolving business models, digital logistics integration, and rising demand for customized mobility solutions. The push for economic diversification under Vision 2030 has led to a surge in demand for vehicles tailored to sectors such as retail, tourism, and healthcare services. As service-based industries expand, the need for adaptable, application-specific commercial vehicles including refrigerated vans, mobile service units, and specialized transport—is gaining momentum. Public and private fleet operators are seeking vehicles that align with digital fleet management systems, aiming to boost productivity and enhance route optimization

Technological adoption is emerging as a significant driver, with businesses prioritizing commercial vehicles that support real-time tracking, predictive diagnostics, and driver safety features. Digital transformation across logistics chains has prompted a shift toward intelligent vehicle platforms equipped with telematics and automated maintenance alerts. Furthermore, the emergence of subscription-based fleet models and flexible leasing options is making commercial vehicle ownership more accessible, especially for startups and SMEs seeking operational agility without the burden of high capital investment.

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on "Saudi Arabia Commercial Vehicle Market"

Saudi Arabia Commercial Vehicle Market Is Segmented by Propulsion, Vehicle Type, and By Region.

​In 2024, hybrid commercial vehicles recorded the fastest growth in Saudi Arabia’s propulsion mix, emerging as a compelling middle ground between conventional internal combustion engines and fully electric models. Their ability to offer improved fuel efficiency and reduced emissions without the range limitations of battery-electric vehicles made them particularly attractive to fleet operators. Businesses looking to reduce operational costs and align with environmental goals found hybrids to be a low-risk, high-return solution. Unlike fully electric vehicles that depend heavily on a widespread charging infrastructure still under development in many parts of the country—hybrids provided operational continuity while lowering fuel consumption. Their versatility across short- and medium-range applications, including delivery vans, light-duty trucks, and municipal fleets, allowed logistics and transport companies to adopt them without overhauling their existing systems.

The Western region of Saudi Arabia led the adoption of hybrid commercial vehicles in 2024, fueled by a combination of urban development, infrastructure readiness, and policy alignment. Cities like Jeddah, Makkah, and Madinah saw a surge in hybrid fleet deployment, especially for last-mile delivery, municipal services, and short-haul transport. These densely populated urban areas face increasing pressure to reduce vehicular emissions, manage traffic congestion, and support more sustainable mobility models. The Western region's relatively advanced alternative-fuel infrastructure, including refueling points and dedicated lanes for cleaner vehicles, made it a natural hotspot for early adoption. Local authorities also began incorporating hybrid buses and service vehicles into public fleets to meet evolving environmental regulations. Moreover, the region’s exposure to extreme climatic conditions, such as high temperatures, made hybrids more favorable compared to fully electric vehicles, which often face thermal efficiency challenges. Fleet modernization programs launched by both public and private entities in the Western region further reinforced the shift, making hybrids the preferred solution for balancing operational performance with environmental responsibility.

Major Market Players Operating in Saudi Arabia Commercial Vehicle Market Are:

• Toyota Motors Corporation
• Isuzu Motors Saudi Arabia Company Limited
• Mitsubishi Fuso Truck and Bus Corporation
• Hino Motors Limited
•  Ford Motor Company
• Hyundai Motor Company
• MAN Truck and Bus Middle East
• Volvo Trucks Corporation and Volvo Bus
• Mercedes-Benz KSA Commercial Vehicles
• Ashok Leyland

Download Free Sample Report

Customers can also request for 10% free customization on this report.

Commercial vehicle buyers are increasingly adopting leasing and subscription-based ownership models as flexible alternatives to outright purchase. These models offer lower upfront costs, predictable monthly payments, and the ability to upgrade vehicles more frequently, making them attractive to both startups and large logistics operators. Leasing helps preserve cash flow and provides access to new vehicles without the burden of depreciation or resale. Subscription services extend this model by bundling maintenance, insurance, and telematics into a single monthly package, simplifying fleet management. Businesses can scale fleets up or down based on operational needs, which supports agility in rapidly changing markets”, said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

“Saudi Arabia Commercial Vehicle Market By Propulsion (ICE, Electric, Hybrid), By Vehicle Type (Light Commercial Vehicle, Medium Commercial Vehicle, Heavy Commercial Vehicle), By Region, Competition, Forecast and Opportunities, 2020-2030F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the Saudi Arabia Commercial Vehicle Market.

Contact Us-

TechSci Research LLC                                                                                          

420 Lexington Avenue, Suite 300,

New York, United States- 10170

M: +13322586602

Email: [email protected]

Website: www.techsciresearch.com